Filing Suit Against Developer

Started by DougH2 • 3 replies • 1382 views

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DougH2 (Kentucky)
Posts: 1

Posted:

I'm working on a couple of issues, was hoping that someone could point me in the right direction.

Out of 900 homes in a neighborhood, only about 300 are subject to HOA restrictions due to their deeds.

1. What options are there to bring the other 600 legally into the HOA? Or, is the only option to persuade those 600 homes that it is in their best interest?

2. If we cannot persuade them to come in, is the HOA legally obligated to take over the green space for the 600 even though they are not paying assessments, etc?

3. Is there any option to file suit against the developer who failed to include the 600 for a class-action suit brought by the 300 who are subject?

4. Is there any option to file suit and have the green space of the 600 taken out of the deed restrictions for the 300?

Any guidance would be greatly appreciated.

SusanW1 (Michigan)
Posts: 5,202

Posted:

You need to answer:

WHY the homes would even want to be included in your HOA? (status? safety? amenities?)

WHAT perks or amenities would be offered to a Member?

HOW MUCH it would cost each homeowner?

HOW will you get the number of required votes needed from these homeowners?

WHO will pay the costs (lawyer, etc) for all the paperwork required.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

A HOA is like an exclusive club. It's a club of homeowners/property owners in the same group or area with a vested interest in keeping their home/property values good by aesthetic means. It's also a sales tool of the developer/builder. It's NOT a right to be a member of a HOA.

If the other 600 have no interest in being an HOA and there is nothing binding them by the developer/builder to be in one, then they don't have to be. It's the developer who creates the initial HOA and draws up the Convenants and Restrictions to the Deeds, by-laws, and Incorporation articles. Your 300 has those and once turned over can be run by the owners.

Don't see a need for a lawsuit. They are just expensive endless loops that make the lawyers rich.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By DougH2 on 05/06/2011 8:47 AM

2. If we cannot persuade them to come in, is the HOA legally obligated to take over the green space for the 600 even though they are not paying assessments, etc?

The Association is responsible for the common areas that would be identified on the plat as being part of part of that section. This is going to require someone to look at the wording in the covenants, to identify the legal description of the area the Association is responsible for.

If the development was built in sections and the Covenants only cover section 1, then the Association would only be responsible for section one unless the Covenants identify more of the development.

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