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LonnyB
Posts: 9
Posted:
The allotment I live in has (had) a CC&R that stated in one of it's provisions:

"all of the (CC&R's and guidlines) in this instrument will run with the land..(usual legal jargon applying to buyers/developer).. until 90% of the lots are sold.

Before 90% of the lots were sold, the developer turned over the remaining lots to another builder. Before the allotment was completed, but after 90% of lots sold, both went out of business.
There is a provision in the CC&R for the creation of a HOA and the rules concerning voting rights etc.
About 2 years ago, the allotment was 100% complete, and still no HOA was formed.
There has never been a meeting held to form one and no one has ever brought it up.
Until now.

What rights do the homeowners and the newly formed (if we form one) HOA have? Is participation in the new HOA mandatory? Or, voluntary?
Can the new HOA enforce the developers CC&R's if a homeowner does not want to join the new HOA?
LonnyB
Posts: 9
Posted:
I forgot to add, we have no pool, rec area etc. The only common areas we have are two small retention ponds that are voluntarily kept up by the homeowners who live near them.
When I moved into my house, The allotment was about 99% complete and I was told that there was no HOA. Nothing in my disclosures (I asked several times), and no info on CC&R's or a HOA.
LonnyB
Posts: 9
Posted:
Dang! I wish I could edit my post!
There is no provision in the CC&R's for an extension either. The copy of the CC&R that I have I got from a neighbor who's lived here for 6 years.
He was one of the first to build here and he says that he was never notified of the creation of a HOA.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By LonnyB on 08/08/2009 10:37 PM
Dang! I wish I could edit my post!
There is no provision in the CC&R's for an extension either. The copy of the CC&R that I have I got from a neighbor who's lived here for 6 years.
He was one of the first to build here and he says that he was never notified of the creation of a HOA.

In my personal opinion:

The CCRs 'run with the land' with no expiration unless specifically stated.

Their is no requirement to form a HOA unless specifically stated.

It is possible to have deed restrictions (CCRs) w/o having a HOA.

Every property owner would be responsible for enforcement.

What will happen when the retention ponds require major maintenance?
MichaelK11 (Texas)
Posts: 432
Posted:
Good question. Do the homeowners who have been maintaining them ask for donations? Present a cost estimate and amount everyone should pay? Just let the ponds go?

Lonny, what do your neighbors say about an HOA? Do they want one? Do the "pond" neighbors want one?

Sounds like you have no management company. How many homes in your neighborhood?

(Someone please point him at that Best Practices and How To site.)
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Lonny,
You have a copy of your CC&R's.......correct.
Does it contain a statement about registering it at the court house? In any event go to county court house and find of if your Association name is on file anywhere in the records. Then go on-line and access the Court house records and and look at information about court cases that have your association name. Plug in all names of developers or anyone else that was involved in your association. Get all the information you can get, Search Google. Once you get the presence or the absence of records about your association, contact on-line your state web site and look for your association name in any licenses or corporation files.

Then get that together and contact your States Attorney Office and ask for guidance. You may be told to hire a lawyer and you may be told why you need a lawyer if you have records of your associations that indicate it existed.

Don't your deeds mention anything about an association?

And when you find yourselve in the middle of a legal mess, you might ask the question why did the homeowners allow this to happen. If you have retention ponds, they must have been permitted. Who owns the land? Who is the land deeded to? The actual name on the deed.
I expect if that name is the name of your development, you are a HOA.
The fact that you all don't care enough is just not going to cut you loose.

You ask a lot more questions that what you articulated.
LonnyB
Posts: 9
Posted:
Yes, I have a copy of the old CC&R, It states:

β€œAll the provisions of this instrument shall be deemed as covenants running with the land and not as conditions, and shall be binding on all owners of any part of this development and all persons claiming under them until 90% of lots are sold.”

"All of the provisions of this instrument" and "Until 90% of the lots are sold" Sounds like an expiration to me.

There is no record of any HOA for our allotment anywhere. I checked.

The name on the land where the ponds are is the developer who is no longer in business.
The neighbors who maintain the area around the ponds haven't asked for help or donations, both have been offered by many of their neighbors (myself included). The pond folks do not want a HOA, one of them has a violation of the old CC&R, but no one minds. The general concensus is to just fill them in, or let them fill themselves in naturally with runoff sediment.
Most of the homeowners have no problem with a voluntary HOA, they just don't want to be forced into mandatory one, so most shy away from both. We have been told (by one of our neighbors who is constantly feuding with those around him) that we are going to have a mandatory HOA and that the deed restrictions are still in place. If this is not the case, many of the members would not mind having a voluntary informal HOA. Most of the folks I've talked to like things the way they are.
There are 73 homes in our allotment. We are the back (phase 2) portion of our "estates". Phase 1 has no HOA. Phase 1 has all of the entrances to our allotment (there are none in Phase 2).
RobertR1 (South Carolina)
Posts: 5,164
Posted:
LonnyB,
What someone says, (your neighbor) and how someone feels (your other neighbors) about what they would like to have is not the issue, nor is your read on the neighborhood.

My opinion would be you have several concerns that could jump up and bite all of you, and I am sure there are other considerations.

If you have 73 members that must clarify your status and make changes they want, if they can, and you have no direction now from a governing panel, legally, and your documents say they run with the land (you may want to look that up on Google), the very least you should do is contribute to a fund to clarify your status, which means legal help and petitioning a court I suspect.

This will require some sort of organinization to get this done, which means someone is going to have to lead the parade.

