How to seperate Benifited parcel from the mother HOA?

Started by CraigS7 • 13 replies • 557 views

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CraigS7 (Arizona)
Posts: 6

Posted:

I am looking for insight on how to split a benefited parcel from the mother HOA. It is not in our CC&Rs, nor By-Laws so how can we do it. Does the majority of the benefited parcel 61 homeowners need to vote?

NpS (Pennsylvania)
Posts: 4,216

Posted:

What's the benefit?
What's the nature of the parcel?

Sikubali jukumu. Read all posts at your own risk.

CraigS7 (Arizona)
Posts: 6

Posted:

We are a new development within the confines of an older existing development. So we are considered a benefitted parcel. We are looking for how to split off, our direct access is through a public street right of way which is within the existing HOA.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By CraigS7 on 11/06/2019 8:49 AM
We are a new development within the confines of an older existing development. So we are considered a benefitted parcel. We are looking for how to split off, our direct access is through a public street right of way which is within the existing HOA.

When you say there's a public street right of way, are you saying that your local government has responsibility for street maintenance, snow removal, storm water systems, etc? Or something else?

Do you get any beneficial services from the old HOA?

Do you pay fees to the old HOA? Are those fees reasonable when compared to what the members of the old HOA get and pay?

Sikubali jukumu. Read all posts at your own risk.

CraigS7 (Arizona)
Posts: 6

Posted:

The older HOA has public streets, so access to our development is via public streets.
We gain benefit from the mother HOA as they do all contracting for services and management
We pay two HOA assessments, one for the mother HOA which is shared equally across 3k homes, and a second Assessment for just our development

The mother HOA makes all decisions for our development using our separate funds which are not co-mingled with the mother HOA funds. Our issue is we have no controlling voice. also note we are a fully fenced and gated entity within the boundaries of the mother HOA, so we are not considered part of the common area being gated.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Thanks for the helpful details.

Getting back to your original question ... when you talked about CC&Rs and Bylaws ... were you talking about the CC&Rs/Bylaws for the mother HOA? Or are there separate documents that apply to your grouping only?

Sikubali jukumu. Read all posts at your own risk.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Craig

You need to lawyer up to find out if possible to do so and how to do it.

KerryL1 (California)
Posts: 14,550

Posted:

I think you'll need a lawyer too, Craig.

What operating budget and reserves funds do your separate additional dues pay for?

I assume you do have your own reserves account and your own operating budget for these items.

My HOA, too, has two "special" benefit areas with their own reserves accounts and each contributes to the "Base" operating budget for things they use. Neither has its own board. But, also, neither is a physically separate parcel.

CraigS7 (Arizona)
Posts: 6

Posted:

Only for the mother, and in the Declarations there are no amendments to supplemental declarations that deed over our track that was originally part of extra golf club property. So it seems someone missed a step?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Craig

Are you saying that your association sits on what was once a golf course? Who owned the course? Who started your association? Does your association have Covenants/Bylaws that apply only to your association?

Clarification or not, you need an attorney.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By CraigS7 on 11/06/2019 1:55 PM
Only for the mother, and in the Declarations there are no amendments to supplemental declarations that deed over our track that was originally part of extra golf club property. So it seems someone missed a step?

To you, someone missed a step. To someone else, the way it is now is what was intended when the golf course didn't need the extra land. As I see it, it becomes a pissing contest that you're likely to lose.

Nearly impossible to win on a claim of intent when it comes to real estate. Documents win almost all the time.

I agree with others that you should speak with a local attorney.

Before that, you might want to hire a title search company to verify that your section falls under the CC&Rs. If there was some kind of filing error, you might have a path out. If not, you probably have no choice but to figure out how to gain recognition within the existing structure.

Sikubali jukumu. Read all posts at your own risk.

KerryL1 (California)
Posts: 14,550

Posted:

NpS makes sense. Look at your own Totile company Docs first to see if they tell you anything.

What are the separate reserves components and operating budget items that you 61 lots pay for?

What would you hope to gain by separating from mom?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

The mother HOA makes all decisions for our development using our separate funds which are not co-mingled with the mother HOA funds. Our issue is we have no controlling voice.

Hate to tell you this, but its probably never going to happen for all sorts of legal reasons. Its like trying to separate from your town and start a new town.

The HOA was setup this way for legal reasons, and undoing it is 99% impossible.

Seek out advice from a lawyer so he can tell you its impossible if you have money to burn.

CjC
Posts: 210

Posted:

We tried, ended up in court of course and lost. You don't need the vote of the benefited parcel only, you need the vote of the whole community if it is written in your docs that property can leave the HOA. our needs a 75% vote of the ENTIRE hoa to have property leave.

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