Tuesday, February 2, 2010

Pulte giveth, and Pulte taketh away

From http://schhresidents.forumco.com/

BOD = community association board of directors
CA = community association
HOA = home owners' association (same as CA)
CC&Rs = community covenants & rules
SCHH = Sun City Hilton Head, South Carolina

"1- Sun City Community Association is a corporation. It is controlled by the BOD, which is absolutely controlled by the developer, Pulte. The BOD hired Wentworth to manage the Community. To put it bluntly, Pulte hired Wentworth and can fire them at its will. Who do you think WEntworth listens to? The resident fees are paid to the CA and the expenses are paid by the CA. That is our money but we do not control it. Pulte does not pay a penny for any unsold lots. They changed the rules about three years ago. Prior to the change, when we reached 90% of build-out, Pulte would have had to pay the fees associated with those lots - about $2,000 per lot."

"Just as a point of clarification.At the currently projected 8267 lots (unless that has changed), 90% would be at 7440 and Pulte would have to pay the annual HOA fee on the remaining 827 lots at the then going rate. If that were to occure when the HOA was $2,000, then the first year it would be $2,000 x 827 or $1,654,000 paid into the operational fund. Paid to what is really the residents. The following year, it would be $2,000 x the remaining unsold lots. Assuming a sales rate at double the 2009 rate of 101 lots, rounded to 200, then the first year would be $1,654,000 and subsequent years would be:

$2,000 x 627 or $1,254,000
$2,000 x 427 or $854,000
$2,000 x 227 or $454,000
$2,000 x 27 or $54,000

So, giving all benefit to Pulte in terms of sales and assuming NO increase in the HOA fees, by changing the CC&Rs to suit themselves, Pulte has screwed us out of $4,270,000 dollars, which at full buildout equals $516.51 per rooftop....Thank you Jon Cherry and Pulte Homes.

Wes "

Jon Cherry was president (Chief Indian Giver) of Pulte's southeast division when he changed the CC&Rs in the name of the GREAT WHITE INDIAN GIVER (Pulte Homes) to cancel Pulte's obligation to the CA of $2,000 per lot for unsold lots.

Pulte giveth, and Pulte taketh away.

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