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SandraR (Utah)
Posts: 2
Posted:
We are 106 homeowners in Hurricane Utah, When we each purchased our property some homeowners received a copy of the CC&R's others did not. The CC&R's stated tht when all lots were sold by the developer a HOA would take effect and that a board of four plus one developer would be elected. As of Mar 6 many but not all homewoners received a letter stating that a management company had been hired to maintain the HOA and that our fees were in arrears two months and a third would be do mid March. They scheduled a meeting mid March to elect four board members plus one developer. The letter also stated that the arrear payments are subject to a $25.00 late fee plus interest and that liens would follow non payment.
Needless to say the homeowners are up in arms about this developers underhanded way of going about creating a HOA. As a whole the homeowners have signed a pitition stating that we as a group do not want the mgmt. company in charge of the HOA. We also intend to vote them out and maintain the HOA via the board members we select. Is this the proper way to go about this, are we setting ourselves up for a law suit. Can we elect to remove the mgmt. co that the developer hired.
We are being charged $48.00 per month and receive no services, the maintaince of a green belt which is currently being used as a storage yard by (?). In addition to that there is a median leading into the development which will be removed and widened to allow for additional traffic as the developer is in the process of another development which will use our road and extend it up the hill. There intention is to add it as annexed to us and add many ammenities which we do not as a whole desire nor do we want to pay for the developers golf ,clubhouse etc. which will be at a cost to us if we were to use it.
RogerB (Colorado)
Posts: 5,067
Posted:
Sandra, I think your HOA was set up by the developer otherwise you would not have received CC&Rs. All homeowners should have received a copy of the CC&Rs when they closed on their property. I think what you are refering to by "when all lots were sold ... a HOA would take effect" is when the developer plans to turn over management of the HOA to the homeowners. In March IF you decide to elect 4 board members you will be taking control of the HOA.

BEWARE! Check out previous posts on this subject, such as getting a thorough audit prior to takeover.

Owners in arrears need to pay or else the MC should follow the guidelines set forth by your documents regarding collection procedures.

While the developer's board members control the HOA they can legally hire a MC. Any how soon you can "vote them out" depends on the contract the current board approved and signed. Of course you could try to negotiate with the MC on their termination.

Good luck,
Roger
SandraR (Utah)
Posts: 2
Posted:
I looked through all the posted letters and could not find anything with the caption "aduit"prior to take over. What recourse do the homeowners who did not receive the CC&R's have.
RogerB (Colorado)
Posts: 5,067
Posted:
Sandra, read the thread "Newly elected HOA president handling change over from developer"; or do a search for "Transition Audit". Also, you will find a check list of 20 items to consider during the transition which could be helpful. Often homeowners get the Declaration at closing and they are buried in the mass of paperwork received. A copy should be provided upon request to the HOA or their MC. There may be a cost for photocopying.

Roger

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