ARC only approved for 1st ten years of HOA establishment

Started by DaveC6 • 4 replies • 1320 views

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DaveC6 (Wisconsin)
Posts: 76

Posted:

Our bylaws were drafted by our builder's secretary and approved by the builder's lawyer. we have serious issues that we are trying to work through because of soem of the language.

According to our bylaws, our ARC committee failed to exist as of Feb 2012. We have no language dealing with reinstating a committee. Can the current board can create or re-instate a new ARC with a simple majority vote or do we have to modify our restrictions?. The ARC was the only committee assigned an expiration date.

Actual Language:

6. The Deer Creek Estates Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the
recording of these restrictions, whichever occurs first. Until that time, Mark W.
Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural
Control Committee for the purpose of enforcing the restrictions set out herein.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Dave,

You are incorrectly interpreting that section you cited.

To paraphrase that paragraph:

Until the developer sells all the lots, or until 10 years have elapsed from the date the CC&Rs were filed with the County (whichever occurs first), Mark and Sue (or whomever they appoint) shall serve as the ACC.

Therefore, if it has been 10 years since the development has been started, the Association is to take over the duties of the ACC.

The powers and responsibilities of the Association are handled by the Board of Directors. Therefore, the Board may serve as the ACC themselves or they may create an ACC committee and appoint individuals to serve on it.

Here is a breakdown of that paragraph:

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

This bolded section states that the Association shall serve as the ACC after the declarant sells all the lots

OR

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

The Association shall serve as the ACC 10 years after the CC&Rs are filed with the county.

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

Mark and Sue (or who they appoint) shall serve as the ACC until the duties are taken over by the Association.

GlenL (Ohio)
Posts: 5,491

Posted:

If it is in the by-laws then you would need to amend the by-laws to remove the date and the declarant names. Do your by-laws require a homeowner vote to approve them or can the Board amend them on their own? If it is a covenant as apposed to a by-law then it would require homeowner approval.

Studies show that 5 out of 4 people have problems with fractions

TimB4 (Tennessee)
Posts: 21,059

Posted:

Sorry about that first post. I apparently missed a stop bold command.
Let me try again.

Dave,

You are incorrectly interpreting that section you cited.

To paraphrase that paragraph:

Until the developer sells all the lots, or until 10 years have elapsed from the date the CC&Rs were filed with the County (whichever occurs first), Mark and Sue (or whomever they appoint) shall serve as the ACC.

Therefore, if it has been 10 years since the development has been started, the Association is to take over the duties of the ACC.

The powers and responsibilities of the Association are handled by the Board of Directors. Therefore, the Board may serve as the ACC themselves or they may create an ACC committee and appoint individuals to serve on it.

Here is a breakdown of that paragraph:

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

This bolded section states that the Association shall serve as the ACC after the declarant sells all the lots

OR

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

The Association shall serve as the ACC 10 years after the CC&Rs are filed with the county.

6. The [name] Homeowners' Association shall serve as an Architectural
Control Committee after all lots have been sold by Declarant or ten years from the recording of these restrictions, whichever occurs first. Until that time, Mark W. Neumann and Sue A. Neumann, or their heirs or assigns, shall serve as an Architectural Control Committee for the purpose of enforcing the restrictions set out herein.

Mark and Sue (or who they appoint) shall serve as the ACC until the duties are taken over by the Association.

DaveC6 (Wisconsin)
Posts: 76

Posted:

Thank you. I will assume we can continue to proceed then with our ARC being fully functional.

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