Can we be forced to take responsibilty of property from the builder?

Started by HeatherC2 • 10 replies • 2066 views

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HeatherC2 (Washington)
Posts: 5

Posted:

We moved into our home 3 years ago, we were told there would eventually be an HOA. It appears from the CC&Rs that we are basically existing to care for common areas, which are solely grassy slopes leading to retention ponds.

My question is can the builder truly make us take responsibility for these areas?
Can they force us to form an HOA?(they hired a management company, who has called a meeting for next Tuesday)
Can they force us to pay fees, even though we dont have a board or voting rights?

thanks in advance for any help you can offer.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Heather,

Your deed should state there are restrictions on your property which would be the CCRs. The CCRs legally obligate you to comply with everything that is written therein. Do the CCRs specifically state the assn is resp. for maintenance of the common areas. If so, then, YES that is something the members of the assn are resp. for. Generally when there are common areas (and other amenities such as swimming pool, tennis court, etc) to maintain an HOA is formed for the purpose of collecting assessments from all the members and running the assn.

Have you been paying assessments for the past three years? Perhaps the mgmt co has called a meeting for the purpose of electing a BOD. Exactly what was stated in the notice of the meeting? THe bylaws of the assn should outline the members' voting rights. You should have received a copy of them when you received the CCRs.

HeatherC2 (Washington)
Posts: 5

Posted:

The notice simply stated that a meeting was being called to answer questions, that we needed to send our fees in for the next four months immediately, and that a board would be elected later.

We havent been paying any assessments so far, and I dont think we should have to pay until we can see a budget, vote on board members, have a say about the companies performing the maintenance of the grass, and so on.

I will have to check my deed and see if it states that we are bound by the CC&Rs.

HeatherC2 (Washington)
Posts: 5

Posted:

Our deed does state that an HOA shall be formed and the CC&Rs are listed so I guess we have no choice.

GlenL (Ohio)
Posts: 5,491

Posted:

Heather very real and very damaging (to your credit) things such as liens & foreclosure can happen for withholding assessments especially on principle. Pay them at once then go to the meeting and find out what is going on. After you actually know what is happening, take plenty of notes or record it, post your questions and we will do our best to walk you through it. How many homes are in your HOA?

Studies show that 5 out of 4 people have problems with fractions

GlenL (Ohio)
Posts: 5,491

Posted:

Almost all CC&R's have some clause on how to disband the HOA so find it if it's in yours and one question you can ask is: What would happen if instead of forming the HOA we all vote to disband it?

Studies show that 5 out of 4 people have problems with fractions

HeatherC2 (Washington)
Posts: 5

Posted:

OK, Glen I will take lots of notes, pay my fees and ask if we can disband, and then I will get back on here and let you all know how it goes. Thanks

MaryA1 (Arizona)
Posts: 7,043

Posted:

Heather,

I'm a little confused. First you state the notice said you must pay your fees for the next 4 months then you state you haven't been paying any assessments so far. The fees that a due are the assessments! If you've been living there 3 years and haven't had to pay assessments until now, I would say your developer has been quite generous in taking care of all the expenses for at least 3 years. I also think you need to be aware that once a BOD has been elected it's very likely the members will not have any say in the operations of the assn. Check out your CCRs and look for rights and responsibilities of members. I think you'll find there aren't many. I believe WA has statutes regulating condos and planned communities but I don't know how comprehensive they are.

Do you know how long it will be b/4 the assn is turned over to the members? At that time the developer will deed the common areas to the assn. If there is no HOA to maintain the common areas the resp will fall upon all the property owners in the s/d unless you can convince the city/county to take ownership of the common areas.

HeatherC2 (Washington)
Posts: 5

Posted:

So far we havent had an HOA, supposedly it is now beginning, but control was handed from the builder to a management company- who is now saying we have to pay fees, despite not having a board or having the opportunity to review a budget. I have never lived in an HOA and assumed that we would have an opportunity to know where our money was going prior to having to pay fees, we also assumed that our fees were going to be $10 per month, but now they are saying it is $20, so we are a little upset and just trying to figure out what we can do to get costs down, have a say in decisions, and not end up in 10 years with an HOA that is controlling every aspect of our lives(because we love our home, our neighbors, the neighborhood and the school district).

MicheleD (Kentucky)
Posts: 4,491

Posted:

It makes no difference to collecting fees whether you have a board or not.

Plus, as long as the Developer has control of the association, and he apparently still does, then it's up to him how cooperative he wants to be in terms of showing you a budget or not. Ours was pretty cooperative and transitioned the management of the association over to us several years early, while still maintaining architectural control over new construction and paving the streets prior to the bond release. Some developers operate differently, but basically, it's still pretty much their sandbox until the actual transition.

He is not turning over "control" to the management company. He is turning administration of the HOA operations over to a management company. He will be giving the management company direction on when to bill for the assessments, who to pay and how much (in terms of vendors) and any direction regarding enforcement of the covenants, should anyone be in violation.

HOAs don't typically "control every aspects of (y)our lives."

The main function of the HOA is to maintain property values by enforcing the covenants.

Since you already agreed to live by the covenants (CC&Rs) before you even moved in, then you really can't claim that 10 years down the road you don't feel you need to still be abiding by them. (Which is really all an HOA will do, ensure that the governing documents are followed.)

MichaelK11 (Texas)
Posts: 432

Posted:

How many homes are currently sold/occupied in your subdivision? How many are projected when complete?

How do your neighbors feel about the HOA?

Our HOA has just under 300 homes, and it only maintains grassy common areas. We have no management company -- just a volunteer Board, which (until recently) was just responsible for mowing and watering the grassy common areas, a few events each year, and making sure we elected a few Directors once a year to keep the Board (mostly) filled. We don't have an MC -- just the volunteer BoD.

I have been told ours used to be a fun and cohesive community (with memorable, impromptu block parties), but most homeowners are apathetic about the HOA. They pay their $200 to $260 annual dues and sometimes mail back their annual proxy ballots.

You can ask your questions about budget and vendors at that meeting with the MC. You can run for your new (training?) BoD. You can make plans to dump the MC after the Declarant Control Period ends, and perhaps even ask the developer if they would be willing to do so much earlier. They would probably be more receptive if you waited a couple of years. During this time you and your neighbors could actively work with the MC to learn what needs to be done and perhaps demonstrate ability by lending a hand. Is this a full-time MC for your HOA, or just an MC that devotes a few hours a week to upkeep of your subdivision?

You could become familiar with your (proposed?) governing documents, read cautionary tales and advice in this forum and elsewhere, and see about amending your declarations to suit your needs (light-handed oversight and minimal intrusion, if that is what you want). It may be easier to influence them at this stage than later on.

Others in this forum may have better advice based on more experience.

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