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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ReneeP3 (South Carolina)
Posts: 42
Posted:
We amended our covenants in 2016.

New Covenants states:

All the number lots on the recorded plat shall be subject to an annual maintenance charge or assessment at the rate not to exceed one hundred seventy-five dollars ($175.00) per year. The first assessment of $175.00 shall be due and payable on January 1, following the date the deed is delivered to the Purchaser of a lot in the subdivision from the XXXXXXXXX Homeowners Association, and thereafter shall be due and payable in advance on each and every succeeding January 1.

Does this mean what I think it does, that the first assessment isn't due until the HOA sells me my lot?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By ReneeP3 on 02/02/2017 4:49 PM
We amended our covenants in 2016.

New Covenants states:

All the number lots on the recorded plat shall be subject to an annual maintenance charge or assessment at the rate not to exceed one hundred seventy-five dollars ($175.00) per year. The first assessment of $175.00 shall be due and payable on January 1, following the date the deed is delivered to the Purchaser of a lot in the subdivision from the XXXXXXXXX Homeowners Association, and thereafter shall be due and payable in advance on each and every succeeding January 1.

Does this mean what I think it does, that the first assessment isn't due until the HOA sells me my lot?

As I read it, it says you owe the $175.00 on the January 1st following the deed transfer.

Deed transfer on 12/31, the $175 is due the following day on 01/01.
Deed transfer at any other time of the year and the $175 is due the following 01/01.
Deed transfer sa today, 02/02/2017 the $175 will be due 01/01/2018.

What is so hard about understanding this?
ReneeP3 (South Carolina)
Posts: 42
Posted:
Nothing hard on establishing a timeline

These are amended covenants. Look at the words of the Kick-in clause

Following the date the deed is delivered to the purchaser of a lot in the subdivision from the XXXXX Homeowners Association.

When we amended them, this was in the originals and obviously the part that now shows the Homeowners Association was in the name of the Developer.

Does this actually mean, that until the XXX Homeowners Association delivers to the purchaser a deed to the lot (obviously they can't) there is no requirement to pay HOA Dues?

JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By ReneeP3 on 02/02/2017 6:04 PM

Does this actually mean, that until the XXX Homeowners Association delivers to the purchaser a deed to the lot (obviously they can't) there is no requirement to pay HOA Dues?

Renee ... CCR's can also be known as "Deed Restrictions". When someone purchases a lot they are the owner and it is to an extent deeded to them and their bank. However, the bank will in essence hold the deed until the owner pays in full. You and your bank (if repo happens) are responsible for the payment of Association dues each year.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ReneeP3 on 02/02/2017 6:04 PM
Nothing hard on establishing a timeline

These are amended covenants. Look at the words of the Kick-in clause

Following the date the deed is delivered to the purchaser of a lot in the subdivision from the XXXXX Homeowners Association.

When we amended them, this was in the originals and obviously the part that now shows the Homeowners Association was in the name of the Developer.

Does this actually mean, that until the XXX Homeowners Association delivers to the purchaser a deed to the lot (obviously they can't) there is no requirement to pay HOA Dues?


Well, you folks approved an amendment that says you don't owe any assessments unless you purchased your home from the HOA. Interesting that an HOA would be in the business of selling real estate.

Equally interesting is the restriction of assessments to $175 per year. Forever.

Did anyone actually read this amendment before approving it?

JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By LarryB13 on 02/02/2017 8:16 PM


Equally interesting is the restriction of assessments to $175 per year. Forever.

Did anyone actually read this amendment before approving it?


LOL ... OMG good catch!!! That provision would be beyond stupid . Of course not necessarily FOREVER because can be amended in the future, but funny and not so smart.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 02/02/2017 8:16 PM

Equally interesting is the restriction of assessments to $175 per year. Forever.

Actually, I just purchased into a development that has similar wording.
In my case, it's only $50 per year and hasn't changed for 10 years.

The amount can change, but it requires amending the CC&Rs.
With no common amenities and only an entrance sign as the common area, it works.
It also keeps the Board from going off on tangents and keeps them focused on simply maintaining the common area.

