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BobR6 (Texas)
Posts: 5
Posted:
I recently became president of a homeowners association in Texas in which there existed numerous covenant violations. I and the new BOD want to end this endemic covenant violation. We want to ease into this transition and accomplish this gradually by letting the existing violations be "grandfathered" until the current owners transfer the deed by sale or any other means (inheritance). Some have finally agreed to sign such an agreement.
Question: How should this agreement be phrased? How can this agreement be made legally binding?
MicheleD (Kentucky)
Posts: 4,491
Posted:
With all due respect, I think you and your board are making a huge mistake, or rather, series of mistakes.

First of all, grandfathering cannot occur since technically, you haven't actually changed the covenants.

Instead what you have done is declare that it will be too hard to do the work needed to bring compliance about, so you are effectively throwing in the towel and pretty much neutering the covenants and basically eliminating them for EVERYONE.

If you want to "ease" the transition into enforcing the covenants, then I suggest at MOST extending the amount of time you require that the properties be set "straight," or brought into compliance.

Start a thorough communication campaign giving a heads up to all owners that violations that exist now will need to be brought into compliance by.....the end of the year....or whatever generous time-frame you think is fair.

Repeat the communication several times over the coming months and be sure to include backup that explains the out-of-compliance conditions.

It makes no sense to claim that you and the new BOD want to end the covenant violations, and then proceed to completely ignore them, turn your head away from them and then try to enforce them on subsequent owners.

The two Cs are: Consistency and Communication.

You need to discipline both.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Bob,
I think Michele is kind of hard to argue with. However, I sense you want to know how you can do what you want to do.

I would look towards amending your covenants with legal adivice how to do this. There may be some precedence for doing this in some state record somewhere. If not, a GOOD HOA lawyer should be able to draft you up a one time amendment hat would be something like a one time resolution of the present owners that would get some of this cleared out. However it could be that some violations, if not resolved and corrected (paid), can not be absolved. You would have to look to your covenants to find out the needed % of vote of owners to amend covenants. Might work.
MicheleD (Kentucky)
Posts: 4,491
Posted:
I also strongly urge resisting a one-time use amendment.

If it's a good enough restriction to maintain (though, as you want to do "grandfather in") then it's a good enough restriction to enforce now (albeit a little harder).

Either way you go, you will be opening several cans of "Unintended Consequences" that you won't be able to easily rectify.

Remember, "covenants" are exactly what they mean: solemn contracts, oaths or bonds. We don't get to decide that because some are harder to enforce now, we just simply ignore them (or "mutually agree" them away).

If your previous boards have been lax, that doesn't mean the covenants are then waived or void.

You simply pick up the baton and put work slowly, yet consistently and diligently and get them back on track.

Will you get push back? No doubt. But once completed, your subdivision will be in much better shape.

I will agree with Robert on this: If your board for some reason does NOT want to do the hard work of bringing the violators into compliance, then perhaps your homeowners may be open to abandoning those particular restrictions in the long run.

If so, then follow your governing documents for the process to amend and have the owners vote to eliminate them altogether.

Be prepared, however, for the bulk of the owners to reject removing the various restrictions.

The point is, I doubt the board has the power in and of itself to enter into sub-contracts (covenants) with people in violation of the contracts (covenants) that everyone agreed to in the first place.

If you enter into to side covenants (which is basically what you would be doing) that Joe and Mary get to take advantage of, then I, who may not be out of compliance now will want the same side covenant if and when I come out of compliance (for whatever reason) in the future. Why? Because there's basically no good reason to say, "let's just agree with each other not to enforce against these, but make sure everyone else has to stick to them, including people who buy into the subdivision at a future date."

And that's just the tip of the iceberg on the unitended consequences the BOD would be setting the HOA up for. . . . (dangling prepositions notwithstanding)
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Michele,
Very good logic Michele, well thought out and presented. If we hold to the logic our covenants are in effect, so powerful and so enforceable that all we have to do is arrest the violators and throw them in jail or make them wish they had obeyed the covenants, and had the resources to control the owners, that would be a horse of a different color. I am not disagreeing with your logic and I am sure there are HOAs that require absolute adherence, and I have no spat with that either. I do recognize the need for the Board and the owners be aware that times change and conditions change and changes may only effect your association. Of course that just points out what a difficult job the Board and the members have to deal with.
MaryA1 (Arizona)
Posts: 7,043
Posted:
I agree with Michele's opinions and Robert offers good sense worth thinking about also. But, frankly, I'd like to hear back from Bob. I'd like to know exactly what type of violations he would like to grandfather. IMO, grandfathering should only be used for restrictions that have changed or new restrictions; i.e. the BOD adopts a new law prohibiting basketball hoops and grandfathers all homes with existing basketball hoops. When there has been laxity in enforcement these type problems are created for the new board that wants to actively enforce. To grandfather all the violations is, IMO, the easy way out but not necessarily the best thing to do for the assn. Then again, depending upon how long the violations have remained in existence the time to enforce may have expired. It can be a real can of worms and one that might really require the advice of an attorney. Actually the most prudent thing to do may be to eliminate these restrictions.
BobR6 (Texas)
Posts: 5
Posted:

