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MaureenM1 (PA)
Posts: 344
Posted:
One of our homeowners sent our builder (who has control of the Association) that her gutters need repair and it is
causing water damage to her property.

Our repair/responsiblity list clearly states it is the Association's responsiblity to repair/replace (not the owner's).

The builder sent an email to this homeowner stating that since he has 3 votes to our homeowners 2, he is instructing the PM
to write up an amendment to our CCR's stating it is now the responsibility of the homeowner to repair such. He stated it
will go to a formal vote, however, he has the majority.

I know he is in control, however, can he amend the CCR's whenever it benefits him? If that is the case he can amend any
CCR's whenever he feels like it. He already did when our CCR's stated that 3 Board members made up our board. He changed it
right before the election to 5 so he would keep the majority of the votes and stay in control. The bylaws stated 5 board members and the Declation stated 3 so he was allowed to change it due to the discrepency.

Our CCRs state that control will turn to the homeowners after 75% percent sold to third parties (I am assuming the homes he and his wife own privately are considered third parties) or 7 Years. He could also change this and remain in control of our development
indefinitely.

My question is can the President of the HOA (who has the majority of votes) amend any and all bylaws/CCRs whenever he wants without any votes, etc. from the homeowners of the HOA?

Any advice on this would be appreciated.
SusanW1 (Michigan)
Posts: 5,202
Posted:
The "claim" has been requested when the builder's responsiblity is in effect.

(Be sure that a registered letter has been mailed requesting the repair.)

He must honor the CURRENT CCRs.

Everyone else should get their properties inspected NOW.

MicheleD (Kentucky)
Posts: 4,491
Posted:
It's pretty good odds that he can amend the CC&Rs if he has the majority votes, which is very likely as long as the development has not transitioned to the homeowners.

That also means he can eliminate the discrepancy between the number of board members as well.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Maureen,

Amending the CCRs takes a vote of the members. If the developer has more than one vote per unsold lot it's a given that he has control of the assn's member votes until transition occurs. The developer also has one vote for each home he individually owns with his spouse. Even though he may have the majority of member (class A & class B included) votes, a vote of the membership is still required to amend the CCRs. He can't just say I have the votes so the CCRs are amended!

Many developers take pride in their homes and are bent on building a quality home; others are just concerned with making a profit. Sadly, yours seems to fall into the latter category otherwise he would be concerned to correct any defective problems.
JohnO6 (Georgia)
Posts: 424
Posted:
Quote:
Posted By MaryA1 on 11/06/2009 6:37 AM
Maureen,

Amending the CCRs takes a vote of the members. If the developer has more than one vote per unsold lot it's a given that he has control of the assn's member votes until transition occurs. The developer also has one vote for each home he individually owns with his spouse. Even though he may have the majority of member (class A & class B included) votes, a vote of the membership is still required to amend the CCRs. He can't just say I have the votes so the CCRs are amended!

Many developers take pride in their homes and are bent on building a quality home; others are just concerned with making a profit. Sadly, yours seems to fall into the latter category otherwise he would be concerned to correct any defective problems.

Mary - this is not universally true. Our Declaration gave the declarant sole rights to amend the declaration by himself for a finite period of time (7 years unless he chose to relinquish that right before then). In this case - and since our CCRs were generated from legal boilerplate templates like are so many others - I wouldn't think it was unusual to find this situation in others as well.
MaryA1 (Arizona)
Posts: 7,043
Posted:
John,

Well, I stand corrected on that one!

So, are you saying he can amend the CCRs for 7 years even if he's not in control for that length of time? Exactly how is that worded? Just curious.
JohnO6 (Georgia)
Posts: 424
Posted:
Mary - I was doing that from memory and slightly mis-spoke, but the essence is the same.

The 7 years referred to a provision in the Declaration during which time he could annex any other property he owned in the county to this Declaration.

His right to unilaterally amend the declaration was limited only by his ownership of lots for sale within the community, and actually he didn't have "sole" right to amend - the membership (as is usually the case) could also amend with a 2/3 majority vote, but if he owned lots, he had to approve the amendment.

The exact wording is:

"so long as Declarant owns any property for development and/or sale in the community, Declarant may unilaterally amend this Declaration for any other purpose .. .. .. "

Given these two provisions taken together, the Declarant once he's sold his lots, could annex others (for as long as 7 years) and continue to have the ability to single handedly amend the Declaration.

Now isn't that a stacked deck!
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susan,

Good point on his requirement to honor those CC&Rs as they are written--for now. The gutter repais should be documented correctly as they ARE the responsibility of the HOA right now. If he changes that care thru an amendment, and he certainly has the right to do so, the gutter issue repair was requested prior to the amendment and he has to fix them. No ifs, ands or buts.
GlenL (Ohio)
Posts: 5,491
Posted:
Maureen, I'm not an attorney nor do I play one on the internet so this is not legal advice but typically but not always any Government backed mortgage (especially VA) prohibit changes by the Declarant once a Government backed mortgage is attached to any lot or in your case unit.

Studies show that 5 out of 4 people have problems with fractions
MaureenM1 (PA)
Posts: 344
Posted:
Amendments to bylaws:

These bylaws may be modified or amended only by vote of the unit owners entitled to cast a majority of votes in the Association. There are 19 owners and the builder owns the lots and houses of the other 21. There fore we are outvoted.

It also states that the Executive Board may effect an appropriated corrective amendment without approval of the Unit Owners (that is why he changed the board from 3 to 5).

Amendments to Declaration: Any two officers or Executive Board members of the Association may prepare, execute, certify and record amendments to the Declaration on behalf of the Association.

So, it looks like it can be done.
EverettC (Maryland)
Posts: 90
Posted:
Is the requirement in the CC&Rs or in the by-laws. Typically, the CCR's require a super-majority (2/3rds or 3/4ths) for an amendment.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Maureen,

What is an "appropriated corrective amendment"? Sounds to me like the developer can amend the CCRs w/o a vote of the membership only for certain reasons. Can you tell us what those reason are?

The last sentence you posted only means that only two signatures are required to be on the amendment for it to be valid. Oftentimes only one sig is required -- that of the Pres. There is an amendment to my CCRs that is only signed by the Pres. Also, there is an amendment to my bylaws signed only by the Board Secretary (the bylaws can be amended by the BOD w/o a vote of the members).
MaureenM1 (PA)
Posts: 344
Posted:
Mary,

One example is our bylaws stated that at 25% three board members would be elected by the owners (other than the Declarant). Our Declaration stated 5 members would elected by homeowners (other than the declarant) Since there was a discrpency the President/builder amended and recorded a change the day before the election that there would be a five member executive board, therefore, leaving himself, 2 relatives in the majority.

If it was three members the owners would have voted for three owners in our development and the control would be the homeowners.

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