Tuesday
Oct072008
« State and homeowners spar over dam repair costs »
Tuesday, October 7, 2008 at 12:20PM
Lakeview Plantation in Lawrenceville is embroiled in a dispute with the state Department of Natural Resources over repair costs to the dam creating the neighborhood lake. The state is saying that the community is responsible for all necessary repairs to the dam but neighbors are balking at a potential six-figure cost. If the dam is faulty and threatens human life, the need to make repairs is clear. The neighbors do not seem to dispute this point. The neighborhood's primary concern is apparently money. Because the homeowners association membership is not mandatory (something I applaud), the HOA annual budget is only around $14,000, a paltry summed when faced with repair costs that could approach a quarter-million dollars. I can understand the cost concern, but that is akin to saying I am not going to fix my faulty brakes and replace my bald tires because it is expensive. You can drive your car in that condition, but you are courting disaster. That being said, the legitimacy of placing liens on all or a subset of homes in the subdivision likely depends on the legal ownership of the lake.
I say "legal ownership" because common sense dictates that a neighborhood lake is owned by the neighborhood. As such, the owners should be liable for all costs associated with that lake. However, when you are talking about placing liens on property, digging a little further into the legalese is necessary. If I had purchased a home in Lakeview Plantation and no where within the legal documents required to complete that purchase was noted a ownership share or liability for repairs to common areas including the lake, I would be hesitant at the possibility of being hit with a charge of thousands of dollars. At the same time, I would be torn because my share of responsibility would be fairly obvious to me. This situation illustrates a weakness of a voluntary HOA when there is significant common property in a development. If the HOA is the entity held liable for repair costs, is it fair that any homeowner could effectively "opt-out" of paying by simply resigning from or not joining the HOA? Should only a subset of homeowners in a subdivision pay for maintenance costs for common area that is open to everyone?
This is obviously a difficult situation for the Lakeview Plantation and I do not envy their plight. This is compounded by the fact that I have an extreme distate for HOAs and I applaud Lakeview's voluntary association, but I recognize that could be a problem in this dispute. Ultimately, looking at it as a Georgia taxpayer, I do not see why we should bear the cost to repair a private lake that, I assume, is not open for the enjoyment of anyone other than Lakeview Plantation residents.
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I say "legal ownership" because common sense dictates that a neighborhood lake is owned by the neighborhood. As such, the owners should be liable for all costs associated with that lake. However, when you are talking about placing liens on property, digging a little further into the legalese is necessary. If I had purchased a home in Lakeview Plantation and no where within the legal documents required to complete that purchase was noted a ownership share or liability for repairs to common areas including the lake, I would be hesitant at the possibility of being hit with a charge of thousands of dollars. At the same time, I would be torn because my share of responsibility would be fairly obvious to me. This situation illustrates a weakness of a voluntary HOA when there is significant common property in a development. If the HOA is the entity held liable for repair costs, is it fair that any homeowner could effectively "opt-out" of paying by simply resigning from or not joining the HOA? Should only a subset of homeowners in a subdivision pay for maintenance costs for common area that is open to everyone?
This is obviously a difficult situation for the Lakeview Plantation and I do not envy their plight. This is compounded by the fact that I have an extreme distate for HOAs and I applaud Lakeview's voluntary association, but I recognize that could be a problem in this dispute. Ultimately, looking at it as a Georgia taxpayer, I do not see why we should bear the cost to repair a private lake that, I assume, is not open for the enjoyment of anyone other than Lakeview Plantation residents.
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Reader Comments (2)
I can sympathize, as our HOA is going through the exact same thing. Except in our case, membership was mandatory for lakefront property owners, so there was a definite pool of homes that could have liens placed on them should the State decided to breach the dam.
I share your distaste for HOAs (and I'm the President of my own!). But I thought in our case, a mandatory HOA is needed to maintain and upkeep the lake and dam.
"looking at it as a Georgia taxpayer, I do not see why we should bear the cost to repair a private lake that, I assume, is not open for the enjoyment of anyone other than Lakeview Plantation residents."
That's a big "it depends." On the surface, I agree with you. But in our case, our lake was actually a "stormwater retention pond" for the County. We have County culverts coming in from the streets and a feeder stream, among other things. In our case, the County was able to come in and take over operation and repair of our dam. Our "cost" is the fact that the new dam will be lower than the original, so some homeowners may lose a lot of water near their house. But I think it's a small price to pay compared to the alternative.
Ceej, thanks for your comment and for reading the Buzz. You raise a valid point. If there is indeed a benefit of the Lakeview lake beyond their neighborhood as in your case, I would certainly be more open to use of tax dollars in this repair.