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GeenaS1
Posts: 53
Posted:
Has anyone ever been in a situation where you purchased a home that did not have an HOA but an overzealous homeowner decided to establish one two years after purchase?

There literally was no HOA here. A couple of homeowners decided to start one so they filed for the certificate of formation and are now billing us.
There are deed restrictions on file but no HOA was ever formed until now.
Am I exempt?
There has been no election, no board and no bylaws existed.
SheliaH (Indiana)
Posts: 6,964
Posted:
You'll have to ask your attorney if you're exempt, but in the meantime, tell these folks if they want money from you, this "HOA" needs to be set up properly. That means buy-in from EVERYONE in the community, bylaws, an election for board directors and all that stuff. And all of that needs to be in writing.

You may want to take a long look at those deed restrictions to see if they mention an HOA. Deed restrictions can be enforced by one homeowner against another, so you may not need one.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
What Sheila said. If there is nothing in your deed about a homeowners association, then the owners who are attempting to create one have NO authority to act on behalf of others in the community - do not pay them a dime.

However, if your deed does mention an HOA, it may be that owners have not been living up to their responsibilities and this group is trying to address that. In this case you should read all of the papers you were given when you bought your home and look to see if you can find anything like bylaws. Many/most HOAs are corporations, and the bylaws outline how the corporation is governed - they will talk about the board of directors, officers, meetings, elections, etc.

It may be that the certificate you mentioned was renewing your corporate status, which is a good thing and would allow the HOA to operate according to your bylaws. The next thing that activist group should be doing is holding a meeting of the entire membership and properly electing a board to govern the association.
GeenaS1
Posts: 53
Posted:
The restrictions do mention the formation of an HOA by the developer but he failed to follow through and file a certificate of formation.
He admitted this and apologized after the development period was over.
At closing, we had no HOA encumbrance. There were no bylaws. No board, no voting, nothing.
GeenaS1
Posts: 53
Posted:
Also, our neighborhood is new. The few that want an HOA took it upon themselves to form one and claim it’s mandatory to join. They have no authority here but they are acting as though they do with their threats.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By GeenaS1 on 03/25/2020 6:21 AM
The restrictions do mention the formation of an HOA by the developer...
I appreciate that you are trying to give "just the facts." But experience here tells me that, at a minimum, I would have to see the CC&Rs myself to best judge. You can either post the relevant sections here (with name of the HOA and addresses redacted). Alternatively, feel free to email them to me at [email protected]. With your permission, I will post the relevant excerpts, with identifying information redacted. I think this would maximize the utility of the responses you get here.

This forum has seen a number of reports of (bottom line, unlawful) efforts by people to form HOAs where there was zero authorization in the governing documents to do so. These reports have been posted both recently and years ago. I do not think I have seen such a report from Texas yet.
SheliaH (Indiana)
Posts: 6,964
Posted:
If the developer didn't do his/her due diligence in setting up a HOA, I wouldn't worry about threats from these people at all - if they want to sue you, let them. Then they can explain to the judge why they didn't feel it necessary to get EVERYONE to participate in the HOA properly instead of completing some sort of form and now thinking that justifies them demanding money And why did it take them two years before deciding a HOA was necessary now?

AugustinD's observations are what I'd take to an attorney, but for now, I don't think I'd even bother with that. Suing people costs money, so if they want to do it, have at it - if what you've said so far is true, these folks will have their butts handed back to them by a judge (and they'd deserve it)

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Geena

There are cases where the HOA was formed but lay dormant for years before someone reactivated it. You need any attorney to sort this out.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Hmmm ... overzealous, or smart?
GeenaS1
Posts: 53
Posted:
Smart would require doing things legally and with some authority. Neither is true. I went ahead and had an attorney look over everything and he determined there is no legal HOA here.
Thank you all for your input.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Remember, attorneys like to agree with you if you are paying them :-)

And, as I always say, please let us know how it works out in the end - we all learn from the final state.
MarshallT (New York)
Posts: 414
Posted:
Glad you were able to reach a conclusion here. I hope you don't encounter any other issues with invalid HOAs.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By GeenaS1 on 03/26/2020 6:43 AM
Smart would require doing things legally and with some authority. Neither is true. I went ahead and had an attorney look over everything and he determined there is no legal HOA here.
Thank you all for your input.

Did he write a letter to those trying to start the HOA? I would want a copy of that letter for my records and to show others that feel bullied.
GeenaS1
Posts: 53
Posted:
Since they have no authority here, we’ve decided it best to ignore them. If they want to take this to court, I’m prepared.
GeenaS1
Posts: 53
Posted:
I’m sure that’s true in a lot of cases. Thanks for your input and once this is resolved I’ll post the outcome.
RobertT13 (Oklahoma)
Posts: 16
Posted:
I am no expert, but here are my 2 cents.

If the covenants "mention the formation of an HOA", then the owners can get together and form an HOA, including after the Developer has exited and if he made no efforts to setup the HOA. Happens all the time.

However, the HOA needs to be properly/legally setup (see any Texas law that may apply). The covenants are what everyone bought into and are required to be governed by which includes the HOA mentioned in the covenants.

Regards

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