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HOA Software
By Andrea Wasik • April 25, 2015

New Builder Wants to Reduce Services to Meet Shortfall

We reside in a 55+ community in SC consisting of single family homes but much of the maintenance is covered by our hoa dues. Our development was recently sold to another builder to complete the build out (about 43 homes to be built).

As a resident I have a concern about what the builder can legally due within the constraints of our covenants inbroken-contract regards to the budget expenses and our dues. Our covenants state that the builder is to make up the shortfall in expenses every month or can elect to pay the dues on every lot/home that they own.

However, this builder wants to minimize its cash outlay and is set to reduce our services in order to cover the newly added costs of our clubhouse (insurance, taxes) and the management fee that has just been hired. The builder wants to take away the cable service as one way to meet the shortfall.

Can the builder take services away in order to minimize its contribution to the development's finances? The previous builder has already taken away our termite bond coverage (but they reduced our dues by the same amount) and power washing (no reduction in dues).

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Please note that blog comments and postings are not legal advice, rather only the opinions of our readers.
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