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Joint Road Maintenance Agreement

“The Mortgagee must confirm that the accommodation is equipped with pedestrian access and appropriate access from a public or private street. Roads must be either dedicated to the use and maintenance of the public or kept as private roads protected by permanently registered facilities. Private roads, including common entrances, must be protected by registered facilities, property shares or property and maintenance by an HOA. Common access routes do not require a common maintenance contract.¬†Fannie Mae`s traditional loans require that real estate on a private road have an “appropriate, legally enforceable agreement, or a road maintenance agreement.” Fannie also points out that the registered document should include the biggest problem in the absence of a private road contract. Worse still, the idea of getting about 40 landowners to sign an agreement before closing. Fortunately, there are some possible solutions to this problem: If a group of people agree on maintenance, it may work well with a limited number of participants, but the larger the group, the more difficult the process. The example above is not so scary, but what if you find a home in a small community, on a rural road or on a gravel/dirt road? Often there is no link and there is no agreement for road maintenance. Public housing companies that offer down payment allowances or subsidies generally follow the first mortgage guidelines. If you use a first FHA mortgage with DPA, FHA should predominate in road maintenance guidelines. The most common type of association used in New Hampshire for private road maintenance situations is a non-profit company created under the number RSA 292. Although these entities are companies, the name often uses the word “association” in the title. The company (association) could be created to explain that each lot owner automatically becomes a member of the company. (RSA 292 uses the term “member” and not “shareholder”).

Simple statutes would be adopted to address issues such as votes, assemblies and collections. Unless amended, it is both the creation of the unit and the adoption of statutes that require the signature of all landowners who wish to become members of the association. In other words, only those who join the association are bound by its rules and regulations. Even if not all owners join, an association can still be useful in imposing existing alliances against non-members. The association can also be useful in enforcing the legal obligation of owners to contribute to the maintenance of private roads. In previous blogs, we have looked at the difference between a private street and a relief, the new New Hampshire law, which requires private maintenance of residential streets in certain situations, and what should include private road maintenance contracts.