Realtor-developer doubles HOA fees, making homes unaffordable

By Deborah Goonan, Independent American Communinities

Bill collection notice

Yesterday’s blog covered the topic of pending south Carolina legislation to regulate developer control of homeowners, condominium, and cooperative associations.

Today’s blog highlights yet another example of the risks for homeowners when a developer/homebuilder/Realtor retains control over your association’s board of directors.

Homeowners of La Bota Ranch HOA, Laredo, Texas, are reeling in disbelief, after the developer-controlled board doubled HOA assessments for the gated community. According to a report from KGNS -TV, fees have increased from $100 per month to nearly $200 per month.

Homes in the Laredo community are currently priced between $175,000 – $275,000. But many homeowners who stretched to obtain affordable mortgages within the past decade are now finding they can no longer afford the increased assessments. Some have put their homes on the market, but without any buyers, some homeowners are now facing foreclosure by La Bota Ranch HOA.

And, not only have fees increased, but, according to residents – who fear revealing their identities on television – nighttime security staff has been cut, and the pool and common lawns are not being maintained.

Homeowners Association Causing Financial Burden On La Bota Ranch Residents

By Yocelin Gallardo | Posted: Mon 6:42 PM, Jan 16, 2017 | Updated: Tue 10:45 AM, Jan 17, 2017

LAREDO, Texas (KGNS) – A homeowner is speaking out about the financial burden, her homeowners association is causing for not only her but many other La Bota Ranch residents.

A home turned into a financial nightmare for many residents at La Bota Ranch.

One home owner is opening up about her fear of losing a home due to the high homeowner association fees.

The association manages the neighborhood and is supposed to use the money from the fees to maintain the neighborhood.

Residents say they were paying a little over $300 a quarter, and then in May of 2016 it went up to almost $600 dollars, which is causing a financial strain on residents.

A La Bota Ranch resident says, she questions where her money is going to, since all she sees is her bill getting higher, and her community not improving.

Read more (VIDEO):

http://www.kgns.tv/content/news/La-Bota-HOA-Issue-410867115.html

 

According to a very minimal web page, La Bota Ranch consists of 6 separate neighborhoods with a 24/7 guarded, gated entry, a Junior sized “Olympic swimming pool, tennis court, jogging trails, equestrian stables, and numerous other amenities.”

According to another web page, homes are marketed and sold by Virginia C. Muller of La Bota Ranch Realty, Laredo, Texas.

Hopefully, there will be a follow up report, and homeowners will find out why their HOA assessments have been increased, while services are being decreased.

 

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2 Replies to “Realtor-developer doubles HOA fees, making homes unaffordable”

  1. I wish them luck but I think they are up against it. Where I live in Henderson Nevada when the Developer transitioned everything to the residents they did not fully fund the reserve accounts as required by law. Our first resident Board were too “friendly ” with the developers and insisted of demanding that the Developer fully fund the reserves our first resident board simply raised our dues by $500 for one entire year to make up the shortage.

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  2. Unfortunately this is not uncommon in many HOA gated or not, homeowners are frankly forking out money to maintain the developers/homebuilders property while their common areas or greenbelts and other amenities for that community. What many Homeowernes do not realize they are also paying high premiums for a management company to come in and mange their communities. What is interesting is not only do these management companies get a contract to manage they also get a percentage off the employees as well, while realizing for each new employee hired these management companies get a bonus. Okay you pay the management company for these employees salary, health benefits.

    How many of these so called communities actually see or get HOA fees from the developer or homebuilder? The answer may surprised many, they pay nothing in HOA fees/dues but yet these developers/homebuilders benefit the most leaving many homeowners in some cases struggle to make ends meet, which again brings another problem if these developers or homebuilders do not pay HOA fees/dues why to they get to cast votes or appoint their people to the board thereby keeping control of your money your board your civil rights, this is not democracy it is a plan abuse of dictorship without representation. This is so sad to see, but it is happening all over the United States this goes against every grain of our US Constitution and are very civil rights. I would like to remind everyone, those by-laws, articles of Incorporation and restriction were all writtern by those very developers and homebuilders they are in place to protect them and not you as a home buyer or owner. So what needs to happen, each state must change their HOA laws for total reform to protect the homeowners. I have learned one thing never ever move into a HOA where the developer or homebuilder who is still in control of that HOA. Better yet, never buy into a HOA or people who do live in a HOA need to do everything they can to dissolve their HOA, thereby the counties and cities will have to take over the care of those communities which will be equal to all on your property taxes where you do have rights, after all you will receive service from the counties and cities while you are not receiving those service from a HOA lost money.

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