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Posted By ThomasD11 on 07/13/2018 4:04 AM
Our original HOA CC&Rs granted 2000 Class B voting shares to the developer, and 1 voting share to each homeowner (146 lots). All 146 lots have been sold, with homes built upon them for over 5 years. The original CC&Rs also state that the developer's 2000 Class B shares will lapse on January 1, 2020. The developer recently filed an amendment to the CC&Rs deleting reference to the date when his Class B shares will lapse, essentially granting himself control of the HOA indefinitely. There are several Louisiana laws which prohibit this unilateral action by the developer. Trying to decide whether to refuse to pay my dues and let him sue me, or to pay my dues, then sue him in small claims court for back dues. Would also convince some of my neighbors to do the same. Looking for simplest and cheapest solution, without having to organize all the neighbors, hiring a lawyer, and filing a law suit, which seems to me could take years to resolve. Also possible that the developer could use the HOA funds to fight any lawsuit. Any suggestions for the best path forward would be appreciated. The developer is overcharging for management and maintenance, and using the money to pay his employees.
LOL ... Developers will sometimes put anything they want into CCR’s; however, their anything place in the document cannot violate State Laws and if it does it becomes “null and void”. You need to look through your State Statutes for HOA and Non-Profit Corporation. One example is for HOA’s:
§1141.7. Agreement of owners; voting
A.
Each lot represents a single vote which can be exercised by the signature or other indication of the registered lot owner or of a single co-owner, the latter of which is presumed to be acting on behalf of the other co-owners. A plot or parcel of unimproved land which is substantially larger than a majority of other lots in the association, however, shall be treated as separate lots, the number of which to be roughly determined by the size of the land in relation to other lots. The ownership interest in common areas, streets, or street rights-of-way does not constitute a voting interest.
B. For purposes of this Subpart, an agreement of lot owners may be obtained by any of the following methods, or a combination thereof:
(1) By a written ballot that states the substance of the issue before the owners and specifies the date by which the return ballot must be received to be counted. The ballot shall be accompanied by the full text of the building restriction being established, amended, or terminated and shall be mailed to the owner by certified mail not less than thirty days prior to the date by which the return ballot must be received.
(2) At a meeting of the owners if written notice of the meeting stating the purpose of the meeting is delivered to each lot owner. The notice shall be accompanied by an agenda of the meeting and the full text of the building restriction being established, amended, or terminated. Such notice shall be mailed to the owner, by certified mail, not less than thirty days prior to the date of the meeting.
Acts 1999, No. 309, §2, eff. June 16, 1999.
Therefore, the Developer has ZERO votes!!! Nor in my personal opinion would he have been able to have class voting as noted in your documents, but we are not attorneys and you may want to consult with one to verify. I would recommend calling around and potentially consulting with 2-3 attorneys to see what each says. Many attorneys will offer a free or low cost consultation and with your simple question should be short and sweet.
http://legis.la.gov/Legis/Laws_Toc.aspx?folder=75&level=Parent
R.S. 9:1141.1 - Is where the HOA statutes start
Title 12 - Is your Corporation and Association Corporation Statutes