Guides · How the association is run
What is the “Declarant subsidy”, and is it a gift or a loan?
Section 5.1.3 of the Master Covenant lets the Declarant lower the assessments owners would otherwise pay by paying the Association a subsidy. It does not have to. When it pays one, the Declarant decides, in its sole and absolute discretion, whether it counts as a contribution or a loan. Paying one in a given year does not oblige it to pay one the next year.
At the 2024 annual meeting, the Association said there are promissory notes for the cost of the amenities and for the subsidy the developer provided during the development period, and that these “will be due back to the Developer”. The financial statements carry accounts titled “Dvlpr Ln”. One line is quoted below as printed.
That is a summary in plain words. The passages below are what the documents actually say, and they are the authority.
What the documents say
Any subsidy the Declarant pays to the Association may be treated as a contribution or a loan, in Declarant's sole and absolute discretion. The payment of a subsidy in any given year shall not obligate Declarant to continue payment of a subsidy to the Association in future years.
Master Covenant, §5.1.3Read page 32 in the documentscan
there are promissory notes that include the costs of the amenities themselves (amenity center, pools, parks, sports court, etc.) as well as for the subsidy provided by the Developer during the development period that will be due back to the Developer.
2024 Annual Meeting QA SummaryRead page 2 in the document
21703 Dvlpr Ln 2023 Amenity Center 2,230,503.80
Financial Statement Jul 2026, Balance sheetRead page 4 in the document
Related
This guide was written from the copies in this archive. Documents can be amended after they are recorded, and this is not legal advice; the recorded instruments at the Comal County Clerk are the authoritative versions.