Thank you for your very interesting ideas. The specific covenant violation is: one homeowner has converted their garage into living space with windows looking out into the driveway...in direct conflict with a covenant that has been in place for 20+ years. The conversion occurred 3 years ago. No action has been taken. Apparently no one objected or wanted to enforce. There are also several homeowners who have built sheds in their back yards...also in violation of the 20+ year old covenants. No one objected. I am a new homeowner as well as new president and I and the new board claim to object (although many of them have lived here through these violations). These violations, having sat for so long, might be difficult to abruptly rigidly enforce, might set the community at war, and might even be unfair to suddenly change the accepted practice. There might even be some personal agenda involved...not mine but? The garage conversion is the most egregious violation and the first one we have tackled and we simply want a binding promise that the property will be returned to compliance at some convenient time. We are prepared to deal with any copycat violations. The homeowner is a somewhat older, grumpy, uncooperative lady in poor health, has few friends and is mostly misunderstood but just wants to live out her life in peace in her nice little house. After some low key coercion, she has agreed to convert back whenever she sells or passes on. We will pursue similar agreements with the other long term violations and we will definitely jump immediately upon any new cases. How can we phrase the agreement, make it binding?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Bob, you really can't.

Seriously, you want a binding agreement that essentially throws out a PREVIOUS binding agreement that the entire association agreed to upon moving into the development? I would bet real money your documents do not give the board the authority to do that.

But this particular statement I take huge issue with and wonder why you or any of the others are even living in a deed restricted community: ". . . and might even be unfair to suddenly change the accepted practice. "

Seriously? You find it unfair to "suddenly change" an "accepted practice" that is in direct conflict with your binding governing documents?

You consider lack of enforcement by lazy boards the same thing as the entire development deciding that certain elements do not need to be adhered to?

I'm so glad that the periodic speed enforcement in my subdivision continues, despite "accepted practice" of numerous homeowners speeding through the residential area. I'm so glad my local constabulary doesn't consider it "unfair" to enforce against such "accepted practices."

In addition, no one "objecting" is not the same thing as tacitly approving.

There is only one way to resolve these "issues" and that is to introduce and vote on amendments to remove those particular restrictions.

The result of the vote should tell you what you need to do.

If the majority (or whatever number your governing documents require) vote in assent to remove those restrictions, then you can "ignore" the violations, as they would no longer be violations.

But, if the majority (or whatever number your governing documents require) vote to DENY the amendments, then you have your answer.

You must enforce.

And you must do it uniformly, regardless of whether the violator is a sweet or cranky old lady.

In the meantime, it would be in your best interest to begin the aggressive communication plan to inform the development that the Deed Restrictions ARE still alive and well, and that everyone should be prepared to take responsibility for out-of-compliance conditions that may exist on their lots. Because, as is your duty, you will begin enforcement notifications until such time as the documents have been changed to remove or amend those clauses that the homeowners vote on.

It seems to me, though, that the "war" apparently has already begun, and the board has already "lost" (or surrendered) without even setting up a front line.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Bob,
I think the die is cast, you and the board seem bent on being the compassionate uncle to all the home owners. You vacillate way too much in your descriptions, if I read right. Your first identifiable victim is a owner that has just in windows in a garage and against covenants is living there, then you say this owner is a grumpy, misunderstood, older, lady, that just wants to live her life in her nice house.
You all have to decide and it appears you have, so be it. And I hope some others are reading these posts that have similar questions and will take Micheles advice to heart. No only is her advice solid, her conclusion that you can't do what you want, taking the road you are taking. You can not be all things to all people and I, like Michele, want to suggest that your conclusions of how to arbitrate all this is going to be less unfair, is suspect. You also have mentioned that the Board is not all that solid either. Do you think picking and choosing what covenants to enforce will make it stronger. But, long term, I want to go back to my first post. Do this a small step at a time but do it with amendments or resolutions or rules of conduct. But if you must change directions, change the covenants with the proper member approval.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Bob,

