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  1. #1
    Join Date
    May 2009
    Location
    Massachusetts
    Posts
    3

    Default Massachusetts HOA Laws

    My question involves real estate located in the State of: Massachusetts

    Our subdivision -- a combination of single family homes and condos -- is finished, with the exception of 10 condo lots still owned by the developer. The developer says that, because of the economy, he does not know when, if ever, he will build them out.

    1. The developer still controls the HOA, and insists the bylaws give him the right to as long as he owns any property within the development (an amendment reads: As long as the Declarant, its successors or assigns has record title to any of the Property, it shall have the sole authority and right to enforce the condictions, covenants, restrictions and reservations of the Declaration. Thereafter, any record owner of the Property or part thereof, may enforce the provisions of the Declaration.)

    Q: What does the second part of that statement mean? And does the state have any laws that would force the developer to cede control of the HoA to the other property owners?

    2. He raised the HOA fees last year and although the town has since taken over the road maintenance, he has neither done nor said anything about reducing the fees (he collects roughly $5000 a month in HOA dues). Moreover, he claims the HOA owes him roughly $15,000 for back bills, although he cannot produce any records (invoices, canceled checks, etc.) to support his claims. Furthermore, he doesn't pay HOA fees, and insists he is exempt from this (again, nothing in the bylaws concerning that).

    Q: In the absence of any specific language in the bylaws, can the other property owners force the developer to pay his share of the dues? And in the absence of GAAP accounting, what charges/fees/etc. can the developer legally transfer to the HOA?

    3. There is a matter of some 500 trees that the developer is contractually obligated to plant around the development as a condition of the Town accepting the development's roads. He is, naturally, now balking about this.
    The development bylaws state that is the Town has to do "any work that is the obligation and responsibility of the Homeowners' Association" the HoA must reimburse the town within 14 days of demand of payment.

    Q: Would this in theory mean that, since the developer is in fact the HoA, the Town could claim the trees are the responsibility of the HoA, put them in, charge the HoA and effectively bankrupt it, which would in turn dissolve it?

    Thanks in advance!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Massachusetts HOA Laws

    1. The last sentence means exactly what it says. It's describing what happens after the developer sells the last lot.

    2. Dues are governed by the HOA. I suggest you have a real estate lawyer review the agreement and advise you as to whether the developer must contribute dues on unsold lots.

    3. The HOA and the developer are separate entities. A contract between the town and the developer is not a contract between the town and the HOA.

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