💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ChristopherH2 (Alabama)
Posts: 5
Posted:
I'm not soliciting legal advice only opinion that made he based on experience.

Backstory: for the last 2.5 years I've been an active volunteer with the HOA - 2 years as social committee chair and 6 months as an advisory board member and Vice President. Now we're still a declarant controlled HOA but the Declarant (a joint venture between two individuals) has generally allowed the HOA to govern itself. Recently, one declarant sold his stake in the company that manages the Declarancy and therefore became the sole Declarant.

Unfortunately, shortly after this occurred he decided he wanted to take a more "hands on approach" and disbanded the advisory board. The advisory board has been running the HOA for several years now. Obviously this upset a lot of people but I generally tried refraining from discussing my opinion on social media as much as possible but even then the comments I did make were neither negative or positive towards the Declarant or property manager.

Today I received a cease and desist letter from the new lawyer the Declarant hired. The letter was in regards to a comment I made that on Nextdoor that was taken out of context. The comment is as follows:

"*Declarant* has taken over control of the HOA in its entirety - there is no loner a board."

The letter accused me of spreading misinformation since the Declarant has always had full control. Obviously I was dumbfounded by the absurdity and the fact that it was taken out of context. When taken in context my implication was that in the past the Declarant allowed the hoa, and thererby the advisory board, to mostly govern itself but recently decided to no longer allow it.  At no time did I state or imply the advisory board had unilateral authority during its tenure.

Have others received C&D letter and if so what was your response?
RichardP13 (California)
Posts: 3,868
Posted:
I have received many. My opinion, they aren't worth the paper they were printed on and just throw it in the trash. It is simply a scare tactic that attorneys are skilled at.
JenniferG11 (Texas)
Posts: 667
Posted:
There is no libel. So, what is the grounds for this C&D? None.
JaredC (Texas)
Posts: 264
Posted:
^^^^^^^ What they said.
AugustinD
Posts: 5,144
Posted:
Agree with the others. The Declarant is trying to intimidate you from exercising your right to comment on a matter in which you have a direct financial stake. You have not defamed the Declarant or anyone. This maneuver is common by HOA attorneys wanting to run up their billable hours.

Watch out for other forms of subtle and not-so-subtle retaliation.
KerryL1 (California)
Posts: 14,550
Posted:
Agree with others.

Say, Christopher, when will the Owners be able to take control? What size board does the sole declarant have? Is it the same people as the previous board?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Technically your Declarant may have a board. It just isn't necessarily made up of "homeowners". So from their prospective when you paint them as having "No board" it may be misrepresenting them. If they are incorporated, then they most likely have a board in place. Indications they don't may throw a bit of a view of a Tax racket thing going on. Which is pretty serious. Could raise an eye brow.

One of the things many new HOA's overlook when updating their documents is the phrase referencing who can be board members. In the case of Declarant control, those positions do NOT have to be homeowners. It can be anyone one in their business or a family member. They don't have to be an owner. Now when the HOA is turned over to the actual owners, this reference can sometimes be looked over for REMOVAL. So the owners down the road may see this and go "Can we have a non-owner be a member?". Well considering that ONLY Homeowners are to be members of the HOA, that doesn't exactly add up now does it?

As for the letter, I would just recognize it and move on. Back off using that website. Nothing wrong with forming your own committee for transitioning. Something you can form a board of it's own on. That way when turn over happens, your HOA may have a good list of what to change and what to ask.

Former HOA President
RichardP13 (California)
Posts: 3,868
Posted:
I am afraid Melissa how new HOA's start up with the developer.

Once a HOA is formed and Articles of Incorporation are created, they need to have a Board. In the beginning stages, they may be no homes and the declarant will have full control and all their people on the Board. Once homes are sold, then homeowners can get on the Board, but here is the kicker, the declarant WILL ALWAYS have control of the Board and all decisions because they will have more votes per lot than a homeowner. Typically it is 3 votes per lot for the declarant and one for the homeowner.

Let's say you have 100 homes, 50 have been sold to homeowners and the declarant still owns the other 50. They have 150 votes and the homeowners have 50 votes.

Election time, three seats. Declarant put 75 each on two candidates and the homeowners put all 50 on one candidate. Deca;rant has control 2 to 1. Board of 5, declarant places 50 votes each for three different candidates and the homeowners put 25 each on two candidates, they control 3-2. Until they are out, they pretty much will control.

The majority of HOA's will not re-do's their governing documents because it is expensive, but they should do for a variety of reason, mainly who legally can be a Board member.

SueW6 (Michigan)
Posts: 814
Posted:
"*Declarant* has taken over control of the HOA in its entirety - there is no loner (sic) longer?? a board."comp

In a declarant owned complex, he/she ALWAYS has control over everything.

Their board, their sandbox.

Their bylaws will explain the turnover contact. Not until there is a turnover is there anything the homeowners can do.

SueW6 (Michigan)
Posts: 814
Posted:
bylaws will explain the turnover contract

(wish we had an edit)
PainintheA
Posts: 77
Posted:
ChristopherH,

as a ps:

you made a 'statement' in writing which is most probably NOT factual

you have proven yourself IGNORANT concerning the matter at hand of which you wrote

my PERSONAL advice = comply with the 'demand letter' and move al further 'perceived' meddling on your part can only lead to strife and problems for YOU
AugustinD
Posts: 5,144
Posted:
Pita, Christopher is covered under qualified privilege. He has a right to opine on what the developer is doing. Christopher can even be a little off on the facts and still not have defamed the Declarant. This is particularly so since what the Declarant is doing involves Christopher's home and so one of the largest financial investments the typical American makes. My only concern for him would be retaliation that cannot be stopped easily.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AugustinD on 08/09/2018 4:42 PM
Pita, Christopher is covered under qualified privilege. He has a right to opine on what the developer is doing. Christopher can even be a little off on the facts and still not have defamed the Declarant. This is particularly so since what the Declarant is doing involves Christopher's home and so one of the largest financial investments the typical American makes. My only concern for him would be retaliation that cannot be stopped easily.

While I agree, this could hinge on how he represents himself. If he represents himself as just a fellow concerned owner have at it. If he represents himself as a member of the BOD, another issue.
PainintheA
Posts: 77
Posted:
AugustinD,

Hence:

my PERSONAL advice = comply with the 'demand letter' and move al further 'perceived' meddling on your part can only lead to strife and problems for YOU

but, thanx for the legal stuff
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By PainintheA on 08/09/2018 12:40 PM
ChristopherH,

as a ps:

you made a 'statement' in writing which is most probably NOT factual

you have proven yourself IGNORANT concerning the matter at hand of which you wrote

my PERSONAL advice = comply with the 'demand letter' and move al further 'perceived' meddling on your part can only lead to strife and problems for YOU

YOU really need to go back into retirement, sooner than later!
PainintheA
Posts: 77
Posted:
@ RP13

LaskaS (Texas)
Posts: 1,025
Posted:
the board president of my hoa actually had the hoa attorney send me a cease and desist letter and now is trying to charge me for the cost the lawyer charged to write the cease and desist letter.. it took all of my willpower not to write back and bill them double what the lawyer charged for writing the letter.. for wasting my time and having to read and respond..lol

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here