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AdamK1 (Georgia)
Posts: 5
Posted:

Hi,

Our 20 year old neighborhood used to have covenants and an active HOA that died a few years ago and the covenants expired. There is a desire among some of the neighbors to get started again. I have found some get resources (including this forum) on how to start an HOA, but I can't find the answer to one critical questions. What percentage of the home owners must agree to a set of covenants before they can becoming binding on the whole neighborhood. I've read the state law in Georgia, but can't find the answer.

Does anyone know?

Thanks !!

Adam
SusanW1 (Michigan)
Posts: 5,202
Posted:
Creating an HOA will be simple - it's the establishing (or re-establishing) the CCRs that will be the stickler.

What common areas do you have that need care?

If I were in your neighborhood, I'd want some REAL good reasons why I should place some CCRs on my deed again.

AdamK1 (Georgia)
Posts: 5
Posted:
We don't have any common areas. The idea is some home owners want to create a set of covenants to protect property values. I'm assuming there is some high percentage of neighbors who have to agree to this before it is enforceable.
JohnO6 (Georgia)
Posts: 424
Posted:
I may be totally wrong on this, but I'm guessing that if your covenants have expired, then all the deed restrictions on all the properties essentially vanished as well. As such, I don't think that any "certain percentage" of owners must agree - rather each individual owner must consent to have his/her property subject to the new covenants.

You may want to consult one of the many law firms that specialize in community association law in GA.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Like what? You are being vague.

Your municipality must have guidelines about blight, garbage, fences, etc.

What other CCRs would you put in place NOW?

You need to be able to explain the WHY to people.
AdamK1 (Georgia)
Posts: 5
Posted:
Good point. Our county already has guideline regarding just about everything the HOA would also be concerned with. However, they often choose not to enforce the existing laws. So the neighborhood would like to have its own set of rules that can be enforced regarding blight, garbage, fences, renters, etc.

Does that make sense? I'm just the poor schlub who didn't move fast enough at the last neighborhood meeting and agreed to try and figure this process out. I have found may helpful tips on this site, but would appreciate any wisdom you guys can share.

Adam
SusanW1 (Michigan)
Posts: 5,202
Posted:
If you read many of the posts on this site, you will see that ENFORCEMENT is the biggest issue.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By AdamK1 on 05/16/2011 2:40 PM

What percentage of the home owners must agree to a set of covenants before they can becoming binding on the whole neighborhood.

Adam,

As others have said, if your CC&Rs have actually expired and no longer exist you can not put them back in place on any owner that chooses not to.

The covenants is basically a contract between the homeowners that they will comply with certain conditions and restrictions. If the home was purchased without the covenants being part of the contract, then it's the owners choice if they want to enter into a new contract or not.

Tim
AdamK1 (Georgia)
Posts: 5
Posted:
Thank you for all the information and help !! Those are the answers I needed.

Adam
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Adam:

You are correct in needing high number to agree. Before you expand a lot of time and effort on anything you need to determine whether or not essentially ALL neighbors agree and want this situation to take place. Because you have no common area property to maintain most likely you will have a majority not agree to have their property attached.

If you want to research further here is some information.

Your state statutes regarding HOA’s is available here:
http://www.lexisnexis.com/hottopics/gacode/

The following is the section for HOA’s:
TITLE 44. PROPERTY
CHAPTER 3. REGULATION OF SPECIALIZED LAND TRANSACTIONS
ARTICLE 6. PROPERTY OWNERS' ASSOCIATIONS

This is the statute regarding Creation …

§ 44-3-222. Creation of property owners' development; affirmative election to be governed by article

A property owners' development shall come into existence upon either the recordation of the declaration pursuant to this article or the amendment of a recorded declaration in accordance with Code Section 44-3-235. Any declaration or amendment intending to bring or avail a development of the benefits and provisions of this article shall state an affirmative election to be so governed. Any original declaration shall be duly executed by or on behalf of all of the owners of the submitted property. Any such amendment to an existing declaration shall be executed in accordance with the terms of the recorded declaration being amended thereby.

