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ConchoP (Texas)
Posts: 208
Posted:
I understand that a Class B membership is the developer.

On the website "Findhoalaw.com"states:

Class B Membership
Class B membership is reserved to the developer, who is given up to three (3) votes for each unit/lot held by the developer. (10 CCR § 2792.18(b)(2).) Class B membership is tied to the developer’s ownership of separate interests (units) that are subject to assessments. (10 CCR § 2792.16(f)(2).) Pursuant to 10 CCR § 2792.32(c), Class B membership automatically converts to Class A membership when any of the following occur:

When 75% of the authorized residential interests transfer to homebuyers;
On the 5th anniversary of the most recent conveyance of a residential interest to a homebuyer. This deadline can be extended indefinitely as long as a residential unit is transferred once every 5 years; or
On the 25th anniversary of the first conveyance of a residential separate interest in a master planned community.

Our HOA By-Laws state:

Class B.
THe Class B Member is the Declaration and has (3)votes for each Lot owned. The Class B Membership ceases and converts to Class A membership on the earlier of
1) when each house in any section located in (said subdivision) is completed and move in ready ; or
2) the date specified in the Declaration

Questions:
1) I can not find said date in the Declaration
2) If the Class B member gets 3 votes,and continues purchase land, plat and build homes; how can Class B turn to a Class A membership

It seems as if the Class B member will always have the majority vote, so the HOA would never have any voting rights.

Thank you in advance
PitA
Posts: 1,416
Posted:
... for a maximum of 25 years after the very first sale ...

? sucks, don't it ?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Concho,

The article you found discusses California statutes and not Texas statutes.
Therefore, it would not be applicable.

Texas law would be Title 9, Chapter 209 the Texas Residential Property Owners Protection Act

Based on your Bylaws, Class B membership would remain until the entire area is fully developed.
On a section by section (phase by phase) within the development, when the builder has homes on all the properties, then those specific properties would convert to Class A but properties owned by the developer outside of that section/phase would still be Class B.
ConchoP (Texas)
Posts: 208
Posted:
Thank you for your clarification.

ConchoP (Texas)
Posts: 208
Posted:
I'm assuming that property has to be plated, not just purchased?

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