Georgia homeowners say developer signed HOA contract with his own company, locking in control until 2040
WOODSTOCK, Ga. — For homeowners in the Village of Towne Lake, the dispute with their HOA isn’t about lawn maintenance or paint colors. They say the real issue is who controls the association — and for how long.
Residents say the community’s original developer, David Pearson, signed a 2020 contract that ties the neighborhood to his property management company, DPC, through 2040. The arrangement pays DPC at least $79,000 a year, or 20% of the HOA budget if that amount is higher, and assigns it duties that typically belong to a homeowner board.
The conflict has drawn extra attention because Georgia is preparing an out-of-court process for HOA complaints, though state reviews are not expected to begin until January 2027.
11Alive reported that residents of the neighborhood contend the contract leaves them with little real oversight. One homeowner, Jason Searcy, said the issue became personal after a fence dispute. He said he paid about $3,600 for a fence and later watched as it was removed during a property-line conflict involving Pearson. “I never received any sort of reimbursement or communication. Just my survey is different than yours,” Searcy said.
According to residents, the HOA budget has tripled, pushing the management company’s compensation to $190,634. One resident who sought comparison quotes from other property managers found much lower prices, with the highest quote coming in at about $40,000 to $45,000.
Village of Towne Lake HOA President Becky Repic said in written responses that the community’s setup is “unique” and that the board’s responsibilities “are more limited vs what you may expect to see in a traditional HOA.” Repic said most residents are pleased with the neighborhood and described the homeowners who objected to the arrangement as “a few bad seeds that like to complain about things.”
Randy Lipshutz, an attorney who helped draft Georgia’s HOA law in the 1990s, said the management fee might not be illegal if it was properly approved. But he raised separate concerns about shifting board authority to the company. “Frankly, I don’t think that’s permissible under the nonprofit corporation code,” he said.
HOAs across the country have faced criticism for blocking or delaying money-saving home upgrades, including rooftop solar panels and native plant lawns. When an association controls budgets, violations, and approvals, it can influence everything from utility costs to property improvements and even how comfortable homeowners feel in their own yards.
Georgia’s new complaint system could offer homeowners a less expensive and more accessible alternative to court. The Secretary of State has already opened a portal for residents to file disputes, but the agency says it will not begin reviewing them until procedures are finalized in January 2027.
Within Village of Towne Lake, homeowners have also pressed for more visibility into the finances. A limited review of records went ahead, but a broader independent audit sought by residents stalled after DPC said it would use its own auditor under the new law.
Searcy said the problem is simple: “Not having a say and having visibility or transparency to how our money is being spent is quite frustrating.”
The situation in Towne Lake shows how a long-term management agreement can keep a developer’s influence over a community long after the lots are sold. With no state reviews expected until 2027, residents may have to turn to board elections, legal challenges, or public pressure to make changes.