During developer/declarant control an association’s developer/declarant has a fiduciary and statutory obligation to develop a funding plan consisting of an operating and reserve budget that will be properly funded by the necessary homeowner and developer/declarant contributions.  Also, one of those the developer/declarant’s fiduciary and statutory obligations is to provide written disclosures to potential purchasers of any subsidies the developer may be contributing to an association’s funding.

Unfortunately, oftentimes the funding plan established by the developer/declarant is inadequate to properly fund an association’s operating and reserve accounts. The attorneys at Fuller Jenkins will work with the appropriate accounting, reserve study, and construction specialist to compare your association’s actual operating and reserve funding needs to the budget established by your developer/declarant. It is our experience that community association budgets are frequently understated and secretly subsidized to enable developer/declarant’s to represent artificially low assessments to potential purchasers, which can cause homeowners financial hardships when the assessments are later raised. Our firm can assist your association in recovering funds owed to it by your developer/declarant due to their failure to properly fund your association.

Community Association Law overview