I am in an HOA. We have a shared water system. It is considered common property of HOA and there is a water assessment that is assigned by the board for the cost of operating the well. There is a separate accrual account for capital projects.
I served on the board and saw at least 10 purchase agreements and a tap fee was not mentioned.
Initially there was no water system. After the initial build out it was discovered permitting individual wells was going to be difficult. By the time you honored size / spacing on septic and the well there was not much room for a house.
The builder put in a well and ran a water line. Again it is common property of the HOA. Some lots were already sold so he could not just add to the selling price. Builder imposed a tap fee of $1000 paid to him personally. I have been through the CCR and bylaws and there is nothing about a tap fee. I have seen no document that mentions a tap fee.
Can the builder legally enforce this tap fee paid directly to him?
It is not worth fighting over $1000 fee but I was curious. What if he changed that number to be $10,000. He has first ROR. He could exercise it then waive the tap fee on himself.
The plot thickens. The title company is enforcing a tap fee must be collected at closing. I asked where is a tap fee documented. They said we have an email from this individual.
Now the HOA is saying we are not enforcing the tap fee only collecting. I told that is money laundering.