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Stupid carpetbagger developers are building luxury communities in high crime areas since they haven't got enough background in the Triangle to fill a thimble.
In this particular instance hopefully the covenants were worded to allow some minimum number of homeowners for the HOA to turnover from the developer... otherwise those poor folks will be standing last in line in bankruptcy court... or paying more than their PITI (principal + interest + taxes + insurance) for their dues!
Yet another reason to make HOAs completely voluntary (thus extinct imho ;-).
Actually, turning over the HOA wouldn't do the homeowners any good. Let's say an HOA is planned to have 1000 homeowners paying $250/ year in assessments. The $250 was chosen because it costs $250,000 a year to run the HOA (insurance, management, printing, reserve savings, amenities, landscaping, etc.). During the construction period, the developer covers the additional cost. If there are 100 homeowners paying $250/ year, and the HOA transitions... the HOA is suddenly $225,000 under budget. For the required items like insurance, reserves, etc., assessments would have to be raised exponentially. Landscaping and pool operation, etc. would have to be scrapped.
No homeowners would be happy about that and it certainly wouldn't accomplish the goal of the HOA: to protect and enhance the value of the neighborhood and thus the resale value of every home in the neighborhood.
And making HOAs voluntary wouldn't make them extinct as much as those who loudly proclaim their hatred of HOAs would like to think. I specifically bought in an HOA after watching my Grandparents struggle to sell their house that was beatiful, but next to a junk collector who stored "treasures" in the yard.
does anyone know if this Townhome development has been abandoned as well? It is in a reasonable location off of Green Level close to highway 64 on the entrance to Beaver Creek and seems like no activity there for sometime with just one block completed - I feel sorry for the people who purchased if that is the case.
Actually, turning over the HOA wouldn't do the homeowners any good. Let's say an HOA is planned to have 1000 homeowners paying $250/ year in assessments. The $250 was chosen because it costs $250,000 a year to run the HOA (insurance, management, printing, reserve savings, amenities, landscaping, etc.). During the construction period, the developer covers the additional cost. If there are 100 homeowners paying $250/ year, and the HOA transitions... the HOA is suddenly $225,000 under budget. For the required items like insurance, reserves, etc., assessments would have to be raised exponentially. Landscaping and pool operation, etc. would have to be scrapped.
No homeowners would be happy about that and it certainly wouldn't accomplish the goal of the HOA: to protect and enhance the value of the neighborhood and thus the resale value of every home in the neighborhood.
And making HOAs voluntary wouldn't make them extinct as much as those who loudly proclaim their hatred of HOAs would like to think. I specifically bought in an HOA after watching my Grandparents struggle to sell their house that was beatiful, but next to a junk collector who stored "treasures" in the yard.
If possible, dissolve the HOA and let the county take the common areas for unpaid taxes.
The Developer is Diversified Communities out of New Jersey. The Development is called "L'Hermitage at Beaver Creek". They took down their website months ago, and don't answer phone calls. There are currently only 2 homeownwers living in there, and they are NOT happy that the community has been abandoned. Nothing has been built or worked on since December 2007. The rumors that they have gone bankrupt were not true the last I knew, but as the last agents that worked there, I do know a bit more.
Wow-these old threads pop up out of nowhere.
The developer is not bankrupt. They simply refuse to respond to anyone. The parent company is involved in another business category that is thriving-they continue to open locations in the Triangle.
At some point they will have to make a decision-
Sell the project in its current state at a price that another developer will pay, or
Attempt to resurrect the project themselves (unlikely since their name is mud in this area), or
Let the project go under completely and let the bank sell it.
It can't sit there forever.
It is rather sad. I was out that way last night showing a friend (we had looked at it many months ago when looking for a townhome and had no clue that the builder had abandoned it). I ended up calling the police because we heard and saw some males vandalizing one of the units. They saw us and then ran back into the house (it sounded like they were ripping out pipes or fixtures or something-- it was loud loud).
Wow-these old threads pop up out of nowhere.
The developer is not bankrupt. They simply refuse to respond to anyone. The parent company is involved in another business category that is thriving-they continue to open locations in the Triangle.
At some point they will have to make a decision-
Sell the project in its current state at a price that another developer will pay, or
Attempt to resurrect the project themselves (unlikely since their name is mud in this area), or
Let the project go under completely and let the bank sell it.
It can't sit there forever.
Seems irresponsible behaviour by the developer to me - once they start a project they should behave honorably both to those people who have already purchased as well as to the community at large who have to view the abandoned development on a regular basis. What I find unusual is the lack of publicity by the local press in this regard
Seems irresponsible behaviour by the developer to me - once they start a project they should behave honorably both to those people who have already purchased as well as to the community at large who have to view the abandoned development on a regular basis. What I find unusual is the lack of publicity by the local press in this regard
Well, not that I'm saying they haven't done anything wrong, but developers can't really finish some of these developments right now. They can't get the loans they need to pay their subs. What you're suggesting would be best for the owners, but I doubt many of these developers/ builders have millions on hand to basically give away (because people aren't buying right now, so it's not like they'll be making their money back).
If possible, dissolve the HOA and let the county take the common areas for unpaid taxes.
Well, what a simple solution. Who knew this was so easy? I can't wait to tell all of the developers, builders, property managers, and owners who live in half-finished neighborhoods! I'll be sure to consult you every time there is a complex problem facing a neighborhood or town. Thank you.
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