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DennisT (Ohio)
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?
MicheleD (Kentucky)
Posts: 4,491
Posted:
My first thought is that you really need to contact an attorney well-versed in Ohio HOA matters.

Also, it might also be in your best interest to confirm that chicken "farms" are allowable.

Even though you are in a "rural" setting, many rural areas even today restrict certain types of activities within a certain distance range of residential areas.

Pig farms "used" to be okay in certain rural areas in our county. But a few years ago the county seat adopted some zoning restrictions even for the rural areas.

It might be worth a confirmation check with the zoning authority in your area.
GlenL (Ohio)
Posts: 5,491
Posted:
If they allow you to amend them; simply amend the 10 year renewals so they happen automatically unless a majority votes to terminate them. This is probably what the originator intended but the article is poorly worded.

Studies show that 5 out of 4 people have problems with fractions
DonnaS (Tennessee)
Posts: 5,671
Posted:

Dennis,

The first thing that you need to do is to check with Ohio State HOA laws or Statutes to see if there are laws governing "Covenant Revitalization. Many States do have them, Florida being one of them

I have posted some of the paragraphs governing the process. Maybe if the State has none, this might be a guideline for you but either way, you will need an attorney to help with this process.

720.405 Organizing committee; parcel owner approval.--

(1) The proposal to revive a declaration of covenants and a homeowners' association for a community under the terms of this act shall be initiated by an organizing committee consisting of not less than three parcel owners located in the community that is proposed to be governed by the revived declaration. The name, address, and telephone number of each member of the organizing committee must be included in any notice or other document provided by the committee to parcel owners to be affected by the proposed revived declaration.

(2) The organizing committee shall prepare or cause to be prepared the complete text of the proposed revised declaration of covenants to be submitted to the parcel owners for approval. The proposed revived documents must identify each parcel that is to be subject to the governing documents by its legal description, and by the name of the parcel owner or the person in whose name the parcel is assessed on the last completed tax assessment roll of the county at the time when the proposed revived declaration is submitted for approval by the parcel owners.

(3) The organizing committee shall prepare the full text of the proposed articles of incorporation and bylaws of the revived homeowners' association to be submitted to the parcel owners for approval, unless the association is then an existing corporation, in which case the organizing committee shall prepare the existing articles of incorporation and bylaws to be submitted to the parcel owners.

(4) The proposed revived declaration and other governing documents for the community shall:

(a) Provide that the voting interest of each parcel owner shall be the same as the voting interest of the parcel owner under the previous governing documents;

(b) Provide that the proportional-assessment obligations of each parcel owner shall be the same as proportional-assessment obligations of the parcel owner under the previous governing documents;

(c) Contain the same respective amendment provisions as the previous governing documents or, if there were no amendment provisions in the previous governing document, amendment provisions that require approval of not less than two-thirds of the affected parcel owners;

(d) Contain no covenants that are more restrictive on the affected parcel owners than the covenants contained in the previous governing documents, except as permitted under s. 720.404(3); and

(e) Comply with the other requirements for a declaration of covenants and other governing documents as specified in this chapter.

(5) A copy of the complete text of the proposed revised declaration of covenants, the proposed new or existing articles of incorporation and bylaws of the homeowners' association, and a graphic depiction of the property to be governed by the revived declaration shall be presented to all of the affected parcel owners by mail or hand delivery not less than 14 days before the time that the consent of the affected parcel owners to the proposed governing documents is sought by the organizing committee.

(6) A majority of the affected parcel owners must agree in writing to the revived declaration of covenants and governing documents of the homeowners' association or approve the revived declaration and governing documents by a vote at a meeting of the affected parcel owners noticed and conducted in the manner prescribed by s. 720.306. Proof of notice of the meeting to all affected owners of the meeting and the minutes of the meeting recording the votes of the property owners shall be certified by a court reporter or an attorney licensed to practice in the state.

DennisT (Ohio)
Posts: 109
Posted:
Thanks Michele. We already know that raising chickens is legal because someone contacted the city and they confirmed that so long as the property is a minimum of a half acre (which each property is) one may raise up to 10 chickens on residential land without the need for further licensure or zoning approval. If it becomes really bad they could pursue it under the general noxious/offensive nuisance laws but it was explained that in order for that to be successful the chickens would have to be more noxious/offensive than an ordinary chicken farm of that size. But there's nothing preemptive to prevent it from being set up. Thankfully pig farms require at least an acre which none of our properties have!

