Tuesday, May 17, 2016

Liberty University sues Ivy Lake property owners over dam repairs - Forced HOA Indenture?

By Cynthia Stephens

Lynchburg, Virginia - Property owners that may be forced into an HOA - Please see this post! 

Liberty University sues Ivy Lake property owners over dam repairs Richmond.comIf a judge rules in Liberty's favor, a homeowners association would be formed and would be responsible for collecting the money, among other duties. 

Very important! Can you be legally forced into an HOA because of your proximity to a lake and dam owned by an institution like Liberty University? In Virginia, it appears the courts have the power! What stops any business then, from making homeowners pay for their retention ponds that need to be repaired or maintained? Or, non HOA property owners being made to pay for an HOA dam, or retention pond that is not being maintained or in need of repair?

"In 2009, the Virginia Department of Conservation and Recreation notified Liberty that the dam’s spillway must be repaired to handle a worst-case scenario storm, a price tag Liberty initially estimated at more than $2 million but later said could be done for about $1 million.

According to the department, the dam’s spillway capacity is not adequate to handle a large storm event, and hundreds of homes and residents would be in danger if it fails.David Corry, general counsel for Liberty and its facilities such as Ivy Lake, said an appraiser has looked at the value of the properties, size of lots, and amount of view to determine how much to assess each homeowner.

On average, property owners on the shoreline would pay about $700 annually; other Ivy Hill property owners would pay $306 annually, Corry said, adding that if a property is both lakefront and on the road over the dam, the two figures would be combined.If a judge rules in Liberty’s favor, a homeowners association would be formed and would be responsible for collecting the money, among other duties.

The lawsuit states if the state-required repairs are not made, Ivy Lake may be drained and the dam closed or removed in accordance with the Dam Safety Act.

Liberty has spent more than $100,000 to recertify the dam with the state and investigate possible solutions for repair, the lawsuit said.Homeowners have 21 days to respond after they have been served. Notices began arriving the first week of May.""

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