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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

LarryG3 (Florida)
Posts: 14
Posted:
First our location is Texas. Issue #1. Can one Board of Directors function as the BOD for two Subdivisions?

Issue #2. Of our two subdivisions, one was established in 1970, the second in 1976. Subdivision #1 had no mention of BOD, By-Laws or POA in the CC&Rs. Subdivision #2 had provisions for BOD, By-Laws and POA in their CC&Rs.

In 1982/3 both subdivisions jointly formulated a POA, BOD, By-Laws and Articles of Incorporation, while retaining seperate CC&Rs. This Property Owners Association has functioned like that to this day. Normally spliting the postitions on the Board of Directors 3&3 (six positions).

Subdivision #1 never updated their CC&Rs, never amended then or extended them.

Subdivision #2 did.

Subdivision #1 CC&Rs expired on April of 2005.

We are currently re-writting/updating subdivision #1 CC&Rs according to TX. Property Code 11, Chapter 211 dated September 1, 2005. One property owner of subdivision #1 is strongly objecting to our actions based on the fact his orginal CC&Rs had no mention of a POA, BOD or By-Laws and for that reason we cannot institute such actions. Though he has been living under them since 1982.

It is our position that seeing the old CC&Rs for subdivision #1 expired in 2005 he has no standing and our obligations are to follow the TX. Porperty Code Statues and our current By-Laws.

Opinions/Advise, thank you.
LarryG3 (Florida)
Posts: 14
Posted:
With all the help we have obtained from this site before I cannot believe some one hasn't jumped on these two questions. My problem is that I did find a document that stated a BOD can act as the BOD for two Subdivisions with seperate CC&Rs, but I will be "DARN" if I can find where I found that at now. But then at my age even when I can find what I want or need I seem to turn right around and lose it :-). If someone does know of an authority that can answer these questions or just the location where I might find the answer it would most certainly help. Thx.
RogerB (Colorado)
Posts: 5,067
Posted:
Larry, if the By-laws of the two subdivisions allow non-owners to be Board members than it is possible to have the same persons on the Boards of both. And none would have to be owners in either subdivision or at the other extreme all could be owners in one of the subdivions. However, the board meetings should not bee commingled - each subdivision needs to have a separate Board meetings.
LarryG3 (Florida)
Posts: 14
Posted:
Rodger, thank you. Please let me run this by you again to make sure I understand this, I may not have been that clear in my original post.

In October of 1982 the TC & HB Subdivisions jointly created, approved and recorded with the Secretary of State for Texas, the TC & HB Property Owners Association and established the first Board of Directors for this Association.

In January of 1983 the Associations Lawyer presented the Associations Charter and By-Laws to the Associations Board of Directors.

This TC & HB Property Owners Association has functioned as it was established for these two Subdivisions from January 1983 to this day. Both retaining their independent CC&Rs for each subdivision, both being administerd by a common Board of Directors and By-Laws, which are elected and voted on by members of the TC & HB Property Owners Association. Only members of the Association, in good standing, are permitted to vote on issues presented, except in matters that deal directly with a subdivisions CC&Rs. In matters dealiing with the CC&Rs, every property owner of thelr respective subdivision has a vote whether they are Association Members or not. IE: Property owners in HB cannot vote on CC&R issues of TC and vice versa. General and Annual Meetings are held jointly as required by the By-laws where Association Property Owners of both subdivisions vote on the election of Board Members, By-Laws modifications (if and when) and all other matters relating to the Association in general.

Rodger, are you telling me that even though the Charter, BOD and By-Laws were established, formulated and have been functioning all these years for these two Subdivisions under one Charter, BOD and By-Laws their wrong? That we should be having separate Board of Director Meetings for each Subdivision? I need some clarification/help on this seeing it would be going against what is reflected in our Charter and By-Laws. Thank You. Oops, We are a voluntary membership. Larry

RogerB (Colorado)
Posts: 5,067
Posted:
Larry,
Now I understand. There are two subdivision belonging to a common VOLUNTARY HOA which is incorporated. One basic function of a voluntary HOA is to enforce the restrictions in the CC&Rs as applicable to all owners; not just the members of the HOA. And currently subdivision #1 may have no CC&Rs, if you are correct.

Issue #1: Yes, one Board of Directors can function as the BOD for two Subdivisions.
Issue #2: If Subdivision #1's CC&Rs expired in April, 2005, rather than being automatically extended, then there currently are no CC&Rs which can be enforced in this subdivision. It would require 100% approval of those homeowners who wish to be included to create new CC&Rs. Those properties in subdivision #1 who do not approve the new CC&Rs would not be included and the CC&Rs would not be applicable nor enforcable on those individual properties.
LarryG3 (Florida)
Posts: 14
Posted:
Thanks Rodger for the reply. Prior to 9-1-2005 what you provided would have been the procedure but I think that here in TX. under Property Code Title 11 Chapter 211 (which applies to our County) dated Sept. 1, 2005, these provisions that were enacted might change that somewhat. What do you think?
http://tlo2.tlc.state.tx.us/statutes/pr.toc.htm

211.001 DEFINITIONS. In this chapter: (1) "Dedicatory instrument" means each governing instrument covering the establishment, maintenance, and operation of a residential subdivision or any similar planned development. The term includes a declaration or similar instrument subjecting real property to restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association, or to all lawful amendments to the covenants, bylaws, instruments, rules, or regulations.

