Texas HOA -- HELP!

Started by BryanR • 6 replies • 833 views

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BryanR (Texas)
Posts: 2

Posted:

Scenario:

Developer began process of establishing HOA, certificate of formation for non-profit was set up, it appears organizational board members were named, but HOA was not ever officially put into place. Restrictions and covenants of subdivision indicate once lots are 100% sold (they are all currently owner occupied) HOA would be turned over to the residents. The developer & organizational board members that were originally named can not be contacted (and it is unclear if there was ever an initial meeting). The franchise tax was not paid and the HOA Corporation is not in good standing with the state. How can the community members gain control of the HOA and re-establish it? De facto turnover argument, derivative action?? Thank you for any input.

AugustinD
Posts: 5,144

Posted:

Get a group together. Run an election per the Bylaws. The new Board assesses members per the Covenants or Declaration. Collect. Pay franchise tax. New Board should shop around for a HOA attorney.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Need more info please:

How many lots total in the HOA / Subdivision?
How many lots are still owned by the Developer?

BryanR (Texas)
Posts: 2

Posted:

38 Lots
Zero owned by developer

DouglasK1 (Florida)
Posts: 2,046

Posted:

I would agree with Augustin, if one or more people can get enough interest to hold a legal meeting according to the bylaws (primarily quorum met), I'd say that a valid election could be held.

Do you have common elements? According to your county recorder of deeds or property appraiser, who owns them?

Escaped former treasurer and director of a self managed association.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By BryanR on 07/11/2018 1:50 PM
38 Lots
Zero owned by developer

Good makes it easier ... Read your CCR’s and Bylaws ... then follow them to give notice for a date and time some of the Owner’s would like to have a meeting to set up and elect your HOA Board of Directors. You then need to properly file any documents required by your State. Similar to what Augustine noted above.

Did your developer charge HOA fees in the past?

JanetB2 (Colorado)
Posts: 4,219

Posted:

You and the other Owner’s will also want to become familiar with your State Statutes for HOA and Non-Profit which can be found here:

https://statutes.capitol.texas.gov/docs/PR/pdf/PR.209.pdf

https://statutes.capitol.texas.gov/docs/BO/pdf/BO.22.pdf

What I did when first was in an HOA is had a large binder with my documents between tabs and I also had a printed copy of the State Statutes to reference.

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