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D.R. Horton: When Builder HOA Rules & Regulations Drive Down Property Values
Sunday, 22 May 2011

Neighbors: Builder Breaking Rules, Destroying Neighborhood
Now D.R. Horton is building homes in the $90,000 range, some with one-car garages and siding, instead of the more expensive stone and brick. "They don't care who they sell to. They don't care what they look like as long as they get them up and they get them sold. To me ... it seems that they don't care," Salinas said.  Neighbors like Jeremy Taub are even thinking about moving out because of the new homes. "We like the neighborhood, but if our house is going to continue to drop in value, then it's not any place I'm going to stay," Taub said.

Dream Development Turns Into Nightmare
Neighbors: Builder Breaking Rules, Destroying Neighborhood

Heather Silva is just one resident in Mission del Lago who said the neighborhood is going downhill because a builder is now putting up less-expensive houses than hers on vacant lots. 

Brian Mylar Reports
"Mission del Lago has always been known as the pride of South San Antonio," Silva said.

But in the last few months, big changes have been happening there that some neighbors do not like. They say a builder is putting up homes of inferior quality.

"Our homes are all at least 75 percent brick or stucco," Silva said. "They all have two-car garages."

Neighbor Mike Salinas agreed.

"We paid a lot of money for our houses, so that we could keep a good neighborhood," Salinas said.

Silva and Salinas said they bought into Mission del Lago because of the sizable floor plans, nice landscaping and the use of brick, stucco and stone.

Now D.R. Horton is building homes in the $90,000 range, some with one-car garages and siding, instead of the more expensive stone and brick.

"They don't care who they sell to. They don't care what they look like as long as they get them up and they get them sold. To me ... it seems that they don't care," Salinas said.

Neighbors like Jeremy Taub are even thinking about moving out because of the new homes.

"We like the neighborhood, but if our house is going to continue to drop in value, then it's not any place I'm going to stay," Taub said.

They said D.R. Horton is violating Mission del Lago's founding documents that says houses must have garages suitable for a minimum of two standard-sized cars.

There are also minimum requirements for square footage and home exteriors.

But there is a catch in those documents.

Because Mission del Lago is not 85 percent complete, the developer still controls the homeowners association and the Architectural Control Committee that approves changes in home plans. And the ACC has approved the homes with waivers for garages, square footage and exterior walls.

In an email, D.R. Horton's local president, James Kyle wrote:

When a development starts, CC&R's (Covenants, Conditions, and Restrictions) are drafted, as well as By-Laws that govern the affairs of how an HOA is controlled and managed, all of which are created by the property owner / developer.

Mission Del Lago (MDL) currently has a Board comprised of 4 members - all of which are representatives of the development, (Mission Del Lago Ltd), so these same members also serve as the Architectural Control Committee. I believe this developer set up a Board in that after 85% of the land has been developed and conveyed - the existing board members step down as current owners are voted on. Generally speaking this is typical of most developments...

The guidelines allow for an ACC and HOA Board to have the ability to vote in amendments to the CC&R's. A builder buying one or more lots, as well as an existing homeowner, can request a variance to the ACC. They usually have a 30 day review period to reject or approve the request.

In another email he added: "We want to continue supporting the growth of the community and will certainly remain in compliance with HOA guidelines.

Homeowners said they were saddened to hear that smaller homes could continue to be built until 85 percent of the neighborhood is developed.

http://www.ksat.com/news/27954297/detail.html
 
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