Homeowners in the upscale Austell subdivision of Cureton Woods say they feel like they’ve been all but abandoned by their developer, who also holds the presiding seat on their homeowners association.
While Steve Waldrip, the developer and HOA president, is still collecting dues, some residents of the 45-home development complain that Waldrip had let needed road repairs, grass trimming and upkeep go undone for more than a year.
While some homes in Cureton list for more than $300,000, some lots have nothing but concrete slabs where a house would go, surrounded by piles of rocks, dirt and twisted metal and mountains of weeds. The subdivision tells a cautionary tale of these depressed times in the real estate business.
“You’d think a bomb went off or that this was a moonscape or something,” said resident Mike Otten, who has taken the lead in trying to get the developer to respond to their concerns.
Since Waldrip took control of the development from his late father about two years ago, he hasn’t called a single meeting, even though it is required by the HOA covenant, Otten and others said.
Waldrip, president of the Marietta-based business Homes By Steve Waldrip Inc., wasn’t available for comment after multiple phone calls and other efforts to reach him.
Attorney Jennifer Bray of the Duluth firm Anderson, Tate & Clark, who specializes in HOA issues in metro Atlanta, said that Cureton residents’ complaints aren’t new, especially since the recession and the ensuing collapse of the housing market.
“My best advice is for people to look very carefully before they buy or join an HOA,” she said. “Especially since the recession, a lot of associations are like a car that’s run out of gas. There’s no money to keep up the pool or the grounds.”
Bray also suggests that homebuyers take extra steps to safeguard their rights, and the most basic step is to read the covenant documents in detail before signing.
“If you don’t understand them, take them to a professional,” she said.
Otten said that he and his neighbors wished they had done so.
“What we have is a very lopsided deal,” Otten said. “The HOA requires that we have regular meetings, but only the president can call one. So how do we ever get to air our grievances?”
Otten and about a dozen of his neighbors appealed for help from Austell city leaders more than eight months ago. City records show that in October, code enforcement inspectors found unfinished road paving, defective runoff filters, ruined silt fences and overgrown weeds through much of the property.
Within the last few weeks, much of that work has finally been initiated, city records show. But Otten said that he and his neighbors are still concerned about the unfinished lots with exposed metal rods and piles of earth.
“He’s basically put up no trespassing signs on the unfinished lots,” Otten said. “What good does that do us? And how much did all this cost? Where has he spent our money?”
Bray said that Otten and his neighbors have a legal right to see the HOA’s bank records as well as have meetings with the developer. But unlike other states such as Florida, there’s no state agency that enforces such rights in an HOA covenant.
“I’m sorry to say that once you’re in a covenant and signed up for it, the only way to exert your rights is through the courts,” Bray said.
Bray said that current and potential property owners in an HOA do have a place to turn to for guidance. The Community Associations Institute, a nationwide trade group for both developers and residents, has a Georgia chapter, which offers free information and training seminars for both HOA board members and residents.
Julia Jackson, the executive director of the Georgia chapter, said the organization’s goal is to educate the public about both the advantages and potential pitfalls of joining an HOA.
“HOAs can be great for all parties,” Jackson said. “But where there’s sometimes a rub is when there’s a misunderstanding about responsibilities. For instance, if your neighbor has a dog that barks all night, that’s for the county animal control, not your HOA board.”
Otten said, “We’re glad that the city finally got some black top [resurfacing] out of him, but I’m not sure what our next move is. If I had to do this over again, I’d definitely look a lot harder before signing on the dotted line.”
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