Quote:
Posted By CassondraJ on 03/25/2009 7:02 PM
We have 29 lots with 9 homes in it 2 of the homes are renter homes. All the other lots belong to the developer of the project. He owns over 60% of the lots with no homes on them. How many homes owners should there be before a HOA be started ? With him owning 60% we are voted down because he can vote per lot... This is the first time I have lived with in a HOA and I would not be here if I had known about it before buying it. My home is going up for rent I hate living in a glass house. Thanks
Cassondra,
The answer to your question may be contained in your governing documents (articles of incorportion, bylaws and/or CCRs (declaration or covenant)); however, I doubt it is. If you don't have these documents you should ask the developer for copies immediately. Here in AZ, the HOA is formed by the declarant generally before construction even begins. In other states the process may be different. You can check with the State agency that regulates corporations as an HOA is a nonprofit corp or perhaps the R.E. Department, or whatever State Dept. regulates building on unimproved land.
The CCRs should contain an article which states when the HOA will be turned over to the members. In my CCRs the article is entitled "association memebership; voting rights". Most CCRs will state two classes of members, Class A includes all members (property owners) and they have one vote per lot; and Class B which is the declarant who may have more than 1 vote per lot as long as he is in control of the HOA. The article will indicate when turnover shall occur; mine says: "at any time the total votes outstanding in the Class A membership equal or exceed the total votes outstanding in the Class B membership; or 12/31/1997; or such earlier time as the declarant shall designate in writing."
The AZ CCRs that I've seen generally give the declarant 3 votes per unsold lot. If your CCRs are the same that would mean the homeowners have a total of 9 votes against his 60 votes(20 x 3) (the owners of the rented properties also have the right to a vote). If turnover would take place as described above, there would have to be a total of 22 homes sold, which would mean 22 homeowner votes against 21 (7 x 3)declarant votes. In this slow economy it could be awhile before an additional 13 homes are sold!