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ZalmanP (North Carolina)
Posts: 3
Posted:
******** homes is turning over the HOA to a board that will be electd 8/20/07. Their management company, says that the booklet, NC Homeowner Association Laws, published January 1999 does not cover our HOA as the NC Condominium Act - Chapter 47C does not apply to us as we are not condominium (we're townhouses) in a group development.

Is he giving us a snow job? If not, what NC laws do apply?
hoatalk (California)
Posts: 603
Posted:
Please do not mention names of people or companies here. Please see the posting rules link, by Add New Topic above the forum.

Thanks.

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DaneC (California)
Posts: 210
Posted:
Suggest you look at -

ยง 47Fโ€‘3โ€‘101. Organization of owners' association.

ยง 47Fโ€‘1โ€‘102. Applicability.

GloriaM (North Carolina)
Posts: 829
Posted:
Zalman:

When was your HOA incorporated? When were your CCR's recorded. If after 1999, the NC Planned Community Act Chapter 47F Does certainly apply to your HOA. If before 1999; I would need to see your doc's in order to advise from there.
ZalmanP (North Carolina)
Posts: 3
Posted:
Thank you, and I checked and the HOA incorporated in 2003, so 47F would apply, and I downloaded it from the web and I'll now have to read it.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
ZalmanP: If the NC Act/47F does indeed apply to your newly incorporated HOA, and the management company directed you otherwise, I would seriously question the professionalism (ethics?) of this management company and perhaps seek another.

Further, if this management company is the one the developer retained to oversee 'his' interests, I would do some networking and look for another.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
ZalmanP,
In your original post you stated. "Their management Company says. etc."
I suppose that refers to ssome company the Developer hired. I would appear to me that when the control (elected a Board) is done, then that management company may still be enployed by the Developer, but he sure don't manage for you all.

Make sure how the sign over documents read, especially about the MC. Unless your elected board agrees to those provisions in writing, you don't employ a MC. However, you may find it helpful to hire a management company. I certainly would give the Board time to sort this transfer out before making a committment to this particular management company.
RogerB (Colorado)
Posts: 5,067
Posted:
RobertR, the management agreement is between the HOA and the MC; not the Developer and the MC. The Agreement can not be arbitrarily terminated when the homeowners take control of the Board of Directors. It is wise to read the Agreement prior to takeover and act accordingly. We use a Management Agreement which may be terminated without cause by either party upon receipt of 30 days written notice. However, some management agreements are much more difficult to terminate.
ZalmanP (North Carolina)
Posts: 3
Posted:
To clarify: The MC put in by the developer advised us correctly that 47F does apply to our planned community. The steering committee, which put itself into power as the ad-hoc group when the first houses were sold, nominated 4 of their members as candidates for the board out of 9 nominees running for office, and 3 other candidates are plants that were asked to run. Only myself and one other nominee violently object to the choice of the new MC to represent our community chosen by the nominating committee, not for their abilities, but for the proposal that they put forth which was tacitly accepted 'as a done deal', without any negotiating.

The take-over from the developer is scheduled for Aug 20, 2007, and I've hand delivered 250 letters to each resident giving them my reasons for not accepting the contract as-is. I know I will be elected to the board but no one has even replied to me, and the nominating committee and the steering committee have turned a deaf ear to my concerns.

I'm afraid the chosen president (by the board) will sign the contract as is. I have no idea what these people have as a private agenda. The present MC soon to be ousted has been told by the steering committee to give the proposed new MC a copy of all the records of residents, which they did 30 days ago, even though there has been no voting yet for officers and then formal approval of the new MC.

Is there any way to prevent this from happening? The bylaws state that there must be 6 candidates, not an odd number, so you can see the problems that were created. Some people drink from the fountain of knowledge, and these people don't know how to gargle!
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Roger,
I think or I read Mr Z first post to say the developers Management Company says. etc. It sounds like the MC is coming along with the Transfer. I do agree with your statement, the MC is to be hired by the Newly formed corporation by the Board. I also suspect the developer would like to have his MC do the job. And I think if he retains enough votes (lots, houses, whatever), he could maybe push that through. You would have to read the transfer papers to see that. I would scream my head off it that was allowded. Some of my friends feel I am unreasonable and unfair in my reactions to devevopers. I am still convinced the homeowner wants to protect his investment, the developer wants to make money, it takes seperate roard to get to each destination.

It sounds like you (Roger) are saying the HOA was formed before the turn over, is that right?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Z,
A real can of worms. You have maybe a week to do something. If you know you will be elected to board, you must have some supporters. Approach them to get up a war chest so you can take immediate action. Your very first step is to make sure they are doing something illegal.....anything!!!
For a fast fix you will need an attorney to agree with you he can stop the transfer. Problem with giving half assed advice (mine) is I don't know who is doing what to whom.

Do you have any idea what the consequences would be if you did nothing? Would time be on your side then to fix the problems you are concerned with.
Most problems are not as urgent as we suspect and I reference going to an Emergency Road and waiting four hours to hear the doctor tell you to go home, you are fine. Not suggesting this applies in your case.
RogerB (Colorado)
Posts: 5,067
Posted:
"It sounds like you (Roger) are saying the HOA was formed before the turn over, is that right?"
RobertR, that is normally the case for manditory HOAs. Check your Declaration, Articles of Incorportation, and By-laws; the dates will about the same. Usually the Developer's attorney creates these documents at the time the Development is about to begin.

During the transition from Developer control to homeowner control the original management company is often retained. That is because the Developer may still be transitioning their representatives off of the Board; or because the homeowner Board is ignorant of their options regarding change or fearful of change. We encountered an example of this recently when I made a presention for DARCO which would have saved the Association at least twice what we would have been paid. The Developer was afraid to hire a company which would require them to be accountable - there were still over 100 undeveloped lots. This is commonly what happens because the Developer needs to protect their investment.

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