Q: While my last neighborhood was being built out, the developer and builders paid partial dues to the neighborhood association, based on the number of unbuilt lots and unsold homes they were working on. In my current Wake County neighborhood, the association only receives dues from those of us who have closed on our homes. Can the developer be required to pay some portion of dues, based on the lots and homes he still owns, and assume some responsibility for neighborhood costs?
It is common and legal for developers to place provisions in a community's Declaration of Covenants, Conditions and Restrictions that limit the assessments the developer or home builder must pay on lots it owns.
In some cases, the developer exempts itself from assessments or pays a reduced rate. In other cases, the developer reserves the option of either paying assessments on its lots, or funding the operating deficit of the HOA.
