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re: Homeowners Face Foreclosure After Developer-Run HOA Raised Monthly Fees to $2.5K

Posted on 11/2/26 at 1:05 pm to
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:05 pm to
quote:

Avoid developer controlled HOA's.


Homeowner controlled HOAs are arguably worse because the developer is more likely to overlook minor violations and non-payment of small fines and even dues to prevent the possible bad publicity. When owners take over their need to grind axes and settle petty personal differences make them lose site of the damage bad publicity about the HOA causes to property values. We have lived in both and in fact live in a community now with a developer controlled HOA. It is by far the most benign HOA we have ever dealt with. Compared to the shite the owners in this community call one another on facebook and complain about one another on facebook there is no chance that when they take over they aren't going to be far worse than the developer. They will just as unregulated as a developer without any regard to public opinion and its impact on property value like the developer is....it will be much more important to force Suzanne to pay for her comments about Patty's husband at the pool 3 years ago this July. If that means every one's property values drop 10% because no one wants to buy in that crazy community Suzanne ought to have thought of that.....
Posted by AUstar
Member since Dec 2012
19957 posts
Posted on 11/2/26 at 1:06 pm to
What does an HOA even do that costs them that much? Nosey old ladies need a salary that high to make sure you paint your garage the right color?
Posted by udtiger
Over your left shoulder
Member since Nov 2006
118806 posts
Posted on 11/2/26 at 1:07 pm to
quote:

The HOA says that large legal expenses were amassed while defending the claims brought by the homeowners, which greatly affected the 2027 budget.


this is pretty genius.

the homeowners suing the HOA so the HOA duns the homeowners for the legal fees.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
60971 posts
Posted on 11/2/26 at 1:10 pm to
quote:

The Magnolia Cove HOA is run by the community’s developer, Aaron Guess, and his company Story Homes. Just four years ago, dues for the 80-home community sat at a reasonable $158 per month, resident Jill Menson told WSOC. Those fees rose first to $350 and then $1,250 earlier this year.


Posted by LSUFanHouston
NOLA
Member since Jul 2009
42125 posts
Posted on 11/2/26 at 1:10 pm to
Why did the residents sue the HOA and not the developer?
Posted by udtiger
Over your left shoulder
Member since Nov 2006
118806 posts
Posted on 11/2/26 at 1:11 pm to
quote:


Why did the residents sue the HOA and not the developer?


Posted by Sam Quint
Member since Sep 2022
10080 posts
Posted on 11/2/26 at 1:11 pm to
i live in a pretty tightly HOA controlled community and i just ignore them.
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:17 pm to
quote:

Do you have a citation on this number? I would like to see how the question was framed.


Google.....


We just had a HOA meeting in our neighborhood with a developer controlled HOA that will become owner controlled in the next 12 months or so. The developer suggested that the owners consider disbanding the HOA once they are done and provided the data from multiple surveys of owners in HOA communities, developer and owner controlled, and the trend toward re-sells in HOA communities seriously lagging re-sells in non HOA communities nationwide. If I can find the information from them I will upload it but it is a pretty widely known fact that is a google search away from confirming...more and more people are seriously unhappy with their HOAs and HOA communities are not as easy to sell as they once were. They still lead sales because almost all new homes built in the US are built in developer controlled HOA communities....its re-sells where the problem arises because the current owner does not have the marketing budget nor the banking industry ties and incentives to sell that developers have.
Posted by boogiewoogie1978
Little Rock
Member since Aug 2012
20820 posts
Posted on 11/2/26 at 1:20 pm to
This sounds very shady and illegal
Posted by ClientNumber9
Member since Feb 2009
10287 posts
Posted on 11/2/26 at 1:23 pm to
quote:

You get downvotes because it’s a stupid blanket position to take.


