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JeffG8 (Ohio)
Posts: 9
Posted:
BACKGROUND: I am a homeowner in an Ohio condo development which opened in 2004. The initial condo drawings provided for 72 units which included some single family, duplex and quad structures to be built. Currently only 20 units have been constructed of which 10 are homeowner occupied and 10 are developer owned. The developer missed the window of opportunity to build out the development due to bad management, poor marketing/prospecting and weak customer service. When the real estate market collapsed, the developer began cutting back on services and subsequently filed for Chapter 11 bankruptcy protection in 2010. It appears that the developer will reorganize and emerge as a new corporation with most of his assets intact and remain in control of the HOA.

The developer now wants to replat the remaining space in the condominium to all single family homes. This will result in a reduction in the number of total units (from 72 to 55).

My question is does the proposed replat require an affirmative vote of the all of the homeowner members? Or can the developer change the plat plan without a vote? I've examined the condo docs but its unclear whether the existing homeowners have any leverage in this matter.

I know this is primarily a legal question, but any input would be appreciated. Thanks in advance.
TimB4 (Tennessee)
Posts: 21,059
Posted:
As you said, what you ask is really a legal question.

Your county zoning office may be able to help explain the process and if 100% approval is needed or not.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Jeff,

Not a lawyer but to the best of my knowledge I know of nothing that would prevent the developer from revising the boundaries of unsold lots as the plat is not tied to the CC&R's. Depending on state law or local ordinances he may need approval from a body such as the zoning board.

From your initial post it appears that your development was intended to be a mix of condos and fee-simple stand-alone homes. If your CC&R's were written to accommodate both types of dwellings then there would be no need to amend the declaration. If, however, the original declaration envisioned only condos then an amendment may be required to provide for single-family detached homes.

In a condo each owner has an exclusive space plus he owns a share of the building and everything else on his lot. The association is typically responsible for all exterior repairs and maintenance. This is unlike a fee-simple single-family detached home where the owner is responsible for his own maintenance and repairs.

Unless existing owner approval is required in the declaration or the law, the developer would not need to put this to a vote.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jeff

I am not nor do I play a lawyer.

I believe what the builder is doing is correct for two reasons. The first is he is just changing the number of units versus the makeup of the complex. Not like it called for all single homes now he wants all condo buildings or vise versa.

The other reason is we have a situation in our development. Only 4 lots left and they will not accommodate/fit all our home models. Our developer is considering combining the 4 lots to make 3 so any model house can be built. When I asked him what he had to do, he said all he has to do is re-plat.

Jeff, do you have issues with what your builder wants to do?

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