Declarant restates CCRs to bump out development period

Started by AlexJ1 • 4 replies • 1245 views

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AlexJ1 (Washington)
Posts: 1

Posted:

Hello all.

I'm a owner in an HOA neighborhood. 17 of the 36 lots have been sold so the developer is still in charge of the HOA.

When I purchased my house I was presented with CCRs with a date of 2013 and said the HOA is turned over after 99% of lots sold or 7 years.

After further digging I found CCRs from 2009 which have all the same language, except they were filed in 2009. Based on those CCRs the development period is over and the HOA should be turned over to the homeowners.

My question is, can the developer change the CCRs like this? I would think homeowners who purchased their lots under the 2009 CCRs would expect the development period to be over.

DouglasK1 (Florida)
Posts: 2,046

Posted:

CCRs typically can be changed by the assent of a certain percentage of voting interests. 2/3 is common but it could be more or less. Developers often give themselves more than one vote per lot owned, say 10 as an example. Using this math, they can have the ability to make unilateral changes to the CCRs until they own very few lots.

You need to read the CCRs and find the requirements for changing them, along with any special voting rights the developer has. This can be X votes per lot, or maybe even a blanket statement giving them modification rights.

Escaped former treasurer and director of a self managed association.

JanetB2 (Colorado)
Posts: 4,219

Posted:

I would contend YES the owners who purchased after the 2009 documents filed and before other document can possibly hold feet to the fire. Look at the Title of both documents. Does the 2009 state something to affect "Coventnats, Conditions & Restrictions" and he later document perhaps state "Amended and Rstated Coventants, Conditions & Restrictions"? In the documents it will also generally state the time frame begins at the time the original documents were filed.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By JanetB2 on 04/19/2017 9:58 PM
I would contend YES the owners who purchased after the 2009 documents filed and before other document can possibly hold feet to the fire. Look at the Title of both documents. Does the 2009 state something to affect "Covenants, Conditions & Restrictions" and the later document perhaps state "Amended and Restated Coventants, Conditions & Restrictions"? In the documents it will also generally state the time frame begins at the time the "original" documents were filed.

Corrected ... darn no correct option ... LOL.

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By AlexJ1 on 04/19/2017 5:12 PM
Hello all.

I'm a owner in an HOA neighborhood. 17 of the 36 lots have been sold so the developer is still in charge of the HOA.

When I purchased my house I was presented with CCRs with a date of 2013 and said the HOA is turned over after 99% of lots sold or 7 years.

After further digging I found CCRs from 2009 which have all the same language, except they were filed in 2009. Based on those CCRs the development period is over and the HOA should be turned over to the homeowners.

My question is, can the developer change the CCRs like this? I would think homeowners who purchased their lots under the 2009 CCRs would expect the development period to be over.

There should be a clause in the CC&R's that states how they may be amended.

Ours allow amendments by the written approval of the owners of record of 3/5ths of the lots. So if there is such a provision in your CC&R's it is conceivable that the developer changed them under the 3/5ths rule while holding those 3/5ths of the lots.

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