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MaureenM1 (PA)
Posts: 344
Posted:
I am on the board, however, the President who is also the builder has the majority of the votes. Today I sent an email to the PM asking the status of capital improvements that was sent to our township. I also asked her to forward me renewal leases that should be forwarded to board members after 10 days after execution.

I copy the President on all the emails regarding his tenants. He emailed me back that I have no right to contact his rental company or copy him on the email and only contact the PM or his attorney regarding Association business.

He stated in his email that if I continue to copy him on emails regarding rentals and the status of the development (which he refers to as my harrassing ways") he will have his attorney take legal action against me.

A few months back his lawyer sent me letters stating that my husband is telling potential buyers not to buy in our development which is completely false. We want the homes in our development to sell so we are always encouraging to potential buyers if we meet up with them. I have ignored his threats for awhile but have made an appointment with an attorney.

Myself and another board member contact our PM (who was selected by our President) about unit owners who have bylaw offenses. We only copy the president when its one of his renters. He is the landlord and is responsible for his tenants and the only landlord renting. All other residents own.

Just last week he emailed the other board member stating not to contact him on any condo business and to contact his attorney.

Normally, I would just ignore the builder since I have heard from many people that he is constantly threatening to sue people when they challenge him.

My husband feels that we should protect ourselves, however, I just don't want to get into an attorney letter writing campaign with him. Does anyone have any suggestions??

thanks

JohnO6 (Georgia)
Posts: 424
Posted:
Maureen - at the risk of being boarishly repetitive to some of my other posts here, my first suggestion is that you very carefully and completely read your association's governing documents which likely are composed of both (a) a Declaration of Protective Covenenants, and (b) a set of By-laws of the Association.

It's almost certain that this individual is simultaneously occupying several "roles" related to your community and it's HOA. Most of these roles will be mentioned in the legal docuements including:

1). Declarant - the original filer of the covenants that subjected the community's properties deeds to the document. If the builder is also the developer and the entity that filed the governing documents, (s)he is the declarant.
2). Member - (s)he, as the owner of a number of properties, will likely hold the same number of memberships in the Association. There may also be special "weighted" voting provisions that confer majority power to him/her until nearly complete sell out of the neighborhood.
3). Board Member - the builder, as President, is undoubtedly a member of the Board of Directors.
4). Officer - as President, (s)he is an officer of the corporation (HOA association).
5). Builder - sometimes the documents will specify "builder(s)" in addition to "declarant".

You should carefully examine the documents to see the rights and duties afforded each of these "roles". PAY PARTICULAR ATTENTION to references to special rights of the declarant and/or builder, particulary any section that addresses the "construction and sale period".

What you will likely find is that until a certain percentage of homes are conveyed to individual homeowners, (s)he will essentially be a "one man show" as it relates to power in the HOA. However, I think it's worthwhile to fully understand what his/her rights are within each of these "roles" during this time.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
John makes good sense here if all is as he imagines.

This kind of situation is not uncommon and probably can be researched here on this site "search feature" under developer turnover or something.

I do know that N.J. has Townships or something like and there may be restrictions under these entities. If I recall some areas of N.J. are controlled , the shore area, have very restrictive conditions. If this would help you all I don't know.

If you and another have been appointed by the developer and the developer is riding roughshod over the association and no end it sight, I am not so sure being on his Board is the place to be if you want to effect change. As suggested make sure of your position and if you can get a couple more folks to help, hire a GOOD lawyer for his opinion. Then sit down with your supporters and see where you want to go, and that will be to decide if you want to form a group outside his Board and see if you can bring about change. As his Board member I would attempt to get all your concerns on the record and keep copies and minutes and make recordings of meetings. Long process but worth the effort if you can amass some leverage at turnover time.
MaureenM1 (PA)
Posts: 344
Posted:
I was appointed by the developer. I was elected by the residents when 25%of the homes were sold. I am in the process of
consulting with an attorney. Thanks for all your advice.
MaureenM1 (PA)
Posts: 344
Posted:
I meant to say I was NOT appointed by the developer.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
MaureenM,
Tell us how this works. When 25% of homes are sold the developer decrees there will be an election. Does your state require any authority for this Board to form and have enforcement power? I would imagine what ever Board is formed the developer has voting and probably total control.

I wonder when you talk to lawyer if one of the questions should be: "What authority do I, as an elected representative of the association, have. Is this position exclusively an advisory one, and if so, will I be harmed or helped if I decide to form a Homeowners Committee to address issues with the developer."

Because, if you are having problems with the developer now and no resolution is forthcoming with your present position, is an option to form a separate entity to seek resolution, and resign from the Board (?)
MaryA1 (Arizona)
Posts: 7,043
Posted:
Maureen,

I get the impression the builder thinks his board members should only attend the board meetings and not be heard from in between. Then you come along and start sending emails and requesting all sorts of info so he now regards you as a trouble maker. IMO, while the builder is in control of the assn it's best to be on his good side. You know, you can get much more with sugar than vinegar. I think you should just back off for awhile. If the builder thinks of you as the enemy you're not doing your fellow members any good by holding a board position.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary makes good sense about not antaginizing the developer. However you have been at this a while and seem to be very aware of what you as a Board member can conribute and also are aware of the procedures in whatever documents you are opearing under.

I would make an observation that your personal agenda with the developer is showing, and is meant constructively.

Having said that, I would encourage you to do what you think is right for you and your husband, and try and keep your dedication to the association separate and prime.

Don't mistake anything I say to mean that you do not have a legitimate vested interest in your well being, and your status is equal to all other Homeowners.
MaureenM1 (PA)
Posts: 344
Posted:
thanks Robert, unfortunately the developer and the builder are at odds and it's affecting my investment. The builder (not the developer) is on our board with two of his family members. Don't really understand why the developer is not part of the HOA.

Having said that I am seeking legal advice for myself and my husband at this point.

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