Hi
A dozen of us (family and friends) have formed a LLC and bought a piece of land and are subdividing it into 1 acre lots and each one will build on our own lot. We have also earmarked an extra lot as common land where we want to build an energy efficient clubhouse and a pool. This will be maintained by our own HOA and cost will be split.
Has anyone done anything similar? Are there any gotchas that we should watch out for? Specifically, the questions I have are (we live in North Texas)
How much is the typical property tax for land owned by HOA? how do I find out for my county?
How much will it cost to have insurance?
Any help is greatly appreciated.
Thanks
Rockmeister64
PS: If there is a better subreddit to answer these types of question, please let me know.
Talk to a real estate attorney, this is well beyond DIY territory
There are attorneys that specialize in HOAs. Call around to some existing HOA board members for references. Most HOAs have web sites with public information and contacts (required by Texas law). Talk to a few attorneys and figure out who you are comfortable with and retain one. They can advise you on these matters, create your deed restrictions, help you file with the county, etc.
Y’all need to take some of that money and hire an attorney.
You may find our [Taxes wiki](/r/personalfinance/wiki/taxes) helpful.
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HOA treasurer here in the Midwest. Insurance and liability coverage for our clubhouse (basically 2 bathrooms and a small loft area) and pool is about $3800.
No property tax as we are a nonprofit, but imagine that is state dependent (talk to the lawyer who sets up the HOA)
In Florida, common areas of HOA’s (pool, clubhouse, etc….) are not taxed. The value of having those amenities is factored into the market value of the residences.
You’ll also need to budget utilities, and pool service or staffing. Depending on local utility costs, you may want include solar panels for the pool equipment and club house.
I’m in Texas. You will pay property tax. But amenity centers are valued nominally, $2500-$6500 (valuation, not tax).
You’ve been a big help to me. Thank you!