Developer Settlement is a common legal process that occurs when the developer of a community turns over governance to its residents. In Verandah this occurred in 2021. At that time Kolter turned over the assets and operation of the Association (VCA) to our homeowners. In 2024 Verandah homeowners voted to allow the Verandah Community Association (VCA) to involve third parties such as mediators, arbitrators, or the Lee County court system. The VCA and Kolter are now working to resolve a wide range of issues. We are hopeful that we can reach an amicable solution to the many claims the VCA has made.
This is the third article in a series about what Developer Settlement is, how it is unfolding in Verandah, and the implications for homeowners. The first article described what developer litigation is and the extensive review that was conducted of financial records, Association documents and practices used by Kolter prior to the turnover in 2021. The second article described the many claims the VCA has filed with the Lee County court system and focused on the necessity for adequate funding of the VCA’s long-term reserves. This article focuses on one claim in the VCA’s legal action – the condition of the roadways, curbs, and gutters at the time of turnover.
The VCA is responsible for the maintenance and future replacement of twenty- five neighborhood and five common roadways in the community. At the time the Developer turned over the community some of these roads were in poor condition and the VCA had areas of concern. To better understand the condition of its roadways, the Association contracted with a firm to visually inspect our roadways, curbs/ gutters, and report their findings. Their independent report provided important knowledge for the long-term management of our roadways and assisted in the preparation of the VCA’s Developer Settlement claims.
There are multiple facets to the VCA’s roadway claim. For example, the claim includes; (1) those roadways and/or their related assets exhibiting conditions that cannot be attributed to normal wear and tear; (2) roadways turned over in a condition past their useful life; and (3) roadways with an expected decrease in useful life from the application of the final layer of asphalt before all the homes in the neighborhood were completed.
The VCA will continue to keep homeowners aware of our progress in reaching a settlement with Kolter. In the interim, if you have questions, please contact VCA’s General Manager Michele Boose.
