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SuzanneH1 (Texas)
Posts: 2
Posted:
I live in a small community of 29 homeowners. The builder First Texas has given the homeowners 30 days to put together a homeowners association and assume the cost of common grounds upkeep, electricity and water for a pond
in the neighborhood and to establish liabilty insurance. Is there a written guideline, either nationally or in the state of Texas that tells us what we can and cannot do as a part of an association. We have attempted to form a board from those memebers that did show up to our last meeting. What if we don't get enough people to join the association. We are under the asssumption that if anyone gets hurt or fatally injured in this pond (which is surrounded by a locked gate...that each and every family member would be liabiable. Thanks for any and all help.
MicheleD (Kentucky)
Posts: 4,491
Posted:
How odd!

Are you sure the developer has not already incorporated an HOA and you guys just need to take it over?

It seems to me he would have been taking care of the common areas with assessment monies already.

Have you guys been paying any assessments since you moved in?

Are there already deed restrictions (commonly referred to on here as CC&Rs)?

SuzanneH1 (Texas)
Posts: 2
Posted:
He gave the community $1500 in "seed" money. He just sold the last house in the developement. He haid been paying for upkeep of the common area, the water supplied to the pond and electricity. Out os the 29 homeowners we had a hard time even getting 20 homeowners to show up to even form a board. We are trying to come up with enough money to hire a lawyer and management company. Is there any "national" or written guidelines as what the homeowners rights are? If no one contributes then there will be no upkeep of the common area or liability insurance on this pond and i believe then each individual home owner would have a shared liability if some one climbed the fenced and drowned in that pond.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Suzanne, I'm not sure you're understanding what I'm asking.

When you moved into the development, did you receive a set of deed restrictions that run with your land?

Have you been paying either annual or monthly or quarterly assessments?

Frankly, if the answer to both of those is "no" then I don't know why in the world you guys would want to start an HOA at this point.

It would almost certainly be voluntary and it would be darn near impossible to create an effective voluntary HOA at this juncture.

I'm not saying it can't be done, but, something is really fishy here.

But, to answer your question, there is no such thing as a "national" process or procedure for establishing HOAs.

You might want to do a search (Google or Bing) in the State of Texas and look for documents of already established Texas HOAs and review those, as well as anything in the Secretary of State's archives.

As a start.
GlenL (Ohio)
Posts: 5,491
Posted:
In addition to Michele's suggestions you can contact your local building department and find out if forming an HOA was part of the requirements for allowing the developer to build and the County Recorder's Office to see if any deed restrictions were filed for your address. The Recorder's office should have the information on their website. The building department often requires a builder to post a bond and they will hold them if enough people squawk.

I would also recommend you spend a little time visiting Community Association Network one of the sponsors here, they have a wealth of information on what you are looking for. This is an article on transitioning from developer control: http://www.communityassociations.net/development_transition.html

Studies show that 5 out of 4 people have problems with fractions
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Suzanne,
Good advice here. Sit down with a couple owners, write down what has to be done, write down what you all want done. Then do it step wise, do not be rushed. I would take that Developer letter to Legal Aid, see what they say. I can't imagine he can just decree in thirty days you all assume control. You need a second opinion here.

I think I would write a response to this developer and object to this rush job and state you are are not assuming any responsibilities unless you all sit down with developer and mutually agree on transition to owner control. Give him 30 days to respond. If he doesn't simply state you will seek legal council.

In the meantime you might want to visit an association or two in your area and ask to look at their documents. They will be glad to help also.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Suzanne,

I'm sure your community has a name, which would be the name of the HOA if one has already been formed. It would most likely be formed as a nonprofit corp and the name should be registered with the Sec. of State. You should be able to go on that website and search for the name of the HOA. If the HOA has already been formed then all the members need to do is elect a board of directors to run the assn.

On the other hand, if you cannot find that an HOA has already been formed, then why not just call the developer? I'm a firm believer in going right to the source. Ask him exactly what needs to be done to form the HOA. Did he draft the CCRs, bylaws and articles of incorporation? If not, does he at least have a boiler plate copy of CCRs that can be used?

Please look through all your closing papers to find out if there are deed restrictions on your property. Are CCRs and a homeowners association mentioned anywhere. Have you been paying monthly, quarterly or yearly assessments to the developer since you purchased your home? The builder may have been paying water and elec and maint of the pond during the time it took to build and sell 29 homes, but I find that very doubtful.

I could take the time to write a long narrative telling you exactly what needs to be done to form an HOA; however, I don't want to do that only to find out one has already been formed. You need to speak to the developer and get more info from him, then come back her and answer some of the questions the posters here have posed, then we will be able to more adequately help you.

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