We're having a bit of trouble finding a lawyer well versed in Ohio HOA law for two reasons:
1. Nobody seems to be willing to pay the cost (go figure). I even offered to split it but still no takers.
2. I did find one firm that specializes in HOA and Condo law but they only represent associations. Since nobody ever bothered to form the HOA and incorporate with the state they basically told us that nobody has standing to sign a representation agreement with them. If we were a builder or management company they'd sign us up right away, but alas we're not.
DennisT (Ohio)
Posts: 109
Posted:
Donna thanks for replying. You actually replied while I was responding to Michelle so I'm sorry for posting twice in a row. From what I've been able to tell Ohio does not have an HOA law. They have a *Condo* law that covers all that good stuff but there is no HOA law. In fact there have been some groups trying to get one passed for years but it's never gone anywhere. In my research looking for an HOA lawyer I found one with an article on their site talking about this very issue and the last update was to say that the proposed law died in the 2007-2008 legislative session.

So basically HOAs are left existing solely on the strength of their CC&Rs, which as you can tell ours are admittedly very weak, in fact we have no HOA and no common property. The document provides no mechanism for amending or renewing them beyond the first renewal and there does not appear to be any statutory framework for doing it either. Beyond some basic declaratory language about where the property is and who the grantor is it then gives the language about the single renewal and then lists five restrictions. As I mentioned the other thing is there is no HOA.
GlenL (Ohio)
Posts: 5,491
Posted:
Good thought Donna except Ohio doesn't regulate HOA's (the HOA bill died in the house) just COA's the closest applicable law I've found is Section 1702 The Nonprofit Corporation Law. The problem being according to the OP the HOA was never formed which means they are pretty much up the creek without a paddle unless they form the Corporation.

Dennis you need to visit the Secretary of State's website to see if a corporation was ever formed and the County Recorders website to find all of the filed documents on your neighborhood to see if the Articles of Incorporation or By-Laws exist.

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
PS Chickens aren't that bad unless you throw a rooster in the mix. You could always start raising Red-Tailed Hawks; they find chickens delicious and nutritious along with small dogs and cats.

Studies show that 5 out of 4 people have problems with fractions
DennisT (Ohio)
Posts: 109
Posted:
Looking over my notes, the Secretary of State does have results but probably not what we need. Specifically there is a record of the corporation that our builder used for the construction of the property. That entity was wound up in 1995 with no successor being designated. The registered agent was an attorney whose law license was canceled in 2005. I did some digging into why that happened at it seems he died the year before. We've asked around the neighborhood and nobody can remember an HOA ever being formed. Supposedly the developer was supposed to set that in motion but it just never happened.

Searching through the county auditor's site for all documents related to our neighborhood doesn't turn up anything useful. I've got copies of the plat maps, the declaration which simply describes in boring detail the specifics of each sublot, and an exhibit that contains the CC&Rs. Since I've been able to turn up all this information I'm fairly confident that I've got everything they have concerning the neighborhood.

I guess the million dollar question would be then if we wanted to incorporate the HOA who actually has standing to do so? Presumably it would have been the grantor (developer) but that entity is long gone and no successor appears to exist. Even if it reverted to the owners it would probably have to be unanimous since there's no provision for "a majority of owners" or anything like that. In order to be effective we have to amend the CC&Rs to give the HOA the authority to enforce rules and regulations but there's no provision for making such an amendment. Welcome to our chicken and egg problem

I'm not opposed to paying a lawyer out of my own pocket to look into this, but it seems like it's probably going to be an exercise in futility at this point.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Glen,

I suppose 10 chickens wouldn't be much of a problem but when there are bunches of them, their droppings smell worse than a heard or horses or cows. We chickened out() on a great deal on an old school house once because it was down wind across the street from a chicken farm. Wanted to create a restaurant in the school but the appetite would wain with the aroma that was present.

Dennis,

Have you polled every lot owner in the developement to see what they would like to do?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Well, we had 12 chickens on our farm, and they weren't at all noisy or didn't cause any smell. It really all depends on how well the owner cleans their living space.

That the number is limited to 10 is a long way from allowing a chicken "farm" that could very easily get out of control and offensive to neighbors.
DennisT (Ohio)
Posts: 109
Posted:
Quote:
Posted By DonnaS on 11/15/2009 6:39 PM

Have you polled every lot owner in the developement to see what they would like to do?

*I* have not, but somebody else has. I guess you could say I'm part of the I care about the neighborhood group and don't mind doing the legwork of pulling records since I do that for my job. Believe it or not my wife and I are in the "we'll go along with what everyone else wants" category. Chicken man is at the other end of the street and it would be nice to put up a shed to keep the lawn tools but it's not going to break my life either way.

