Adding a new group to existing HOA

Started by PeggyH • 5 replies • 1811 views

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PeggyH (South Carolina)
Posts: 36

Posted:

We have a section of houses in our neighborhood that were built by a different builder, and their HOA is still owned(if that is the correct word) by the Builder. We want to add them into our existing Association. The builder wants this done also. My question is do we need to decide this by the board members voting or does the general membership need to vote on it or what?

JosephW (Michigan)
Posts: 882

Posted:

First, check both your documents (CC&R's) and their's. Usually when a developer does something like this, the attorney who drafts their documents for them writes them to accept units into the HOA in phases, as they are built, or in groups. If this isn't in the docs, it would probably take a vote of the owners and you really need a knowledgable HOA attorney to handle it and make sure everything gets recorded correctly. Don't try and do this on your own, it could put a cloud on everyone's title if not handled right.

Joe

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JennyD (Texas)
Posts: 1

Posted:

What happens if the current subdivision does not want to add the additional phase into their HOA? Our CC&R's state “The Property” as being Phase I and Phase II. There is not any language for adding Phase III anywhere. Do the current documents stand? We took over our neighborhood HOA as soon as it was at 80%.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Peggy,

The developer likely retains control of the HOA you wish to assume, thus has the votes on its end.

Your CC&Rs will guide you on an expansion and lawyer should be consulted. This is a permanent commitment and every party deserves professional service.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Jenny,

Typically the governing documents allow for aquiring property and merging of corporations (associations).

Check all your documents (CC&Rs, Article of Incorporation, Bylaws) and applicable laws (HOA and Corporate)

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Tim

You drove me to our CC&R's...once again...LOL

An Article called Annexation and Withdrawal of Property

I am not going to quote it all but:

1. It appears we homeowners could vote (requires 2/3 to approve) to accept/annex anyone whom asks to be annexed be it one home or an entire neighborhood.

2. While under declarant control, the declarant could withdraw "sections" that were added to the original documents. We have Phase 1 and 2 with Phase 2 (where I live) having been added later. Legally, the declarant (while under his control) could add a Phase 3.

Neither is an issue here, but I see where it could be a major issue for some in several ways as in adding and/or withdrawing.

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