Developer stops paying subsidy to HOA

The Developer has stoped paying his subsidy to HOA. We have a written agreement, signed, sealed, for them not to raise dues and continue subsidy until control of the HOA is turned over to us. Consequently, they are raising our dues over 60% in one year. They are the Declarant/Board of Directors what can we do ?If we don't pay our grass won't be cut, etc. Were between a rock and a hard place. Besides a lawsuit what can we do in the interim. Any thoughts or suggestions are greatly appreciated.

MaryA is telling the bare truth and correct on all counts.

It may help and would certainly make you all feel better if you all had some knowledge of what the developer is trying to do. I suspect you have an interim Board that is top heavy with management appointees. Do you have any owner members? If so, what do they say?

Since you have an agreement signed by the developer and the other party is who? Does the other party have the right to represent you and how did that happen? If this agreement has been distributed with sales promotions given to each individual owner on purchase, I strongly suggest you get legal council to look at it. It may not be worth anything but it is worth a shot. If you have no members on the Board you feel comfortable with, form your own group and call is anything that signifies you represent who your members are. Select some ( a couple) to go to developer and try to work out some method of sitting down at the table and getting this all in the open. Personally, if I thought the developer was trying to fleece you all, I would let it be known, you don't fleece easily and you will follow other evenues of resolution.

Right now, get your information and double check how accurate it is. Anything in writing that would support an objection to the dues increase. Make sure you read all his sales blurbs about offering the association for sale to the public.

I agree the developer has the right in most cases to damn near do all he wants, but he can not promise you one thing and do the other with out question. Offer a compromise, never a bad gambit.

Mike,
Well, I am not sure I have any idea what you all have done other that to enter into a very bad contract. What were you thinking? I can't imagine anyone agreeing to something like this (if I understand anything) other than you all thought you could outslick Mr. Slick. No one here is going to advise you on a contract they have never seen and I, for one, would not advise you if I had a copy of such a document. It really doesn't matter as you are asking, what can you all do to stop the bleeding. This is Saturday, I would not let Monday come unless you have a Town Meeting and have elected a few representatives of your newly formed concerned homeowners group to hire legal (the very best HOA Lawyer with no ties to this developer)you can find. By next week you should have had a meeting with this lawyer, a retainer paid and a suit filed by him to petition a judge to examine your case. I am not sure my step by step is the way to go in NC, but any action that gets your group before a Judge is how to go. As advised in previous post you have to pay your dues as proscribed by developer IF you have bound yourself to the developer. All of what you are saying sounds shaky ground to me, and if H. Clinton came on this site and gave a "how to" get out of this, my next step would still be to hire a GOOD Lawyer. God knows who you have picked for a bedfellow, but it don't look good from here, and it is going to be a bad morning after..

Just my Humble opinion, and I am glad of that.

Mike - you need a real estate lawyer ASAP to get an injunction and get your basic amentities turned back on.

As the court to appoint someone to figure out what's going on with your dues monies.