DennisT (Ohio)
Posts: 109
Posts: 109
Posted:
Hi... we're in kind of an interesting situation in my development. We have a set of CC&Rs but no HOA. The CC&Rs only cover a few major things such as sheds and prohibiting the raising of livestock. We have an owner who has stated that he plans to start raising chickens shortly after the new year. Since we live in a rural community there is nothing prohibiting this from a city/county perspective. However more than a couple folks aren't thrilled at the prospect of a small chicken farm sprouting in a few months.
I believe our CC&Rs are going to expire at the end of this year and there does not appear to be any provision for renewing them. They automatically renewed once and that term is almost up. Here's the exact language:
"These Restrictive Covenants shall run with the land and insure to the benefits of the Grantor, its successors and assigns and to the owners of all sublots and its Homeowners Association until January 1, 2000 at which time said Restrictive Covenants shall be automatically extended for a period of ten (10) years unless terminated by the vote of the majority of the then owners of such sublots." Then from there it lists the restrictions.
There is no mention anywhere else of the renewal/expiration of the CC&R's. It's also interesting that no homeowner's association was ever established although it is referenced in the document. So I guess what I'm wondering is what are the neighborhood's options at this point? We've gotten opinions all over about what happens come January 1 and what we can do:
1. The CC&R's are gone and there's nothing we can do
2. A simple majority of homeowners could opt to renew / reestablish the CC&Rs
3. Unanimous consent of all affected owners would be required to reestablish the CC&Rs
4. The CC&R's aren't really expiring, they'll continue to renew in perpetuity unless the majority of owners vote otherwise.
Personally I'm of the opinion that #3 is probably correct. The automatic renewal language seems to state that there was a single renewal that occurred at a specific time (January 1, 2000). Since the CC&Rs make no allowances for additional renewals their expiration is unavoidable. To continue them we'd essentially have to create new CC&R's and file them. I doubt we could "force" a property to be bound by the new CC&Rs without the consent of that owner, so while we could form new ones the chicken farmer could refuse to be bound by them.
Thoughts?
I believe our CC&Rs are going to expire at the end of this year and there does not appear to be any provision for renewing them. They automatically renewed once and that term is almost up. Here's the exact language:
"These Restrictive Covenants shall run with the land and insure to the benefits of the Grantor, its successors and assigns and to the owners of all sublots and its Homeowners Association until January 1, 2000 at which time said Restrictive Covenants shall be automatically extended for a period of ten (10) years unless terminated by the vote of the majority of the then owners of such sublots." Then from there it lists the restrictions.
There is no mention anywhere else of the renewal/expiration of the CC&R's. It's also interesting that no homeowner's association was ever established although it is referenced in the document. So I guess what I'm wondering is what are the neighborhood's options at this point? We've gotten opinions all over about what happens come January 1 and what we can do:
1. The CC&R's are gone and there's nothing we can do
2. A simple majority of homeowners could opt to renew / reestablish the CC&Rs
3. Unanimous consent of all affected owners would be required to reestablish the CC&Rs
4. The CC&R's aren't really expiring, they'll continue to renew in perpetuity unless the majority of owners vote otherwise.
Personally I'm of the opinion that #3 is probably correct. The automatic renewal language seems to state that there was a single renewal that occurred at a specific time (January 1, 2000). Since the CC&Rs make no allowances for additional renewals their expiration is unavoidable. To continue them we'd essentially have to create new CC&R's and file them. I doubt we could "force" a property to be bound by the new CC&Rs without the consent of that owner, so while we could form new ones the chicken farmer could refuse to be bound by them.
Thoughts?