Maintenance Fees

Started by MaureenM1 • 7 replies • 1357 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

MaureenM1 (PA)
Posts: 344

Posted:

Should the builder/developer be paying maintenance fees on unsold lots in a townhome development? The maintenance fee is $190.00 per home, however, the builder owns 12 unsold lots and has no townhomes built on them. Just wondering if he should be paying the maintenance on them or if he is exempt.

I know the answer is in my CC&Rs, however, I am looking for a quick answer.

thanks,

MaryA1 (Arizona)
Posts: 7,043

Posted:

Maureen,

Then you'd better "quickly" check out your CCRs! This is a question that can only be answered by "your" CCRs. Me telling you what my CCRs say won't be of any help to you. Sorry!! The BOD can only require the developer to pay these assessments IF it's so stated in your own CCRs.

MaureenM1 (PA)
Posts: 344

Posted:

My CCRs state that declarant pays fees on units owned by declarant. Lots are not units....

BrianB (California)
Posts: 2,820

Posted:

it all depends on the CC&Rs, and who is in control (developer or owners). the answer is in your regs.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By MaureenM1 on 04/03/2009 2:23 PM
My CCRs state that declarant pays fees on units owned by declarant. Lots are not units....

Maureen,

Lots could be construed to mean units and vice versa. Could you please post the wording of this provision of your CCRs? Thx.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Your CCRs should state what the assessment is for ANY undeveloped lot - owned by the declarant or not.

MicheleD (Kentucky)
Posts: 4,491

Posted:

In one place our CC&Rs state that developer pays on lots, but after reading further areas, the developer ONLY pays AFTER he has transitioned to the homeowners once the development is 90% complete.

After that, and only after that, does he pay on any lots, undeveloped or otherwise, that he owns.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Michele,

I believe that is the norm; however, I have heard that some CCRs do state the developer must pay for all undeveloped lots, while still in control; but it may be a reduced rate. However, this should definitely be addressed in the CCRs.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here