Sell Units In A PUD And Lease Land To HOA?
Hey Gang,
anyone know if it is legal or possible to build and sell residential detached units to buyers, put the HOA in place, and lease the land back to the HOA? Does this sound crazy or is this just done on a commercial basis. I know the county mall built the mall on the owners land and they pay him rent! Same differenc?
John
Its not quite clear to me what you are trying to accomplish here. You want to build townhouses on a land lease? You want to build the common areas on a land lease? Granted you want to make the lease payments run to you its not clear how you intend to structure the deal.
That said it looks like an invite to a lawsuit to me.
Hey Commercialking,
I want to build the units, sell them, and rent the land they sit on. Since this lot is an R-3 , I would like to build detached single family homes, put a HOA in place, and still maintain owner ship of the land they are built on.
How many units do you think you can get on the site. Is the HOA going to have any function other than to pay you your land rent. Will there be common areas/common ammenities?
I suspect that the land lease idea will negatively affect sales prices but I have no idea how much.
commercialking,
I plan to build a total of six detached units with the driveway and a play area for the common areas.
I think you are right as far as maybe hurting the retail price due to paying the HOA fees and then the land rent.
Just thought I may make a risidual every month. Maybe just build them, set the hoa's and let them go.