Declarent HOA Board in Californa

Started by DavidP36 • 3 replies • 83 views

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DavidP36 (California)
Posts: 1

Posted:

I purchased a home in a new California development with 64 units. All but two are sold, and the community is still under full declarant (developer) control. About 70% of the homes have been purchased by non-resident international owners who rent them out, often without screening tenants or showing much interest in the long-term functioning of the development.

The management association currently operates as an arm of the builder and shows little awareness of its statutory obligations to homeowners. Several provisions in our Bylaws, CC&Rs, and state law are not being followed, and there appears to be deliberate foot-dragging on the required turnover to homeowner control.

Is anyone else dealing with similar issues in a new-construction HOA?

SheliaH (Indiana)
Posts: 6,964

Posted:

Unfortunately this is the biggest problem with developers- until they turn the community over to the homeowners, there isn't a lot you can do and there's no timeline mandating when that must happen.

If 70% of the community is already owned by investors, that's a bigger problem because these folks care more about the rent check clearing than anything else. They rarely get involved in mundane things like rule enforcement, board elections, or what vendor should do lawn care next year. And since the community is 70% investors, there may be a challenge getting them to agree to document amendments that will benefit everyone, especially the owner occupants.

Since CCRs can be enforced by one homeowner against another, your best bet may be for whoever's most affected by the tenants from hell to take legal action against the owner of that house. Owner-landlords are ultimately responsible for their tenants` behavior, just as you are fir 0eople 8n your household or if you also rented out your home. This won't be easy because - it's one thing to sue, another to win and another to collect. This can get complicated if you're dealing with an owner who doesn't live in the area,

Once the homeowners take over, you can push for a fair and consistent approach in rule enforcement, and perhaps homeowner approval to amend the documents to forbid renting for the first 2 years after a home is purchased. Rentsl limits can be just as difficult to get passed, so you'll have to work to show there's an advantage to the investors as well as everyone else.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DouglasK1 (Florida)
Posts: 2,046

Posted:

Do the governing documents specify when turnover should happen? If that threshold has already been passed, then legal action might be required, probably just starting with a nastygram from a lawyer, but possibly needing a lawsuit. This can cost a fair bit of money so is a bit easier to stomach if multiple owners join in and contribute.

Escaped former treasurer and director of a self managed association.

DeanJ
Posts: 1,786

Posted:

Did the owners extend the development period? It is not uncommon for a developer to pit this to a vote of the owners and obtain approval.

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