There are 30 sublots in the development. Nine absolutely want to continue the CC&Rs. Six absolutely oppose it. That leaves 15. Of that four said they'll go along with whatever everyone else wants to do. The remaining 11 don't care either way but only a couple would be willing to vote. Interestingly I think 13 of the 15 without a firm opinion didn't even know that the CC&R's existed. Two of the six in opposition are relatively new and said they only moved into the neighborhood because they refused to live in an HOA but were willing to put up with the restrictions for a year or so until they expired because they liked the homes they bought. Given all the undecideds it *might* be possible to pull a bare majority but we're obviously never going to get a unanimous vote on anything that requires it.

The concern with the chickens is the waste and accompanying smells. The way our lots are set up they're extremely deep but fairly narrow. So even though the average lot is 3/4ths of an acre there might only be 30 feet between your house and your neighbor.

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

Since you have no HOA, IMO, HOA statutes won't be of any use to you. I would look for a good property law/real estate attorney. He should be well-versed with covenants that run with the land.

Glen's idea to amend the CCRs to amend the "term" article sounds like a good idea to me. FYI, my CCRs state: ". . .from and after said date, this declaration shal be automatically extended for succesive periods of 10 years each."
DennisT (Ohio)
Posts: 109
Posted:
All - I was able to bend the ear of a real estate attorney this morning at the large firm I mentioned earlier. Since I knew him from a few years back when we lived in a condo and I was on the board he was willing to listen to our predicament.

He prefaced his thoughts with the caution that he was only issuing an informal opinion based upon all the facts I presented to him. Fair enough, he wasn't charging us so he wasn't going to do any legwork.

The short answer - there's nothing we can do.
The long answer - In accordance with the terms of the existing CC&Rs, they will expire on January 1, 2010 because while there was an automatic renewal in 2000 no provision was made for successive renewals. Further since the CC&Rs did not establish an HOA nor give procedures for amending the CC&Rs we can only go by what is provided, which is the one time renewal that expires in 2010. Without an HOA law to provide for a statutory CC&R amendment process there is simply no way for us to amend the existing CC&Rs other than to allow the current ones to expire under the stated terms and then enact new ones.

On to the next part - what about establishing new CC&Rs? We can do it, but one of the elements of establishing a CC&R is that the Grantor(s) must have title to the property. The problem is we now have 30 pieces of property that are all independently held. Anybody who wanted to be subject to the new CC&Rs could sign on and be subject to whatever that provided (including the formation of a formal HOA), but we would not be able to force any owner to be subject to the CC&Rs if he/she did not wish to do so.

So we could go with the formation of voluntary CC&Rs in which owners would have the option of irrevocably binding their property. Since we've got several owners who absolutely refuse to join we'd have situations where some houses could do things that others couldn't. From a marketing perspective I think that would be a bad thing because you might have a situation where the next door neighbor has a fence and a shed but you'd have to tell your buyer that they cannot put the same on their property. Even someone who is in favor of a deed restricted community would probably question why they should buy into something that theoretically protects the value of their home when their hillbilly next door neighbors get do whatever they want.

He also pointed out that the fact that we don't have an HOA doesn't really matter. Even if we did have one, if the documents did not provide for a way to amend and/or extend the CC&Rs the HOA would die on January 1 whether we liked it or not. He did say that if they had properly formed the HOA the odds would have been much higher that they would have included the necessary amend/extend provisions.

Thanks for everyone's input. I'll be delivering the news to the neighbors after work and we'll see what happens. Eggs anybody?
JohnB26 (South Carolina)
Posts: 1,569
Posted:
FREEDOM anybody?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JohnB26 on 11/16/2009 3:09 PM
FREEDOM anybody?

You're welcome to both eggs and freedom. Don't buy into a development that requires compliance to binding restrictions if you don't want to abide by the restrictions. Do buy into a development that requires compliance to binding restrictions if you want want to live in one that requires specific restrictions. Freedom to buy or not buy!
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Correct as stated .. but misleading.
Most of the 'binding restrictions' that 'run with the land' actually DO NOT run with the land since they can be changed by a 'popular vote' of the other land owners.
Perfect example of a true democracy in action.
We agree to binding rules which are temporary in nature and can be changed at the will of the populace w/o any waiting periods for thought ... how is that 'binding restrictions'?
Thank the creator that the USA is not a democracy but a REPUBLIC ... although that is becoming a thing of the past.

OK ... my rant is over !!
MicheleD (Kentucky)
Posts: 4,491
Posted:
Sorry, John, but they do "run with the land," in whatever state the requisite number of votes required for amendment leave them.

So. . . .there you go.

You still are bound by the contract, even if the membership can change the parameters of the contract.