Exactly. When done right, an HOA can protect your home and investment. I live in a nice subdivision. Two houses down, my elderly neighbor died and his deadbeat loser soon inherited the place and moved in. He cut his grass exactly once this summer and tried parking a junked "fixer upper" project car on his lawn. Without an HOA, my whole street would be stuck in a chicken fried white trash nightmare. But within 90 days they had him move the car and cut his yard to a basic standard.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
34176 posts
Posted on 11/2/26 at 1:24 pm to
quote:

This is not a routine HOA dispute. One individual controls every lever of power in this community: developer, Declarant, builder, HOA president, HOA manager, vendor, homeowner, and landlord. After turning the neighborhood from primarily owner-occupied homes into mostly rentals, he now owns much of the community and controls the HOA operations that govern everyone else.

One insane developer who is way over the line causing havoc, not normal HOA stuff. Yet this thread will insist that “HOAs are evil”
Posted by deltaland
Member since Mar 2011
105251 posts
Posted on 11/2/26 at 1:25 pm to
shite like this causes reasonable men to do unreasonable things
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:27 pm to
quote:

If you read the article, people taking the HOA to court is why the fees went up. Who pays the HOA legal fees? The residents.



HOAs are, for all practical purposes, an unelected (in a developer controlled HOA) and unregulated (in ALL HOAs practically speaking) quasi government entity. The same thing happens when someone sues the government, the taxpayer is on the hook for legal fees and expenses. HOAs only exist so local governments can avoid doing their jobs and the possibility of voter backlash should they do their job. There is NOTHING an HOA can do that a local government CANT do but for the local government to do it they would have to do the job they were elected to do and if they do that job they are subject to being held accountable to voters.
Posted by tigersbh
Baton Rouge
Member since Oct 2005
13633 posts
Posted on 11/2/26 at 1:30 pm to
quote:

This is like saying “avoid the stock market like the plague!” - After investing in some stupid penny stock recommended by Ancient Tiger and losing your arse. Not all HOAs are absurd or ridiculous. The neighborhood life isn’t for everyone.


I live in a nice, well-maintained subdivision. No HOA here.
Posted by PUB
New Orleans
Member since Sep 2017
21804 posts
Posted on 11/2/26 at 1:31 pm to
Scam. Waste money on garbage like Halloween and back to school parties

Thousands on Shite
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
21015 posts
Posted on 11/2/26 at 1:32 pm to
Is it possible a bunch of dumbass homeowners sued the HOA without realizing it’s only source of income is homeowner’s dues?
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:35 pm to
quote:

Exactly. When done right, an HOA can protect your home and investment. I live in a nice subdivision. Two houses down, my elderly neighbor died and his deadbeat loser soon inherited the place and moved in. He cut his grass exactly once this summer and tried parking a junked "fixer upper" project car on his lawn. Without an HOA, my whole street would be stuck in a chicken fried white trash nightmare. But within 90 days they had him move the car and cut his yard to a basic standard.


So your local government does not have any kind of ordinance against that sort of thing? Most do, most are loathe to enforce it because it requires them to do the job they were elected and paid to do. An HOA allows them to turn a blind eye to such abuses because they can pretend to be allowing private interests handle private business. It is HIGHLY unlikely if you live in a nice subdivision it was developed in an area where derelict properties and vehicles are not subject to fines and eventually condemnation and seizure by the local government. It would only take 90 days in that situation IF the citizens of the local area allowed the government to take that long.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
34176 posts
Posted on 11/2/26 at 1:35 pm to
quote:

I live in a nice, well-maintained subdivision. No HOA here.

Tell us which subdivision youre talking about so we can judge it independently
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:36 pm to
quote:

Why did the residents sue the HOA and not the developer?



In a developer controlled HOA they are one and the same. Most communities initially have a developer controlled HOA until the developer is no longer building in the community.
Posted by AwgustaDawg
CSRA
Member since Jan 2023
15509 posts
Posted on 11/2/26 at 1:38 pm to
quote:


Is it possible a bunch of dumbass homeowners sued the HOA without realizing it’s only source of income is homeowner’s dues?


There is no difference in this and suing the government....the only source of funds for litigation comes from tax dollars.
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