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BillA3 (Florida)
Posts: 3
Posted:
I am a resident in a bundled golf community under developer control. Last year, several residents and I were concerned about the maintenance and security issues in the community, and we organized a small group to discuss the issues with the management company and the developer. The developer agreed that we could be the liaison between residents and the management company to coordinate reporting to the management company. Our "Pride" committee was promoted in one or more newsletters published to residents by the management company.

As Pride Committee members, we are concerned that there may be exposure to potential liability due to the formal relationship with the developer. If necessary, we can dissolve the committee, and reform as an independent resident group. Your opinion is appreciated.
JohnO6 (Georgia)
Posts: 424
Posted:
Bill - Why do you describe this as a "formal relationship" with the developer? Is there a written agreement? I don't expect that anything changed in your CCRs, By-laws, or BOD rules - the only thing seems to be the developer said "OK" and the management company wrote a newsletter article or two .. .. .. .. I'm at a loss to understand any potential liability.
BillA3 (Florida)
Posts: 3
Posted:
John, one of our residents (a realtor) spoke with a real estate attorney, and the attorney felt that we could be named in a liability suit. Most of us on the Pride Committee thought that any potential liability was a stretch, but nonetheless wanted to see if we might be off-base.
RogerB (Colorado)
Posts: 5,067
Posted:
Bill, Since you are concerned check to make sure the association has D&O insurance and that it covers committee members.
JohnO6 (Georgia)
Posts: 424
Posted:
Roger gives very good advice (as usual) - since the HOA is under developer control, I suspect they've overlooked such "details" as D&O insurance . . . . .

Rather than a real estate attorney, suggest you consult a firm that specializes in community association practice if you're really concerned.
SusanW1 (Michigan)
Posts: 5,202
Posted:
If the developer is a corporation, you are simply a reporting mechinism to his "board" and have no real power, except as advisory. You would be covered along with his board IF he has D & O insurance.

If not, step back and just report to the MC as individuals.

(You don't describe exactly what you job description is)

BillA3 (Florida)
Posts: 3
Posted:
I received a response from the developer. Thanks for all the input.

The Pride committee is covered on the D & O insurance because they were duly appointed by the Board of Directors.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
I'm glad your Pride Committee can continue. I don't see how a developer issue would snag a community board of volunteers looking for a voice in their own neighborhood. Besides, anyone can be named in a a liability lawsuit, it seems.

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