211.003 Findings and Purpose. (b) "The purpose of this chapter is to provide a procedure for creating, modifying, or adding to residential restrictions and to provide" etc. and etc.

211.004 CREATION OR MODIFICATION OF PROCEDURE TO AMEND RESRICTIONS.
(a) A property owners' association by a two-thirds vote of the association's governing body may submit a procedure for amending restrictions to a vote of the property owners in the subdivisions or in the unit or parcel of the subdivision governed by restrictions.

(b) An amendment procedure submitted to a vote under Subsection (a)binds all property owners in the subdivision or the unit or parcel of the subdivision to which the procedure applies if more than two-thirds of the voting property owners vote in favor of the procedure.
RogerB (Colorado)
Posts: 5,067
Posted:
But Larry, according to you there was no CC&Rs for subdivision #1 on 9/1/05. So why do you think this Property Code applies? UNLESS the CC&Rs were automatically extended rather than expiring there are no longer any CC&Rs to amend.
LarryG3 (Florida)
Posts: 14
Posted:
Rodger, under the wording of 211.003: Finding and Purpose (b) It refers to CREATING, MODIFYING or ADDING to Restrictions. Not saying I'm not wrong, this is why I'm asking but in the reading of this I'm seeing that the Finding of the Legislature and the Purpose of Chapter 211 was to enable two-thirds of the property owners of a subdivision to do three things to or reference RESTRICTIONS. They can Creat them, Modify them or Add to them. IE: we can Create Restrictions or Modify and/or Add to exsisting ones. Modify and/or Add being all you could do to exsisting Restrictions, you can't create something (Restrictions) that is already there. Create would be dealing only with something that does not currently exsist. Which brings us back to our situation, No? Thx for hanging in here with me.
RogerB (Colorado)
Posts: 5,067
Posted:
Larry, read what you posted again. I think it refers to amending restrictions. There is nothing about creating CC&Rs, just creating or modifiction of procedures to amend existing CC&Rs.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
LarryG3: I don't want to add to the confusion which already exists around your post; however, is there any proof of the Subdivision #1 est. 1970 as being officially recorded as a Homeowners Association Community or a POA, Property Owners Association Community?

If subdivision #1 was never officially recorded as a planned community development by the builder/developer, by what basis can you, without benefit of entire membership of residents of Sub.#1, arbitrarily decide to rewrite and/or update Subdivision #1. You state that #1 had a CC&R, but without reference to an Exec. Board, or Bylaws and the CC&R expired on 4/05.

This sounds very muddled, at best, and that you may need legal counsel on how to proceed according to residents' rights. Have you polled the residents in Subdivision #1 for their input?

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Muddled is the word!!

Just a guess but I remember reading about one Association annexing another. Maybe it is done at the corporation level. Our CC&r's talks about our association merging with another, doesn't specify aanything other than we can absorb more real property with condos. The merger becomes one and our BOD, etc. control other property, owner and responsibilities, much like a city annexing land to increase the tax base or whatever.
LarryG3 (Florida)
Posts: 14
Posted:
Paul, the developer (of both of these subdivisions) formulated the CC&Rs for Subdivison #1 in 1970 and they were recorded as required. In 1976 when he constructed Subdivison #2 he also formulated the CC&Rs for that Subdivision and included the specifications for Incorporation by a Property Owners Association and BOD, which was never done or contained within Subdivision #1 CC&Rs.

Then in October of 1982 both Subdivisions, (some how got together, we are still trying to figure this out) and created a Property Owners Asssociation involving both Subivisions. Then they, this POA, hired an Attorney to assist in preparing documents to Incorporate the two subdivisions under one POA and draw up the By-Laws this POA agreed to.

In January of 1983 the Associations Lawyer presented the Associations Charter and By-Laws to the Board of Directors of the POA. We find no record of anything to tell us how they joined these two subdivisions or how Subdivision #1 (without anything in their CC&Rs) even joined up with Subdivision #2 (who did possess those directions and instructions in their CC&Rs). A vote of all PO, a majority vote or what? (UUUG!) No records, except the orginal CC&Rs by the developer prior to this joining even exsist, that we can find, to verify or clear up any of this.

All I can say is this is how the POA and Subdivisions have been run since that October of 1982 time frame.

Of course now, as I pointed out here earlier, Subdivision #1's CC&Rs are expired do to the lack of action by this BOD/Property Owners of that Subdivision, prior to their experation. (No I wasn't here then, its just fell on the current BOD to correct, if thats possible :-(.

It appeared to me, at first, that if the union of these two subdivisions under one BOD in a joint POA was sound that under the Chapter 211 of the TX. Property Code we would be able to create and go forward. But now seeing I'm not even sure the orginal combining of the joint POA and Incorporation was correct, this maybe all for not. Or for that matter worth the effort that has been expended to date. YUUUKKKK.

I'll most certainly listen to any other suggestions or opinions or maybe this has reach a point were it's to envolved to continue on this site?
LarryG3 (Florida)
Posts: 14
Posted:
I would like to thank everyone who has had input into the posting. We just had a quick get together and we'll be seeing an Attorney next week. Again, THX!! Great website :-)

🎯 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