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GeenaS1
Posts: 53
Posted:
I’m in Texas and an hoa was not formed prior to anyone in my subdivision purchasing here. A homeowner decided to establish one long after the development period was over. The developer filed covenants indicating an hoa was already formed, it wasn’t.
So I have a couple questions.

1) Can a homeowner form an hoa after the fact on their own?
2) Now that an hoa has been formed, don’t they need bylaws? It’s nothing short of a circus.

They are playing hoa board but have no clue how to run it legally and I’m not so sure they even had the right to form it in the first place.
There has been no enforcement of the restrictions that are being violated and no proper election took place.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Hopefully some of our Texas posters will respond, but just in general:

* Covenants can exist independent of an HOA and typically "run with the land". If the developer "filed them", which I understand to mean the necessary legal work was done to record the covenants, then they are in effect.

* Typically the HOA would be created along with the covenants. If you can find a document with the Covenants, Conditions & Restrictions (CC&Rs), there should be language in them describing the HOA, if one exists.

* Usually the presence of an HOA must be disclosed to buyers.

* A single homeowner can't form an HOA by himself. This is a legal process, and at the very least it would require the affirmative vote from all owners who would become members. This is assuming it's not a voluntary HOA, in which case the HOA structure would only apply to those who agree to be members.

* Bylaws are separate from CC&Rs, and they describe how a corporation or other legal entity is to be governed. If you have no bylaws, then your "HOA" would default to Texas statutes. Exactly *which* statutes depends on whether or not your "HOA" is incorporated or if you're in a condo community vs. an HOA (I can't tell from what you've written).

* The bylaws are where the rules concerning elections, the numbers of board members and officers, and similar things are found. If you have no bylaws, then again you're likely to default to the appropriate Texas statutes.

I agree that it doesn't sound like people know what they're doing.
GeenaS1
Posts: 53
Posted:
Thank you. Our hoa was filed by an individual homeowner with nobody voting on anything. It’s an incorporated non profit. The developer did not file a certificate of formation. The language in the covenants read, “the association is established by the filing of a certificate of formation, this declaration and the bylaws”. There still are no bylaws and there was no certificate of formation at the time the developer filed the covenants or before anyone closed escrow.
GeenaS1
Posts: 53
Posted:
We are not a condo community.
SueW6 (Michigan)
Posts: 814
Posted:
Well, one would wonder why anyone would form an HOA unless there was common assets that are needed to be taken care of. Are there?

Go to your state corporation filings Site and look up your name and see if this is filed as a corporation. and filed with the state. The corporation papers can be seen at that site. They have to state the purpose of the corporation in the paperwork and would have to file the bylaws with the corporation the first time it was filed.
GeenaS1
Posts: 53
Posted:
We have no common areas or amenities. It is filed with the state as a non profit corporation for the purpose of enforcing the deed restrictions. No bylaws have been created to date. They have yet to enforce a single violation. The BOD have fences and outbuildings in violation but they plan to grandfather themselves in. It’s truly a 💩 show.
CathyA3 (Ohio)
Posts: 6,299
Posted:
You should take a hard look at your CC&Rs to see if there is any provision that allows individual owners to enforce the restrictions themselves. (This is not unusual in my area.)

Of course that would probably require legal action because, absent an HOA, individual owners don't have any authority to fine violators, lien their homes, or impose other penalties that HOAs have at their disposal. (Unless their CC&Rs say otherwise.)

So you'll have to think hard about how important this is to you and whether it justifies the expense.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By CathyA3 on 09/20/2020 5:06 AM
I agree that it doesn't sound like people know what they're doing.

I think that goes for 90% of all imaginable human activity.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Hmmm ...

So, “The developer filed covenants indicating an hoa was already formed, it wasn’t.”. Was the HOA name specified in the filing? What was the date of the filing?

When was the corporation set up?

You have corporation filing? When was it dated?

You’ve done s through search of your county records, as well as state records?
SueW6 (Michigan)
Posts: 814
Posted:
Well , here in Michigan, if you don’t file your annual report with the state, the corporation loses its status And is considered to be dissolved.

So maybe that’s what happen with the developer. He just let the corporation dissolve. Now someone has started up a new corporation ( or re- instated the old one) whose mission is to enforce the restrictions in the deed. Good luck . With all that has happened before, I doubt if you can go back and correct things that have been done Since this corporation lapsed.

Fresh deck, new deal.
SueW6 (Michigan)
Posts: 814
Posted:
Just 2 (two) years not filing annual report ...
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say if an HOA and Covenants exist but has been dormant, it can be reactivated but I not an attorney.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Well, in Florida the not for profit is usually require to pay a fine ... the state recognizes that HOAs and COAs are less than perfect, so they allow an out.

I have not exercised this, but it is from reading what others have been forced to do.

Extinguishing an HOA/COA/POA NFP because they didn't file their annual report is counter productive - most states probably know this.
GeenaS1
Posts: 53
Posted:
Individual homeowners can sue one another to enforce the covenants here. Because of the cost to do that, most won’t. I personally couldn’t care less what my neighbors do or don’t do.
GeenaS1
Posts: 53
Posted:
The issue here is that the developer dropped the ball and it’s cost prohibitive to even fight these fools. They want their hoa so badly but they don’t want to adhere to the law. They don’t even know the laws that govern them.
GeenaS1
Posts: 53
Posted:
Quote:
Posted By SueW6 on 09/20/2020 1:44 PM
Well , here in Michigan, if you don’t file your annual report with the state, the corporation loses its status And is considered to be dissolved.

So maybe that’s what happen with the developer. He just let the corporation dissolve. Now someone has started up a new corporation ( or re- instated the old one) whose mission is to enforce the restrictions in the deed. Good luck . With all that has happened before, I doubt if you can go back and correct things that have been done Since this corporation lapsed.

Fresh deck, new deal.

The corporation didn’t lapse, it was never formed prior to closing escrow.
What’s been established now is long after we all closed on our homes by a homeowner on a mission.
GeenaS1
Posts: 53
Posted:
Quote:
Posted By GenoS on 09/20/2020 1:11 PM
Posted By CathyA3 on 09/20/2020 5:06 AM
I agree that it doesn't sound like people know what they're doing.

I think that goes for 90% of all imaginable human activity.

I 💯 agree!
GeenaS1
Posts: 53
Posted:
Quote:
Posted By GeorgeS21 on 09/20/2020 1:43 PM
Hmmm ...

So, “The developer filed covenants indicating an hoa was already formed, it wasn’t.”. Was the HOA name specified in the filing? What was the date of the filing?

When was the corporation set up?

You have corporation filing? When was it dated?

You’ve done s through search of your county records, as well as state records?

Correct. Covenants were filed without a certificate of formation ever being filed by the developer.
He did absolutely nothing that the covenants say he’ll do.
He was to establish an ACC, collect assessments, appoint the board, etc etc. He didn’t do anything.
We all bought and closed and over a year after the last home sold, one homeowner decided to file a certificate of formation. And here we are. Still no bylaws. No rules.

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