Our subdivision's HOA is currently controlled by the builder. The mgmt fee looks exorbitant. What can we do?

Asked by Leigh, Marietta, GA Thu Dec 15, 2011

We are about 50% complete and they are building continually. They do the bare minimum as for as management. Ex 18000 a year for a landscaper and we have very little common area and they only mulch it once a year. And with 120 houses the builder charges us $8000 to "property management" while the pool and park looks like it could use a lot of TLC.

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Amanda Stain…, Agent, Cumming, GA
Thu Dec 15, 2011
Unfortunately until the HOA is turned over to the residents it is tough to change the management company (and their rate/fee). Be sure to attend the annual meeting and talk to your neighbors about your concerns. A cohesive front usually gets their attention. Start with contacting the builder in a letter to see if they will respond. You might want to ask the management company for a list that details their responsibilities. Best of luck to you. I too live in a community that will have 120 homes upon completion and our fee is $10,800.
1 vote
Chuck Green, Agent, Norcross, GA
Thu Dec 15, 2011

You are most likely going to have to wait it out until you hit the threshold when the HOA becomes yours to manage. Though, I personally would dig into the covenants and restrictions which should have a whole section in regard to the HOA and it's responsibilities. Then would contact the developer as Amanda mentioned via registered letter voicing your concerns in a reasonable and concerned manner... Be sure to get as many signatures of the homeowners as possible as part of the letter and request a time and date for you to meet with the developer and a couple of the signees of the letter to review your concerns. Hopefully they will respond with an acceptable solution for everyone concerned or make a step in that direction....as most builder & developers want to maintain a good relationship with their homeowners especially when they are still building homes within a subdivision, the last thing they want is bad word of mouth advertising...of course either do you...as they are still building and alot of them are not in this market.
0 votes
Leigh, Home Owner, Marietta, GA
Thu Dec 15, 2011
They bill us at total yealy expenses of almost $60K.

Just their rate of 'property management' is $8K and it goes up every time a house is added/sold.

The $8K does not include office expenses, taxes etc which takes the admin fees up another $4K.

The total bill includes $18K for landscaping (a very small area) and $10K for pool maintenance and we(neighbors) have to check the ph of our neighborhood pool on a voluntary basis 2x a day during pool season, because they say it isn't in their budget to pay the pool company to do so.
0 votes
Tricia Young, Agent, Lithonia, GA
Thu Dec 15, 2011
I'm almost sure "$8000" is a typo!

Perhaps, collectively you could meet with the builde to express your concerns and come to an agreement that is conducive to all parties.

Tricia Young
Better Homes and Garden Real Estate Metro Brokers
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