How do we pay for our common area( road)

PLEASE HELP. We live in a community of 22 houses. 4 of which were grandfathered in and do not have to belong to the HOA.(which I think is so unfair) Anyway, the road in our deveolpment desparetly needs repaired. The estimated cost of each house is 2,000. Many have said that they do not have the money...... How do we get this road fixed? Can we put leans on houses? What do you suggest???
Sincerely,
Wife of HOA president

If Roger's suggestions don't work, there is always the possibility of getting a bank loan to pay for it. The assessments would need to increase to accomodate the new monthly payments but at least the road would be repaired and it would spread the cost out over time. Banks will loan money to associations based on the annual assessments.

Thankyou so much for your reply. I will contact my bank today and get more info.

Dear SharonK,
I think you should definitely look into having the county or city take over the road. That’s what you pay taxes for. Don’t listen to rumors about city water etc.. Call and get a straight answer. We have had the same debate in our community. We pay very high taxes, do not have a gate and are not planning to. But every time the question is brought up some one will say something stupid like they will cut down all the trees, put is sidewalks and on and on. I have it in writing that all the county will do is pave it when they determine it needs paving. We keep our own street signs and lighting. The application fee is about600.00 which is a lot less than the 60,000 it is going to cost to pave it. Then there is also a liability issue. Don’t you have to pay liability? Its a very poor investment to own the road, If Im assessed for 3000.00 and then sell my house in the next year I will never recover that.
But there is always that one homeowner that wants to be contrary just for kicks and we have to have almost all homeowners agree. Its a big expense for only 33
homeowners. I would not feel right about putting a lien on anyone’s home if I could avoid it.
DarcyC HOA President

We have a HOA in MO., since 1991. We have a dead end road that the Ass'n takes care of. Gravel, grading, snow removel, etc. Now some of the homeowners will not paid their dues and want out of the HOA.
Can they do this if their Warranty Deed says;
easements and restrictions of record and in fact.
Who will take care of the road? The county will only take it over if it is up to spect--and the hownowers will not even do that.
Thank you--a newbe!!!DonnaB

Donna, they can not withdraw from the deed restricted covenants. If they are paying dues (voluntary) rather than assessments (manditory against the property) then they can chose whether or not to pay dues. Since you have a road to maintain I would presume your Declartion requires manditory assessments. If that is the case they must pay and can be forced to do so in accordance with your Declaration.

SharonK,

I'm going to point something out for your benefit going forward, not meant as an attack or criticism in a negative way.

If the HOA is responsible for the common element roadway, than money for the repair and replacement of the road should have been budgeted for from day 1 of original construction.

This is important because the HOA have to fund this repair, and all roadway repairs and replacement going forward.

I suggest you get an HOA attorney for another purpose which is to explore, and or negotiate Municipal Services Reimbursement from the borough to the HOA. I don't know what state you reside in but in my green state of North New Jersey the borough must reimburse the HOA for the borough's cost to provide services that all the other taxpayers get (snow removal of roadways, street lighting). If no reimbursement to the HOA in the amount of what it would cost the borough to provide the service, than the borough would be guilty of double taxation/double dipping. In NJ this is black and white, with case law to prove and justify the reimbursement to HOA's.

If your roadways are public right of way, and open to everyone else in your borough, the attorney may try to argue the town is either responsible for the repair and replacement of the roadways, or reimbursement to the HOA.

GeraldT1
NNJ

PaulM and HOATalk Members,

Yes, the Municipal Services Act or The Kelly Act is NJ law. I do not know about other states. However, I would strongly recommend an HOA/COA get an attorney to handle all negotiations. I would strongly recommend that if it is not law in your state, get it into law because the importance is that your purchase in an HOA/COA should not mean that you sign off on your Constitutional rights and or your right to not be taxed twice. You pay an assessment in monthly maintenance AND taxes to the municipality. Remember however that NJ law only requires the municipality to reimburse for their cost to provide the service which is less than what your HOA contractor charges you. But every little bit helps. It is conceivable that in 3 years of no reimbursement my HOA "could" receive $28,000.00.

HOATalk had an article posted from New Jersey Atlanticville press regarding this law and that the city Council of Long Branch NJ authorized reimbursement of more than $100,000 to 70 condominium owners in the city for snow removal and street lighting services. Reimbursement was RETROACTIVE!! : ) I don't see it posted, perhaps HOATalk could post it again.

The law is specifically 40:67-23.3 The Municipal Services Act. The governing body of every municipality shall (must) reimburse a qualified private community for snow removal, lighting, collection of leaves and recyclable materials and collection of solid waste along the roads and streets or provide the services within the qualified private community in the same fashion as the municipality provides these services on public roads and streets. Nothing shall require an NJ municipality to operate any municpally owned or leased vehicles or other equipment, or to provide any of the services upon, along or in relation to any road or street in a qualified private community which either (1) is not accepted for dedication to public use or (2) does not meet all municpal standards and specifications for such dedication, EXCEPT FOR WIDTH.

Best of success!!
GeraldT1
NNJ