Developer won't leave the HOA

Started by MarkP14 • 2 replies • 224 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

MarkP14 (Kansas)
Posts: 1

Posted:

Our subdivision's developer will not spend the $350K surplus in our HOA. He has become the HOA board by default as no one will serve on the HOA board. Meetings were very contentious and once involved police intervention. The developer seems to believe he has a right to control the HOA'S funds since he paid for a clubhouse. Rules are not enforced, repairs do not get done, and the developer has become the defacto HOA. What can be done?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Realizing that most likely the developer still owns the HOA. That it doesn't sound like it has been turned over to the owners yet. The developer paid for the clubhouse so your HOA would have amenities. Amenities your dues will be responsible for paying for.

I think there is not a full grasp on how a HOA works that is going on. As long as the Developer owns the HOA, they are in charge. That surplus is NOT your surplus. It's the Developer's. Which may not be a "surplus" but "reserve" money for a project or futured maintenance.

Need some more details on the relationship on who owns the HOA or who may even be on the current board. Is it owners or is it the Developers employees/Property Management?

Former HOA President

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By MarkP14 on 07/02/2023 8:36 PM
Our subdivision's developer will not spend the $350K surplus in our HOA. He has become the HOA board by default as no one will serve on the HOA board. Meetings were very contentious and once involved police intervention. The developer seems to believe he has a right to control the HOA'S funds since he paid for a clubhouse. Rules are not enforced, repairs do not get done, and the developer has become the defacto HOA. What can be done?

Have you read the Declaration to determine how long the developer controls who is on the board? If not, please do so. Then return here with questions you have. Be prepared to quote verbatim what the Declaration says.

Please understand that the Declaration is a legal contract between and among owners and between owners and the developer. A court will enforce the terms of the contract.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here