HOA is still under Developer Control but not transparent to homeowners

My wife and I just purchased a home in Albuquerque, NM and the subdivision has a mandatory HOA. We had no problem with this - understanding that the HOA will assist in ensuring our property value remains intact. The problem is that the subdivision is only 1/2 completed and all authority remains with the Developer. When we first arrived, all of the common areas were horrible - weeds were growning - a lot of them did not have any landscaping (i.e. fabric and rock) - and after trying to deal with the property management company hired by the developer (who just happens to be related to the developer), my husband and I gave up and started cleaning and maintaining the common areas. We had most of the areas cleaned and began maintaining them on a bi-weekly basis, when we finally saw some movement from the Developer because of continuing questioning and requests for information. I must say at this point that in the beginning, the property management company tried to block every effort to secure information about the HOA (i.e. BOD minutes, financials, etc.) Only after requesting Bylaws did things begin to move. They actually told us we could not attend BOD meetings - stating they were closed meetings - until we confronted them with the "meeting" section of the bylaws stating all meetings were open with the exception of "executive sessions". Also, there is an excess of revenues over expenses at this point - so there was money available from HOA funds to clean and maintain the common areas all along. We have no grass, plants, etc. It's just landscaping fabric and rock (not unusual for this part of the country) - not a big layout of funds for upkeep.

Here's the problem, homeowners are not getting a copy of the CC&Rs at closing, so they don't have a clue about the rules. Of course, the management company says this is not their responsiblity - this should be happening at closing with the title company - and they refuse to look at reviewing this with the Board for a solution to the problem. The developer of course sends notices and/or fines about these issues - and it is making everyone angry. I want to encourage people to know their CC&Rs and support the HOA - but it's hard to go from door to door. The Bylaws specifically note that there is to be an annual meeting of the homeowners - stating that the Developer is the only one who can take action on agenda items until the transition of the HOA to the homeowners. It would be nice to have a forum with all the homeowners present so that some of the problems can be aired and addressed - I don't want to lose the HOA at the transition. Of course, you cannot talk to anyone on the Board - all questions have to be put in writing and forwarded to the Board through the property management company. So far - none of our written questions have been addressed - and we have asked at least three times when we might receive answers to our questions. Additionally, the property manager states that there will be no annual meeting until after the transition - because "that's how HOAs work when still with the Developers" - this is in direct conflict with the Bylaws. Is there anyone that oversees these HOAs when they are still controlled by the Developer? Does anyone have any suggestions how to deal with a Developer who will not respond to questions? Also, at each BOD meeting there is a report of ACC violations, Non-compliance violations, and Non-payment of HOA Dues. I've been told that this information is private and not available to homeowners. Am I crazy - do I not have a right to see these reports as a member of the HOA - is this another let's not let anyone have access to any of our information. I've been working with Boards for a long time - and I was under the impression that all information reviewed by the Board at the meeting was part of the minutes and available for review (it does state in our Bylaws that all meeting minutes are available for review by Association members - the only exception is Executive Session information - i.e. potential legal issues and employee issues - pretty standard wording). I would like to see these reports - it appears as though they are not applying the CC&Rs equitably thourgh the sub-division - which of course causes more discontent with the HOA in general.

Any information you can provide about how to resolve some of these problems with our HOA that has not transitioned from the Developer to the homeowners would be greatly appreicated.

Thanks

Gloria,

That is a great idea - I'll try that. In the meantime, do you have any thoughts on the annual meeting? It would be a great way to find 4 other volunteers.

Tom

Alex,
Don't take no guff from the developer. You probably have state statutes that require each new member must receive a copy of the documents. If the developer says the Office that did the closing, go to their office. If they can't do it go to BBB and file a complaint, go to legal aid, county council and be visable in your area.
If anyone has a copy, put it on disc and give disc or written copies to all. Charge individual for the documents what is costs to duplicate and keep receipts of payment.

All the advice you have gotten is on target, but only you can read the current situation as it happens. Go to meetings, voice your concerns specifically and ask for written reply or demand that the minutes reflect your concern. Take all the members you can get and walk into developers office and request a formal meeting. If he refuses, go to newspapers, make a big noise but don't settle for anything less that what you deserve.
At your Board meetings, go with a specific agenda in mind, makes no difference what it is, but hold the point and get some response from whoever is running the meeting, get it in the minuites and set deadlines for response. You sound smart enough not to get in trouble, but someone is working you all over, don't let them do it, and be cool, maybe you can loss a little to gain a lot but let them know you are not going away and they are taking money out of your pocket, and remember, his lawyer only gives his paid opinion.

Typical reacton from developer's manaagement company. I've often written here that the declarant's management company be fired first thing after turnover. Often they are a subsidiary and good example of why here (related.). It doesn't sound like there are monthly meetings. Usually while under declarant, only annual meeting is required. I am surprised they didn't landscape and maintain the common area. How would the weed filled site help sell more homes? Could be they are having financial problems. You could end up with a new developer buying him out. Happened to us. But after turnover so we had some control over the new builder.

TomP3:

..."but that HOAs never had annual meetings until after the transition - not what the bylaws say)..."

So, what do the bylaws state exactly re holding an annual meeting PRIOR to transition to residents?

The bylaws state, "The annual meeting of the members shall be held each year at a date and location determined by the Board. So long as there is a Class II Member as defined in the Declaration, the Class II Member shall take all actions on behalf of the Association."

This statements says. There will be an annual meeting of the members.....period

Then it says IF there is a Class 2 member as defined (Developer?????), the developer takes all action.

Therefore, when the developer is no more, the Board sets the date for the annual meeting. Control passed over tro board.

There should be a time frame or % completion clause, that restricts the developers interest. If not, I would have a very serious talk with who is wagging the tale. If nothing else I believe at some point you can restrict the developers right to your money. Look at transfer conditions closely and object strongly if there is no closed end provisions.