Removal of Declarant Control in Ks HOA

Started by BonnieB5 • 8 replies • 1082 views

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BonnieB5 (Kansas)
Posts: 9

Posted:

We live in a "Declarant" ran HOA located in state of Kansas with 24 triplex & 2 duplex buildings - 9 are owner occupied 17 are leased occupied (owned by various out of state & in state investors)

The "Declarant" is also the property manager for 14 of the leased buildings. (The development is completely finished but Declarant refuses to
relinquish control of HOA.

The has not been any annuals meetings, financial statements, tax filings for several years.

The "Declarant" has hired a Property Management Company to collect dues, pay vendors, and deflect complaints on services & improvements

Much of the original HOA By-Laws and Declarations established by the original developer have been ignored.

Currently the "Declarant" is 4 months behind dues for his leased managed properties so HOA is in a negative financial position and unable
to pay vendors.

This type of turmoil has existed for 5 years with residents choosing to pay a mover rather than paying for attorney.

Attorneys that have met with resident groups have expressed concerns over being able to remove the "Declarant" from development
due lack of provisions in Kansas Laws about Declarant ran HOA.

Note: Also added to our discussion was the large amount Attorney expenses for attempting to do so.

We are a retired couple who like our condo and need to stay but know the future of the development is in peril.

Would like any ideas, suggestions, or experiences anyone would have regarding getting out from under a "Declarant"
ran development.

DouglasK1 (Florida)
Posts: 2,046

Posted:

In most states and locales there is not any government agency that gets involved in association issues. The CCRs/Covenants/Deed restrictions that create the association are essentially a contract between the owners bound by same. Did the original docs provide a threshold or date for the developer to relinquish control? If you feel that the declarant is not abiding by the contract, or otherwise unfairly using their position, you should contact an attorney to get an opinion about whether you have a realistically winnable case, and what it would take to pursue it. If possible, you might want to join with others who share your views and are willing to share in the costs of this effort.

Escaped former treasurer and director of a self managed association.

RoyalP
Posts: 1,104

Posted:

..... We are a retired couple who like our condo and need to stay but know the future of the development is in peril. .....

Development = YOUR home by your choice.

having said that, y'all will need the advice and guidance of an attorney well versed in BOTH contract and HOA law.

to get you started: LAW

BonnieB5 (Kansas)
Posts: 9

Posted:

Must add to our statement that the development was bought by the declarant in a bankruptcy court just prior to our purchasing our unit.

Realtor and Developer in meetings prior to building the new 17 triplex buildings claimed all would be owner occupied not leased.

Declarant also stated same meetings early on that control would be turned over after 95% completion of development.

The bad practices of this developer puts maintenance free developments under the "buyer beware" umbrella when that truly is not always the case.

We had a very good experience with HOA ran development we lived in before moving to this one.

The Question we and our neighbors have is about the HOA turnover at 95% completion.

Is there somewhere in Kansas law about a Declarant ran HOA has to be turned over to homeowners upon 95% completion ?

Did not come across it in The Kansas Uniform Common Interest Owners Bill of Rights Act.

Yes, it is our choice to stay at this time and not move at a loss due to an unethical declarant.

RoyalP
Posts: 1,104

Posted:

..... Is there somewhere in Kansas law about a Declarant ran HOA has to be turned over to homeowners upon 95% completion ?

Did not come across it in The Kansas Uniform Common Interest Owners Bill of Rights Act. .....

Do you think WE can read better than YOU ?

Perhaps you can find an attorney who will tell you what you wish to hear.

ALWAYS, for every purchase: CAVEAT EMPTOR

BonnieB5 (Kansas)
Posts: 9

Posted:

Buyer Beware

Explanation of Caveat Emptor from other sources

Under the principle of caveat emptor, the buyer could not recover damages from the seller for defects on the property that rendered the property unfit for ordinary purposes.

The only exception was if the seller actively concealed latent defects or otherwise made material misrepresentations amounting to fraud.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Bonnie

If the place operates fine day to day and does not affect your lifestyle, then let it go. That said I think the real problem may arise when repairs are needed and if there is no Reserve Fund you could be hit with some large assessments.

Overall, I would advise you to look at moving.

BonnieB5 (Kansas)
Posts: 9

Posted:

Thanks to all who responded to our posts - we often weigh our thoughts between -- do we pay the movers or do we pay the attorneys.

RoyalP
Posts: 1,104

Posted:

You will pay the movers ONCE.

You will pay the attorneys OVER and OVER.

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