As you may have all heard, Neumann Homes is planning to file for Bankruptcy. They have not done so yet, but likely will in the near term. The BOD is in contact with Jim Niemczyk to get as much information as we can, and will provide it on the MSI website and the community Blog as it becomes known.
At this time, since they haven't even filed for Bankruptcy, there is little we can do, other than wait until they do file, and then find out what the Bankruptcy court is going to allow them to do as far as following through with home warranties and completing homes under construction.
All the remaining homes at VHP went under contract during the auction in October. They were all sold with a condition of having an Certificate of Occupancy. We have been told by Jim Niemczyk of Neumann Homes that Neumann has every intention of completing these homes so they can close on them, but at this moment a completion date has not been set. The Board does feel that it's highly likely that Neumann will complete these homes so that a profit can be realized and distributed to creditors. However, there is risk that this process may be drawn out, pending court proceedings. The homes at the auction were sold "as-is" so homeowners will not get a 1 year home warranty. The BOD will continue to work with Neumann Homes to try to get a closing date for these homes.
Anyone who has concerns about their warranty should contact Neumann homes at:
Matt Horner, in the Chicago Office
Phone 630-281-2184
Matt.Horner@NeumannHomes.com
All warranty personnel in Colorado have been let go so all coordination will take place via Matt.
We have been working with Neumann Homes on the homes with concrete problems, especially in drive-ways. That work was delayed several times by Neumann and at this point we do not believe that Neumann will fix these issues. It will likely fall back to the homeowners. We will continue to follow through with Neumann to see what will happen here, but unless the bankruptcy court allows the expenditure, we doubt that anything will be done.
One the plus side, most of the homes in VHP have either completed their warranty period, or at least had the 30 day warranty coverage. Also all of the common areas (Pool, Clubhouse, Landscaping, etc.) have all been completed for over 1 year now so the warranty work was finished in those areas. The HOA will not be stuck with trying to finish out these areas.
At this time we are not planning an emergency HOA meeting. Until Neumann actually files for Bankruptcy and has their first court appearance with their initial plan on what to do, there is very little that we can do. Once the bankruptcy court goes through their plan we should then at least have some preliminary guidelines of what will and won't be allowed to be completed by the court and then we would be able to have a discussion on our options.
Our next homeowners meeting is scheduled for January. This may actually take place before we have any firm direction from the bankruptcy court, so having a meeting prior to that will not be very productive.
Sincerely,
VHP Board of Directors.
