HOA Behind on Utility Bills
My question involves real estate located in the State of: FL
I was informed yesterday by a utility worker that our HOA has not payed the street lighting bill since October and that the utility company will be out to disconnect the service later in the week. Our community is largely unfinished with 7 completed homes in about 120 building sites.
After speaking with the HOA, the story becomes convoluted, I'm not sure that I'm getting the whole truth, but the summary reads like this:
The lots in the subdivision are owned by two separate developers, one of which is a large reputable firm and the second a private small developer. The small developer owns a little more than half of the total lots giving him control of community direction. The small developer (according to the HOA) is responsible for paying for all utility bills for the development, the water to the communities common areas has been shut off, and now the power is about to be. From what I've been able to gather for the second developer they pay HOA fees to the HOA for each lot that they hold, the HOA claims or rather infers that they are then paying the small developer for this portion of the utilities. The HOA management company of course was hired by the small developer. :wallbang:
My question what can I do? The C&R claim that the HOA is responsible for Operating costs, of which water and street lighting are defined.
Any help is appreciated
Re: HOA Behind on Utility Bills
Approach the large, reputable firm about the problem, and hope that they'll bankroll any necessary litigation. The problem may be that the private, small developer is trying to cut its losses (at the expense of your community), or perhaps is bankrupt.
Re: HOA Behind on Utility Bills
Of course the homeowners can file suit against the HOA. But, if they go bankrupt, you still have nada. The HOA will most likely be dissolved. If it is a safety issue, contact you town's building department and file a complaint.
Re: HOA Behind on Utility Bills
I have a similar issue. I am in Georgia and our HOA did not pay our water bill and on yesterday, the city turned off our water. We are in a townhome community on one water meter. Suing an HOA that is already in a deficit seems fruitless. But can each homeowner sue for maybe $1, legal fees, and the right to take over the board. Currently the board is run by the developer and her VP. They failed to hire a competent management company that will enforce the covenants. Please advise. :wallbang: