IrisD (Colorado)
Posts: 2
Posts: 2
Posted:
The developer went in to foreclouser and left the Hoa. How shoulod we go on when the management company now says there is not enough money to cover the bills coming up?
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developer forclosed, how does HOA react
Started by IrisD • 5 replies • 1555 views
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MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Iris,
We need a little more info:
Did the developer transition to the members b/4 going bankrupt?
Is there a board of directors?
We need a little more info:
Did the developer transition to the members b/4 going bankrupt?
Is there a board of directors?
RobertR1 (South Carolina)
Posts: 5,164
Posts: 5,164
Posted:
IrisD
Can we assume the developer had hired the Management Co, prior to this foreclosure? If so, then the management company is the responsiility of the developer. Do you have a transition Board? If so, they better get together and work out a plan, and it would appear they have some responsibility to the owners in the way of what they can do next. Your request is huge and your information submitted is sparse. I certainly would believe a Town Hall meeting is in order, and the difficulty explained and worked out. I would be hesitant to deal with a Management Company they informs you they don't have enough money. Where have they been during all this time. It sounds like this is a job for Superman, if the form of some owners that care about what is going on and can work together.
The use of all caps is frowned upon, it denotes you are yelling.
Can we assume the developer had hired the Management Co, prior to this foreclosure? If so, then the management company is the responsiility of the developer. Do you have a transition Board? If so, they better get together and work out a plan, and it would appear they have some responsibility to the owners in the way of what they can do next. Your request is huge and your information submitted is sparse. I certainly would believe a Town Hall meeting is in order, and the difficulty explained and worked out. I would be hesitant to deal with a Management Company they informs you they don't have enough money. Where have they been during all this time. It sounds like this is a job for Superman, if the form of some owners that care about what is going on and can work together.
The use of all caps is frowned upon, it denotes you are yelling.
IrisD (Colorado)
Posts: 2
Posts: 2
Posted:
The board of directors, so to speak, is made up of one home owner and two of the developers. Nothing was transitioned. We received the news last night that the developer was going into foreclosure folloed by a notice that the management company did not have enough funds and fees or special assesments should be considered
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Quote:
Posted By IrisD on 10/01/2008 12:54 PM
The board of directors, so to speak, is made up of one home owner and two of the developers. Nothing was transitioned. We received the news last night that the developer was going into foreclosure folloed by a notice that the management company did not have enough funds and fees or special assesments should be considered
The board of directors, so to speak, is made up of one home owner and two of the developers. Nothing was transitioned. We received the news last night that the developer was going into foreclosure folloed by a notice that the management company did not have enough funds and fees or special assesments should be considered
Iris,
How many developers are there? Did only one go bankrupt? On the articles of incorporation, who is shown as the incorporator. That is the person who is referred to as the declarant. Is he the one who has filed for bankruptcy?
Until transition occurs, the assn is really under the control of the declarant. If this is the guy who has filed bankruptcy, perhaps someone (the other two developers??) can approach him to find out if he will deed over the common areas to the assn (if this has not already been done). Then, IMO, a meeting of the members should be called for the purpose of electing a board of directors made up of only members. If there are no funds available to pay the bills, a special assessment may be required. At any rate, it appears an increase in assessments is in store.
Any other info you can provide would be helpful. Especially regarding these two other developers.
KirkW1 (Texas)
Posts: 1,665
Posts: 1,665
Posted:
I would not just sit and wait for the developer to take care of things. I would approach the developer about relinquishing control so the owners can deal with the problems. Otherwise you will have to fight and get on the list of liabilities.
You should also request a complete copy of the financial records. You need to ensure that your money has not been mis-spent. I am not accusing anyone of any wrong doing. I am just saying protect yourself.
You may have to make some hard choices. Before you raise assessments, try to cut expenses. Look at the budget and see where the expense can be cut. But do not ignore the reserve fund (if any). If there is nothing for reserve fund, then you need to look to create one soon. (This protects you later).
You should also request a complete copy of the financial records. You need to ensure that your money has not been mis-spent. I am not accusing anyone of any wrong doing. I am just saying protect yourself.
You may have to make some hard choices. Before you raise assessments, try to cut expenses. Look at the budget and see where the expense can be cut. But do not ignore the reserve fund (if any). If there is nothing for reserve fund, then you need to look to create one soon. (This protects you later).
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