LarryB13 (Arizona)
Posts: 4,099
Posted:
My CC&R's set an initial amount for assessments but left it up to the board to adjust it as needed. I cannot imagine setting the amount of assessments in stone.
ReneeP3 (South Carolina)
Posts: 42
Posted:
Below is the entire section to the Amended C & R's

V. Homeowners Association and Maintenance Charges

1. The XXXX Homeowners Association is a non-profit corporation. The membership will consist of the owners of lots in XXXXX subdivision, Sections I and II. There shall be one vote for each lot for which dues are paid.

2. All the numbered lots on the recorded plat shall be subject to an annual maintenance charge or assessment at the rate not to exceed one hundred seventy five dollars ($175.00) per year. THE FIRST ASSESSMENT OF $175.00 SHALL BE DUE AND PAYABLE ON JANUARY 1, FOLLOWING THE DATE THE DEED IS DELIVERED TO THE PURCHASER OF A LOT IN THE SUBDIVISION FROM THE XXXXXX HOMEOWNERS ASSOCIATION, AND THEREAFTER SHALL BE DUE AND PAYABLE IN ADVANCE ON EACH AND EVERY SUCCEEDING JANUARY 1.

The assessment of $175.00 herein provided shall remain effective for a period of one year after the date these covenants are executed. Thereafter, the assessment shall remain the same until it is increased, deceased or discontinued, as from time to time may be determined by the XXXXX Homeowners Association.

3. All sums payable as set forth above shall be payable to the XXXXXX Homeowners Association for the purpose of the following:

Then there is a long list of typical items such as mowing the common area.

6. The annual charge shall constitute a lien or encumbrance on the land and acceptance of each of the several deeds of conveyance shall be construed to be a covenant by the Grantee to pay said charge, which covenant shall run with the land and be binding upon the Grantee and his successors and assigns. The XXXXXX Homeowners Association shall have the exclusive right to take and prosecute all actions or suits legal or otherwise (DOES THIS MEAN THEY CAN FILE ILLEGAL SUITS?) which may be necessary for the collection of said charges.

---------------------------------------------------------

There are so many issues with the Amended C & R's, it's almost incomprehensible.

My focus is on item 2. Is this a kick-in clause? Did we reset the clock here with these amended covenants? THE FIRST ASSESSMENT OF $175.00 SHAL BE PAYABLE ON JANUARY 1, FOLLOWING THE DATE THE DEED IS DELIVERED TO THE PURCHASER OF A LOT IN THE SUBDIVISION FROM THE XXXXX
HOMEOWNERS ASSOCIATION, AND THEREAFTER SHALL BE DUE AND PAYABLE IN ADVANCE ON EACH AND EVERY SUCCEEDING JANUARY 1.
ReneeP3 (South Carolina)
Posts: 42
Posted:
I could write a book at this point of the pitfalls of a group of mindless wonders amending their own covenants. The attorney who reviewed them falls into the same catagory.

The amendment are already being sued by a group of 5 homeowners (I am not part of that suit).

The HOA has apparently agreed that all of the issues in the suit are valid, but they say they do not have the authority to rescind the amended covenants. This may be due to the fact that though they were voted in at a meeting (another long story and most of the reason why there is a lawsuit in the first place), the members each notarized they acceptance individually. My thought process is that had the Secretary simply certified and notarized as an officer, instead of this seeming to be individual homeowners having done it, then perhaps the HOA could pull the amended covenants based upon the violations of the meeting vote. I don't know.

The way the new covenants are written, is that they cannot be amended for 10 years, so either these go away and we get the old one's back or this is what we have to live with for 9 more years

Also, the HOA has NO RESERVES, ZIP, ZAP, ZERO. They already tried to increase dues to cover the expense of the lawsuit, we didn't even have quorum. There are no provisions in our covenants or bylaws that allow for special assessments.