AdamK1 (Georgia)
Posts: 5
Posted:
That is exactly what I needed. Thank You !!
JohnO6 (Georgia)
Posts: 424
Posted:
Janet and Adam -

Please note that the Georgia Code make reference to the Property Owners Association Act, which is a VOLUNTARY option for HOAs to be governed by. In essence an HOA can be formed without subjecting itself to the Act. It is definitely advantageous to subject your non-profit corporate HOA to the Act, but it's not mandatory.

FYI
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Adam:

John is correct as per the following it does state in the last sentence “may only be claimed by developments submitted to this article”. I also went out and found a couple of articles regarding the Georgia POA Act.

§ 44-3-235. Applicability of article

(c) This article shall not be construed to affect the validity of any instrument recorded before or after July 1, 1994, but benefits derived from or based upon this article may only be claimed by developments submitted to this article.

Benefits of Georgia Property Owners Association Act

Submit Your Subdivision to the Georgia Property Owner’s Association Act

How many lots are in your subdivision? If there are no fewer than 15 then it may be that the original covenants you described in your original post are still in effect, unless terminated as noted below. It could be a question to ask an attorney if desired.

There is information also in this section of your state statutes regarding covenants and which is a different section from POA Act:

TITLE 44. PROPERTY
CHAPTER 5. ACQUISITION AND LOSS OF PROPERTY
ARTICLE 3. COVENANTS AND WARRANTIES

§ 44-5-60. Covenants running with land; effect of zoning laws; covenants and scenic easements for use of public; renewal of certain covenants; costs

(a) The purchaser of lands obtains with the title, whether conveyed to him at public or private sale, all the rights which any former owner of the land under whom he claims may have had by virtue of any covenants of warranty of title, of quiet enjoyment, or of freedom from encumbrances contained in the conveyance from any former grantor unless the transmission of such covenants with the land is expressly prohibited in the covenant itself.

(b) Notwithstanding subsection (a) of this Code section, covenants restricting lands to certain uses shall not run for more than 20 years in municipalities which have adopted zoning laws nor in those areas in counties for which zoning laws have been adopted.

(c) The limitation provided in subsection (b) of this Code section shall not apply with respect to any covenant or scenic easement in favor of or for the benefit of the United States or any department, bureau, or agency thereof; this state or any political subdivision thereof; or any corporation, trust, or other organization holding land for the use of the public, but only with respect to such covenants and scenic easements running in favor of or for the benefit of the land so held for the use of the public. Such covenants and scenic easements shall run in perpetuity.

(d)(1) Notwithstanding the limitation provided in subsection (b) of this Code section, covenants restricting lands to certain uses affecting planned subdivisions containing no fewer than 15 individual plots shall automatically be renewed beyond the period provided for in subsection (b) of this Code section unless terminated as provided in this subsection. Each such renewal shall be for an additional 20 year period, and there shall be no limit on the number of times such covenants shall be renewed.

(2) To terminate a covenant as provided in paragraph (1) of this subsection, at least 51 percent of the persons owning plots affected by such covenant shall execute a document containing a legal description of the entire area affected by the covenant, a list of the names of all record owners of plots affected by the covenant, and a description of the covenant to be terminated, which may be incorporated by reference to another recorded document. By signing such document, each such person shall verify that he or she is a record owner of property affected by the covenant. Such document shall be recorded in the office of the clerk of the superior court of the county where the land is located no sooner than but within two years prior to the expiration of the initial 20 year period or any subsequent 20 year period. The clerk of the superior court shall index the document under the name of each record owner appearing in the document.

(3) No covenant that prohibits the use or ownership of property within the subdivision may discriminate based on race, creed, color, age, sex, or national origin.

(4) Notwithstanding any other provision of this Code section or of any covenants with respect to the land, no change in the covenants which imposes a greater restriction on the use or development of the land will be enforced unless agreed to in writing by the owner of the affected property at the time such change is made.

(e) To the extent provided in the covenants, the obligation for the payment of assessments and fees arising from covenants shall include the costs of collection, including reasonable attorney's fees actually incurred.

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