South Carolina HOA run by builder

Builder's rules... Why not still have a meeting? Who says you have to invite the builder or PM? Seems to me if you are all waiting for turnover, why not put in place a "replacement committee". Best to be prepared to understand the rules, the budget, and the other struggles you will all face in the upcoming years/turnover.

Unfortunately, the builder will probably be able to do whatever he/she wants until the community is turned over to the homeowners. When HOA bylaws and CCRs are originally written, they usually favor the builder – after the turnover, the initial HOA board of directors should have the documents reviewed by an attorney to delete references to the builder (changes to the bylaws and CCRs will also have to be approved by a majority of homeowners before they take effect).

I don’t know if there’s anything your AG’s Office can do, but it wouldn’t hurt anything to contact them anyway – they may keep the complaint in their records and that can help influence the legislature into passing some laws that can provide some protection. Get your neighbors to do the same and contact your state representatives while you’re at it.

Everyone should continue to pressure the builder – you might even contact local media. Stories of ignoring homeowners can turn off potential buyers (something this developer has forgotten apparently) – that can prompt the builder to at least start talking to you.

You’re correct it may be awhile before the homeowners take control of the community, but that shouldn’t stop you from educating yourself on how HOAs should be run (some of you may eventually want to be on that first board of directors). Look around on this board for conversations on how other people handled transitions from developer control and mistakes to avoid. You can also take a look at the community association institute website (CAI), which has educational materials on what homeowners should prepare for when the transition happens, as well as best practices afterwards. Good luck!

Symbolic is all it will be. I assure you, Alan Wilson will do nothing. SC laws, rules, regulations, etc. are geared toward protecting the corporation (Declarant), not workers, owners, etc.

You might take a look at SC Articles Of Incorporation concerning Annual Meeting. I believe a corporation is required to have one. Even if they do, the Declarant is still in control and can pretty well do as they wish.

The majority of HOA problems are as yours are. When the Declarant is in control, it is usually bend over and grab your ankles time. Be thankful your dues/assessments have remained the same for 3 years. If the Declarant wanted to put it to you, they could have with increases.

Susan,

Regardless of what your CC&R's require, if your association is incorporated whoever is running it must comply with state corporate law. Most state non-profit corporation laws require at least one annual meeting of the members. As a member you may also be entitled by corporation law to review the finances. Look into it.

BTW, the most important lesson I have learned from this forum is to never buy into a brand new development. No matter what the developer's intent was when they started, a lot of things can and do go wrong.

LOL ... Larry that is in most states a very true statement. In my state I (even though been screwed and dealt with developer) possibly would buy in another new development. However, that would only be because I now know some violations of CCIOA and CCR's can be criminal law violations. I now know exactly what to look for in those sale disclosure documents.

Susan ... as most others have stated you need to rely on Contract Law ... or possibly Real Estate Law. You might look at laws under your State's Real Estate Statute of Frauds.

Your State Legislators this year are looking at implementing laws for HOA's. I suggest you and your neighbors try to get yourselves and other HOA's involved. The more input your legislators receive regarding various issues hopefully the better laws they may enact. You need to make sure they address the issue of Developer Control.

http://www.thestate.com/news/state/article54217830.html

The HOA is listed as a non-profit in the link JeffT2 provided, and is incorporated.

I received a response from the State AG. Part of their response said: "As HOAs are uniquely self-policing among nonprofit corporations, most concerns pertaining to these organizations are addressed through private attorneys and private litigation." I can present it to my neighbors, but I can take a guess right now that they will not want to pay for an attorney.

I have also read the Code of Laws provided by others in this thread, and the Board and property management seem to be trying to avoid an annual meeting with this paragraph:

"The first meeting of the association, whether a regular or special meeting, shall be held within one year from the closing of the first home or when 25% of the homes in the Community have been sold, whichever is later...Subsequent regular and annual meetings shall be set by the Board on a date and at a time set by the Board in its sole discretion."

I don't know the exact number of homes planned for the community. but even if it is 300, we are either at or very near 25% of that. The model office is just a few house up the street from me; I can easily go there today and find out the total number.

I know, from being on the Board in the neighborhood where I used to live in SC, that the by-laws supersede the CCRs and that state laws supersede everything.

Since the builder won't hold an annual meeting,I was trying to get a meeting under this paragraph concerning the budget that is in our CCRS:

"The budget and General Assessment shall become effective unless disapproved at a meeting by at least 67% of the total vote of the Association and by the Declarant, so long as the Declarant owns any property described...The Board shall have no obligation to call such a meeting unless a petition for a special meeting is presented to the Board within 10 days of the delivery of the notice of the General Assessment."

The builder and the property manager have chosen to ignore the petition that was submitted to them. I suppose I can press the property manager on the state law requiring an annual meeting of a corporation, but if they chosen to blatantly ignore one part of the CCRs, then I have no doubt state law won't matter to them either.