illegal or just immoral?

[sabrina]

Dear Experts,
i have looked into purchasing a piece of property in sw colorado that is owned by a private municipality. it charges its own taxes for water, sewer, trash, telephone, electricity and gas. a resident still has to pay usual rates for telephone, electricity, gas PLUS all other state, county taxes. this all adds about $60/mo MORE than a home not in this private municipality. to view their site: www.fmld.com.

there are 5 phases to this municipality. all have services available except phase 3. there are no services available in phase three AND the HOA covenants state there is no drilling or blasting allowed in phase 3. they are selling properties in phase three and telling the buyers that there will be services there "sometime." meanwhile, the HOA board just passed a resolution that phase 3 will not be given services "anytime in the near future."

the HOA covenants (not matching county) prohibit the ownership in their municipality of two (no more were ever allowed) horses UNLESS, prior to january 1, 1999, horse facilities existed. properties being sold now with current horse facilities are allowed to maintain their "horse priviledges."

ok, that all sounds typically greedy and shifty. here's the kicker: this municipality was given permission to establish because it agreed to provide, "affordable housing" to residents of the area between durango and pagosa springs, colorado.
does $170,000 for an acre, 3b/2b 5yr old manufactured, 1,200sqft with an attached garage sound affordable to you? this municiplaity receives federal money because they have designated themselves as having "affordable land/home packages."

recently, colorado housing incorporated (chi), a non-profit who is the HUD designate for "sweat equity" housing for moderate and low income persons for the sw region of colorado tried to buy a lot in phase three. chi's director, ray phinney, [email protected], joined efforts with a local contractor of exceptional repute and offered to do all the gc work to get services from the nearest site (less than 400ft) to this piece of property AT THEIR OWN EXPENSE. their hope was to build a spec house then use it as an example for a new arm of their program: affordable housing on an acre.

this municipality's HOA WOULD NOT LET THEM.

now, the whole picture is: if i want to buy a piece of property, put a modular on one acre and have one horse (i am a counselor who uses my horse as the therapist), the only place i am "allowed" to do this is phase 3. i do not have a large enough subsidy (section 8 homeownership) to cover the piti for a currently existing structure with an acre that has horse priviledges in this municipality.

so, the land is for sale but the HOA refuses to allow anyone to develop it and they also refuse to service it. you might ask why i or anyone else want to live there? this municipality has the only "affordable" land in a three county area.

are their actions illegal or just immoral?

thanks for your help with a complicated situation.
sabrina hanan, ma abs
pob 4132, pagosa springs, co 81157
970.264.9148
[email protected]

[jgn]

The HOA is established to protect the the real estate values of it's members. From your post it sounds like they are doing nothing wrong on a legal basis, on the immoral side, that is a personal call. As long as they establish and enforce the covenants without prejudice they are within their rights.

[Charlotte Maness]

Where in SW Colorado?????????

[sabrina]

charlotte,
forest lakes municipal district is approximately 7mi north of bayfield colorado which is between durango and pagosa springs on hwy 160.
their website is flmd.com.
s

[sabrina]

hi jgn,
selling phase three while refusing to service it AND preventing others from providing water, sewer, electric, gas at their own expense does sound "prejudiced" to me. that does not sound to me "legal." the property values would go up if that phase were developed. this is horse country.

as for not allowing horses in phase three? that would also raise property values. it is also enforcing the covenants in a way that prevents anyone with land to sell it to someone who wants to put a horse on it. that would seem to me to be not only dumb but also definitely prejudiced as that phase is the phase that abutts the national forest and blm land directly.

sabrina

[Charlotte Maness]

Thank goodness I'm going further SW than Bayfield. BTW that road between Pagosa and Durango makes me crazy, I try to avoid it at all costs.

[sabrina]

hi charlotte,
me too. every time i drive it to go for my heart appt at the hosp in durango, i count at least three on coming cars in my lane. i hug that white line like a tick on a deer.

if you need a VERY honest and kind realtor, i am using, after many unpleasant encounters, a lady named diane emmanuel at coldwell banker in durango. you can access her site on realtor.com.

i get no kick back from her as she doesn't need to offer any. her rep stands for itself.
my banker is the NICEST lender i've met in the last 13mos of searching and meeting. i can give you his name if you like too.

sabrina