But.............you all want to stumble along the way you are, waiting for ?????????? to fall, have at it, it is your choice.

Be careful, Phase one has control over your entrances, Phase two, front part has no HOA, you as Phase 2 back, have some documents that say you are something. Doesn't this cause concern?
LonnyB
Posts: 9
Posted:
So, what you are saying is, even if a CC&R expires, if it says "runs with the land" the provisions of the CC&R never expire?

Phase 2 has no documents that say we are anything, HOA or otherwise. Nor does Phase 1.

There are 73 homeowners here, none of them are part of any neighborhood organization. We are part of a township.

It's not my "read" on the neighborhood, there is alot of animosity right now towards the one neighbor who's trying to force a mandatory HOA.

No documents were filed anywhere declaring us anything.

I am in the process of getting real legal advice.

I doubt very much that a HOA, voluntary or otherwise, is going to start here. Just due to the fact that most folks feel that a "voluntary" one could somehow be construed as "mandatory".

A HOA was attempted in Phase 1 and was quickly shot down for that very reason.

The copy of the CC&R I have is not even on file with the county/state. It was written by the developer and notorized by his daughter.

There are no deed restriction/Hoa in my deed.
LonnyB
Posts: 9
Posted:
By the way, I did Google CC&R. Before I joined this forum. They can/do expire.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Lonny,
I am not for you or against you. You need solid legal advice.

Don't confuse the issue by stating Google says they can/do expire. Most documents have some esoteric formula to determine when the are to be re-newed. Now suppose you are a active HOA and you don't renew your documents.................and you continue to operate. Does the expiration date void your association? It is a not a no or yes answer, I can assure you. Mostly it is state controlled and each state, by nature, is likely to have different enforcement procedures. Also, puzzle this, if the Board allows for the expiration date to pass are they then guilty of not abiding by their fiduciary responsibilities.

You seem happy with where you are and this lone ranger (if that is what he is) is not going to cause a problem if you all ignore him..........right.
LonnyB
Posts: 9
Posted:
It's not a matter of "letting" a document expire. It's wording in the document that specifically states that it is only valid for a certain time frame/condition. When that time frame/condition goes away, as does the document. If, in fact, that document was even valid from the start. There are many things in the CC&R(?) that I have that were violated by the developer himself. He defaulted on his performance bond over a year ago. The county has been maintaining our streets at the request of the township until our neighborhood gets released to them. Right now we are in a legal "limbo" until this gets sorted out.
I think we will be fine. I think this "Lone Ranger" will be shot down in his attemp to start a mandatory HOA and maybe we can get back to being a neighborhood. We are all new here, just getting to know each other.
Maybe once this has blown over, we can have a voluntary, limited HOA to organize neighborhood functions.

Thanks for your help.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Many CC&Rs do expire, but they often have a self-renewing clause if no x, y, or z action is taken.

LonnyB
Posts: 9
Posted:
I have read and re-read ours several times and discussed it ad-nauseum with others and there is no extension clause. The people I spoke to that moved in before the allotment was 90% say that they were asked to sign a statement saying that that read the CC&R. Those I spoke to that moved in after 90% had never seen the document. Like I said before, I never saw, or was shown one before all of this came about. I had heard from some of my neighbors that there were some things that were verbotten, but I assumed that they were township ordinances.

Allow me to clarify a few things.
I have no problem with the CC&R's. I am not in violation of any of them, and I don't plan to be. I think, for the most part, they are pretty reasonable. There is one or two that could be "tweaked" a little to make more folks happy, but I don't think they are nearly as bad as most I've seen.
The problem I, and all that I've spoken to, have is the Idea that someone thinks he can now force a mandatory dues paid HOA on everyone and that all "Will be a member of, wheather you want to or not!" (his words).

I know we can vote it down, but, can it be voted in? Can the people be forced to join a mandatory dues paying organization when none existed when they purchased their homes?

Thanks again, Lon.
BrianB (California)
Posts: 2,820
Posted:
while you are researching potential problems, here's one:

who is paying property taxes on the "ponds" (ie, common areas)?

Trust me, somewhere, somehow, even if the state has forgotten them now, there will be tax money due, and when it is, who pays it?

It is ownership of common areas, and the often impossibility of getting rid of said common areas, that keeps many HOA's in existence.

A second problem to think about: do you live somewhere that these ponds can be considered protected wetlands? if so, then there may be state or federal laws about what you can, cannot etc. do with them (like let them fill in, dam them, dike them, drain them, treat them, etc.)...

tread carefully: someone owes some regulatory agency some money for those parcels, somewhere down the line.
LonnyB
Posts: 9
Posted:
I know that the pond areas are still in the developers name, so It's probably a blood from a turnip thing since the developer is out of business. Keep in mind that the ponds are very small, about 30x50 feet each, directly across the street from each other, at the end of a dead end street. One is right next to a natural gas separator. I'm amazed that one is even allowed since oil could possibly enter the drainoff if the separator ever failed. The lots they are on are about 75x180 ft. Heck, if the township would allow it, I'd gladly take ownership of one or both of the lots/ponds and start paying taxes on them. Phase one has a huge pond, about 6-8 acres that was more or less given to the homeowner in the adjacent lot.
I'm not sure how our township deals with abandoned land. Maybe they will auction it off or something. Like I said, I wouldn't mind having one or both of them. They are about a block away from me so it would be no big deal to take care of them. Right now, my big snapping turtle "Igone" (he's missing his right eye) is living in one of them until I can find him a better home. If the ponds were mine, he could retire right where he is. ;}

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