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MindyW (California)
Posts: 6
Posted:
Hello,

Our HOA governing documents specifically state when the Declarant (Kennedy-Wilson / Multi-Billion Dollar Company) would lose their Class "B" Membership (gave them (3) seats on the (5)-Member Board to appoint their representatives to). Those (3) seats would not go up for election while the Declarant was within their Class "B" Membership status.

Our Declarant lost their Class "B" Status after the 4th year anniversary of the sale of the first lot in the first phase of our single-family home development. This event took place (6) years ago. The Declarant's (3) appointed seats have NEVER gone up for election. Only the (2) homeowner seats have.

The Declarant had purchased 163 vacant lots in our community from the original developer (Pulte). The Declarant has never done anything with the lots and they remain with no homes built on them.

Every time my husband and I have brought up this to the Board, we have been blown off. What can we legally do about this? I know that the (2) Board members who are homeowners may be protected under the CC&Rs, however I've read that the Declarant is not afforded the protection, nor should they be.

The Board has hired our former Homeowner Board Members (2) to be our Property Management Company. They only stepped down from the Board when they were handed the paid (very well I might add) contract as our Property Management Company. They had never been a Property Management Company prior and our HOA is their first client.

They are running their Property Management Company out of their residence within our community (against our CC&Rs), which the Board knew would be the case when they handed them the contract.

Beyond comprehension, we homeowners are now paying (HOA Dues) to have our privacy stripped from us! Our neighbors (Property Managers) sit in on every "Hearing" (meant to be private / not attended by other homeowners as they are of a personal nature). Every e-mail, mailed correspondence, concern, or complaint is read, opened, filtered and handled however those neighbors (Property Managers) decide, and all HOA files, including all violations, legal proceedings, liens, etc. are kept within the neighbors' residences. We are forced to go through the Property Management Company for everything. Our Board insists they are the first point of contact and only thereafter will the Board act.

Any assistance or advice would be greatly appreciated.

Thank you kindly.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Mindy,

Welcome to the forum.

Please review the posting rules regarding the mentioning of names.

You asked what you can legally do about the Declarant still maintaining control. Although this is not a legal forum, in my laypersons opinion you have the following options:

a) You can take the issue to court to force an election.
b) You can live with the way it is until all lots are sold
c) You can gather support and see if the Board will listen to a group vs. an individual.

As far as your issue with the PM, you can request a copy of the contract to understand what the PM is providing. If licensing for PMs is a requirement within your State, you can verify that the license is current.
MindyW (California)
Posts: 6
Posted:
I thank you for your reply. I had no idea about using names. Is there a way I can edit my original post to delete the names?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By MindyW on 10/03/2016 7:29 PM

They are running their Property Management Company out of their residence within our community (against our CC&Rs), which the Board knew would be the case when they handed them the contract.

Typically home business that do not draw additional traffic into the development are permissible.
There are likely many owners who run a business (or portion thereof) from their home that you are not aware of. Examples: Daycare providers, Hospice nurses, Attorneys or Executives that maintain an office in their home, etc.

Quote:
Posted By MindyW on 10/03/2016 7:29 PM

Beyond comprehension, we homeowners are now paying (HOA Dues) to have our privacy stripped from us!

That argument can be made for any Assocaition.

Quote:
Posted By MindyW on 10/03/2016 7:29 PM

Our neighbors (Property Managers) sit in on every "Hearing" (meant to be private / not attended by other homeowners as they are of a personal nature).

Your neighbors are sitting in on every hearing while serving on the Board, a Committee or as a witness to a violation.

Quote:
Posted By MindyW on 10/03/2016 7:29 PM

Every e-mail, mailed correspondence, concern, or complaint is read, opened, filtered and handled however those neighbors (Property Managers) decide

Again, your neighbors read, open, filter and decide for concerns or complaints by serving on the Board or on a committee.

Quote:
Posted By MindyW on 10/03/2016 7:29 PM

all HOA files, including all violations, legal proceedings, liens, etc. are kept within the neighbors' residences.

Being in a self managed association (no MC or PM) we keep all HOA files including violations, legal proceedings, liens, payment ledgers, financials, etc. in our residence. I suspect this would be the same for your Association also if they didn't have a PM or MC.

Quote:
Posted By MindyW on 10/03/2016 7:29 PM

We are forced to go through the Property Management Company for everything. Our Board insists they are the first point of contact and only thereafter will the Board act.

That is typical for any Association with an MC or PM.

However, members may still attend Board meetings and have an opportunity to speak to the Board. There is also nothing that prevents you (or any member) to ask to speak to the Board privately without the MC/PM. The Board can say no, but I think such a request may be honored.
MindyW (California)
Posts: 6
Posted:

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