Developer-who pays for what?

[JOE_2019]

Hello,

I live in a decent sized community currently 256 houses with a total of 500 planned. The neighborhood is currently set up as a POA which is governed by the Board of Directors and they have selected a management company to manage the day to day activites. The Developer has selected a builder for the community. I would like to gain some perspective on a couple of items in regards to Developer and Homeowners responsible funding.

1) We currently pay yearly dues and from the yearly Financials the Homeowners are paying for legal fees, landscaping improvements (plant buying), irrigation system, pool repair etc. Is this normal?

2) Since this is a POA should the homeowners be funding every enhancement to the neighborhood i.e. planting in common areas and light poles etc.?

3)We currently only have 1 pool with a bathing capacity of 90 people and no clubhouse. Do Communities of around 500 houses usually only have 1 pool and no clubhouse? How can I find out if what we currently have is acceptable or outside the norm?

4) Do the Homeowners have the right to approach the management company executing for the POA for financial records i.e. invoices etc? How often should the POA be releasing financials?

5) If questions arise from reading the covenants dictated by the POA, the management Company should be responsible for answering the question in a reasonable time frame, correct?

6) Who pays to complete PUD related items?

7) Is it safe to treat the management company as a Supplier and the Homeowners are the Customer?

8)What are typical expectations of Management company communicating to the Homeowners and helping them?

9) Are Developers usually behind the scenes people and rarely call open forums or make themselves available?

10) What is a PUD rider?

Appreciate your time and help.

 

[LdiJ]

Hello,

I live in a decent sized community currently 256 houses with a total of 500 planned. The neighborhood is currently set up as a POA which is governed by the Board of Directors and they have selected a management company to manage the day to day activites. The Developer has selected a builder for the community. I would like to gain some perspective on a couple of items in regards to Developer and Homeowners responsible funding.

1) We currently pay yearly dues and from the yearly Financials the Homeowners are paying for legal fees, landscaping improvements (plant buying), irrigation system, pool repair etc. Is this normal?

2) Since this is a POA should the homeowners be funding every enhancement to the neighborhood i.e. planting in common areas and light poles etc.?

3)We currently only have 1 pool with a bathing capacity of 90 people and no clubhouse. Do Communities of around 500 houses usually only have 1 pool and no clubhouse? How can I find out if what we currently have is acceptable or outside the norm?

4) Do the Homeowners have the right to approach the management company executing for the POA for financial records i.e. invoices etc? How often should the POA be releasing financials?

5) If questions arise from reading the covenants dictated by the POA, the management Company should be responsible for answering the question in a reasonable time frame, correct?

6) Who pays to complete PUD related items?

7) Is it safe to treat the management company as a Supplier and the Homeowners are the Customer?

8)What are typical expectations of Management company communicating to the Homeowners and helping them?

9) Are Developers usually behind the scenes people and rarely call open forums or make themselves available?

10) What is a PUD rider?

Appreciate your time and help.

Are we to understand that there are only a few homes so far in the development and the rest are empty lots? Certainly the homeowners should not be paying for the initial installation of amenities and landscaping. That should be the developer's responsibility. Upkeep and maintenance would be the responsibility of the POA.

However, if all of the lots have to pay into the POA, even the lots still owned by the developer, then that might change the nature of things some.

 

[FlyingRon]

You'd have to read all the covenants, subdivision docs, etc... to know exactly but generally the POA doesn't really come into swing until a certain number of the lots have been sold/built.

I agree with Ldij, you shouldn't be responsible for initial development (planting, isntalling irrigation) of the common areas in most cases. That's on the developer. Paying upkeep on them however is another issue. Typically, the developer writes the condition, so he gets a sweet deal on any lots he still owns but still it's typically not 100% on the early purchasers.

What you have by right to do varies by state. I've missed what state we're talking about. Typically, the POA retains a lawyer to help with their interests. You may have access to him who can explain just what rights of the homeowners (as a group) are.

 

[JOE_2019]

You'd have to read all the covenants, subdivision docs, etc... to know exactly but generally the POA doesn't really come into swing until a certain number of the lots have been sold/built.

I agree with Ldij, you shouldn't be responsible for initial development (planting, isntalling irrigation) of the common areas in most cases. That's on the developer. Paying upkeep on them however is another issue. Typically, the developer writes the condition, so he gets a sweet deal on any lots he still owns but still it's typically not 100% on the early purchasers.

What you have by right to do varies by state. I've missed what state we're talking about. Typically, the POA retains a lawyer to help with their interests. You may have access to him who can explain just what rights of the homeowners (as a group) are.

Thank you for the advice and reply. I am in GA. The community will be around 500 homes once fully completed.
Oh going to the developer would be pointless because we would be strung around and never get a clear answer to anything which is frustrating and challenging. How do we find if the funds collected through the homeowners dues are funding these activities? Do have to audit the finances and go through each invoice?