Start a Homeowners Association (HOA) for subdivision in CT

[Philip Pape]

We're under contract for a multi-lot approved subdivision here in Connecticut (CT) that we will build out as new construction (spec).

The land has been carved out for a road, but there is no road in place yet.

The first 2 acres includes the right of way from the existing street to the subdivision, followed by the lots. This right of way is a separate lot that CANNOT be built on (taxes are about $75/year).

After we build out the lots, we need to figure out what to do about this front area.

We're considering keeping the road private and creating a Homeowners Association (HOA) to maintain the road, landscaping, snow removal, and garbage removal, as well as cover taxes on the right of way. It would open up the possibility of adding a common pool to increase the value of the neighborhood.

One benefit of this is the significant savings of creating a private, gravel road vs. a fully paved, town-maintainable road (about $100K less). Profit per house is estimated at $100-150K so this is not a small amount.

QUESTION - Does anyone have experience with starting an HOA in CT, and is this a reasonable idea given the oddity of this extra front lot?