Lots: County vs. HoA designations

Started by GregE3 • 9 replies • 3047 views

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GregE3 (Washington)
Posts: 2

Posted:

As a soon to be board member of my association (recently elected, taking office soon), there are a couple issues I am going to be dealing with that I am not sure where to find the proper information.

1) Lot owners that have combined multiple lots into 1 lot at the county level. Out Bylaws contain no provisions for what has been laid out as multiple lots at the HoA Level vs. County Level. I believe that in that case, since there are no provisions other than that a building lot must be at least 7200ft^2, we will have to respect the combined lots as being one lot as per the county, or am I mistaken?

2) Previous board. There is ~$80k missing from the HoA balance sheet and it has been said that the previous board has potential criminal charges coming. As a new board member obviously I will have to deal with that and get all the information. Any good ideas for when I may have to approach these previous board members?

MicheleD (Kentucky)
Posts: 4,491

Posted:

First, I wouldn't go by "it's been said," I would rather see a formal audit.

Second, are your assessments based on the size of the lots? In other words, are your assessments the same for everyone, regardless of size?

I ask because ours are the same regardless of size of lot. We have about 10 different sections, each with different size lots.

If someone has TWO lots, they are to pay 2 assessments and in return get 2 votes.

If, however, the resident purchases 2 adjoining lots and combines them, then the resident now only has ONE lot and must pay ONE assessment, and in return only gets ONE vote.

You may want to write an amendment that states that any house built on a combined lot must be built in the center, as opposed to on one lot or the other. This will prevent lot splitting later on, which can really be a hassle.

GregE3 (Washington)
Posts: 2

Posted:

Michele,

Thanks, that makes perfect sense regarding the lots, and currently the dues are paid on a per lot basis and not by the size of the lot, however the minimum size of a lot is supposed to be at least 7200ft^2.

I am also of the opinion that if adjoining lots are combined, then they are 1 lot and 1 vote. I am not sure if others feel the same way about that however. I hope my powers of persuasion and my oral arguments with the rest of my incoming board members will result in an outcome that will make our membership happier

As for the thing about the audit. I glanced over (quickly) the formal audit, and there are definitely discrepancies, but I will have to wait until I officially take my position to go further with that unfortunately.

Thanks again,

G

MaryA1 (Arizona)
Posts: 7,043

Posted:

Greg,

First let me congratulate you on your recent election to the BOD. Sounds like you have your work cut out for you.

Do you know when these lots were combined and have homes been built on them? I would think the info you're looking for would be in the CCRs not the bylaws. If there is nothing in there saying 2 lots cannot be combined into one, then I would just let that issue die. However, if the gov docs prohibit it, and homes have already been built, then I would say the owners would still have to pay assessments for 2 lots.

I would think an audit, performed by a certified CPA, is in order. Also let the CPA know about the supposed missing 80K so he will know exactly what to look for. If an audit confirms your suspicion then I would say legal action should be taken against the BOD.

SusanW1 (Michigan)
Posts: 5,202

Posted:

As a new board member stepping into this potential lawsuit mess (over incidences you are not familiar with) I would suggest that you take your clue from the president as to your role in this.

Under no circumstances should you contact the previous board members.

For sure there is a lawyer involved and IMHO, you should step back and let the lawyer tell the board what its role should be in all this.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Greg, let me just say that WE (the HOA) do not determine what is a lot, the county does. If what began as two parcels in your HOA is combined at the county into one parcel, then that is one lot, period. And our governing documents specify one vote per lot (makes not difference if the "lot" started out as 2 lots or parcels).

On the other hand, once two parcels are combined into one and are now one lot, only one home can be erected on the new parcel. And since the placement of the home must be approved, we only approve for center placement. Technically it doesn't have to be exact center, but it must be situated in such a way that the two old lots may not be split out.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Opps. I hate when I do that.

I wasn't finished yet. . .

Conversely, a homeowner can go ahead and own two lots, but if the owner never goes to the county to combine the lots into one parcel, then he technically owns two lots and will pay two assessments, and get two votes. Even if his house straddles the boundary line between the two lots.

We don't step in and force the issue either way. It's totally up to the homeowner.

In our development we only have about 5 people who own[ed] two lots. All but one built their home in the center of the two joined lots, only one ever went to the county to combine it into a single parcel.

One guy ultimately sold his extra lot (he's the one who did not build in the middle of the two), and it now has its own house on it.

PeterV1 (Virginia)
Posts: 18

Posted:

Good luck on finding the 80K. The advice about the lawyer is where that problems needs to be.

In our POA, people always ask if lots can be combined. Our answer is no. We only have a limited number of lots and that is our money to run the POA. If we allowed lots to be combined, we would have to raise the dues on the remainder.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By PeterV1 on 06/01/2009 6:31 PM
Good luck on finding the 80K. The advice about the lawyer is where that problems needs to be.

In our POA, people always ask if lots can be combined. Our answer is no. We only have a limited number of lots and that is our money to run the POA. If we allowed lots to be combined, we would have to raise the dues on the remainder.

Really?! That's your reason? Do you seriously believe that that many people are going to "combine lots," that it would cheat you out of any significant income at all?

Wow. Perhaps, then, you should consider an increase anyway, because your POA must be running close to the fringe as it is!

I find it unsettling that a POA or HOA can even prevent something like that.

We couldn't (and wouldn't) even if we tried to use that excuse.

AnnJ2 (Colorado)
Posts: 120

Posted:

We don't manage areas with significant land but did have one association where a couple of owners purchased adjoining lots. In this case the board with advice of their attrney left the dues and voting the same one lot one dues one vote. Then when they built they authorized the home one one of the lots with the required set backs for all adjoining lots and public land. Maybe the reason this worked out in this association was that the undeveloped lots paid a reduced dues since they were not consuming a full load of expenses. This also allowed those owners the ability to sell the other lot(s) they owned to a new owner for building a home.

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