New HOA

Started by JackieL3 • 5 replies • 1511 views

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JackieL3 (Missouri)
Posts: 3

Posted:

We are a fairly new HOA. The developer established the HOA to take effect in 2013 when the last lot in the subdivision was sold. Although we knew there was going to be a HOA none of us were prepared for what that entailed. Our developer drew up the CC&R's and broke half the rules in it while selling the lots and allowing things that are harmful to our community, including a mobile home, homes not up to code, rentals, and lastly our road was not designed properly so now we can't get our county to service our roads due to being built improperly. It will cost probably 175,000 to get the roads up to standards. We are a subdivision of 54 lots so it would take 20 years to come up with that kind of money and we have resentful homeowners who don't want to pay any fees that have been established. My question is how do we undo some of what he has allowed, rentals for instance (they are lowering our property values), when the CCR's clearly say homes must be occupied by owner and also what if anything can we do to the developer at this point?

PitA
Posts: 1,416

Posted:

ATTORNEY

DUKE IT OUT IN A COURT OF LAW

or

MOVE and be rid of the issue(s)

and

NEXT TIME

CAVEAT EMPTOR{/b]

TimB4 (Tennessee)
Posts: 21,062

Posted:

If the builders bond with the City/County is still available (after 2 years it may not be), you could put a claim on the bond concerning the roads. However, if the bond is no longer available, the Association will need to take the developer (if they are still in business) to court.

As for the CC&Rs, they should have been written prior to the property being sold. If they were not in place (i.e. recorded with the County and attached to your deed) when you purchased the property, it likely can not be attached now. However, you will need a legal opinion from a local attorney who can look over all of your purchase documents, county records and current Association documents to be sure.

Keep in mind that governing documents can be amended. The document itself should explain how to do this.

As I posted, CC&Rs are typically written and attached to the deed prior to any lot being sold. Is it possible that this occurred and the developer exercised their rights to amend the CC&Rs (which they typically have the authority to do).

The Association was formed when the initial CC&Rs were created. However, it was being ran by the developer. Depending on how a developer (aka the Declarant) runs the Association, members may not even be aware that one exists. Now that the control of the Association is being given to the membership, you are now aware of things you may not have been aware of before (when the developer was running the show).

Hope this helps

JackieL3 (Missouri)
Posts: 3

Posted:

I will definitely check on a builders bond. Like you said it is probably too late for that. The CC&R's were created around 2010 and he didn't turn it over to the homeowners until 2013. The CCR's clearly state that there will be no mobile homes, homes will be occupied by the owner and yet he let them construct and buy lots under those circumstances. The drainage ditches are poorly constructed and several homes have flooding problems. The HOA was his way of relieving himself of any responsibility. Is it possible to file a class action suit against him? At least to get the roads repaired?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By JackieL3 on 07/21/2015 6:46 AM
Is it possible to file a class action suit against him? At least to get the roads repaired?

It would be a suit brought by the Association (who represents the members).

To see what options the courts may provide, you will need to consult with an attorney.

JackieL3 (Missouri)
Posts: 3

Posted:

Thank you so much Timb4. This is so overwhelming. I love this forum and am learning a lot!

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