BradleyS2 (Georgia)
Posts: 2
Posts: 2
Posted:
First off, what a great place this is to learn and share. I'm glad that I found these valuable resources, and hope that someone can offer some advice.
I recently moved into a newly developed community in North Georgia. I believe that there is roughly 30 homes currently occupied, which we all have paid $300.00 per year for HOA dues. This community has 2 separate divisions, with different names, but both were to fall under the same covenants.
About 2 months ago, we all received a letter from the main developer that the HOA account has a zero balance. The developer stated that he was having to shell out approximately $2,000.00 out of pocket per month to keep up the community, which we have a pool, club house, tennis courts, sidewalks, street lights and fairly nice landscaping. As a community, we decided to meet amongst ourselves to discuss the developers spending, and decide how we should take action as home owners. We were told by another home builder in the community that all HOA dues were to be deposited into a trust fund that was not to be spent. This trust fund would eventually be handed over to the new HOA once the neighborhood was 75% occupied. We were all a little aggravated that this money had already been spent, and we wanted to see on paper these expenditures. We then scheduled another meeting, and sent the developer a certified letter requesting his presence to discuss this matter. The developer never showed up. Last night, I was informed that the street lights would be shut off, and that the pool and landscaping maintenance was to be discontinued due to non payment. At this point, all we know is that the HOA has no money, and the developer has evidently refused to continue paying these expenses. We are all concerned that he will completely abandon this community, and this seems to be happening now. We have no clue on how to proceed with this. We all want to protect our investment, and keep our community beautiful.
The next problem, as I mentioned above this community has 2 divisions with separate names, but all fell under the same covenants. We have been informed that the developer has divided the 2 divisions, and has imposed separate covenants for each side without our knowledge. What concern us are the covenants for the "West" side has much lower expectations, and allows for cheaper houses to be built. This directly affects our property values. What once were $180K+ neighborhood, has now changed to a $140K+ neighborhood because of the cheaper houses being built. We were all under the impression that any changes to the covenants would have to be voted on with all home owners. I understand that since there are allot of lots still undeveloped, and available that the developer is the majority holder, and would have won any votes anyways, but this was never presented to us to allow us the opportunity to vote, or at least to discuss.
So, to summarize our HOA has no money, the developer is refusing to pay monthly expenses, the street lights have been cut off, and there is no maintenance being performed on the pool or landscaping. Covenants have been changed without any home owner’s knowledge, and will affect all of our property values. We are scared that this is the beginning of complete abandonment of the developer.
Any advice or recommendations would be greatly appreciated.
Concerned Home Owner
North Georgia
I recently moved into a newly developed community in North Georgia. I believe that there is roughly 30 homes currently occupied, which we all have paid $300.00 per year for HOA dues. This community has 2 separate divisions, with different names, but both were to fall under the same covenants.
About 2 months ago, we all received a letter from the main developer that the HOA account has a zero balance. The developer stated that he was having to shell out approximately $2,000.00 out of pocket per month to keep up the community, which we have a pool, club house, tennis courts, sidewalks, street lights and fairly nice landscaping. As a community, we decided to meet amongst ourselves to discuss the developers spending, and decide how we should take action as home owners. We were told by another home builder in the community that all HOA dues were to be deposited into a trust fund that was not to be spent. This trust fund would eventually be handed over to the new HOA once the neighborhood was 75% occupied. We were all a little aggravated that this money had already been spent, and we wanted to see on paper these expenditures. We then scheduled another meeting, and sent the developer a certified letter requesting his presence to discuss this matter. The developer never showed up. Last night, I was informed that the street lights would be shut off, and that the pool and landscaping maintenance was to be discontinued due to non payment. At this point, all we know is that the HOA has no money, and the developer has evidently refused to continue paying these expenses. We are all concerned that he will completely abandon this community, and this seems to be happening now. We have no clue on how to proceed with this. We all want to protect our investment, and keep our community beautiful.
The next problem, as I mentioned above this community has 2 divisions with separate names, but all fell under the same covenants. We have been informed that the developer has divided the 2 divisions, and has imposed separate covenants for each side without our knowledge. What concern us are the covenants for the "West" side has much lower expectations, and allows for cheaper houses to be built. This directly affects our property values. What once were $180K+ neighborhood, has now changed to a $140K+ neighborhood because of the cheaper houses being built. We were all under the impression that any changes to the covenants would have to be voted on with all home owners. I understand that since there are allot of lots still undeveloped, and available that the developer is the majority holder, and would have won any votes anyways, but this was never presented to us to allow us the opportunity to vote, or at least to discuss.
So, to summarize our HOA has no money, the developer is refusing to pay monthly expenses, the street lights have been cut off, and there is no maintenance being performed on the pool or landscaping. Covenants have been changed without any home owner’s knowledge, and will affect all of our property values. We are scared that this is the beginning of complete abandonment of the developer.
Any advice or recommendations would be greatly appreciated.
Concerned Home Owner
North Georgia