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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 118268
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I am an owner in a /CLT. Property values have dropped by

Customer Question

I am an owner in a Pud/CLT. Property values have dropped by approximately 40%. Presently the average sale price of a townhouse is 90,000. foreclosures 40,000. annual trust fees $5000.00. Increase for 2016 will be 800.00. amenities golf gourse, club house, tennis courts built at will of trustee. no homeowner representation. Is there a government oversight that will monitor amenity use and soaring fees. Trustee has assumed attitude "it is hat it is"
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, this is a major issue with Planned Unit Developments and Homeowners Associations and Condo Associations. The PA law allows these developments to govern themselves in accordance with their bylaws. The government does not get involved in setting of fees or costs of living in one of these areas. As long as the development is following their own CC&R or bylaws, they are allowed to set these fees as the board of directors deem necessary. This is a major drawback that we advise people of before they even consider buying in one of these developments, because fees can become excessive as these developments have no other way to raise money necessary to pay for all of the amenities.
If you believe costs are out of control, then as a member you would have no recourse other than to refer to the bylaws to determine the process in those bylaws to pass a bylaw to restrain the board's ability to raise fees or to elect new board members who will be more fiscally prudent.
As a member you can also inspect the financial records to determine if the money they are collecting is necessary and if it is not then you can seek to remove your board in accordance with your associations bylaws.