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JasonL (Illinois)
Posts: 10
Posted:
Numerous homeowners in my subdivision feel the developer of our subdivision made an amendment to our CC&R's illegaly. My main question is, when does an amendment become legaly binding? I was under the impression it becomes valid on the day it is recorded with the recorder of deeds in the county courthouse. The reason this is in question is, the developer never mentioned or turned over a copy of this amendment to the HOA until six months after the turnover date to homeowner control. On the amendment paperwork, it was notarized on the exact day he turned the association over to us homeowners, but the amendment was never recorded with the recorder of deeds until five months later. Not to mention, the footer note at the bottom of the page which has his attorney's computer file name on it with a date showing it was not created until two days after the turnover date. What really concerns us homeowners is, the amendment gives the developer the right to amend anything in the CC&R's untill he sells 100% of the lots in the subdivision. He did not have this power in the origional CC&R's.

Thanks in advance,
Jason
RogerB (Colorado)
Posts: 5,067
Posted:
Jason, if the developer did not have sufficient votes to amend the Declaration it can be challenged as invalid. You may have a time limit after the time of filing to initiate this challenge.
JasonL (Illinois)
Posts: 10
Posted:
Roger,
In our origional CC&R's, he gave himself the sole power to change anything he wished until the turnover date. Therefor not requiring a vote. Just trying to figure out here how shady this developer actually is. Since the turnover date, he still retained the power to be the ARC, but refuses to turn over anything regarding any approval or disaprovals on any new structures to the HOA. He feels the ARC is a totaly seperate entity to the HOA, and does not have to report, attend meetings, or furnish any documents at this time. Keep in mind also that he only retains this power untill the last lot in the subdivision is sold. Well guess what, every lot in the subdivision has been sold except for one which he has now taken off the market. He has stated to the HOA board that he can't sell this lot at this time due to the housing market being down, although he is in the process of developing another 140 home sites 5 miles away and selling those lots. Sorry for the rant, but I and many other lot owners are just a little tired of this self appointed dictator.
Jason
BradP (Kansas)
Posts: 2,640
Posted:
Jason:

I am a little confused, in your first post you stated he did not have the power to change amendments, but the amendment he created gave him that power. In your second post you stated the original CC&R's gave him the power to amend anything.

If your first post is correct and he did not have the power, he would have had to follow the stated rules to amend a covenant. Typically that includes giving notice of a meeting to all homeowners and voting. A lot of developers retain multiple votes for each lot they own so until they own less than 10-15% or so of the lots it is virtually impossible to beat them in an election.

Either way you look at it, he appears to be a little on the shady side.
JasonL (Illinois)
Posts: 10
Posted:
Brad,
Sorry for the confusion, according to the origional CC&R's the developer had the power to amend anything he wanted until the turnover date (May,06), but after turnover, it would have to be approved by a 2/3 vote of the homeowners. The new amendment he filed with the court house in (Oct, 06) stated he had the power to amend until 100% of the lots were sold, allowing him to keep his power to amend past the turnover date. It gets better, I was just served by a process server hired by this wonderful developer who is now sueing we to move a fence that has been on my property for over a year and a half. The set of CC&R's that are included in the filing paperwork as evidence does not match the CC&R's the HOA has.
Jason
JM2 (Oregon)
Posts: 439
Posted:
Jason, does Illinois require mediation in a lawsuit situation, prior to going to court? If so, you may get a chance to challenge the developer on the things going on that seem shady at best. You may want to talk with a lawyer, as well as go to your county and get a copy of whatever is on file as the CC&R's.

J. Patrick Moore, CMCA
Compliance Coordinator
Forest Heights Homeowners Association
Portland, Oregon
BradP (Kansas)
Posts: 2,640
Posted:
Jason:

Thanks for the clarification. Good luck, did you file a ACC request before putting up the fence, if so did he respond? It doesn't seem fair that after 18 months he is coming after you.

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