HOA questions Tennessee

Started by Silverfox1 • 4 replies • 1480 views

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Silverfox1 (Tennessee)
Posts: 2

Posted:

We had our first meeting tonight in a subdivision that has been in use since 2007. The developer and self appointed president dropped it on us as they no longer have property in here in a sink or swim deal.

Currently there are about 25 of 55 lots with homes.

Unfortunately I was elected president. I've been in a HOA before but never in this role.

I'm going to need some help and that is why I am here.

We have only one common area which is a retention pond of less than 1 acre. Dues are $100 yr which has not been collected since before I built here in 2010. We currently have no problems that I am aware of.

We are in a temp position for 6 months. We have a president, vice president and a secretary/treasure. We are suppose to meet with the original operators to turn over account information later this week.

So my question, what's next? What do I need to do? I have some account info from 08,09, and 10 but it's incomplete. I have no records after 12/2010.

Thanks

TimB4 (Tennessee)
Posts: 21,059

Posted:

Silver,

Welcome to the forum. One of the questions to ask is - who owns that property (a bank, a new developer, etc.)?
The second thing to do is make sure the paperwork properly transfers control of the Association to the membership.

Here are some links to threads on this forum about transition:

HOA transition from developer control to homeowner control

Developer handing over HOA to homeowners

HOA-USA page about TN state laws for HOAs

Hope this helps,

Tim

Silverfox1 (Tennessee)
Posts: 2

Posted:

It is privately owned. All lots are sold just not built on as of yet.

Thanks for the help. I'm sure I'll have more questions.

NancyG3 (North Carolina)
Posts: 342

Posted:

SilverFox - I don't know how you will finance this, however, I suggest that you obtain an Attorney to help you with the transition. There are a lot of legal matters that most Boards do not know about. For instance, our Board did not obtain an Attorney when the Developer turned the Assn over to the homeowners. (Wish we had gotten one.) We also have a retention pond and it is part of our storm water drainage system. There is a permit for our storm water drainage which was never changed over to our Assn. (It is now about 7 years later). There could be plats and legal papers that need to be transferred. The Secretary of State has to be informed of the change if the Assn is incorporated. You said you don't have any financial information for 2011 probably because no dues have been paid. Check with the developer and ask if they will have an Attorney at your meeting (normally they won't). If the transition is done right in the beginning you should have no problems later on.

You may consider notifying the other homeowners to attend the meeting. Could be one of the homeowners is an attorney. It's lots of work. Nice of you to step up.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Silver

I see you say no dues have benn collected since 2010. You have to address this situation ASAP.

I think you will have a battle royale if you try to collect back dues (which I think the association is entitled to) so I suggest a letter reminding folks about dues and now that the associtaion has been turned over to the owners, dues collection will start. Do not go down the you owe us road. Try the approach developer was paying all...but ...now....

Hope this helps.

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