Transition from Bank/Builder HOA to residents

Started by SuB • 1 replies • 1077 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

SuB (Missouri)
Posts: 1

Posted:

Does anyone have statistics on when a builder/bank run HOA is typically turned over to residents? 80, 85, 90%. Our current HOA the Declarant has reserved this right until 100% resident ownership. The bank/ builder assumed our HOA out of bankruptcy and we are organizing to get that changed.

We are also looking for Convenants, Indentures, Bylaws. We are a 55+ community, own a 9 hole par three golf course, pool, tennis courts and club house.
353 homes, 500+ residents. In Missouri.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

SuB

I assume when the bank/builder got the association they also became the Declarant thus they probably have the voting power to block any owner attempts to change any document.

Read you own documents to see when the development must be turned over. Read your own documents on how to change a document paying special attention to the votes/shares the Declarant controls. Look for Class A (usually owners) and Class B (usually the Declarant) Share Holder. That is usually where the ratio is explained. Our ratio was 6 to one. This ratio usually allows the Declarant to control the vote.

As an example: In our case 112 homes the 6 to 1 gave the Declarant the voting edge until about 96 homes were sold. 96 owners is 96 votes. 16 lots still owned by Declarant at 6 votes per lot is 96 votes. The sale of the 97th of 112 homes swung the vote to the owners.

Also in you post you mention # of residents which means nothing as owners have one vote per unit regardless of unit ownership.

I believe that overall your chances of taking control of the association are nil.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here