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BethM1 (Idaho)
Posts: 8
Posted:
Our developer went broke and has been bought out. The new developer wants to put an RV parking lot and storage units on two of the common areas. He argues that they will make money for the HOA. He has to get a conditional use permit, so is seeking community support in advance. I wonder....

Can HOA's have money making features like storage units?

What are the problems of having these features on the common ground? Liability?

Is there a recommended ratio of open ground to homes in townhome developments? These common areas were supposed to be open parks.

Thanks for any advice!
GlenL (Ohio)
Posts: 5,491
Posted:
IMO this is a bad idea and everyone should voice their disapproval of it to the zoning board. Best case the HOA will end up running these businesses but the more likely scenario is that he will somehow isolate these businesses from the HOA and end up owning them out right. Also the mortgage holders in place should voice their disapproval as the mortgages were written on your unit and your undivided interest in the common elements (or mine was) and this plan could affect the mortgages in place.

Studies show that 5 out of 4 people have problems with fractions
MaryA1 (Arizona)
Posts: 7,043
Posted:
Beth,

I don't know that I would agree to the storage units, but an RV parking area sounds like a very good idea especially if the HOA prohibits parking on the street to parking the RV on one's lot unless it is out of view. I know of a large senior community near me that has a large RV parking area. The HOA does not need to charge a fee to park in the lot; it's first come, first serve. However if the BOD does decide to charge a fee that income would be subject to income tax just as any other income that is not deemed exempt function income (assessments).

If the city/co where you live has certain requirements for "green" areas (parks) then the developer would not be permitted to turn a common area into a parking/storage area unless enough other green areas are available to meet the zoning requirements. Check with your planning/zoning dept on this.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To me,
It sounds as if the developer wants to establish two businesses, hide them from his creditors and sort of sell them to the HOA to run. That is a bad idea, IMHO. If the developer wants to offer this land for sale,,,,,,,,AND HE CAN DO IT UNDER THE DOCUMENTS, the HOA might think about buying this and making it common property (as an investment). This will require work and expenses and this whole situation is clothed in so many unknowns, any answer just about has to be: Don't do it. But if there is opportunity for the HOA to benefit, consider it and inform the members and let them desire.

Our condo runs a little side business renting out storage space for golf carts and some charge for electricity that is on common property. Very low key and charges are handled by association bookkeeping. Anything else would make me very nervous.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By MaryA1 on 04/01/2010 7:07 AM

If the city/co where you live has certain requirements for "green" areas (parks) then the developer would not be permitted to turn a common area into a parking/storage area unless enough other green areas are available to meet the zoning requirements. Check with your planning/zoning dept on this.

Mary hit the nail on the head with this one and it's a huge RED FLAG that he has to go get a CONDITIONAL USE PERMIT.

Frankly, I would fight this as hard as I can. I would go door to door and garner as much support against this as possible.

You will NEVER be able to get an answer to the appropriate ratio of green/open space to building density in this forum for your specific city.

You will need to go speak to the city planners regarding what the minimum requirements are for ALL developers in your area.

Remember this, once those areas get "changed," they never, ever change back.

There are a number of valid reasons for green and opens spaces in and around residential areas.

It sounds like he's also wanting to get a conditional use permit to change the zoning to be able to run a commercial business in a zoned residential area.

Your development needs to be on top of this or the character and enjoyment of your neighborhood will go down hill fast.
BethM1 (Idaho)
Posts: 8
Posted:
Thanks to all for helping us prepare.
Our "Friends of Pepperwood" group held a meeting with the developer tonight. We had a good turnout with a variety of concerns being expressed by almost everyone there. After about 40 minutes he said - "OK If you don't want it we wont do it. Saves me all the effort of trying to get a conditional use approval."
He wasn't even vindictive - a very lucky outcome. ;-)
GlenL (Ohio)
Posts: 5,491
Posted:
That’s all well and good but I would find out when the zoning board meets and attend them. He may have said he gives up but he could still show up and try an end run hoping no one will show up to contest it. Or you could see if the ZB posts an online agenda.

Studies show that 5 out of 4 people have problems with fractions
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Beth and Glen,
Good idea Glen. The "Friends" did their job, good for them. But don't disband.
Glen tops your developer Beth, he has nothing to be vindictive about;)

I don't think the Storage units and RV parking is the issue. I think money, or lack of it, is the issue.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Beth:

I have served on several commissions and on a variety of advisory committees for council members in my locality.

One thing I can tell you, the developer WILL likely try and end-around as Glen said.

It happens here all the time. The "informal" meeting he held with you has given him some pretty good insight that the conditional use permit will be objected to by the community.

So he will simply work the system and do it with a way to either get around the "public comments" portion (trust me, if he's a developer he knows the zoning board people and the doors to knock on that your people do not) or to do it in such a way as to make it difficult for more than one or two people to attend.

One of the worst incidents of something like this was when a developer in our metro area (about 4 miles from our subdivision) started cutting down acres of protected greenspace in order to put in warehouses.

By the time the community was able to organize and stop him, he had removed so many acres it would make your stomach turn.

Long story as short as I can make it, a judge ordered him to halt, which he did for about a year, then he started it back up again. He was found in contempt and by the time it was all said and done (about 3 years in all), he simply agreed to plant X acres of new growth trees about 80 or so miles from the area.

Part of the issue was the lack of adequate notice to the "community" from the very beginning to enter the process. It USED to be that the only "concerned citizens" that had to be "notified" were directly adjacent owners. Well, in this case, the city was the owner of some of the property, a trust was owner of another and a third was someone who was leasing the property out. However the REST of the community around it was all residential. Not one of those owners was aware of the project until the tree cutting began.

NOW the process is that all property owners within a certain radius need to be notified.

The moral is, designate a member of your "friends" group to be a liaison with or to the zoning board, have that individual go down in person to walk the halls, learn who is who, get on all the necessary mailing lists and notification lists, meet people face to face, ask them to walk you through the process that developers go through.

It will take more than one visit. Consider it a learning program. Let the people downtown know that you want to be aware citizens and that you want to understand THEIR process and YOUR responsibilities.

Good luck to you!
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Hooray for MichelleD,

All please take note that this thread is about an association that the developer is still in control. I, for one, tend to throw up my hands and say,"Well the developer is in control and he can do what he/she wants."

Fact, to a point. All the action here is taking place outside the developer's control. In his favor, he did attend the meeting, but from what I can see the "Friends" played a big part. Michelle and Glen......both right.
GlenL (Ohio)
Posts: 5,491
Posted:
That’s right Robert, I know of one developer who typed up a petition asking for something innocuous like; are you in favor of blue skies and bunnies? He had all the signatures on attached pages then substituted the cover page for what he really wanted. It was just sheer luck that he was found out; one of the women in the Zoning Office was a client of one of the homeowners who was a hairdresser and she just happened ask the woman why everyone was in favor of such a stupid proposal.

Studies show that 5 out of 4 people have problems with fractions

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