This is the fourth article in a series about what Developer Settlement is, how it is unfolding in Verandah, and the implications for homeowners. It is a common legal process that occurs when the developer of a community, in this case Kolter, turns over governance to its residents, the Verandah Community Association.
This article focuses on two claims in the Association’s legal action. While our two claims are separate, they both relate to the expenditure of VCA funds to maintain property it did not own.
Between 2012-2013 and prior to the turnover of the Association to its owners, the Developer had complete control over the Club and the VCA and used VCA funds to maintain and/or improve property owned by the Developer, specifically, Blossoms and the River House boardwalk. Restitution of funds is sought in the amount of $240,000.
Similarly, the Developer-controlled VCA signed a Use Rights and Easement Agreement with the Developer assigning improvement and maintenance responsibilities for Oak Park and the Kayak Livery to the Association. Both amenities are owned by Verandah Development, LLC located on its River Village parcel alongside the other River Village amenities, all owned by the same. The VCA derives no specific benefit from improving and maintaining these River Village facilities and contends that the agreement does not meet the Statutory standard of “fair and reasonable.” While no restitution is sought, the VCA seeks to terminate the Agreement which would eliminate future repair and replacement expenditures on property it does not own.