Regarding the garage conversion; what is really wrong with it? Do you really think the property values of the community are lowered because a garage was converted into a room? Did the property only have a 1 car garage that was converted or is there still a garage attached? In my neighborhood most homes have 3-car garages, but some opted to have a den instead of the 3d-car garage. I can imagine it might be difficult selling the property w/o a garage but that shouldn't lower anyone elses property values. In fact, I think the fact that it's an older neighborhood would justify the lack of a garage.

And the sheds in the back yards of some homeowners aren't really a big problem, are they? Most h/o's need a shed, if only to house all the necessary garden tools, etc. From what you have written my opinion is that the CCRs need to be amended to allow for these things. Some restrictions can be placed on each, but I see no reason why they cannot be allowed.

And, as mentioned in another thread, I believe the law of "laches" would apply, meaning the h/o cannot be required to correct the violation as too much time has gone by.
MicheleD (Kentucky)
Posts: 4,491
Posted:
I wouldn't jump on the bandwagon of too much time having passed without first testing it, if need be.

We have (successfully) sought compliance against violations that were over several years old. One was as old as 6 years. It was an unapproved shed. She had to remove it.

And it really makes no difference if you, I or the other guy feels that sheds are "okay," since the CC&Rs say they aren't.

Same with the garage conversion.

Now, if the community wants to amend the restrictions to allow either or both, that's different, but until such time as the governing documents are amended, the violations exist, the current board is now "aware" of them (the violations), and it is incumbent upon them to move for correction. They can't just throw up their hands and say "Oh this is going to be too hard! This maintaining the integrity of the governing documents thing is HARD! I didn't know I was going to have to tell people to stop doing X, Y or Z!"

They should "person up" and do what needs to be done.

And I would completely disagree that sheds are "okay" as a blanket statement anyway. I can show you hundreds of sheds that are NOT "okay" and that would seriously impact the value of the neighbors' homes.

Some are too big for the property size, others are too numerous (some neighborhoods here have homes with 3 or more sheds on them), some are rusty, though otherwise in good shape, some have blown into other neighbors properties, some are purple with yellow doors and green shutters. . . .

If sheds are allowed it would be wise to set minimum standards as to their size (maximums especially), materials, roof line (barn style, flat, etc), and foundation or footings.

As a side note, our CC&Rs require attached garages. So if one wanted to convert their current garage into an extra room, they could do that, but they would then have to alter the footprint of their home to build a new attached garage.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Michele,

I agree with what you're saying! An amendment to the CCRs might be the best way to go and if the BOD is going to pursue this they can certainly wait until the vote is made to take any action on the violators. After all, they haven't done anything for at least 3 years! About sheds: yes I've seen a few that I wouldn't like seeing in my neighborhood either. That's why I said the board could place restrictions. There are a lot of really nice sheds out there, so there's no reason to deny this to anyone.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To all:
Question about "laches."

If there is a time constrain on enforcing a covenant, then, suppose during this time the Covenants are amended and a New Master deed is adopted. Does this then automatically signify an appoval of of the changes plus what was not changed? If so, does it track to say this approval is the same as an enforcement of all the covenants, and the time would start at this point with regard to laches?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By RobertR1 on 03/25/2009 1:07 PM
To all:
Question about "laches."

If there is a time constrain on enforcing a covenant, then, suppose during this time the Covenants are amended and a New Master deed is adopted. Does this then automatically signify an appoval of of the changes plus what was not changed? If so, does it track to say this approval is the same as an enforcement of all the covenants, and the time would start at this point with regard to laches?

Here is the legal definition of laches:

"Undue delay in asseting a right or a privilege (compare to statute of limitations). A doctrine permitting dismissal of a suit because a plaintiff's unreasonable delay in asserting a right or privilege has been detrimental to the defendent's ability to make a defense."

If the declaration is amended to allow something that was prohibited in the past, anyone who was in violation would now be cured. If the amendment prohibits something that was once allowed, then anyone who is in violation at the time the amendment was recorded should be grandfathered. What these amendments do is effectively erase any violations that exist with regard to the particular restriction being amended.
BobR6 (Texas)
Posts: 5
Posted:
MaryA1:
So good to hear some common sense. Tnx.

