Buyer Beware: The Pitfalls of "Private" Infrastructure....

This retention pond  in Beulah was certified and accepted by the state and the county, but then did not function properly and had to be rehabilitated.  It worked for a while, but now I'm hearing it's again not functioning properly....but now the subdivision's HOA (meaning all the homeowners) own(s) it-not the developer or the county.

We no longer allow subdivisions to construct private sewage lift stations.  That practice has ended and in the fallout of this previously allowed practice, many unsuspecting homeowners have had to pay to upgrade these systems when they fail--and unbeknownst to most of these folks, the county's sewer utility provider ECUA would not accept or take ownership of these systems unless and until they were repaired and brought up to "current standards."

So several subdivisions have had to pay big money ($550,000.00-700,000.00) just for the "privilege" of fixing these lift stations and giving these systems back to ECUA, the utility that should have owned these systems in the first place.  We have Deerfield Estates, Creekwood, and Creekwood Oaks that have finished this process.

Twin Spires and Huntington Creek are still grappling with how to solve their collective issue with their private lift station...in that particular instance, there are lawsuits going and some homeowners are trying to figure out how to get that lift station turned over to ECUA while another faction just wants to be out from under the lift station all together.  In that case the lift station has been repaired and is operating at the moment--but some residents want the peace of mind of having that equipment owned by the utility provider, ECUA-without ongoing maintenance and/or repair costs hanging over their collective heads.  They want this even if they have to pay a lot to get it up to current standards--and that will be a high-dollar fix.

So as we in the county contend with the last of the private sewer lift station issues, the next big issues for residents could be other private infrastructure that is still allowed to be constructed by developers and turned over to the HOA of a development after a 2-year period.  These other features include stormwater retention ponds and roads and sidewalks.

We have had major issues with retention ponds in Beulah.  Navy Oaks has a major issue brewing, Woodlyn Meadows has had major problems with one of their ponds, and of course there were multiple ponds at Deer Run that had to be rehabilitated.

I'm told another large, well-established D1 subdivision recently had to assess their residents around $800,000.00 in additional home owner fees  to repair some storm ponds for which they had not set aside sufficient funds.

So it is imperative that when buyers purchase homes they ask a lot of questions about these particular items...to save MAJOR heartache in the future. Then decide--are you willing to accept this risk/responsibility?  Over the last several years the county has worked with our real estate community and title companies to insure that disclosures are accurate and list all of this for the purchaser.

But at the closing table lots of documents are passed and signed in the excitement of the moment.

How many of us actually read all the fine print?  (I know I never have in the past...But I will from now on!!)

Because of all I have seen in cleaning up or being a part of cleaning up some of these problems, I suggest that buyers ask questions and verify answers before they consummate any real estate purchase..and I'd start with these:

1.  Who owns the stormwater retention ponds, who maintains them?
2.  Are the streets, sidewalks, and storm-water facilities public, or private?
3.  Is this home connected to ECUA's sewer?
4.  Does this home have grinder pumps (which burn our and must be replaced every 7-10 years at $6k a shot)?

Of course there are dozens of other, additional questions that should be asked by purchasers as well.

But based ONLY on what I have seen and learned in dealing with these issues as a county commissioner for just three years--I'd say ask about everything, and get answers to everything, before you sign on the dotted line...