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RwM (Pennsylvania)
Posts: 1
Posted:
The residents in my development recently voted on a proposal for curbside garbage/recycling pickup. Ballots were sent from the association's management copany to each resident and the majority voted yes. Although our builder, who is also president of the board, originally was in favor of it voted no on all his rental properties which is 6. Still the majority voted yes and won the vote.

We received an email today that although the majority voted yes, he has denied curbside pickup. He feels that the garbage cans will be an "eyesore" He also does not want fines imposed in the development. We are a small development that is not completed and we do not have control (obviously).

Can he override a formal vote? Is there are recourse for the residents??

We have gone to the township regarding several issues on this builder and developer. They have forced the builder and developer to finish several capital improvements that they were incomplete in less than a month.

Until we get control is the township our best avenue to rectify issues with the developer and builder?

thanks for any advice you can give me.
KirkW1 (Texas)
Posts: 1,665
Posted:
Basically, the town's pressure on this person is likely about the only recourse you have. Most developers write themselves the ability to veto any action of the association.
JosephW (Michigan)
Posts: 882
Posted:
It's all going to depend on your documents. If they give the developer the right to overrule a vote, then yes, he will have that right. But because the issue was even voted on, and he voted with this units, makes me think he might not have the right. Read your docs from front to back.

Joe

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RobertR1 (South Carolina)
Posts: 5,164
Posted:
RWM,
Tell us some more about where you are in relationship to developers position in the association. I take it you are HOA, how many lots, how many sold, how many living there, who is on your Board. If this looks like short term problem, consider that, if it is long term, consider if the developer can stop your majority vote, why have it at all. Clear this all up for your members and get some feedback by having a town hall meeting. This sounds like a "tip of the ice berg."
MaureenM1 (PA)
Posts: 344
Posted:
When finished our development will have 40 units. Todate 26 are sold (the builder owns 7 of these 28, rents 6 one is the model).There are 2 homes built not sold and 12 lots (no building on them).

the board consists of two residents of my development. the remaining 3 seats on the board is the builder and his sons.
MaureenM1 (PA)
Posts: 344
Posted:
I will do that. Thanks for the advice.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By MaureenM1 on 01/22/2009 3:39 AM
When finished our development will have 40 units. Todate 26 are sold (the builder owns 7 of these 28, rents 6 one is the model).There are 2 homes built not sold and 12 lots (no building on them).

the board consists of two residents of my development. the remaining 3 seats on the board is the builder and his sons.

Maureen,

From the info you gave, the developer owns 7 homes outright, meaning he gets one vote per home for any issues the members vote on, i.e., he gets 7 votes all the other h/o's get 1. As the developer, he owns 2 spec homes and 12 empty lots which = 14 out of 40 lots. There are 26 homeowners, including himself. If, as declarant, he gets 3 votes per lot, then he still has control of the votes at a meeting where the members vote. If he gets less than that, then he does not have that control. However, with a 5-member board and 3 seats belonging to him and his two sons, he has the upper hand on any board votes. Your bylaws should tell you how many votes he gets per lot, as the declarant.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Maureen,

Sorry, I made a typo! The developer can control the membership vote if he gets at least 2 votes per unsold lot.
EllenS1 (Florida)
Posts: 1,148
Posted:
Maureen,

Not sure if I understood your figures but it seems:

homeowners 26
builder owns 7 which he rents
builder owns the model 1
builder owns 12 lots. Didn't you say a lot receives 3 votes?

If this is so he controls the vote.

In addition with a 3 to 2 vote on the board he controls the board vote. If this is correct even if all homes are sold and he owns the lots this still would give him 36 votes. Very confusing. I can assure you since the builder had the documents prepared I'm sure they were done in his favor.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Ellen,

The builder only has the majority of the votes at a meeting of the members IF the docs say he gets at least 2 votes per unsold lot. The 7 lots he owns are not "declarant controlled" -- he owns them privately. For those 7 lots he gets only 1 vote each, the same as any other members of the assn. Whereas he does have the majority vote on the board, he does not have the majority of any votes that are required to be taken by the members, unless the docs give him more than one vote per unsold lot.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary,
Could there be stipulations in the documents that over ride this vote business and the developer just fall back on the , until he turns over the association he still can do anything he pleases. How cut and dried is this stuff.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By RobertR1 on 01/22/2009 1:59 PM
Mary,
Could there be stipulations in the documents that over ride this vote business and the developer just fall back on the , until he turns over the association he still can do anything he pleases. How cut and dried is this stuff.

Robert,

IMO, the developer can only do what the docs say. Regarding the voting, it should be specified in the CCRs how many votes the developer gets per unsold lot (class B membership). If the developer purchases a lot personally, then he becomes a Class A member of the assn and has only 1 vote per lot owned. He now becomes a Class A member and a Class B member! I know we often make the remark that, while still in control of the assn, the developer (declarant) can do whatever he pleases. However, in reality, he can only do what the community docs give him the power to do. THe reason we make that statement is that, generally speaking, while in control he has the majority vote on the board and also has the majority member vote. This enables him to make whatever changes to the community docs he feels necessary to push his own agenda.

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