Calverton homeowners sue Suffolk over sewage system demands | Newsday:
"Homeowners at a Calverton town house complex have filed a federal lawsuit against Suffolk County in a dispute over a sewage treatment system that serves the development’s homes. Leaders of the Calverton Hills Homeowners Association say the county is requiring residents to install a new wastewater plant that would cost about $7 million — far more than many residents can afford. Landlords said about half of the complex’s approximately 1,000 residents are on some form of public assistance, and some units are in foreclosure. “It’s going to be a financial hardship for a lot of families that have an income less than the median income,” said Michelle Janlewicz, who owns and rents out three units. “Most people already owe more than the property is worth.”"
---------------------
It appears that this sewer system was installed by the developer in 1973. In 2005, the country told them that the system doesn't meet discharge standards and it was the HOA's responsibility to pay for replacing it. The HOA got a $2 million estimate on replacing the sewer system, but didn't do it, and now there are additional requirements that led to today's estimate of about $7 million. The HOA has raised $500,000-$600,000, but all they did is raise the assessments by $30 per month, which is small change compared to what associations typically do when they have to specially assess for major expenditures. Now they are suing to force the county--i.e., the taxpayers of the whole country--to pay for a new sewer system for this subdivision, which I suspect is unlikely to work. The county is saying that if the HOA doesn't pay for this and get it installed, they will close the subdivision.
I have been saying forever that many associations are going to go under because they don't have enough money in reserves to pay for inevitable repair and replacement of major private infrastructure for which they are responsible. People buy into associations with no understanding of the financial risk. Eventually things wear out, and the people who happen to own the units when that happens get stuck with the bill. This is why associations are supposed to get reserve studies done. It's tragic to see these situations, but unfortunately we will be seeing a lot more as the years go by. And this is why the whole subject of private infrastructure needs to be viewed as a public policy issue.
1 comment:
A few thoughts:
The County enabled this debacle by permitting construction of condos with a privately-constructed and managed on-site water and seweer system. Where was the foresight? Why did County leaders back in 1973 ever believe this housing arrangement would work in a way that would truly benefit housing consumers and their consituency?
From 1973 to 2005, what administrative guidance and oversight, if any, was provided to Calverton HOA?
If Suffolk County truly owns the sewer system since the developer’s bankruptcy in 1980, how is this the responsibility and burden of the HOA?
Notice that, in this caase, Calverton has become a run down rental community providing “affordable housing” to tenants living on low incomes. The two people interviewed for the article are board members that own 13 units combined. Read between the lines - most of the units are occupied by tenants with taxpayer subsidized rent. Calverton is a de facto public housing community, an unofficial public private partnership that is failing to serve the public interest and its housing consumers.
Calverton’s existence has, in effect, reduced the need for Suffolk County to fund public housing. But, in the process, Calverton has become yet another substandard low income housing community.
At this point, it may indeed make more fiscal sense for the County to assist in relocating tenants and condemning the property, paying off the (mostly) landlord owners. Could be a heck of a lot cheaper than rebuilding a sewer system and then managing it going forward for owners and teants who are unlikely to stay current on property taxes and utility bills. But you can be sure that there are some investors eyeing up the land parcel for future development, and Suffolk County leaders are hoping to increase their tax base with “economic development” on the site of Calverton Homes.
Reading the comments on this article, it appears that older co-ops in Suffolk County face the same issues. And unless the County wants to build and manage a lot more public housing, it seems that infrastrucuture support for low-income co-ops would be in the public interest. A co-op is a completely different housing structure than a condominium.
All that dirty sewage adversely affects any resident that lives downstream, that makes use of the same watershed, and that depends on a healthy aquaculture. Bottom line, private citizens with no knowledge of water treatment, and/or conflicting personal interests, are ill-equipped to manage private water-sewer infrastructure.
Post a Comment