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MB1 (California)
Posts: 2
Posted:
Please Help!

Our HOA has recently informed all of us homeowners our CC&R's have expired. The HOA asked for members to vote to reinstate our CC&R's. Unfortunately, there was a large amount of members who did not participate in the vote. We also had ballots improperly completed which made them invalid. All of this contributed to us not attaining the high number of majority vote necessary to reinstate our CC&R's. I believe we were only short 4-5 "yes" votes from reaching the required 75%.

We now have a SERIOUS problem. We have a small number of members rallying to disband the HOA completely. They are "opting out" of the association. Relinquishing their membership and refusing to pay any further HOA monthly assessments. These homeowners are under the assumption without current CC&R's there is no HOA. Some of these homeowners are already beginning construction on what was HOA maintained land. Which is very scary considering the number of homes that have been lost due to many slope slippages we have had in our area.

We are located in Anaheim Hills, CA. We are a community of single-family homes. We have several slopes with large drainage channels, mature trees, shared electricity and water for the sprinkler systems. These common areas are legally owned by each individual homeowner; but have been maintained by the HOA for over 30 years. We all signed deeds fully aware of us buying into an HOA ran community. In fact, the City of Anaheim has a municipal code attached to our properties stating "mandatory Community Association" for the maintenance of these slopes.

With this recent disturbing situation, I have a few questions I hope you can help us with....

1. How can it be possible for homeowners to be permitted to 'quit' the HOA when there are still current Articles of Incorporation, Bylaws and Operating rules?

2. I would think the community HOA would be set up as all or nothing?

3. Aren't the paying of the monthly dues attached to the other documents (Bylaws, Articals of Incorporation, Operating Rules) and not the CC&R's?

4. I understand the expiration of CC&R's is highly unusual. Can't we go before a judge with all of this information and ask for judicial intervention?

5. Is there any governing office that may be able to help us regain our HOA status?

6. Doesn't our property management company have a responsibility of protecting the homeowners from any type of expiration of the HOA?

The remaining HOA members are due to re-vote to reinstate the CC&R's on February 2nd. We currently have approximately 33% opt outs, 33% ballots returned and 33% non-responses. It seems impossible a re-vote is going to do any good. We could really use some help getting our HOA back on it's feet. I am fearful of the liability of our large sloped areas and the dissension of the neighborhood.

Our HOA has hired an attorney, but it is unclear if our attorney is pro-HOA.
JS1 (Nevada)
Posts: 30
Posted:
I know a lot of people who would love to be in your situation. And it is not unusual - I'm waiting for 2020. It would appear that your City has the authority to at least mandate the minimum for the maintenance of the slopes. (Resisting the child of the 70s in me that says question authority.) This is a good thing - as your area is prone to environmental problems in that arena, and it directly benefits your homes and their value.

Question 2 - No HOAs are not all or nothing. Landscape maintenance organizations deal with the maintenance of "common area" - Rural preservation associations, deal with "rural preservation" - Historic Preservation.... Never all or nothing - look at how many different associations are represented on this forum.

But I think the questions that are in need of clarification are in the area of your comments "We have .... shared electricity and water for the sprinkler systems." Are these shared utilities and services for the single family homes, or for the slopes and that designated common area".

And comment "Some of these homeowners are already beginning construction on what was HOA maintained land" - who is the land deeded to? If the land is deeded to them and it's their property line - whole different story. If the deed to that land is "the association" - get the attorney to write a cease and desist.

Keep us posted, as it is an interesting scenario, which will happen more often as time goes on.
SusanW1 (Michigan)
Posts: 5,202
Posted:
I think your #1 point is germane. Your CC&R - while important - come after the other document listed - Articles. Your association still exists!
You need to find out fast how to either revise and adopt or get an extension on the current CC&Rs. Get a real estate lawyer involved.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
MB1: Based on your post..."In fact, the City of Anaheim has a municipal code attached to our properties stating "mandatory Community Association" for the maintenance of these slopes."

Check with the City prior to your re-vote on 2/2. They need to be informed of the current situation.

DonnaS (Tennessee)
Posts: 5,671
Posted:

MB,
You have certainly got more than 1 problem going out there. I am going to start with your #6 first. Your Property manager should be responsible for #1, knowing what your documents say. In that case, they should know what the expiration date was on your CC&Rs. Not a good job on her part.

Most important, JUST BECAUSE THE CC7RS HAVE EXPIRED, YOUR CORPORATION HAS NOT

#2 Some members want to quit the HOA? Well, I want to look like Angelina Jolie and that ain't gonna happen either. You just can't "Quit" an association. There are responsibilities too many to count before you can just walk away from common property and all of the people who signed on to this type of a living situation.

#3 You have Davis Sterling ACt which governs HOAs in Cal. Get looking at that. And besides do you still have the P.M? This should be her field of expertise to find out how to reinstate the CC&Rs. Lastly, there is always an attorney to do the work for you.

In Florida we have a Statute within our HOA laws called "COVENANT REVITALIZATION" just for situations like this. Cal is pretty up on it's HOA laws so I'll bet that they address this too.
DonnaS (Tennessee)
Posts: 5,671
Posted:

TYPO-- JUST BECAUSE THE > CC&Rs < (not CC7Rs)
MB1 (California)
Posts: 2
Posted:
Thank you all for your replies! I am working with the HOA board, the city and the Property Management to try to save our HOA. We need all the help we can get. I definitely will look into the resources you have all mentioned.

Our attorney has taken an odd approach and I (along with many other members) feel she is actually hindering our revitalization. Our hope is the city will step in and help us, as our attorney continues to let us down.

The land in question is deeded to the individual homeowners but has always been maintained by the HOA. According to the city, they mandated the HOA maintenance upon the developer requesting permits to build the neighborhood. This was specific to the hilly area.

The slopes are very large, multi-tiered and run along outside rear fencing of each individual homeowner's back yard. The shared utilities are strictly for the maintenance of the slopes.

We feel betrayed by our Property Management Company for not making us aware of our expiration dates prior to expiration. They, of course, are trying to put the blame on our board, or on the individual homeowners. We are not experts in this field - they are. Unfortunately, there's no turning back now. We are in this mess now and I hope to God we find a way back!

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