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Updated almost 8 years ago on . Most recent reply

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Jason Lamb
  • Investor
  • Windham, ME
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37
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Private roads, not a subdivision, who is responsible?

Jason Lamb
  • Investor
  • Windham, ME
Posted
Hi All, Hopefully I can explain this simply. Purchased a house in a neighborhood that is not considered a "subdivision " . Basically started by one contractor who broke off lots to himself, kids, wife, friends, etc.. Now there are about 40+ homes and no association. Some roads are paved some are not. We pay for plowing and sanding that's it, the town won't do it because the roads are not up to subdivision standard. So my question is who is responsible for the roads? Maintenance and otherwise? If we have no formal association and the builder basically takes no responsibility. Where do we go from here? Thanks in advance

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
64,028
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied

@Thomas S.  you cant record a plat and own the road as a developer in the US.  so that thought process is not correct

what they have most likely is a recorded plat a dedicated road but not accepted by the city for maintenance.. very common just look at any unimproved roads in many cities were the plat was recorded 50 to 100 years ago.. its a county or city road but it was never accepted by the city for maintenance..  

We call those shawdow plats.. out here in the west.. millions of lots created this way..

legal lots of record..

@Jason Lamb  couple ways to tackle this I have done it a few ways.

One, create a political subdivision so you can float 1915 act bonds.. city sells bonds road gets built to city standard and the bond goes on your ad valorum tax's..  in CA there is a bond issue called Mello Roos.. I have done big ones of those 10 million plus.  You will need to talk to the county or city attorney and see if they will allow bonds for public improvements.. once the roads are built to city standards they then take them over like any other road.

two, Form your own association does not have to be an HOA it just needs to be a road maintenance agreement that is agreed to by all parties recorded and becomes an encumbrance.. with some stern language for those that don't pay you can foreclose on them.

Three , do what my brother does he brings his back hoe and road grader home a few times a year fix's his mountain road .. neighbors who can pitch in with few bucks do.. but he makes sure it gets taken care of.. been doing that 20 plus years.

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JLH Capital Partners

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