Does HOA still exist if property is lost to the FDIC?

We are building a home in a subdivision where at one time all of the lots were owned by one builder. At the time a HOA board was put into place. This HOA existed only to regulate the kind of house built ie. size, external finishes, etc. and the animals allowed on the property. The board never collected dues.
This company lost all of the properties to the FDIC when the economy took a dive. Individual lots were purchased by private investors from the FDIC and the remaining lots were eventually bought back by the original builder. Two of the original board members listed in the HOA got out when things went south for the builder BUT that builder is still trying to enforce the HOA codes and covenants and architectural restrictions that were originally put in place before they lost the development. My question is...are those codes and covenants still legally enforceable if the original development was lost to the FDIC? Also, is it legal for a HOA to exist with only one person dictating/enforcing those covenants or does there need to be a governing board? Also, the HOA was put into place when this builder owned the entire development...after losing it and only buying back a portion of the properties, do the new LAND owners have to abide by the previous arrangement? Lastly, if 2 of the 3 original creators of the HOA give up their rights to the subdivision due to the government seizure, is their contract still legally binding (if nobody replaced them)?

Any help with these questions would be GREATLY appreciated!

"are those codes and covenants still legally enforceable if the original development was lost to the FDIC?"
The recorded restrictions will continue until the new property owner(s) amend them or abolish them by whatever means are specified within the document.

"Also, is it legal for a HOA to exist with only one person dictating/enforcing those covenants or does there need to be a governing board?"
If the association is still under the control of the declarant, then it is often a one-man show because he holds all the cards until he sells enough property that the owners take over. From what you wrote, it sounds like the original developer owns enough property to control everything. Yes, even under the developer there are supposed to be elections and board members but CC&R's are usually drafted to give the declarant so much power that elections become moot.

"Also, the HOA was put into place when this builder owned the entire development...after losing it and only buying back a portion of the properties, do the new LAND owners have to abide by the previous arrangement?"
You need to read your declaration thoroughly and carefully but many CC&R's allow the developer to remain in control as long as he owns just one lot. Declarants often give themselves things like 100 votes per lot while you and other buyers have just one each; he is in control until you can must enough votes to take over or until he sells his last lot.

"Lastly, if 2 of the 3 original creators of the HOA give up their rights to the subdivision due to the government seizure, is their contract still legally binding (if nobody replaced them)?"
Not sure what contract you are referring to. If you mean the CC&R's, then yes they would still be binding on you regardless as to who the declarant is or how many people are acting as declarant.

The most important lesson I have learned from this site is that buying into an unfinished development is extremely risky because despite all the good intentions everything can go wrong.

> deed restrictions run with the land

Yup, as a non-lawyer I agree.

The HOA is the usual mechanism for maintaining common areas (if any) and for enforcing restrictions. In the absence of an HOA any owner can enforce restrictions against any other owner through the courts.

Cristan

I am not nor do I play a lawyer.

I like others here believe there may well be an HOA that you are a member of as restrictions/etc. are attached and follow the deed not matter how many developers, declarants, owners, government agencies, ad nauseam.

My suggestion is to talk to a few of your neighbors with the objective to be funding a legal investigation of where you all stand.

Hope this helps.