MicheleD (Kentucky)
Posts: 4,491
Posted:
PS: A homeowner's association is not a government nor governmental agency. It is a corporation. You are free to join the corporation or free to pass on joining it by not purchasing the real estate that will bind you to the corporation and its governing documents.
MaryA1 (Arizona)
Posts: 7,043
Posted:
John,

I must take exception to your declaration that the covenants do not "run with the land" because they can be amended. Even if amended they STILL "run with the land", meaning they are passed on to succeeding owners. What the restrictions are doesn't require them to "run with the land", but rather just the fact that there are restrictions require them to "run with the land".

And just because the restrictions can be amended doesn't mean they are temporary. And just because they can be amended doesn't mean they ever will.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MicheleD on 11/17/2009 6:47 AM
Sorry, John, but they do "run with the land," in whatever state the requisite number of votes required for amendment leave them.

So. . . .there you go.

>>>>>You still are bound by the contract, even if the membership can change the parameters of the contract.<<<<<


Precisely my point.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MicheleD on 11/17/2009 6:48 AM
PS: A homeowner's association is not a government nor governmental agency. It is a corporation. You are free to join the corporation or free to pass on joining it by not purchasing the real estate that will bind you to the corporation and its governing documents.

Splittings hairs:

It may or may not be incorporated ..... the vast majority are.
It may or may not be 'not-for-profit' ..... the vast majority are.

Corporations are formed ONLY to shield the 'formers' from personal liability and/or to spread any liability amongst the many members.

Corporations can be good ... they can be bad ... they can even be evil,
depending on the BOD.

?Many? first time buyers into a HOA 'governed' developement do not have a clue that they are actually waiving many constitutional rights ... if they knew in advance most would NEVER purchase. (e.g. myself)

Once one purchases it becomes in one's own self interest to make the system work PROPERLY according to corporate law.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MaryA1 on 11/17/2009 8:44 AM
John,

I must take exception to your declaration that the covenants do not "run with the land" because they can be amended. Even if amended they STILL "run with the land", meaning they are passed on to succeeding owners. What the restrictions are doesn't require them to "run with the land", but rather just the fact that there are restrictions require them to "run with the land".

And just because the restrictions can be amended doesn't mean they are temporary. And just because they can be amended doesn't mean they ever will.

6 of one -- 1/2 dozen of another

I won't play today
TracieS (Colorado)
Posts: 460
Posted:
Quote:
Posted By JohnB26 on 11/18/2009 8:34 AM
Posted By MicheleD on 11/17/2009 6:48 AM
PS: A homeowner's association is not a government nor governmental agency. It is a corporation. You are free to join the corporation or free to pass on joining it by not purchasing the real estate that will bind you to the corporation and its governing documents.


?Many? first time buyers into a HOA 'governed' developement do not have a clue that they are actually waiving many constitutional rights ... if they knew in advance most would NEVER purchase. (e.g. myself)


And who's fault is that?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JohnB26 on 11/18/2009 8:34 AM
Posted By MicheleD on 11/17/2009 6:48 AM
PS: A homeowner's association is not a government nor governmental agency. It is a corporation. You are free to join the corporation or free to pass on joining it by not purchasing the real estate that will bind you to the corporation and its governing documents.


Splittings hairs:

It may or may not be incorporated ..... the vast majority are.
It may or may not be 'not-for-profit' ..... the vast majority are.

Corporations are formed ONLY to shield the 'formers' from personal liability and/or to spread any liability amongst the many members.

Corporations can be good ... they can be bad ... they can even be evil,
depending on the BOD.

?Many? first time buyers into a HOA 'governed' developement do not have a clue that they are actually waiving many constitutional rights ... if they knew in advance most would NEVER purchase. (e.g. myself)

Once one purchases it becomes in one's own self interest to make the system work PROPERLY according to corporate law.

Go peddle it else where. Buyers don't "waive constitutional rights" any more than anyone who buys a home that's also controlled by zoning regulations.

But one thing corporations are not: they are not governments and they are not governmental agencies. Quit trying to imply they are.

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

This is a stock retort of many people who are against HOAs. I'd love to know exactly what constitutional rights are waived by being a member of an HOA. Apparently these same people don't understand that constitutional rights only apply to govenment entities. Their own employers can -- and do -- shirk consititutional rights but it's funny you never hear anyone complaining about that!
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By TracieS on 11/18/2009 9:08 AM
Posted By JohnB26 on 11/18/2009 8:34 AM
Posted By MicheleD on 11/17/2009 6:48 AM
PS: A homeowner's association is not a government nor governmental agency. It is a corporation. You are free to join the corporation or free to pass on joining it by not purchasing the real estate that will bind you to the corporation and its governing documents.


?Many? first time buyers into a HOA 'governed' developement do not have a clue that they are actually waiving many constitutional rights ... if they knew in advance most would NEVER purchase. (e.g. myself)



And who's fault is that?

Mine ... Theirs

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