New Road Maintenance HOA

Started by FrankF1 • 5 replies • 2805 views

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FrankF1 (Maine)
Posts: 3

Posted:

I own a property in a small sudivision of 9 lots in Maine. Most owners purchased the lots in the 90s and early 00s. Five homes have recently been built and we are looking to form a road maintenance agreement. We Would like to conduct it the best possible way to be fair to all circumstances. The road is not paved and I don't see that happening in the near future.
The deed was accompanied by attachments requiring owners to become a member of the association. It requires "all members to contribute according to a pro-rata share towards the cost of any and all improvements, maintenance or repair, according to its by-laws, rules and regulations, as adopted, and from time to time ammended. Each lot owner, by acceptance of deed, agrees to abide by all rules and regulations promulgated by said association."
The only expence we have is a common road to maintain. The original owner/ subdivider is out of the picture now and this is the first attempt to get this going. It seems it's up to the owners to come to an agreement that we all can live with.
What would be some good ways to split up the cost? I think there will be an innitial shape up cost to get the road in good condition and then a schedule of maintenance thereafter. Should there be a cost difference for those with homes and those with unimproved lots?
Is there anyplace to get copies of association by-laws and agreements to use for meetings and for research? I would like to avoid the unknown pitfalls of this endevor.
Any input and direction would be appreciated

JosephW (Michigan)
Posts: 882

Posted:

First, you're going to have to come to some better definition than "pro-rata". My first interpretation of this was (assuming that there are properties on both sides of the road) that each would pay based on length along their frontage times 1/2 the costs for that length (the neighbor across the street paying the other half. That would cover frontage, but for common areas, such as entrances, should the same formula apply? I.E. if an owner has 14% of actual frontage, should they pay 14% of total, or common cost? or should they only pay for their frontage and then an equal share of common areas? Pro rata means "In proportion, according to a factor that can be calculated exactly" but I'm not sure that helps. As to "improved or un-improved" lots, I'm not sure that should affect the costs or the apportionment.

You're propbably going to have to incorporate, in order to establish an entity to handle the funds (banking, checks, taxes), which menas a mandatory membership association. Maine doesn't have an HOA/POA act so you're not going to get any guidance from the state.

Basically, sort out what you want to do and then take it to an attorney who has dealt with associations. They can draft something simple, and take care of the legal filings.

JOe

Joseph West
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FrankF1 (Maine)
Posts: 3

Posted:

Thanks Joe. This is a good start for me to understand. I've been looking for help from the state and the town and all I can find is a State title that covers repair of private roads.
The situation is an owner on each side of the road. There are no common areas other than the road. What do you mean by entrances? The roadway entrance off the town road?
As for unimproved lots should the owners of those be responsible for snow clearing and sanding? Or maybe the maintenance agreement should not address that? Does plowing and sanding create wear on the road that must be repaired? Are these things that other associations have dealt with and how were they resolved?
I beleave that whether you are there or not a productive and reasonable association and well maintained road increases the value of the investment for the future resident or seller.

JosephW (Michigan)
Posts: 882

Posted:

Yes, by common area, I mean entrances, or the point where your road connects to another road you're not responsible for. Often, that intersection is not owned by any owner, but is an easement for the town, but they often ignore it. As for non-resident owners, I think the deed attachments require ALL owners to contribute. It doesn't matter whether they are resident or not.

You set up a budget for each year that includes normal maintenance and clearing and a reserve amount for resurfacing and or replacing the road when needed. Basically determine the life expectancy of your road, given your maintenance program and the use the road receives every year, and then estimate how much it would cost to do a major overhaul and about when that should be expected. That should tell you how much to put into the reserve each year.

The alternative is to wait until the road needs work and then levy a special assessment to cover the costs. This is often done in situations like yours, but you should know that the owners often reject the assessment, for whatever personal reasons, and the road will just continue to deteriorate. It's a little bit easier if you put a little aside every year.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

ShawnaF (Colorado)
Posts: 84

Posted:

If I were in your shoes, I'd start by calling a few local and well-known developers in your area. Ask for the verbiage from their docs since most developers initially put in the roads and then the owners share later in maintenance. Even if you don't USE the wording, you have a few ideas to present to the owners of what is "common" and likely has been legally researched for your state. Most developers are more than happy to help out when given a chance rather than being on the defensive. Some will even send you the entire docs to play with. You can also ask for references for folks to do the work which will also help you out!

FrankF1 (Maine)
Posts: 3

Posted:

Thank you for the input. It a appriciated

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