JohnS48 (Georgia)
Posts: 2
Posts: 2
Posted:
I live in a subdivision of 110 building lots. It currently has only 45 completed homes and the remaining lots are either bank owned or individual investors. Our HOA was the developer (declarant) who turned over control of the HOA to the residents just a few months ago. They told us since they no longer owned any building lots in the subdivision that they could not have control over the HOA. The developer also maintained horrible records and most of the residents had not paid their HOA dues for the past few years because of this and after numerous requests for the developer to show it's financials for the HOA.
Here is the current situation:
There was an initial covenant filed in 2004 with the county when the subdivision began, which consisted of 160 acres and the HOA was also filed with the Secretary of State. Yearly dues were set at $90 in the covenants with provision to raise dues each year by 10%. In 2007, a community pool and club house was built at which time the developer began to collect $350 but nothing was ever filed with the county and nothing was ever provided to the residents in writing.
In 2008, a 2nd phase began which was defined as 40 acres and had yearly dues of $350 with provision to raise dues 10%. A new set of covenants were filed with the county for this new phase with a new name for this phase. However, the HOA for this 2nd phase was never filed with the Secretary of State. This 40 acre phase exists within the 160 acres defined in 2004. So they are basically like a sub-section of the original 160 acres.
Currently, many of the residents who do not live within this 40 acre 2nd phase are being billed $350 for current and past dues (most of which have never paid any association fees, including the $90 as stated in the original covenants in 2004).
Many residents want to know how a covenant from 2008 that only includes 40 acres can be forced upon residents who do not live within those 40 acres. Also, the fact that the developer never had a vote or anything filed with the county to show that the dues were raised in 2007 to $350. Shouldn't the 10% provision be the only amount they can be raised? Are the 2008 covenants even legally enforceable for residents who do live within the 40 acre 2nd phase since the HOA for that phase were never registered with the Secretary of State?
Here is the current situation:
There was an initial covenant filed in 2004 with the county when the subdivision began, which consisted of 160 acres and the HOA was also filed with the Secretary of State. Yearly dues were set at $90 in the covenants with provision to raise dues each year by 10%. In 2007, a community pool and club house was built at which time the developer began to collect $350 but nothing was ever filed with the county and nothing was ever provided to the residents in writing.
In 2008, a 2nd phase began which was defined as 40 acres and had yearly dues of $350 with provision to raise dues 10%. A new set of covenants were filed with the county for this new phase with a new name for this phase. However, the HOA for this 2nd phase was never filed with the Secretary of State. This 40 acre phase exists within the 160 acres defined in 2004. So they are basically like a sub-section of the original 160 acres.
Currently, many of the residents who do not live within this 40 acre 2nd phase are being billed $350 for current and past dues (most of which have never paid any association fees, including the $90 as stated in the original covenants in 2004).
Many residents want to know how a covenant from 2008 that only includes 40 acres can be forced upon residents who do not live within those 40 acres. Also, the fact that the developer never had a vote or anything filed with the county to show that the dues were raised in 2007 to $350. Shouldn't the 10% provision be the only amount they can be raised? Are the 2008 covenants even legally enforceable for residents who do live within the 40 acre 2nd phase since the HOA for that phase were never registered with the Secretary of State?