Do we have the right to call in an inspector?

My community is still being built (and will be so for another three or four years) so the developer holds a majority on the Board.

I had a meeting with a few concerned residents because the Offering Plan clearly states that there will be no reserve fund. One of the people at the meeting is a CPA and believes the community will get slammed not long after the builder is out of the picture because of expenses from building and common area repairs that will be needed.

In order to check the quality of the construction and possible weak areas that will need attention sooner instead of later, we would like to hire (we would foot the bill) a very respected and thorough inspector to check all the buildings in our section of the condominium - this would include individual residences as well as all the common areas (roof, attic, garage, basement, utility rooms, foundation (almost every building in the community has some sort of seeping through the foundations), etc.).

Someone at the meeting suggested that we would probably have to get permission from the HOA (which is developer dominated) and the likelihood that they would allow such an inspection was less than zero.

What are our rights here? What can and can't we do in order to protect ourselves from overwhelming future assessments?
Steve

Steve,

An inspection of the property should be part of the transition process when that occurs. Any expenses involved would be paid for by the HOA. Save your money and wait until transition occurs. Do you have any idea when that might occur?

Just because the offering plan state no reserve fund that doesn't mean the BOD cannot decide to maintain a reserve fund. The declarant probably won't be funding one but once the assn is transitioned to the members the BOD can decide to budget for a reserve fund. This would be a very wise thing to do. The first step would be to have a reserve study performed which would indicate the amount of $$$ that should be deposited in the fund each year.

Since you mention problems with seepage through the foundations of almost every building in the complex, I'm wondering if this is a result of construction defects. If so, steps can be taken to have the builder make the necessary repairs. Check out your state laws on construction defect litigation or perhaps you may want to consult with an attorney.

Steve this is just my opinion and opinions are like belly buttons, everyone has one (cleaned that phrase up for the forum) but an inspector has the right to go anywhere any other guest or invitee has the right to go. So they would have the right to look inside and around anyone’s unit who invited them in but if there were an area like a mechanical room where members didn’t have access you couldn’t demand it.

If there are problems its best to address them IMHO while the builders warranty is in place (usually two years after occupancy but it varies from state to state and CC&R) rather than a protracted and expensive construction deficit suit although it might be necessary. In the mean time don’t forget about the city / county building inspector and zoning commission. It’s their job to make sure the buildings are built to code and can order repairs be made to improperly constructed buildings. The zoning commission often requires the builder to post a bond before he can build and won’t release it until the repairs are done.

Just finished reading the Offering Plan trying to find out what the limitations are to allowing me or a "guest" to enter parts of the building that will help us determine if there are problems. Can I get the excpert advice of those of you here. Here is the text that seems to discuss that:

"The Declaration of Covenants and Restrictions gives each member of the Association an easement in and to the Association Common Properties for himself and his guests. Each Member is also granted easements for ingress and egress over the parcels comprising The Properties, as well as easements to connect with and make use of certain utility and drainage lines."

Would you say this, in effect, is saying that our guest inspector can move about the building unimpeded?
Thanks
Steve

A reserve study only costs a few hundred dollars so you could probably get one yourself.

That might address one of your problems: knowing and preparing for what the costs are going to be over time. You and your neighbors could use that as a tool to figure out when and how much in special assessments will be needed to make up for the (rather poor and self-serving) decision not to have a reserve fund.

You could also either bring the reserve study up at a meeting or wait until the developer is out of the picture and then bring it up.

Independent of your developer's other issues, this might address your "no reserves" issue.