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PamelaM3 (Virginia)
Posts: 4
Posted:
Hello,

I would be interested to hear of anyone who has a similar situation in their neighborhood. Our HoA collects our dues every 3 months but we have no idea where those dues are going. There is no accountability. The neighborhood is still under the builder's control but the builder has reneged on all their duties and has, for all intents and purposes, disappeared. Through our own efforst, we have involved the county who is now taking over with regard to getting streets paved, lighting put in etc. We have 2 members on the board but every time we ask the HoA what the situation is with our dues (i.e. where they are going and if we ask for past balance sheets), they refer us to the builder, who never returns calls.

The county supervisor has told us that they have no power to intervene when it comes to HoA matters. Can anyone advise us how we can gain a happy outcome here for all whereby we take control of the community from the negligent and absent builder and continue to work alongside the HoA, who would then report to us? Hopefully we could build a great relationship for all.

Thanks very much.

Pamela
Community volunteer
KevinW3 (Virginia)
Posts: 1
Posted:
Great minds think alike. We need to get the right answer before we do anything. Most importanly, we need to know where are money is and how do we get it back once the developer has left the community. We need legal counsel, but the county supervisor is correct in the fact that they cannot give us any input we have to get counsel on our own. (Earmie says hi)
SusanW1 (Michigan)
Posts: 5,202
Posted:
I'd be having a face to face and toe to toe with these "two board members" who act like they don't know a thing.
Are there meetings? Are they attending?

Time to get the Members together and demand some answers from your "board".

PamelaM3 (Virginia)
Posts: 4
Posted:
Hey Kevin! That is funny. Must be telepathy!! Hi back to Earmie! How's the Neighborhood Watch thing coming along?

Pam
PamelaM3 (Virginia)
Posts: 4
Posted:
Believe me, we've tried. The last meeting we had with the builder was a joke. The VP himself pretended he knew nothing of all the problems the neighborhood was having due to their negligence, even though he had been kept abreast of all problems as they cropped up. (There is correspondence to prove it.) The HoA just sat there saying nothing. They insist that they still defer to the builder, which they may do, but we'd really like to see a balance sheet and nothing has been forthcoming.

I just wondered if there were any other communities out there who had experienced a similar situation and whether going to a lawyer worked for them? We'd prefer to not have to involve legal fees but it may be our only recourse.

Pam
MaryA1 (Arizona)
Posts: 7,043
Posted:
Pamela,

Have you tried asking for copies of the financial statements IAW the provisions of 55-510 of the VA Prop. Owners Act, which states the following?

"This right of examination shall exist without reference to the duration of membership and may be exercised (i) only during reasonable business hours or at a mutually convenient time and location and (ii) upon five days' written notice reasonably identifying the purpose for the request and the specific books and records of the association requested."

Your request should be mailed to the BOD of the assn. Perhaps a copy of the statute should also be included in your request.

If there are only two homeowners on the BOD they are most likely in the minority and really have no say regarding the conduct of the board. It's not unusual for the declarant to maintain control of the BOD while he is still in control of the assn. However, he still must abide by the assn's governing docs and state law. Thoroughly review your gov docs to make certain you know what the declarant can do while in control of the assn. I've taken a cursory look at the VA Prop Owners Act and could not see where any of the statutes are prefaced by the statement that they apply only after the period of declarant control has passed; thereby meaning the declarant must also abide by all the statutes contained in the Act. I would suggest that you make certain you do have a case against the declarant before employing the services of an attorney.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Yes - the builder can always claim ignnorance about what others thought needed to be done.

Get a like-minded friend on the board. Then submit motions for what you want done. The minutes of the meeting should show that the motions were made - and vote taken - showing that the motion did not pass. THEN you have some kind of proof that the builder is using his power to NOT perform certain tasks.

EllenS1 (Florida)
Posts: 1,148
Posted:
Pamela,

Check to see if your builder is still licensed and then go to the appropriate agency. The County should at least be able to tell you if he has a current license. You could also check with the county/city online and if the builder still owns lots you may be able to find out where his tax bills go for an address. If he's bankrupt you may be out of luck????
DanaH2 (Georgia)
Posts: 7
Posted:
Our neighborhood is in a similar situation. Our builder (declarant)forclosed on the remaining 17 lots in our neighborhood. The lots went back to the bank(s) in July, 2008. He does not return any phone calls from homeowners. Our management company spent our dues before the year was over. They could not provide itemized record of what they spent it on. We had to pay out of pocket for lawn maintenence of common areas (including empty lots) for the past 6 months. They have kept our gates functioning but have not enforced any other covenants. We asked the builder to relinquish the HOA to us, the homeowners, but he was not willing. Now, the remaining lots have been purchased from the bank by a large builder who plans on building small starter homes (from $290K)in our vintage Craftsman Style gated community of homes which we puchased from 500-600K. The forclosed builder (still the declarant) nor HOA managmement company informed the homeowners that the lots had been purchased and home plans approved. We found out through an online add promoting an "open house" in our neighborhood! We called a meeting with the new company and expressed our disgust at the level of home they plan on building in our neighborhood and the lack of communication we had received. We want to protect our investments but feel that we have no control. My questions are 1. can we sue to take over the HOA? 2. Can the builder still be the declarant and make decisions on our behalf when he owns NO property in our neighborhood? 3. Can we start our own seperate HOA? We want control of the architechture, more specifically the elevations of these new homes to be built. We are so incredibly frustrated. Any suggestions would be so greatly appreciated.

Dana
Alpharetta, GA
PamelaM3 (Virginia)
Posts: 4
Posted:
Thanks to all of you who have replied. I am going to collate all these answers and work through them to try and find some answers. It sounds like many are stuck in the same situation. Sounds like some new legislation is in order considering the changed circumstances of our economy...

Pam

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