Developer HOA Funding Obligations

It would apppear that the developer would be obligated to fund the HOA for all of the unconstructed units from the date the condo declaration was executed (August 2000). Am I interpreting this correctly?

No all of the owners including the developer are obligated to fund the HOA. 50 total units 10 owner occupied 40 under developer control or unbuilt. Homeowners responsible for 20% of the cost - developer 80%.

There a strict prohibition against leasing or renting units within the condominium declaration. However, since the start of the housing recession, the developer began renting some of the unsold units. We can't seem to get him to stop? Is our only remaining option to file some form of injunction?

Yes, however all he would have to do is amend the CC&R's to remove that section.

GlenL & DaveD3: Thanks for your comments.

Jeff you can't, I repeat can't escrow HOA fees, that is a fast ticket to having your property liened and possibly foreclosed. As the developer he has the power to amend the CC&R's without a homeowner vote, its not fair but it is the nature of the beast or to put it simply: "His ball, his rules."

While you could bring suit under 5311.23 (see below) you would have to prove damages and while I understand your frustration of having renters which are against the CC&R's you need to look at all sides before you jump. You have 20 units built out of 50 in 12 years so the units are not selling for one reason or another and the rental income may be the only thing keeping the developer solvent.

We were supposed to be 332 units but the developer stopped at 132 and sold the remaining property to another developer. Now we're fine, good amenities, funded reserves etc. The other property is on their forth or fifth developer with about 60 units built, none in the last two years and no sign of the promised amenities. so as the old saying goes: Be careful what you wish for, you just might get it.

5311.23 Failure to comply with lawful provision of condominium instruments.

(A) A declarant, developer, agent, or unit owner or any person entitled to occupy a unit is liable in damages in a civil action for harm caused to any person or to the unit owners association by that individual’s failure to comply with any lawful provision of the condominium instruments.

(B) Any interested person, including a unit owners association, may commence an action for a declaratory judgment to determine that person’s legal relations under the condominium instruments or to obtain an injunction against a declarant, developer, agent, unit owner, or person entitled to occupy a unit who refuses to comply, or threatens to refuse to comply, with a provision of the condominium instruments.

(C) In connection with either type of action described in this section, one or more unit owners may bring a class action on behalf of all unit owners. The lawful provisions of the condominium instruments, if necessary to carry out their purposes, may be enforced in either type of action against the condominium property or any person who owns or previously has owned any estate or interest in the condominium property.

(D) An action by the unit owners association under this section may be commenced by the association in its own name, in the name of the board of directors, or in the name of the association’s managing agent.