YoungjaeK (California)
Posts: 5
Posts: 5
Posted:
In our HOA, one of the board members is a developer, which is very weird. I heard that CA law prohibits this. Could anyone point me to the exact document that states this?
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What CA law prohibits a developer to sit on the board?
Started by YoungjaeK • 11 replies • 1143 views
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BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
YoungjaeK,
California's Davis-Stirling Act covers associations in your state. I doubt that it says developers CAN'T sit on your board, although I'm sure it covers the relationship between the developer and the HOA.
It's available as a pdf file you can download. It's easy to find. Just "google" it.
California's Davis-Stirling Act covers associations in your state. I doubt that it says developers CAN'T sit on your board, although I'm sure it covers the relationship between the developer and the HOA.
It's available as a pdf file you can download. It's easy to find. Just "google" it.
GeraldT4
Posts: 1,022
Posts: 1,022
Posted:
YoungjaeK - In the beginning of an association the Developer is the Board. As construction is completed and after units are sold the Developer Board seats are filled by owners elect. Have all the units been sold? Look to your governing documents to see what it says about transition elections to the Board.
SharonM3 (Virginia)
Posts: 23
Posts: 23
Posted:
"A" developer or "the" developer?
YoungjaeK (California)
Posts: 5
Posts: 5
Posted:
It is "A" developer. To be exact, the CFO/COO in the developer company owns a home in our community. So, he is both a homeowner and a developer. He ran for the board election as a homeowner. Other homeowners didn't know he was a developer and voted for him. Now, people found out its consequences and try to remove him from the board. If there exists such a CA law, it will help us a lot. (BTW, he rented out his home and doesn't live here.)
GeraldT4
Posts: 1,022
Posts: 1,022
Posted:
YoungjaeK - SharonM3 asked a question which shows some very keen insight and observation. Excellent job Sharon!! : ) Her question was "A" developer, or "the" developer. The answer is "the" developer, the one that built your community. There is no CA law that prevents a member of your association from serving on the Board. And that is exactly what you are dealing with here. Regardless of the fact that the Board member was "the" developer. Now, would people have voted for him if it was clear he was "the" developer? Did he make it clear and people weren't paying attention? Only you know. Unless there's a by-law that prohibits absentee owners from serving, there's not much you can do outside of a community vote to recall the Board member. You need to tread very carefully with this one because you should base your decision on what the voting record is, and agenda is of this particular Board member. Being the former developer may or may not prejudice him from doing what's right.
YoungjaeK (California)
Posts: 5
Posts: 5
Posted:
You are right. He is "the" developer that built our community and he is still the developer. Of course, people wouldn't have voted for him, if people knew its consequences. At the election, people were not educated enough not to vote for him because HOA management company have been blocking homeowners' communications. (BTW, this HOA management company seems to have some connection with the developer.)
Now, people are getting educated by other homeowners and trying to vote him down. I was just wondering if there is any such CA law, which will make our job much easier. Even if he is a homeowner, this situation seems to be "conflict of interests" because he is also the developer.
Thank you very much for the quick reply.
Now, people are getting educated by other homeowners and trying to vote him down. I was just wondering if there is any such CA law, which will make our job much easier. Even if he is a homeowner, this situation seems to be "conflict of interests" because he is also the developer.
Thank you very much for the quick reply.
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
Youngjaek,
Is there a problem with the Developer that the homeowners want to have him removed from the Board? Sometimes these guys are very valuable to the Board as a resource for information rather than having to go to the County or a lawyer for meanings and information. He owns a home and therefore is entitled to sit on the Board. The M.C was probably hired by the Developer originally, therefore they would have some "connection" to him. There is no conflict of interest. He wrote the covenants, etc and did it for what he thought was right for his community. IF you have had your Turnover, then you can change items that you don't like. He is but one (1) vote on the Board.
Our Developer sits on our Master Board and has been extremely helpful on 2, what could have been, very expensive items. We are 565 homes in 3 sections, built around a golf course. There is always a question of who pays for things and the Developer has always gotten the correct answer for us. We found that by treating him as just another interested party and being non-confrontational to him, he has assisted us several times.
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Our developer has a seat on or board, the people knew it when they elected him, and he is NOT a homeoener. Our state laws do not require that all board members MUST be homeowners, just that the MAJORITY of board members must be homeowners. Don't know what Davis-Stirling says; haven't read it; but it's easy to download and read.
I would say that if the developer owns a home then he is entitled to the same rights as any other homeowner, unless state law probhits it. Otherwise, it's discriminatory. Should the person who owns the most real estate in a community be prohibited from being elected to the town council or whatever your town government is called? Should teachers be prohibited from voting for members of the school committee or board?
I would say that if the developer owns a home then he is entitled to the same rights as any other homeowner, unless state law probhits it. Otherwise, it's discriminatory. Should the person who owns the most real estate in a community be prohibited from being elected to the town council or whatever your town government is called? Should teachers be prohibited from voting for members of the school committee or board?
PaulM (Pennsylvania)
Posts: 1,347
Posts: 1,347
Posted:
YoungjaeK: ..."He is "the" developer that built our community and he is still the developer. Of course, people wouldn't have voted for him, if people knew its consequences."
Has the developer, on the Board, transitioned or turned over the Association to residents to control the governing of the Association. Transition occurs when a certain number of units have been sold and the actual running of the Association, payment of bills, and compliance to the official documents, the CC&Rs are enforced. It would help if you clarify your situation.
Has the developer, on the Board, transitioned or turned over the Association to residents to control the governing of the Association. Transition occurs when a certain number of units have been sold and the actual running of the Association, payment of bills, and compliance to the official documents, the CC&Rs are enforced. It would help if you clarify your situation.
YoungjaeK (California)
Posts: 5
Posts: 5
Posted:
This forum is really helpful to me!
We have a specific problem. The developer also owns the buildings next to our condominiums with whom we share some parking spaces. There has been a conflict between the developer and us how to interpret the document that regulates the usage of this space. We are concerned whether he could remain indepedent on this matter. BTW, M.C. has been listening to the developer and enforcing the parking policy in favor of them.
We have 5 board members. In fact, two of them are the developers. One is the guy I just mentioned and the other developer is not a homeowner. This second developer was not elected but represents the commercial units in our condominums. We can't remove this developer from the board.
We want to change the M.C. whose service has been horrible. Since we have two developers on the board, this job hasn't been easy. Three other board members kind of agree on that there is a problem with the current M.C. but they are not aggressive enough. That's why we at least wanted to remove one developer for now.
We have a specific problem. The developer also owns the buildings next to our condominiums with whom we share some parking spaces. There has been a conflict between the developer and us how to interpret the document that regulates the usage of this space. We are concerned whether he could remain indepedent on this matter. BTW, M.C. has been listening to the developer and enforcing the parking policy in favor of them.
We have 5 board members. In fact, two of them are the developers. One is the guy I just mentioned and the other developer is not a homeowner. This second developer was not elected but represents the commercial units in our condominums. We can't remove this developer from the board.
We want to change the M.C. whose service has been horrible. Since we have two developers on the board, this job hasn't been easy. Three other board members kind of agree on that there is a problem with the current M.C. but they are not aggressive enough. That's why we at least wanted to remove one developer for now.
YoungjaeK (California)
Posts: 5
Posts: 5
Posted:
Let me add one more. The shared parking space that I mentioned above is not located between the commercial buildings and our condominums. It is located in our own garage under our condominiums. Because of the weird parking policy and M.C that enforces it, we are not able to use some of our own parking garage.
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