Overcoming Issues with Development Plans


One of our Clients purchased property and had it entitled for 50+ condominium units in a resort area. They went to a local engineer, who drew up the condominium plan on the one-lot parcel, in accordance with the entitlement. 

The Problem:

The only problem was that the HOA dues were extraordinarily high for the first phase of 10 units. The typical dues in this market are about $400-500 a month, but with these dues coming in at over $1,000, the developer was going to be unable to sell these units.

How We Helped:

CBS was able to work with the engineer and the attorney involved, to revise the Condominium Plan to create “Modules” which effectively worked as vertical phase boundaries.  With the phasing modules in place, the HOA budget could be structured to allow the common areas to be turned over incrementally over time. This provided for a gradual increase of dues and lowered the initial dues amount in Phase 1.

Key Takeaways:

Our office was able to coordinate the completion of the HOA Budgets and process the Public Report filing with the Department of Real Estate using our One-Stop-Shop, saving the client time and money. Our successful resolution underscores the importance of collaboration. By working closely with the engineer and attorney involved, we were able to identify creative solutions to address the challenge. Implementing “Modules” within the condominium plan allowed for a more flexible phasing strategy. This approach helped to balance out and reduce the initial HOA dues, making the project more feasible for our client.

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