New Developer Voting Rights

I just came from yearly Association Meeting and have a question. We have a new development owner who bought our remaining lots at auction due to original developer going bankrupt.

It seems that the existing Board has given the new owners a grace period of one year for dues on lots purchased. Along with this, the new developer has been given voting rights by the existing Board. At this point, at least one Board Member states that he is unaware if this has even been voted on by the Board and was not even aware of it being discussed. No meeting minutes have been distributed to Homeowners that mention this.

In the past, the Developer was only given voting rights to lots that dues had been paid. Our covenents state that a due paying member is entitled to a vote.

This is of utmost importance to ALL Association members, as a vote may be required to allow existing road and lots being moved which will encroach existing common areas. Our town Engineer has stated that moving lots and roads can be done as long as Association members are in agreement. Otherwise, developer will have to go before planning boards again.

Thank you for any comments!

If the Association can give permission for the movement of lots and roads, it would seem that the Association owns and is responsible for the maintenance of the roads in the development. Based on that premise, I would assume that Reserves are being put aside for routine and long term road maintenance, so why should the current membership have to carry the developer, and for how long?
I would guess that the development work that the developer wants to do, may entail significant wear and tear on the existing roadways. If they do not want to pay current assessments on the lots purchased, do you see them fixing the roads when they leave?
If the Association does not agree, lets hope your town engineer gets them to post a bond, so that your roads are fine when they leave.

Roger,
I appreciate your opinion with our ongoing saga. However, as I told you on the phone, we live in New Hampshire and it seems that things are done very diffently here. Are these laws universal or do they vary from state to state?

LindaA,
The state statutes vary from state to state. Also, the Declaration of CC&Rs, By-laws, and Rules and Regulations vary from association to association. And the interpretation of all of these can vary from attorney to attorney and judge to judge. So one has to be careful and try not to ever get entangled in the legal system. This is why one needs to carefully read their controlling documents and sometimes the state and federal laws.

Actually, "Declarant"... Under DEFINITIONS---"Declarant means "------------Development Corporation" and any person, firm or corporation succeeding "------" as promotor and developer of th development at "_________" residential community on the Property"
I believe there have been at least one or two succeding owners...same owners, different corporation prior to the present owner who won the bid at auction.
Does this make any sense to you?

Covenants are original from the first owner, corporation dated 1989.

Thanks.

Linda, If the Covenants are original, they still stand regardless of how many tranfers
from developer (Declarent)
Gloria, Good point. Our covenants state the developer (Declarent) retains one for for
every lot until the developer owns 0 lots or at any time the developer decides to give
up their voting rights.