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TonyM2 (California)
Posts: 2
Posted:
We moved into a new development in October 2005. We were the second family to move into the development. We now have approximately 10 households so far. We were told that there would be Association fees due annually. When we built our home the cost was stated at less than $100 per year. We expected the amount to go up as more and more people started building and moving in. During that time we've been waiting for the developer to announce when the first dues were due, how much, and when we were going to have our first meeting to choose our officers,etc.
Last week we received a letter from an attorney for the developer stating that $648.00 dues were due and retro-active to the date we moved in. It also stated that we were going to have to pay 10% late fees for the prior year and 2 months. Finally, the letter stated that a lien would be placed on our home if we didn't pay immediately.
Now we don't know how to contact the developer and were told, by the attorney that sent the letter, that he wasn't familiar with our situation but that everyone in the development received the same letter.
What I want to know is do we send the money and hire an attorney; or do we hire an attorney and not pay anything for now until we get some answers from the developer?
We don't have any idea what the developer is going to do with the money. There has not been any improvements to the development since we moved in; except by the individual homeowners. I was under the impression that we form an association committee and then decided the amount needed to maintain the development. I was also under the impression that we would receive a bill or something to tell us who to send the check too and a report explaining where the money was going and how much was in the bank.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Tony,
Ouch! Once in a while a Developer is not open and forthright with his buyers. Yes someone said that the dues would be less than $100.00 per year and it was probably the sales person who sold it to you. Guess what, they always say that just to sell a house.Mine was just like that--for a year and then we got it big time too.

You will have to go into your documents and look under assessments or dues, depending on what he called them. Is there a sentence for escallation limits or any description on assessments being figured out on any specific time or terms? Since 2005 when you first moved in, there have been many changes to building requirements from States and Counties. Impact fees and schools are passed down to the Developers and probably a hundred items more that I don't know about. Some of the increases may be justified but we certainly don't know--yet.

You can demand an expense sheet from him but you won't get it because that is the way Developers work. Do you have a Budget yet or I assume that you have not had a turnover yet? What is really smelly is the very short notice from him and the tone of the Lawyer is less than nice. But the Developer might just have a huge bill to pay for his land or whatever.
TonyM2 (California)
Posts: 2
Posted:
I did go through my papers and the only thing it shows is the amounts being charged for undeveloped acreage. And yes it was our realtor who stated the current price at our sale, but we knew that it could go up at the associations discretion. The problem is: we have no association, meetings, or anything to go by. There have not been any homes resold in our area as of yet, one is for sale. I think what you stated concerning the Developer is probably right. He was doing some major road building before the market went bust.
Do you know where I could go (websites?) to find a good lawyer in Arizona who is familiar with this type of problem?

Thanks for your help,
Tony Miller
GeraldT4
Posts: 1,022
Posted:
TonyM2 - First, words of caution: It's not wise to post a pdf with the attorney's name, etc. detailing the specifics. HOAtalk may frown upon it and remove it for you. Second, you knew there would be fees, curious why you didn't inquire prior to getting the letter as to a bill for the fees? Third, you should request the attorney provide a breakdown for the $648.00 because that would mean your yearly fees are in and around $324.00 apprx. 230% more than was stated. Okay, so perhaps the attorney is getting a portion of the $648 collected but the point is, your fees are much higher than was stated. Do you have anything in writing regarding the original fee, any sales promotional materials? The attorney is collecting the fee on behalf of the association which is probably still controlled by the Developer.
DaneC (California)
Posts: 210
Posted:
Based on the name you supplied, a check at your Secretary of State website, reveals that this is a dissolved corporation, and therefore unable to conduct business !!

http://starpas.azcc.gov/scripts/cgiip.exe/WService=wsbroker1/names-detail.p?name-id=11098969&type=CORPORATION

According to the document the lawyer referenced, the assessments are on page 4, and are way less than $100.00. You should also read page 10 which explains declarant control period.

Hopefully, this link will get you to that document -

http://icris.co.yavapai.az.us/icris/unofficial.jsp?did=3631057
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DonnaS (Tennessee)
Posts: 5,671
Posted:

Dane,

Excellent detective work. It is important to check the Incorporation site for a check on the status of new developements that get into financial trouble.
hoatalk (California)
Posts: 603
Posted:
Quote:
Posted By GeraldT4 on 01/23/2008 12:40 PM
TonyM2 - First, words of caution: It's not wise to post a pdf with the attorney's name, etc. detailing the specifics. HOAtalk may frown upon it and remove it for you.

That's correct. The attachment has been removed. Best Regards, HOATalk

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