Home Buying in Bowie>Question Details

Drogers, Home Buyer in Bowie, MD

Is it customary to pay an additional fee for water and sewer line with the HOA? A

Asked by Drogers, Bowie, MD Thu Sep 23, 2010

I spoke briefly on the phone with a Ryan Homes rep regarding a townhome in the Hall Station community off Central Ave (Route 214). When I asked how much was the HOA the rep said it was $89 per month and additional $59 for sewer and water lines. It's a first I've heard of such as I though water, sewer, etc...is included with the county tax bill. Is anyone familiar with this practice?

Thanks

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What is it with Ryan Homes putting this fee on the homeowners. is there other builders out there that do the same thing???? We can barely get by with the mortgage. I wish there could be away to get out of this. Does it really cost 21,000 for one house to be hooked up to the sewer and water??? I need help understanding this.
thanks
0 votes Thank Flag Link Sat Apr 6, 2013
Yes, It is now customary. Most builders have this front foot fee from 23-30 years and it does generally continue/convey even if the property is sold during this period. When dealing with new homes the contract is written fully to protect the builder. It's only logical to have someone representing you and your interest in the transaction. Call myself, Steve Queen to have a knowledgeable agent representing your best interest. Good Luck!


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0 votes Thank Flag Link Mon Jun 6, 2011
Drogers,

Until I moved to my community it was something I had not heard of as well. I live in a Ryan community and it appears the good people of Ryan are sharing the cost of new construction, the cost of the water and sewer lines with the buyer. Check to see if the front fee is lifetime cost or a set time? the initial buyer has to pay for it but it does not transfer to purchase thereafter, at least in our development.
0 votes Thank Flag Link Sat Jan 22, 2011
I'd ask that rep. specifically if this is a Front Foot Assessment (FFA). While I haven't seen those before in PG County they are very common in Anne Arundel County just to your North. The builder bonds out the cost of the initial water and sewer system installation costs for the neighborhood and everyone in the neighborhood pays their share via an Annual Front Foot Assessment of between $250 and $750. They generally run for a period of 30 - 40 years before they are fully paid off by each home owner. You also have the option to buy it out early for a bit of a discount but it's so expensive I haven't seen anyone do that. Best of luck to you.
0 votes Thank Flag Link Thu Sep 23, 2010
This front foot benefit fee is typically charged on new developments where there is a private utility company involved. It is important for buyers or their representatives to check disclosures for indication of these fees since it does not typically show up on the public record or tax bill. Many buyers find this out too late while sitting at the settlement table.
Web Reference: http://donaitcheson.com
0 votes Thank Flag Link Thu Sep 23, 2010
They may be referring to what is typically called a front foot fee. This fee is charged for 20-25 years and not unusual for new developments. If you would like to representation please let me know. I am familiar with the area as I live in the Pointer Ridge Development around the corner from the new Hall Road development.
Roxanne Calloway
0 votes Thank Flag Link Thu Sep 23, 2010
It is becoming more common where the Water and Sewer fees are being handle by a Private company rather than through the tax bill. It is not always this way on new properties, but I am seeing more and more that this is the way it will be in the future.
0 votes Thank Flag Link Thu Sep 23, 2010
Let's hope it's not the way of the future. Consumers should be charged in one of three ways: (a) the tax bill; (b) as part of the sales price of the house; or (c) the builder or her/his representative. When the consumer signs a separate note for water and sewer development, they should be given a disclosure statement showing the term of the note,
amount of principal, total interest for the term, penalties and other require/pertinent data.
Flag Fri Dec 26, 2014
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