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BradyP (Utah)
Posts: 1
Posted:
I live in a HOA in Utah that the initial developer went bankrupt and the common areas (streets and parks) were turned over to the HOA by court order (as stated in the CC&R's that was to be done by the initial developer in the CC&R's after the first lot was sold). Only 3 of the 89 homes were built within the subdivision at the time the courts turned over the Common Areas and the CCR's state that HOA dues would be uniform for all lots to the tune of $90 per month regardless of having a home on them and that HOA dues would commence one month after the Common Areas were turned over to the HOA (which has occurred).

Four months after the common areas were turned over to the HOA the HOA's corporate name and Articles of Incorporation expired at the state level. Approx. 3 months thereafter a Builder purchased all the remaining 86 building lots and quit-claimed all the building lots to a third party (another Builder). This Builder has failed to pay any HOA dues whatsoever and started his own HOA with a different name (making himself, his secretary, and his partner the trustees, and his daughter-in-law a HOA manager)and they did not ammend our CC&R's to reflect the change (nor did they opt to have any meetings with the existing homeowners to vote on the matter) and in my opinion, he is fraudently charging homeowners $85 per month whaich has never been voted upon.

I attempted to participate as a Trustee but never was able to see (or be added) to the Articles of Incorporation as a Trustee and the CC&R's have still not been ammended with the changes and the Builder himself refuses to pay approx. $350,000.00 in back HOA dues and collects an additional $2700 (another $232,200) impact fee everytime a home is built on behalf of his HOA (different name) and pockets $2300 and claims that he will give $400 to the HOA upon him turning the HOA leadership over to the residents. Once I was voted in as a Vice President we only had 2-3 meetings in 2 years which were unsuccesful and I quickly learned that it was a patsy position.

The Builder currently has 40% of the votes and residents have 60% of the votes - to change the CC&R's (or even enforce them) to reflect what is being fraudently done we need 67% of the residents signatures. I have refused to pay HOA dues myself until the HOA is 100% legal (although many of my neighbors do pay). The builder believes I owe his HOA over $3,000 and I argue that I do not owe anything until there is a paper trail of documents that reflect the changes he has made from where we were to where we are today. 1) He has attemepted to revise (but never recorded) the CC&R's and has made changes to the the "uniform rate of assessment" to where he pays nothing (He just doesn't bill himself and he doesn't charge other Builders fees either during construction - but they use a substantial amount of water and have flooded our streets more than once); 2) The name change (that it is the legal successor to the old HOA); and 3) He has weakened the overall CC&R's by allowing owner-occupied rentals within the subdivision, and smaller homes than what was initially to be built. I have told him I will ONLY pay when everything is legal. Most of the residents do not understand that the HOA that is billing us is not the HOA that owns the Common Areas. The Builder even claims that he owns the master water meter within the Common Area but the CC&R's state that the HOA owns it and he has started to put individual water meters at each home in the development.

Well anyway, the short of it is the unauthorized HOA just sent me a bill for a little over $3000 and claims that they are going to attempt to put a lien on my house unless I pay. What should I do? Should I just take the illegal HOA to court and have a Judge sort it out or wait for the lien and collect damages? I want to pay the right entity any money owed but to me it seems that he does not have the interest of the HOA at heart but just the lining of his own pockets. Meanwhile, I look at my window and see 1500 square foot homes being built (devalueing my 4000 square foot home) and 3 acres of weeds that is supposed to be a private park.

Well anyway has anyone seen anything like this? Any response would be appreciated.
RogerB (Colorado)
Posts: 5,067
Posted:
Brady, you need to consult with an experienced HOA attorney. What you have posted is your perspective but it may not be totally correct. Have you discussed these items with the builder? It could get very costly to go to court and the judge may not find in your favor. I would only do this as a last resort and only with an attorney who is so confident they would only get paid if you win.

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