Pay dues but no HOA

Started by TammiW • 6 replies • 1915 views

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TammiW (Tennessee)
Posts: 4

Posted:

I bought a townhome 2 1/2 years ago in TN. The Builder/Developer has denied the owners many requests to have a meeting. We each pay a $100.00 HOA fee every month. We've had many neighborhood safety scares and the Builder refuses to do anything more than to allow the city's electric company to install street lamps. My unit was robbed, cars have been broken into and we have gang graffiti on a regular basis. The Builder controls the HOA. Do the owners have any options? The only service we receive is a mowed lawn. The Builder acts as if he's doing us a favor by not taking a management fee but I'd like to see proof that he's not taking a fee. I've asked about a dozen times over 2 1/2 years to have a meeting. I understand the Builder can control an HOA for years but I have reviewed our bylaws and in article 4 it states that the first regular annual meeting of the members may be held no later that the earlier of the events a)4 months after all the units have been sold by developer or b) 5 years following conveyance of the first Unit by the Developer (if necessary to comply with federal regulations). Therefore unless otherwise specified an annual meeting shall be held each year on the second Thursday of the third month. I understand that the Builder (also the Developer) can elect himself and his wife the realtor as Directors but aren't they required and in violation of at lest having a meeting?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Tammi,

Yes, the Association should be holding meetings. The only way to force the builder to hold the meetings is to bring a civil action in court. I would suggest that you gather the neighbors together and send a polite letter (more flies with honey type of thing) via certified mail (start the documentation process), signed by as many of the membership that you can, to the builder citing the requirements and ask when the meeting will be held. If the Developer sees the membership banding together, you may be able to influence him.

As for the graffiti and crime, contact the police. Have the entire neighborhood contact the police over each and every issue relating to crime. The old saying of the squeaky wheel gets the grease works well with issues like this.

Tim

SusanW1 (Michigan)
Posts: 5,202

Posted:

It is not clear if there has been a turnover yet.

The builder and his corporation may have held his annual meeting. There is no "members HOA" there is only his HOA right now.

If this is still in the hands of the builder, then the best you can do is to rally your neighbors about the crime in your neighborhood, maybe request security patrol or something from the developer.

But don't count on it. Best to call the police several times a day and ask for more patrol.

TammiW (Tennessee)
Posts: 4

Posted:

Thanks Tim, appreciate the reply! This helps.

TammiW (Tennessee)
Posts: 4

Posted:

The builder and his corporation are he and his wife and while not in writing, she's told me verbally they've not had one. Thanks Susan

RogerB (Colorado)
Posts: 5,067

Posted:

Tammi, based on what you have presented I must asssume there is and HOA which has a Board of Directors(the builder, wife, and their other appointees) and Bylaws. In order to assess current unit owners there must also be Covenants filed with the County Clerk. And if incorporated there are articles of incorporation filed with the Secretary of State. I suggest you obtain and study all of these documents. The Articles of Incorporation probably require annual meetings of the Association with notification to all members. And each unit owner is probably defined as a member of the association in the Covenants. The Bylaws should state how often Association meeting must be held and how often Board meetings must be held. There may also be state laws which require certain actions by the association. An example is Colorado's Common Interest Ownership Act.

Armed with this knowledge try to convince the current President (probably the builder) to comply with the regulations concerning meetings. If the Board of Directors absolutely refuses to comply with these regulations advise them in writing that they can personally be held liable. Insurance does not protect Board members who knowingly do wrongdoing. So hopefully this will move them to hold regular Board meetings which owners may attend and to hold annual meetings with prior notification to get a sufficient percentage of owners to attend to have a quorum present.

TammiW (Tennessee)
Posts: 4

Posted:

Thanks Roger. There are no other appointees. It's just the Builder and his wife. I've read the bylaws and today talked with the neighbors all of which are just as upset if not more. We'll will draft a letter, sign it and send certified. Thanks again for taking the time to reply.

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