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Tell the developer to pound sand. Let her keep the clubhouse, and continue paying the taxes, insurance, and maintenance.
I can just about guarantee, from a distance and with my eyes covered, that the overall covenant and purchase agreements give the owners little freedom; things like the owner retaining control until the last weedy lot is sold and being able to extort a huge price for "amentiies" are likely written in, in the most opaque boilerplate.
It will likely come down to the builder getting her(? that's unusual) grift, or making life even more hell for the 1000 households than most HOAs.
1,000 owners will end up paying $100 a month for 14 months to buy the clubhouse. Why is this worth your time? Developers have great attorneys and they don't leave room for owners to come push them around.
Not sure what state you are talking about but I would contact the state attorney general for guidance on this matter. The CC&R's will spell it out. Our builder left with 66% build out, and we took over.
1.4mm/1000 homeowners is $1400 each..........seems cheap to me
Local school district just bought a bank property that bordered the high school. Typical corner lot bank with 3 lane drive through and enough parking for 40 cars. Appraised at 1.5mm by the county, school district paid 2.5mm. Why? Because the seller showed what he could lease it for to another bank for another 10-15-20 years. School wanted the corner so they owned the whole property all the way to the intersection.........so they paid it.
Homeowners are in the same bind, you have something that is valuable to all the surrounding homes and its cheap when divided by those same owners so just buy it to prevent a future use you really don't want.
Sounds like it's time to sue the board, with that cute little bylaw change to 15% for approval.
What's the town got the clubhouse appraised at, for property taxes? How much is required to make the necessary repairs? Seems to me that the purchase price could be the tax appraisal minus the money to repair the building and pool.
Correct for NC. However the OP said he was in Alabama.
feel free to tell us which states do not require HOA declarations/rules upfront - the ones that original owners didn't accept and resale buyers aren't allowed to review. And while you're researching this, tell us which states don't require those original rules to be recorded.
this sounds great, until you realize the developer seems to have the legal right to force the HOA to pay $1.4MM for it.
Unless the OP actually reviews the HOA docs and shares what they actually say.
I missed that. Didn’t an early post by the OP say that a shady bylaw change happened so that a vote could be held about whether or not to buy the club house? If the HOA has to vote to buy it, it doesn’t sound sound like the developer can compel them to do so.
I admit that post of mine was a bit flippant, and I know very little about HOA law. I would be curious to see what the actual HOA agreement says, and what the relevant law requires.
I missed that. Didn’t an early post by the OP say that a shady bylaw change happened so that a vote could be held about whether or not to buy the club house? If the HOA has to vote to buy it, it doesn’t sound sound like the developer can compel them to do so.
I admit that post of mine was a bit flippant, and I know very little about HOA law. I would be curious to see what the actual HOA agreement says, and what the relevant law requires.
Most HOA bylaw changes require a majority vote by the owners and cannot simply be done by the board or a developer. Otherwise, the bylaws 1000 owners agreed to when they bought, could simply be pulled-out from under them. There are also typically provisions in the bylaws that limit the authority of the HOA board to spend large amounts of money ... without owner approval.
These provisions are typically covered in the bylaws, but, at least in Florida, also under state HOA (condominium) statutes.
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