New owner wants to build an alzheimer facility on HOA property

Started by CarolS12 • 13 replies • 1672 views

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CarolS12 (Washington)
Posts: 12

Posted:

I live in a 55+ HOA community that was started in 2007. The original plan for the property included 48 single family homes. There is a retirement home in close proximity which shares the use and cost of the common area but is not part of the HOA.

Of the 48 building lots, 26 homes have been built, 17 of those are sold, 2 are leased and 7 are unsold. the other 22 lots are unimproved. The builder was being foreclosed on so he turned all the unsold properties back to the bank to get out from under the debt. We now understand that the bank is selling to the retirement home and the retirement home management plans to build an alzheimer facility (and probably a parking lot) on the property that is designated for single family homes (according to our CCRs). There are many versions of this confusion swirling around the homeowners, including that they will rent out the vacant homes and build some more homes to rent out in addition the the alzheimer facility. We have not been able to get a straight answer from anyone. I am on the BOD and live in one of the sold homes but the bank and the retirement home management is not sharing the information with me or any of the other homeowners. I called a meeting last week with the existing homeowners and the majority are in favor of hiring an attorney to protect our interest and the value of our homes. We bought here with the expectation of being a part of a planned 55+ HOA community, not a medical facility.

Have any other HOAs had the type of experience? How was it handled?

Carol in Tacoma

TimB4 (Tennessee)
Posts: 21,059

Posted:

You need to get the other owners together and possibly you Associations attorney and get to the zoning commission. I suspect that the retirement home and the bank are trying to get the property they own rezoned. If the current owners are kept in the dark, then there would be no one challenging the request.

At the very least, someone from the board should contact the zoning commission and find out what the process is if the retirement home wanted to do what your saying, has the process started, where are they in it, can it be challenged and how do you challenge it. The zoning office should be able to answer these questions for you.

Tim

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Of the 48 building lots, 26 homes have been built, 17 of those are sold, 2 are leased and 7 are unsold. the other 22 lots are unimproved.

From what I understand about the above is that the Developer originally planned a 48 Single Family Lots. 26 homes have been built to completion. Only 17 of those sold to OTHER people than the Developer. It appears that the Developer is leasing the 2 properties or have they been sold to other people who are renting them? There are still 7 homes built but unsold. Which left the Developer with 7 built houses and 22 undeveloped lots. Correct?

The developer went under and those 7 homes/22 lots were sold off by the bank to the nearby retirement home. What this means to you NOW is that your HOA should NOT be under Developer control. If you have a HOA, it should have been turned over to the Owner's prior to the developer losing the property. The truth is your HOA may NOT be official. Was there ever a turnover by the developer? Your HOA needs to answer this FIRST.

The other issue your facing is if indeed the developer has been eliminated from the picture, the retirement home can indeed develop those 22 lots into commercial property for the Alzheimer's clinic/parking lot. However, that would have to be ZONED for commercial property. Your neighbors may need to go to the local ZONING department and block the property from being zoned commercial. This is probably your BEST recourse until you all sort out the details of your HOA status.

I will say that it is possible the developer is still in control of your portion of your HOA. If he didn't sell that part of the development. So it is possible your HOA is under their control still. I can't say for sure as I don't know your set up.

Recommend a quick trip to the records department of your local courthouse and get a copy of CC&R's on file. That should give you all a better understanding of where you all stand...

Former HOA President

SusanW1 (Michigan)
Posts: 5,202

Posted:

I doubt if someone could get COMMERCIAL zoning within your HOA (zoned RESIDENTIAL), so what you are talking about must be outside your HOA boundaries, right? You don't want a commercial building and parking lot next to your HOA?

Or are you talking about establishing group home facilities WITHIN your HOA? These homes would look exactly like another home, except house a "family" of disabled persons.

CarolS12 (Washington)
Posts: 12

Posted:

This would be a group home within the HOA boundries but not single family. Our CCRs prohibit commercial businesses within the HOA. We think they may be looking at making a zoning change from residential to mixed use or commercial. I've been watching the county website for any change application, etc. and have found nothing yet. Also, the title is still in the banks name so the sale is not completed. We want to be proactive instead of waiting until it's too late.

CarolS12 (Washington)
Posts: 12

Posted:

You're correct in the discription of what happened regarding sold and unsold property.

We tried to get the builder to turn the HOA over to us but the bank told him not to do it. I have not been able to find anything in our Washington State HOA law or our CCRs that addresses who should have control of the HOA in this situation. I've also been watching the county/city website for zoning change applications. So far, nothing shows up.

My understanding is that the builder is completly out of the picture now except for the warranty on the homes he built.

CarolS12 (Washington)
Posts: 12

Posted:

Thanks for your suggestion about checking out the process of zoning changes. We're having a meeting tomorrow night and I'll bring your suggestion to the group so we can get started on finding out the process. County/City records don't show anything yet.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Carol - you'd better read up in what a group home is.

It could be five old ladies placed in a home that looks exactly like all the others. A family of 5.

And by the way, it is illegal for your board to try to block homeownership based on race, color, creed, physical or mental handicaps, sexual preference, political preferences . . . etc. etc. You cold get slapped with a civil rights lawsuit.

PeterD3 (Florida)
Posts: 708

Posted:

Get the facts first. You said many versions are swirling around.

Mixed zoning is entirely possible too depending on your situation. One does not always exclude the other.
Our city has some multi-story developments. The ground floor is commercial (restaurant, dry cleaner, smoothie, wireless, etc.) with homes (condos type) on the upper floors.

Check City Hall for commission meetings or zoninig/planning meetings so you can organize community support and attend in masse to speak to the members.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

O***M***G ... old folk living in/next to a 55+ cpmmunity

?what will they do next?

CarolS12 (Washington)
Posts: 12

Posted:

I guess I missed the proper definition of what the retirement home management may be looking at building. Not an actual group home but instead, a facility which, to me, is a larger, commercial venture.

We have no issue with blocking based on the ADA items that you stated. Our issue is that we bought in with the guarantee that we would be living in a single family, 55+, planned community. It was to be 48 single family residences.

CarolS12 (Washington)
Posts: 12

Posted:

We've been trying to get the facts but they're being very secretive about it. When their workers have been here looking over the property, they have told us that they can't tell us what they will do. What's up with that?

At present, this property is residentual but is bordered on one side with mixed use zoning.

CarolS12 (Washington)
Posts: 12

Posted:

Old people next to old people? Not a problem.

The problem is a promise of single family homes being replaced by a large facility and parking lot.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Carol:

From either the City or County Records also get a copy of the Subdivision Improvement Agreement which was approved by the City. Also, get copies of your local planning and city meeting minutes regarding the past approval process for your subdivision.

You need to be sure and thoroughly read your governing documents. Make an extra copy of all your documents and put in a binder with tabs, then sit down with an orange highlighter and every time you see the word declarant or developer highlight. This will insure you are aware of any rights which may have been reserved by the developer. Make sure the right to amend anything or everything in your documents was not reserved by the developer. Make a copy of your state statutes for your association and do the same thing.

Next read your local zoning laws regarding subdivisions. What was required for your subdivision initially and what is required to change from single family home subdivision to the current potential plan.

Possibly two things are going to need to take place for the situation to move forward:

1) Maybe your governing documents will need to be amended; therefore, what is required to make any potential amendments. For example in my state to increase developer rights not reserved would require 67% of homeowners (other than developer) so you need to check your documents and state statutes for any options or protections.

2) To potentially rezone (if required) will possibly require both planning and city approval … be sure to keep an eye out regarding any potential meetings scheduled in both areas.

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