New HOA

Started by TammyP2 • 15 replies • 1958 views

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TammyP2 (Georgia)
Posts: 5

Posted:

We are a new subdivison that is trying to get a Home Owner's Association under way. We are looking for a letter that will solicit anyone that is interested in being on the board to come forward to "run for office." Does anyone have such a letter?

Any advice on getting an HOA started? Any help would be greatly appreciated.

Thanks,
Tammy

TammyP2 (Georgia)
Posts: 5

Posted:

Ok, Anybody got any advice on starting a HOA? Our new subdiviosion is about 75% built now and we want to take "ownership" of the HOA from the developers. Any advice would be greatly appreciated.

Tammy

DavidS3 (Maryland)
Posts: 37

Posted:

Tammy

Did the developer incorporate your Community as an HOA from the beginning? My understanding of HOA's is that they are legal entities and not something that a few people can decide to start up. Perhaps you should consult with an attorney familiar with HOA law in your state.

DavidS3

KennyD1 (Texas)
Posts: 51

Posted:

I agree, the first thing you want to do is have a nieghborhood meeting with at least 75% in attendence to throw the idea out for a HOA or NOA. HOA is required membership, where a NOA is a voluntary assciation. Now cause the builder did not incorparate this before building, you might have a hard time to get everyone to agree, but the NOA you and the members get to decide who, what, where, and when someone can use any areas that the NOA controls like the park, pool, clubhouse, special events, and so on. Hope to hear your ideas.

President 2006~2007
Vice President 2005~2006
Los Jardines HOA
Kenny Dee of Austin, Texas

TammyP2 (Georgia)
Posts: 5

Posted:

The HOA was explicitly expressed to everyone prior to purchasing their homes. We have been told that we will pay an annual due at the end of the year. The developer is wanting to turn it over to the home owners and let us take over with meetings, etc. We have only had a couple of meetings to date, one was to learn how to operate the gate at the entrance and the second was just a community party setting. We just need help figuring out how to solicit for positions and then how to elect them. Would everyone get a vote or would it be one vote per house hold? How many board members should there be?

BobH3 (New Mexico)
Posts: 1

Posted:

The officers of a HOA, nominated and voted into office are:
President
Vice President
Secretary
Treasurer

There should be at leasts 5 board members, all for a total of 9 home owners. This is just a suggestion and has worked quite well in the past, and should not be considered as written in stone.

GlenL (Ohio)
Posts: 5,491

Posted:

Tammy if the HOA already exists you should have received copies of the Declarations, By-Laws and any rules when you closed on your home. You might also check with your local County Recorder as these (except rules) are legal documents and must be filed with the County. You might also check with the Secretary of States office to see if incorporation papers have been filed for your Association. The question of how to vote, how many officers etc. should be addressed in these documents. If you follow the link to the right for Community Associations Network, you can type in your state and find relevant HOA laws and lots of advice about running an HOA. Good Luck.

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

GloriaM (North Carolina)
Posts: 829

Posted:

Tammi:

The Association should be incorporated already through the Secretary of State. The Developer should have already applied for a Tax ID# and recorded the Articles of Incorporation. There is no need for you to start an HOA. It sounds like what you are describing is the transition state once the developer is 75% sold the HOA takes control. A Notice of Meeting should be sent to all Owners, calling your first annual meeting. The purpose of the meeting should be to elect a board of directors. In your Notice of Meeting you should include a proxy ballot for off-site Owners, or Owners who cannot attend, and a self nomination form. At your meeting you also can receive nominations from the floor.

TammyP2 (Georgia)
Posts: 5

Posted:

Yes GloriaM that is exactly what we are needing advice with. There is one owner in the subdivision that has been the liasion between the developer and the owners. She desperately wants to get the HOA underway because she is tired of everyone asking her questions, coming to her with complaints, etc. The problem seems to be that the developer, although we are at 75% seems reluctant in turning it over. He has started another subdivision similar to ours and has not taken any steps in the direction of turning it over to the owners. There are several of the owners, myself included, that would love the opportunity to be one of the officers and very much want to get this under way. We just need to figure out a way to give the developer a "friendly" nudge.

RogerB (Colorado)
Posts: 5,067

Posted:

Tammy, if you are paying assessments there is already an HOA. Ask the Developer' Board for a copy of the Declaration, Articles of Incorporation, and By-laws. If not provided you can obtain the Declaration from your County Cleck and Recorder; and the Articles probably can be downloaded from your Secretary of State website.

Once you have the By-laws they should inform you on what is required to call a meeting and when homeowners can be elected to the Board.

You should prepare for the transition from Developer control to homeowner control of the Board. There are numerous posts on this- search transition or transition audit.

DonnaH (Washington)
Posts: 1

Posted:

We purchased our home (March 2005)in an HOA community of new homes being built. The developer set up the HOA and we have yet to get the Association up and running. We have been billed for dues since we moved in (even tho we had no board). The builder and developer chose a person to pay bills and collect money but we have been asking for an accounting every month and just this month received a hand written sheet of money in and money out but with no explainations. They held the checks for the dues for up to 5 months before depositing them and did not put them in an interest bearing account. The builder orders the person to pay moneys out of said funds without approval from anyone. Aren't the builder and developer in a shaddy area?

You see entries like...."Pd to developer" with no explaination. I was under the assumption (in Washington State) that all funds must be deposited into an interest bearing account.

I have called a meeting with all of the home owners for tomorrow evening to address all of the above issues and more and want to attend loaded for bear.

Donna

GlenL (Ohio)
Posts: 5,491

Posted:

Donna, somewhere in your CC&R's it will state when a developer will turn control over to the homeowners; typically when they have sold 75% of the development. Until the transition (see Roger's advice about transition audit) they are in control and can pretty much do as they like except for illegal acts which are hard to prove because they control the books; Catch - 22.

While I am not familiar with Washington State laws you can go to http://communitiesonline.org/laws/ and follow the link to access Washington's laws concerning HOA's

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

GloriaM (North Carolina)
Posts: 829

Posted:

Tammy:

Your governing documents should state a more or less deadline of Developer relinquishing control. Example, yes at 75% sold but should also give a date of control release e.g May 21, 2007. Check your CCR's and see what veribage is there. He may have already released control according to your documents.

TammyP2 (Georgia)
Posts: 5

Posted:

Now would all of this hold true no matter what state the subdivision is in? Ours is in Georgia.

GlenL (Ohio)
Posts: 5,491

Posted:

Tammy have you read your documents like Roger, Gloria and I advised? What do they say on this matter? As a general rule yes all documents have a date or % where the developer transitions out. (I know that since I said this someone will point out some badly written docs. that don't have the clause.) You might also try http://communitiesonline.org/laws/ to find any applicable laws for Georga.

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

ToddD (Washington)
Posts: 12

Posted:

Hope this helps.

Board of Directors Candidate Form

The qualifications for serving on the Board are:

•An interest in serving the community where you live;

•A commitment to uphold the Covenants, Conditions and Restrictions (CC&R’s) of your community;

•An ability to listen and make informed decisions;

•A time commitment to attend Board Meetings, as well as additional time to participate at committee level;

•Ability to communicate with other homeowners; and

•Must be an owner of record, current in dues and have no violations.

If you are interested in serving on the Board of Directors, please complete the following information:

Name:
Position Interested in:
Phone:
Address:
Lot No.:

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