We want to be in charge of our own HOAl

Started by EleanorS1 • 9 replies • 1402 views

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EleanorS1 (Pennsylvania)
Posts: 4

Posted:

HI. I'm the president of my HOA Board(single family homes in PA) Soon, Transition will be complete and it seems that we're stuck with a Decaration which was cut & pasted from another community and written by someone who doesn't live here. We understand that our HOA needs policy and the stable foundation which a Declaration provides but there are items here which are costing our homeowners way too much money. We can change the Declaration but that costs even more money. Specifically I'm speaking of shoveling the snow off sidewalks and driveway aprons in addition to replacement of trees within the unit boundaries. We want out from under these expensive rules with which we disagree. Everytime we want to make some common sense change which will benefit the community members financially, we are threatened with suit - either by one troublemaker homeowner or by management - if we don't file the proper papers , blah, blah, blah. We can't even fulfill our fiduciary responsibilty to our members because it costs more to make it legal than the basic issue...it's stupid and we're sick of it. ** What I want to know is, how many HOAs are out there which DON'T have to check with Legal everytime they want to change something in the Declaration.** I know of one townhome HOA of which a friend of mine is the Pres but that's all (I wonder if they've just never had a homeowner who was interested enough to threaten to sue, y'know?).
I appreciate your help. Thanks for listening. Ellie

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Ellie

Seems like you are still under declarant control.

Once transition to the owners fully happens there will be no management unless the HOD BOD hires one and even then, they work for the BOD.

Covenants/Bylaws can be changed by the owners. The method to do so will be in the same documents. It might take a majority of the homeowners to do so, but it can be done. Realize that unless the required majority want the changes, they will not nor cannot happen no matter how right you think they might be.

Do not be bullied by other owners. If they want to sue tell them to bring it on. It is cheaper to defend yourelves and you might even be able to counter sue for damages/aggravations and make some money in the deal.

Prior to the transition, the declarant can make all the changes they want without owner's permission/vote. It might be easier to work with the declarant to make the changes before the transition then it is to fight/argue with them.

Remember one thing. The difference between your scumbag attorney and my scumbag attorney is one of them is my scumbag attorney.

Hope this helps.

EleanorS1 (Pennsylvania)
Posts: 4

Posted:

Thanks John.
Your response opens a possible avenue. We have a HOA member Board - Declarant is not on the Board - but if Transition is not yet complete, perhaps this gives us a loophole. We still have rapport with the Declarant and he insists that it was never his intent to put the HOA in charge of shoveling snow or replacing plot trees.
And thanks for your comment about litigious homeownners - it's nice to feel a bit of control over that situation...counter sue - what a great idea!
Have a great week!

LarryB13 (Arizona)
Posts: 4,099

Posted:

Never be intimidated by a homeowner who threatens to sue. It costs nothing to threaten. Commencing an action in court will typically cost a homeowner anywhere from $5,000 to $20,000 to retain an attorney and pay the start-up costs for a lawsuit.

I would, however, advise first asking the homeowner what his grounds are for threatening his lawsuit. Most of the times you will find the homeowner is full of hot air and cannot articulate any legal grounds. "I don't agree with that" is not legal grounds. If the homeowner does present some legal basis for a lawsuit, it would be wise to consult with your own attorney

Most board members have little to no experience in managing an enterprise. You should educate yourselves as to what your legal duties are and what powers you do or do not have.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Ellie

It is refreshing to hear about a smooth transition.

We are getting close to turnover to the owners and we (BOD appointed by the Declarant) are working closely with the declarant to make Covenant/Bylaw changes (which the declarant can make on his own) before the transition to better aid the owners in running the HOA.

Our question/dscussion list presently has 14 items on it.

Hope this helps.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

When you say "we" dont want sidewalks shoveled, you really mean you. Obviously other people in your HOA feel it is an important expense and are willing to pay for it. What you pay for is decided on by a majority, not what you or other officers feel like spending.

Yes, you have to check with legal before changing a declaration, its a big deal and may require a homeowner vote, filed with registry of deeds, etc. You should focus on issues that dont require declaration changes.

NancyG3 (North Carolina)
Posts: 342

Posted:

John - What a great way to handle a transition. Getting the Declarant to make changes to the Covenants/By-Laws will save the BOD a lot of time and money. Great!

EleanorS1 (Pennsylvania)
Posts: 4

Posted:

You're incorrect. I really mean 'we'

EleanorS1 (Pennsylvania)
Posts: 4

Posted:

HI Larry,
Thanks for your comments.
Recently we acquired a new Chair for the Finance Committee. He's an insurance guy and very savvy about the law. He's helping us a lot as we navigate these waters. Since there's no HOA school, we're just learning as we go along which is why I'm very happy to have found this blog. Thanks, All

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Posted By EleanorS1 on 08/08/2012 4:08 PM
You're incorrect. I really mean 'we'

Well unless its 100%, all owners, it's not "we"

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