Developer Does Not Collect Dues From All Homeowners

Started by MargoT • 4 replies • 1309 views

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MargoT (Georgia)
Posts: 80

Posted:

Our Developer is the Developer,Builder AND the HOA. Phase One of our small community is now six years old. The Developer won't produce a budget. Several of the residents state the Developer won't respond to their emails or telephone calls so they refuse to pay hoa dues.

How can the residents that pay dues force the Developer to collect dues, provide an annual budget per his CCR's?
Margo

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Margo,
Not that it is a solution to your problems because I don't think anyone can tell you a sure fired way to solve this problem, outside the courts and all that entails.

But lets look at a little history that has been building through out this HOAs business creation.

You are in this for the long haul.
There are many similar problems going on with new or about to be new HOA's.
Your developer is sitting in the cat bird seat because of a bunch of reasons.
You are starting to find out some of them.
If you are going to go up against the developer because you can't honestly get through to him, I doubt you can do it by your association management now.
You personally, unless you have deep pockets stand little chance of effecting change.
You can appeal to the developer and try for a reasoned agreement.
Once all reason has been blown away, you can then try and organize your fellow owners outside your HOA structure. Some have been successful.
You can appeal to your county and state officials for any help, unlikely to get it. They would be much happier if the HOA fought it out.
You can try and get some token number of Homeowners on the present board and try and work through them. No much chance of success.

The above are posted as ideas and concepts to think about and form your opinions from them, IF THEY HELP.

I am sure your realize by now, you are in for a tough fight and there is going to be no easy fixes.

Is there injustice in HOA, even HOA's control by elected Boards. Of course there is.

But what you want to happen can happen and your future can be proposed and implemented, over time, and good judgment of the owners part. Eventually you all will get to a point where you elect your own Board (Management). Read some of the posts on this site about that. Your road is filled with minefields, and most of us posting here have been down that road. You may want to back away from it all, just like your neighbors. Again I suggest to look at the long view, it seems to be the best choice.

MicheleD (Kentucky)
Posts: 4,491

Posted:

First, how do you know the developer isn't collecting dues? Just because someone says they won't pay him, doesn't mean he hasn't or won't initiate action against them, up to and including a lien on their property.

Second, I'm not sure the developer has to show anyone anything at this point in the project. He still pretty much controls it all.

But it would be foolish and foolhardy for anyone to think they can "force" him to do anything by not paying their assessments. He would have the court on his side in that fight.

Has your community discussed creating a liaison committee to work WITH the developer, instead of against him?

We did that in the early days of our development, and we were able to have an early transition because of it.

EllenS1 (Florida)
Posts: 1,148

Posted:

Margo,

I would go to whatever governmental agency that oversees this type of thing. The developer must be registered with the state..start there.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Margo,

I would suggest you thoroughly read all your gov docs. In most instances the developer has certain rules in the gov docs that are designed to protect his interests while he is still in control of the HOA. It's not uncommon for him to be the developer, the builder and the HOA at that stage. And, as such he runs the HOA and can usually do pretty much as he pleases. Check to see how many homes must be sold to trigger transition to the homeowners. Perhaps it won't be too long before he's gone. In the meantime it's best to just bide your time and don't listen to the rumors floating around; in most instances they're just hearsay and bear no merit.

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