Owners need help with New Declarant and New Management Company

Is the development still under control of the developer? Or was it handed over to the members?

Becky,

From what I have seen, the declarant retains his rights unless he assigns them to someone else. I am not sure what happens in bankruptcy court, but my understanding is that declarant's rights are separate from the property itself, meaning that even though the declarant lost title to the property he may still be in possession of the rights. If there is no assignment of those rights recorded then the original declarant may still hold them. This is something that needs to be discussed with an attorney.

Regardless of who holds the declarant's rights, the real issue for you is who controls the board of directors? If I understand correctly, there are six actual owners, five model homes sold to one investor, and 101 unsold lots in the hands of a second investor.

Whether the second investor has the declarant's rights or not, he has the votes to control the board of directors. The BOD usually sets the assessments, so you likely have little expectation of relief from the new rates.

One thing I have learned from this forum is that buying into any development in its early stages is very risky because so many things can go wrong before the owners can take control. If I were tempted to buy, I would rather buy the last home completed instead of the first one.

LarryB13 and JH3 - thank you!

You've confirmed I need a trip to the court house to find the document confirming whether or not the declarant rights were transfered. Either way it's a win/win.

If they were not transferred, there's a little financial matter of an initiation fee for each lot sold. If they were transfered, you're correct in that there should have been a meeting and that we're entitled to have the opportunity to attend and/or have the minutes of that meeting.

Last night, another homeowner dug out of the CCRs that a 30 day notice of increase was required, which was not given, so we've bought some time.

and to HOA Talk - THANK YOU for still being here and giving us the opportunity to share issues and problems!! Over 6 years ago, from Florida, I used this forum gaining excellent suggestions and ideas as we went through turnover and growning pains with my former HOA.

Most Associations are incorporated. When they incorporate, they are typically incorporated as a nonprofit. If this is the case for your Association, then, you are entitled to a copy of the list. Sometimes it requires showing them that you know your rights.

I would suggest that you send the polite request via certified mail to the management company worded something along the lines of:

Dear Sir,

I am requesting to inspect and copy the Associations membership list as authorized under GA § 14-3-1602 (b). Per GA § 14-3-1605, I hereby certify that I will not use the list to solicit money or property, used for any commercial purpose or be sold, traded or given away.

In compliance with GA § 14-3-1602, I would like to inspect and copy the membership list on mm/dd/yyyy. Please inform me if this is acceptable or another time/place would be more reasonable.

As an alternative, and as authorized by GA § 14-3-1603, you may provide aa list of the Association members as mm/dd/yyyy (the date of this request).

I can be reached at:

Thank you,

If the Association does not comply, you will have to petition the court as outlined in § 14-3-1604. You may access GA code at http://www.lexis-nexis.com/hottopics/gacode/.

Here are some of the specifics:

per GA § 14-3-1602 [emphasis added]:

(c) A member is entitled to inspect and copy, at a reasonable time and reasonable location specified by the corporation, any of the following records of the corporation if the member meets the requirements of subsection (d) of this Code section and gives the corporation written notice at least five business days before the date on which the member wishes to inspect and copy:

(1) Excerpts from minutes of any meeting of the board of directors, records of any action of a committee of the board of directors while acting in place of the board of directors on behalf of the corporation, minutes of any meeting of the members, and records of action taken by the members or the board of directors without a meeting, to the extent not subject to inspection under subsection (a) of this Code section;

(2) Accounting records of the corporation; and

(3) Subject to Code Section 14-3-1605, the membership list.

Per GA § 14-3-1605. Use of membership list

Without consent of the board, a membership list or any part thereof may not be obtained or used by any person for any purpose unrelated to a member's interest as a member. Without limiting the generality of the foregoing, without the consent of the board a membership list or any part thereof may not be:

(1) Used to solicit money or property unless such money or property will be used solely to solicit the votes of the members in an election to be held by the corporation;

(2) Used for any commercial purpose; or

(3) Sold to or purchased by any person.

thank you very much for your comprehensive answers.