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Updated over 11 years ago,
Recreation facility within subdivision
I am new to the forum and RE development in general, and have a question on recreation facilities within a subdivision.
My question is:
If for example you build a large subdivision and have plans to build an enclosed rec center (with maybe a bball courts, pool, banquet room, etc..). Who pays for this? I believe that a HOA will be in charge of maintenance of the facility, but when would an HOA take over? I presume they wouldnt In the beginning phase of development because they are so few residents to even make an HOA let alone pay for the center.
To put another way, if the developer bears the cost of construction, maintenance and staffing of the facility at the outset, when will they be relieved of that burden?
I am a long way off from developing anything, let alone a subdivision with a rec center, but this question has bothered me for some time now. Thanks for any responses.