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My subdivision is in a similar situation as Daisyboat and Leigh--fairly new and trying to get the homeowners to vote for getting the roads up to DOT standards so the state can take over. We had our first attempt last year, and it didn't pass. I think the HOA will try again this year, too. Like already mentioned, many think they won't still be living here by the time the roads need major work performed. Some pointed out how bad it might have to get before the state would repair a public subdivision road. Case-in-point: how bad New Light Rd was before it was finally resurfaced.....hard to imagine they would worry about a less frequently traveled road in a subdivision.
This is horrible, I cant believe that the developers get off the hook that easy.
Can someone explain how the bond works?
And to the original poster:
I have seen DOT be very strict about the roads when taking over so doint be suprised that if the job isnt done perfect that they will reject it.
Nope! And evidently, the restricted covenant we thought we had is rubbish because the developer failed to sign and notarize certain parts of the document.
So it was never recorded? What then, did everyone (including, presumably a closing attorney and a title insurance company) rely upon as evidence of the covenants? How could they be referenced in your deed without referring to the book and page at which they were recorded? This sounds really odd.
This is horrible, I cant believe that the developers get off the hook that easy.
Can someone explain how the bond works?
In simple terms think of a Bond as an insurance policy. The contractor is required to purchase a Bond (insurance policy) for projects that certifies completion of the work will be paid for by the Bond Issuer if the contractor fails to finish the job.
Contractors are limited in the size of the individual bonds they can purchase as well as the total value of all bonds by their financial standing. I am reviewing paving proposals today wherein one contractor identified their bond limits as $25M per project and $50M combined total for all projects.
It is in the contractor's continuing business interest to get jobs completed and accepted so the Bonds can be cancelled to allow the Contractor to be Bonded on their next project.
But a Contractor going bankrupt, followed by no one demanding project completion by the Bonding Agency, and a finite life expectancy for the Bond (I don't know if this part is true) could be the cause of these issues.
So it was never recorded? What then, did everyone (including, presumably a closing attorney and a title insurance company) rely upon as evidence of the covenants? How could they be referenced in your deed without referring to the book and page at which they were recorded? This sounds really odd.
I am unsure of the specific details. I heard about this second-hand from one of my neighbors who built one of the first houses in the neighborhood and still lives here.
From what I understand, there is nothing left of the bond from the developer. Although, we may need to look into that.
Luckily, we have an engineer that lives in the neighborhood that helps design roads, so he knows a lot about the requirements for DOT to take it over. For instance, current standard is 3" of asphalt and we only have 1.5".
When my wife and I bought in this neighborhood 11+ years ago, I don't recall there ever being a disclosure about the road. I'd say this is a significant enough issue, maybe not back then when the subdivision was 5 years old, but most certainly more pressing year after year. If this had been brought to our attention, I honestly think it would have factored into our decision to buy.
I live in a neighborhood that was developed about 17 years ago. Evidently, the original developer never submitted the proper paperwork to turn the road over to Wake County. Flash forward to present, our road has areas that need repair and it appears it is going to be very costly. There are only 21 houses in the neighborhood and roughly 1,500 feet of road, plus a cul-de-sac, so it would be a considerable expense even divided equally. Unfortunately, the road would have to be brought up to current DOT standards before they would take it over. It appears our road is classified as private with public right of way.
Thought I would ask if anyone here has any experience in this type of situation? We are currently seeking an attorney to discuss the matter.
It's find to send a DM.
Thanks!
We are in about the same situation our development was developed about 12 - 13 years ago. The original developer lives in our development. The second and final coat of blacktop needs to be put on so it can be up to the codes for the township to take it over and maintain it and of course he has not done the final coat and there are now pot holes and the road is crumbling and needs alot of work done on it to bring it up to codes.
We all took him on his word when we bought our lots and built homes but his word is no good either.
I am in a subdivision that has 35 homes and have the same situation described above. The developer went bankrupt and while we will have access to the bond that was posted based on estimates we've gotten, it will probably be approx 500 per home to get roads brought to DOT standards. We are in the process of doing the necessary research to present to the homeowners so we can determine how we are going to handle. Leigh, would you be able to provide the name and location of your subdivision? I'd also like to speak to you more about the process your HOA has been using.
Daisyboat, can you explain how you got the money from the county before your subdivision made the necessary repairs to the roads? Can you explain how your Board is determine what items to fix as well as how significant the costs have been.
I'm just trying to gather additional information for our HOA members so we can hopefully make the best decision for our subdivision.
Although this started a couple of years ago it is still an interesting topic...if readers forget the old start date and click to the end. Mullymom, sometimes they don't do the final coat for some other reason. Sometimes it's a "why bother" situation because the bed under where the top coat goes has been found to be improperly done and therefore would not be accepted by the state.
Sometimes the developer has used the excuse that he doesn't want to put on the topcoat until all the earth movers and numerous moving trucks have left. Of course, by then, the underlay has been compromised. And, by then, sometimes there's no money to dig up and replenish/rectify the situation.
Can be a mess.
We had a road in our last hoa where we visited friends but it took us a few years to realize the it was neighbor maintained, not DOT maintained. The reason for this was an odd turn around at the end because the large lot was a bit narrow for two rows of houses with a two lane roard down the middle. It required a little narrower road and, therefore, a very sharp turn around at the end, sometimes requiring a K turn. Of course, that wasn't acceptable to the state.
It seems they went back and forth with the developer and in the end somehow got the topcoat on and after that they pay an additional sum every month that is held for road repair.
I can tell you we ended up getting our subdivision’s hoemowners to vote and all agree to do a one time assessment to get the roads up to the DOT standards. The NC DOT after inspecting and a few mi or changes required we were able to get the roads certified to get into their system. The DOT is now responsible for any road repairs.
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