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Maine Alliance for Road Associations

Restricting Road Use

  • 24 Aug 2012 6:21 PM
    Message # 1055609
    Deleted user
    One of the owners on our road is trying to open a business on his lot.  Due to the liability exposure from outside customers using our road we have in our By-Laws that the road can only be used for residential use.  

    Can we restrict anyone from using their deeded lot for commercial use? Our road is zoned residential but I believe you can get a permit from the town that will allow commercial use.

    Are there any other road associations dealing with this problem?   
  • 15 Oct 2024 3:59 PM
    Reply # 13419333 on 1055609

    We have a similar issue.  Our bylaws do not state that it is residential use only, but we have a lot for sale and the potential buyers wants to open a commercial business.  I stated that we are a residential development, and that would not be appreciated to have extra traffic and liability on our roads.  Can anyone help me with this one?  Can we restrict a homeowner from using their property as a commerical business with customers coming into the development on our Private Roads?


    Nancy Heinelin

  • 16 Oct 2024 12:59 PM
    Reply # 13419702 on 1055609

    Does your town have zoning?  Our town restricts what can be done where. I would think light commercial, say a hair salon out of the garage, could get a variance, but a movie theatre would have to go into the commercial zone.  Then someone could petition the town to change the zoning to allow their project, which likely requires it to go on a warrant and be voted on by the entire town.

  • 16 Oct 2024 2:33 PM
    Reply # 13419780 on 1055609
    Anonymous member (Administrator)

    Is there a subdivision plan for your development?  If so, often there is a clause that prohibits commercial uses, or limits it to cottage industries.  The restrictions might appear on the subdivision map or in a separate covenant of restrictions.

    An alternative would be to see if you can amend your bylaws.  It may be too late to amend them to prohibit commercial enterprises, but you might be able to put in a clause saying that any costs to repair damage to the road above and beyond the normal wear and tear caused by residential use will be billed to the landowner responsible for that damage. 

    Or, when your road association votes on their assessment formula, they could vote to have a different level of assessment for commercial uses of the road.  But be careful not to go overboard on that one.  I know of one association that decided when someone wanted to put in a Bread and Breakfast that they could assess that property to pay most of the entire cost of maintenance of the road.  As might be expected, that did not go over well! 

    There should be a reasonable justification for having different assessment levels - for example, when an association charges less for all seasonal residences than for all year round residences, or charges less for undeveloped lots than for developed lots.  You would have to have a formula that is "fair and equitable."  The question is, how would you determine that?  Would it be based on the amount of traffic generated by the business compared to residential use?  That could be difficult to calculate.  Besides, having a "commercial" level in your assessment formula could suggest to other owners that your road is open to commercial use, so it could backfire.

    As far as the liability goes, talk to your insurer.  Maybe they have some suggestions.  And keep talking to the potential buyer and expressing your concerns.  If your insurer gives you a figure for increased coverage, let the buyer know that is one of your concerns.  You might also be able to somewhat limit your liability by posting signs saying, "Private road - pass at your own risk."

    One last thought - if this happens to be one of those "private roads" that is also a "public easement," there are a couple of statutes that can provide some relief if someone damages the road.  But they only apply if it's a public easement.

  • 17 Oct 2024 11:45 AM
    Reply # 13420170 on 1055609

    We are having a similar challenge. We have a "non-profit" that is advertising tours and group events. The town is not stepping in with zoning because they are not charging customers. We also have a at least 2 people that have rental units that they themselves don't use for personal use at all.

    One the challenges that we have is creating a definition of Structures to define rentals and commercial buildings and not affect people the use VRBO to occasionally rent their personal place or people that add a bunk house that only has personal use. 

    once we have the definition, we still have to determine a fair and equitable deferential to charge them. How do you determine how much use is more than say a large family that has guests every weekend. and then determining the extra cost of that use.

    We also say many times in these discussions, that we all pay for the "benefit of the road".  Volume of road use is a component of that but not the major factor.  Meaning that there is value of even having the road weather or not use it at all.

    Does anyone have examples of how they deal with this? there is an increase in Benefit by having customers use the road but how is it quantified.

  • 18 Oct 2024 2:42 PM
    Reply # 13420763 on 1055609
    Anonymous member (Administrator)

    Reply to Scott - perhaps part of your assessment formula should distinguish between properties that are used primarily for rental, and those that are primarily a family home.  That could allow your occasional VRBO rentals at the regular residential assessment.

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