💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

BrianC6 (Tennessee)
Posts: 1
Posted:
Our association (66 total lots)was formed in 2005 with a set of covenants and restrictions, the declarant (developer) made changes to the restrictions in 2007 at which point he owned one lot his changes involved boats,campers to be parked in the backyard on a concrete pad, no commercial vehicles parked in driveways, and a few other changes. He made no attempt to enforce the changes and current BOD made an attempt to enforce in 2008 but when there was several homeowners complain about the changes they were unable to enforce since then, within the last year a few homeowners is pressing to have it enforced. We have been unable to get a majority vote to enforce or remove the 2007 changes. I can find no were in our covenants or Tennessee law if the declarant had the right to make those changes at the time he made them since he owned only one lot. The covenants did give him the power to make changes but it didn't give a time frame or a percent of ownership that he had to control to make changes. It seems hard for me to understand that he can own only one of sixty six lots and have the power to add and change restrictions.
He made no notice of the possible changes before he had them registered and he never appointed any homeowners to serve on the board, we had to basically force him to release power of the association, which at that time we learned that he had signed a 30 year lease in the name of the association for the common areas which included a clubhouse and pool the lease was for 1200 a month of course due to him and about the same time we learned that the pool was not up to codes and he had used the pool and clubhouse to receive a bank loan to start a new development, after about 50000 in legal fees we were about to get the lease removed and the loan against the pool and clubhouse removed it cost us about 90000 to repair the pool. After all that this guy did I don't understand how the 2007 changes can legally be enforced.
Does anyone know TN law that would clarify this for me or case law that would help. I have looked at the current laws that went into effect in 2009 it reads that he would have had to own 20percent but I can't find anything at the date he made the changes in 2007.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Brian,

Typically when a declarant initially establishes within the governing documents a voting right structure that allows them to maintain controlling interest until all the lots are sold. This is sometimes referred to as different classes of members.

What do your governing documents (check all of them) say about the voting rights of each class or if the builder/developer still owns lots?

Tim

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here