Developer Fired. Need Quick Answers

The HOA is created through the deed restrictions, aka the covenants.

To dissolve the HOA, you must amend the deed restrictions to do so.
You would need the developer to agree.
You would need to sell all common area.
You would likely need County/City permission as well (as agreements were likely made to create the development).


Legally? For that you need to talk to an attorney.

If you stop paying assessments, you will likely incur late charges. Worst case, you home will be liened for non-payment and the lien may lead to foreclosure.

My advise, gather support and get legal advice. Perhaps paying assessments into an escrow account which is turned over to the HOA once the legalities of the developers are resolved. Do this only after you talk with an attorney in order to do it properly

I agree.

Mick,
Your original post asked this question below.

Questions:
Can the homeowners decide on dissolving our HOA (or just the fees) until the pool is built?
Can we legally stop paying our monthly feeS?

You must have Common area if you are talking about putting a Community Pool in somewhere. I doubt a homeowners personal pool.

Please clarify.

As Mark pointed out, you do have common areas. They may or may not be developed, but the are likely identified as common areas on the PLAT for the development.


You don't know that. You stated earlier that the partner was looking to sell to a new developer.
Additionally, since there is common area, you would need the County/City to agree to modify the PLAT to remove said common areas.


I'd like to stop paying fees as well.
It's simply not going to happen.

If you really want to stop paying fees, sell and move to a non HOA development.


Don't rely on rumors (or opinions on the internet) to determine what is or isn't legal.
Contact an attorney to find out.


The Declaration, aka deed restriction, exists and is (should) be available at your local property office. Bylaws may or may not exist.

Typically, and I have not done research on TX law, the other documents need to be provided for review if asked for. If you haven't asked for to review the documents (in writing) then the HOA doesn't have to provide them (although, many do). If you have asked and were refused, take the issue to the courts to force compliance.


From what I understand in reading your posts, this is the issue.

One person, the main one who was interacting with the members, said to send money to xxxx.

The partners with that person said not to send the money there.

Again, you need to consult an attorney to know your best options.
If everyone gets together and shares the cost, your share should be minimal.

Was this an LLC with the developer and the partners? I am sure they were incorporated entity of some sort. A HOA is typically a non profit but not charitable corporation. It is to spend as much as it spends. So not paying dues doesn't exactly fund a HOA.

It could be this was an LLC and the partners are now forming another LLC amongst themselves. It isn't clear if the developer who left was just a partner and then the other partners took over ownership. Which then they may want the dues to go to a new management company soon. Which is why they may say not to pay till that is worked out.

Well, your talking about a world of people saying dont pay him, dont do this, but in reality the legal world is based on legal paperwork. So if you have dues that are owed to XXX they are legally due, and you will loose in court by listening to advice if your only evidence is something someone said.

You need legal advice from a lawyer.

And yes, it obviously sounds like you own land somewhere to put the pool..... in common with other hoa members..... thus its called a common area. Doesnt matter what is on it. You may own other common areas as well.

You have so much to learn about your community, but at least you took the first step and posted here. From the sound of it, it going to get messy. Good luck.

You would honestly need to talk to an attorney that specializes in HOA. When it comes down to tit for tat, you are under contract to pay your assessments or risk having a lien files against your home and or have your home foreclosed upon. The community I live in had the developer file BK early in the build stage. two more developers stepped up and it took nearly 7 years to sell a little over 300 homes.

Do you have a property manage thats not related to your developer? What do they say about the situation. Something I don't understand is, why is the developer waiting until the end to build the pool? Usually developers lay out the chicken fee aka amenities to attract buyers not lay out the picture this routine.

Our take on why we don't want to pay dues is because the developer no longer has any legal authority to ask a company to collect our dues, however, that company is paying our useless contractor for front yard services. In our meeting last night most have agreed to pay dues for another 2 months or until the new developer takes over.

We will soon have another meeting and arrange for an HOA lawyer to provide some free advice and possible setting up an escrow account if we need to go that route later.