I'm just looking for a way to stop the insanity in this subdivision. I could see the members who are suing dropping the suit if they realize that they can deny the HOA annual fees, and the state of SC non-profit rules allow members to resign from the HOA. If they resign membership in the HOA, and they cannot be forced to pay an annual due, that leaves them with only the land covenants and fines for infractions.

That would leave them only with dealing with any fine's from the Board of Directors for infractions to the covenants.

Yes, we lose $875.00 in annual revenue, however, if we don't we're probably going into bankruptcy anyways.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By ReneeP3 on 02/03/2017 4:53 AM

The amendment are already being sued by a group of 5 homeowners (I am not part of that suit).

Yes you are. As a member of the Association, you are a defendant. You are simply allowing the elected Board to handle the situation for you.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By ReneeP3 on 02/03/2017 4:53 AM

Yes, we lose $875.00 in annual revenue, however, if we don't we're probably going into bankruptcy anyways.

It's probably better to go into bankruptcy.

I also don't think a court will allow an individual to resign from a mandatory HOA. Especially if there are common amenities and common areas to maintain.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Not to play lawyer but:

AS IS:
All the number lots on the recorded plat shall be subject to an annual maintenance charge or assessment at the rate not to exceed one hundred seventy-five dollars ($175.00) per year. The first assessment of $175.00 shall be due and payable on January 1, following the date the deed is delivered to the Purchaser of a lot in the subdivision from the XXXXXXXXX Homeowners Association, and thereafter shall be due and payable in advance on each and every succeeding January 1.

MODIFIED:
All the number lots on the recorded plat shall be subject to an annual maintenance charge or assessment at the rate not to exceed one hundred seventy-five dollars ($175.00) per year. The first assessment of $175.00 shall be due and payable on January 1, to the XXXXXXXXX Homeowners Association following the date the deed is delivered to the Purchaser of a lot and thereafter shall be due and payable in advance on each and every succeeding January 1.

The modification does not stipulate where the deed came from. I also think it has to be worded that the assessment is subject to changes. Also the Covenant does not stipulate a home has to be on the lot.

I should not play lawyer........LOL
ReneeP3 (South Carolina)
Posts: 42
Posted:
SC non-profit rules

Resignation and Termination

SECTION 33-31-620. Resignation.

(a) A member may resign at any time.

(b) The resignation of a member does not relieve the member from any obligations the member may have to the corporation as a result of obligations incurred or commitments made before resignation.

Can a judge force membership if the State allows resignation?
PitA
Posts: 1,416
Posted:
Said resignation is from the CORPORATION only.

NOT, repeat, NOT, from the HOA itself.

One can not 'resign' from RECORDED Covenants and Restrictions.

Said resignation merely removes oneself from under the 'corporate shield'.

One would STILL be a member of the HOA, albeit w/o any vote or input into the operation of the CORPORATION.

? Don't believe me ?

Consult your attorney.

PitA
Posts: 1,416
Posted:

(b) The resignation of a member does not relieve the member from any obligations the member may have to the corporation as a result of obligations incurred or commitments made before resignation.


No, a judge will NOT prevent you from performing a 'brainless act'.
ReneeP3 (South Carolina)
Posts: 42
Posted:
I LOVE THE BRAIN TRUST OF ALL OF YOU. Thank you Pita, There are so many layers, I hadn't thought about that. Hey, I wasn't resigning, I was going to tell somebody else to do it!!!!
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By ReneeP3 on 02/05/2017 2:48 PM
SC non-profit rules

Resignation and Termination

SECTION 33-31-620. Resignation.

(a) A member may resign at any time.

(b) The resignation of a member does not relieve the member from any obligations the member may have to the corporation as a result of obligations incurred or commitments made before resignation.

Can a judge force membership if the State allows resignation?

They can potentially resign; however, a judge will state that any obligations and commitments they had prior to resignation are still in effect. LOL ... keep in mind the Non-Profit Corporation statutes are for many various entities not just HOA's. If your property title is encumbered that is an obligation attached at the time of purchase and before potential resignation.

🎯 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