Developer HOA fees

Started by WilliamR13 • 4 replies • 231 views

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WilliamR13 (South Carolina)
Posts: 1

Posted:

We have a situation where the former developer is building 10 new homes which when completed and sold will be turned over to our HOA. he started development, ie infrastructure is complete but has put the construction of the homes on the back burner. My question is can the BOD charge him HOA fees on these unbuilt 10 homes? There is precedent here in that he contributed monies to an account in the unformed HOA when developing the original plan.

DouglasK1 (Florida)
Posts: 2,046

Posted:

More often than not the CCRs or other governing documents define if and how much the developer pays in assessments. Do your have anything on that?

Escaped former treasurer and director of a self managed association.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Empty undeveloped lots usually do not pay dues to the HOA. It is when a home is built they are. It is what makes you a homeowner not a developer.

Former HOA President

DavidG45 (Delaware)
Posts: 994

Posted:

Quote:

Posted By MelissaP1 on 08/05/2022 8:53 AM
Empty undeveloped lots usually do not pay dues to the HOA. It is when a home is built they are. It is what makes you a homeowner not a developer.

Actually, I believe they often do pay a monthly fee. In our development the developer pays an annual $50 fee for empty lots. Four years ago it was a significant part of our revenue. This year we only expect about $5,000.

Either way, it has to be in the governing documents.

DeanJ
Posts: 1,786

Posted:

Many HOAs require the developer to pay HOA fees once the land has been decided into lots a deeded irregardless if the is building occurring or not.

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