The covenant requires "a 1 car garage used for no other purpose". Some homes constructed w/2 car garages have converted 1 of the garages to living space and no problem...they are in compliance. I personally feel that converting to NO garage does impact the value of the neighborhood. In computing the $ impact, I assumed 1/3 of the homes converted to no garages and estimated the impact on the neighborhood. That many would change the character of the neighborhood and result in a negative impact on the remaining homes values.?? So converting 1 home to NO garage has some impact. Mainly it requires parking in the driveway 24/7 or, worse yet, parking in the street...which makes the 'hood look congested. Some HO's junk up their garages so much that they still park in the d'way.

The garage conversion covenant violation "elapsed time" was a consideration in my proposing a compromise with the homeowner. We have since contacted an attorney and have reached the proposed compromise and properly phrased agreement with the homeowner.

Now on to the sheds. I agree with you that sheds are really handy and I lean toward allowing them...with restrictions to make them acceptable. Other BOD's are not so accepting. Approximately 30 per cent of the homeowners have sheds...in violation of the covenants. Many are quite old and in disrepair. We have a 20+ years "elapsed time" situation in some of these cases. Some are large and quite visible from the street or neighbors patios. I like Michelle's idea of imposing a fairly generous "drop dead" time limit...perhaps the "Grandfathered" approach but I prefer the specific date in combination with "when the HO sells" clause.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Well, regardless of what one attorney says, making a contract with one party that violates the contract of all parties without their sign-off or approval really is not the way to go and could very easily come back and bite you all in the rear, but it's your HOA.

BobR6 (Texas)
Posts: 5
Posted:
Michele:
I don't feel we have violated the contract with the HO's without their signoff. We are enforcing the covenant. Your displeasure with the enforcement is the schedule. This neighborhood has spent years getting us into this predicament and we will spend a few years getting ourselves back into compliance by gentle enforcement and covenant revision vs. the "take no prisoners" approach.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Bob,

The "property value" aspect is really a touchy issue. IMO, there are a lot of factors taken into consideration when determining the property values of the neighborhood. Perhaps the fact that many residences do not have a garage might be cause to lower proprety values, but when the age of the neighborhood is taken into consideration, that might change. I really don't know. But, regarding the property value of each individual home: IMO, the property value is definitely affected if there is no garage as opposed to having 1, 2, 3 or more garages.

With regard to the sheds, you might consider giving those residents with very old sheds one year to replace them. Since it's been over 20 years, what's one more year. This would let the members know you are aware of the financial burden and willing to give them time to comply with the restriction.

As you say, it's going to take some time until the BOD is able to bring everyone into compliance. I'm sure this whole mess is a real wake-up call for the board; nothing like inheriting someone's elses (a lot of someone elses!!) problems.

BTW, I'm sure you know, common sense is not so common! LOL Thx for the compliment. :-)
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By BobR6 on 03/26/2009 5:19 AM
Michele:
I don't feel we have violated the contract with the HO's without their signoff. We are enforcing the covenant. Your displeasure with the enforcement is the schedule. This neighborhood has spent years getting us into this predicament and we will spend a few years getting ourselves back into compliance by gentle enforcement and covenant revision vs. the "take no prisoners" approach.

You are completely wrong.

Spin it how you like, you are giving a homeowner explicit "contractural" approval to IGNORE and NOT COMPLY with existing restrictions.

Again, it's your HOA, if you are prepared for the unintended consequences, go for it.

But don't delude yourself that what you are doing is in the least bit "legal" simply because you found a lawyer who will give you language for it.

You are entering into a contract with one other person, that disavows and breaks the contract that all other homeowners have.

It's not about "timing."

But, again, your bag, you can fill it how you like
JimH5 (Indiana)
Posts: 17
Posted:
Bob I think you will learn very quickly that to enforce the covenants takes a stern hand and anything except that will be tested over and over. If you are going to enforce, do it now, and with resolve or forget about getting compliance. Voice of experience speaking here.
BobR6 (Texas)
Posts: 5
Posted:
Tnx JimH5 "voice of experience". I like to hear from a voice who only has 9 posts vs. thousands. I think I may getting my first taste of experience. The HO with whom we were to enter into the agreement took a copy for her review and we were to go to the notary the following day. That evening she left town! No discussion. No message. Unless she shows by Monday, I think we will simply bite the bullet, spend the HOA's money and file the suit.

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