You just found out that the developer is NOT going to develop the additional acreage in your subdivision. In fact it is going to be sold to the Dallas Area Rapid Transit Authority. As a result, the developer is going to no longer be subsidizing the HOA dues for all the potential homeowner dues that were calculated in the undeveloped land.
In other words, if the developer sold all of the lots in the development, then each of those lots would be paying dues to the HOA. If they change plans and sell the lots for redevelopment, then they would then be removing those potential HOA dues payers out of the HOA system. No big deal right?
Wrong! The HOA dues you pay are calculated on all of the lot/home owners paying into the system. If there are 300 lots in the development and each pays $100 per month, then the HOA will operate on $30,000 per month. If the developer has not sold 100 lots, then the developer has to subsidize the unsold lots and pay into the HOA so it will continue to operate on its budget.
If the developer stopped paying the HOA dues of 100 lots, the HOA would suffer a deficit of $30,000. Sound unlikely? Well it happened in Dallas in a downtown condo property. There, the lots were left vacant because the developer wanted to sell the undeveloped lots to the City of Dallas. The end result? The existing homeowners were going to be stuck with the bill for the entire HOA and each of those home owners would then have to pay under the above scenario an additional $50 per month or $600 per year per homeowner or an additional $120,000.