💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

JamieZ (Georgia)
Posts: 5
Posted:
Hi, I live in a 15 yr old subdivision in Georgia with 104 homes. The HOA had been fairly neglected with just 6 homes represented at the meetings. Since I was new to the community I insanely offered to take on the role as "President" of the HOA. I thought I might be able to figure out why so few home owners attended the meetings or paid the small $40.00 annual dues. Since no one had covenants or bi-laws I went down to the court house and discovered that we do have covenants on file and they are very ordinary in language. There is no provision in them for a home owners assoc. and no bi-laws. I've been hours/days on line trying to find state or ntl. government agencies or other resources to help guide volunteer assoc.'s to no avail...I don't see the effort to try to change to a mandatory assoc. worth the frustration.
My questions are these...Are there laws regarding voluntary HOA's? Do I need to do any thing "formal" to run a voluntary assoc.? Can you give me ANY advice (other than give up...not ready yet :-)
The assoc is not looking to reign supreme we would just like to run smoothly, upkeep the entrance with dues and have some community spirit.
THANK YOU!! to any one who can offer suggestions - MOST appreciated.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Jamie,

In reading the covenants is there an article which addresses assessments, which you call dues? If there is and if it says each property owner "must" pay an annual assessment that means the HOA is mandatory. It is not always explicitly stated in the covenants that there shall be a mandatory HOA. If, on the other hand, it says only the members of the assn are obligated to pay assessments, then that means the assn is voluntary.

If the HOA is a nonprofit corp then the nonprofit corp statutes would apply. I would strongly suggest taking a look at those statutes as you will be obligate to abide by them. If you determine the HOA is mandatory then if the State has statutes pertaining to planned communities or condos (whichever your s/d falls under) you would also be obligated to abide by them. I doubt there are any state laws that apply to voluntary HOAs which, IMO, can be managed in the same way as a club.

You should have a board of directors to manage the affairs of the assn. A set of bylaws should be drafted to outline the management procedures of the assn. Minutes of the BOD meetings should be taken and records kept accordingly. Financial statements should be prepared at least quarterly and also a yearly budget.

Is the entrance the only common area that requires to be maintained? If so, then your expenses should not be that high and you should be able to keep the assessments rather low. Hopefully this would encourage the majority of the property owners to join if it is, indeed, a voluntary HOA.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Jamie,
For 15 years you have been holding meetings? How do you go about noticing these meetings? Where are the records of the association? Who pays taxes on the common property? Jamie, what did you take over? Reference my above questions indicate you do/did have some organization. Where is the reocrds of that. Did you go to the planning office and look at your master plot for your area. Where is the old developer. Make sure when you are at records office of county you are able to look at all your records.
It seems to me you don't have enough information yet to know what to do.
You have 6 owners listening, you might try and work up a war chest and have a sit down with some cash in your pocket to hire some professional help. Some how you have identified some 104 homes, do all these homes have the same deed restrictions. Does your deed read like your neighbors and so on.
If you can get enough people that are concerned enough to want to develop your community or a new community, it should not cost all that much.
Keep digging.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JamieZ on 04/09/2010 3:11 PM
Since no one had covenants or bi-laws I went down to the court house and discovered that we do have covenants on file and they are very ordinary in language. There is no provision in them for a home owners assoc. and no bi-laws..

First, there very likely will be nothing on file in your local courthouse regarding association by-laws or the existence of an Association.

Your Secretary of State should have those documents.

Second, it would seem to me that if there are "covenants" on file at the courthouse, I'm going to jump to the conclusion that the covenants are mandatory.

Keep in mind that an HOA and deed covenants are two different things.

Like Mary said, it would also depend on the language within the covenants.

If they are tied to the land, then it is likely that abiding by them is not voluntary.

All the association does is function as a corporation to conduct any business of the association. If there is no common area or no buildings or common area, the subdivision could probably get away with not having a formal HOA.

And while most associations also enforce the covenants, an association is not always required for covenant enforcement.

Again, that would depend on the exact language of the document.

Also when you say "since no one had covenants or bi-laws(sic)," who do you mean by "no one"?

Do you mean the homeowners? Or do you mean other state agencies?

I just want to point out that there are many subdivisions in my city that have deed covenants that the homeowners had no idea existed.

My brother-in-law only found out about the ones tied to his deed when someone "dropped a dime" on him to the local zoning enforcement regarding the parking of too many trucks on his property.

He went down to the courthouse and discovered that all the properties in his subdivision had deed restrictions tied to them. Keep in mind he's lived there for probably 30 years and never once knew such a thing existed.

He used that document to then "get back at" several of his neighbors who he thinks turned him in.

No, I'm not proud of that. It's pretty childish and vindictive. It's not the neighbors' fault that he had junk cars/trucks on his lot.

So at any rate, even though the subdivision had no formal HOA (none ever was created), he was still able to enforce the deed restrictions in small claims court.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Michelle,
Unless we are confusing definitions here, in SC, and I would include other states from the info posted here and a little personal knowledge and living in an HOA in Maryland, I have to say that County Court Houses do indeed have records of Condo, Hoas, etc. In SC I know personally that our Master Deed, Declaration, and by=laws, with exhibits and any and all amemdments and it is a requirement that changes be entered into the courts records. Our condo is carried on the property tax records, the assessors office, that I know. We are Registered through the State and are recorded as a business and have a state statute. Each individual unit in a condo is taxed by the state, the association pays little if any taxes because you don't have any or little income.If our association, be it condo or POA, we are listed as an interested party in any law suit, foreclosures, or God knows what else, then we are listed in the County Court Records.

I really think Georgia is similar, but not the same exactly.

But today was a do everything wrong day.............so who knows.
JamieZ (Georgia)
Posts: 5
Posted:
The covenants I found were in the Deeds book at the county clerks office. They are 5 pages long (single sided). The covenants "run with the land" and cover big picture stuff like (paraphrasing)LAND USE-Only single dwelling hbuildings may be built. ARCHETECTUAL CONTROL-they do mention a "archetectual control committee" and "board of directors" for approvals, but this is the only time those words come up and I assume it is a board only for this purpose...there is no mention of who the committee/directors are. NUISANCES-one sentence. PARKING-must park in the driveway, etc.., TEMPORARY STRUCTURES, SIGNS, OIL AND MINING OPERATIONS (??), GARBAGE, SEWAGE DISPOSAL, LIVE STOCK, HOBBIES, SIGHT DISTANCE AT INTERSECTIONS...
ENFORCEMENT-Enforcement shall be by proceedings at law or in equity against any person/s violating any covenant.
SEVERABILITY-Invalidation of any one of these covenants by judgement of court order shall in no way affect any of the other provisions which shall remain in full force and effect.
SIGNED AND WITNESSED

I looked up the GRANTOR/GRANTEE for all the homes in the neighborhood and the Grantor is all the same (the company that purchased the land for the subdivision). The Grantee/s were many different companies (these are the builders of the homes in the subdivision).

No articles on assessments. The entrance is the only common area to be maintained. This is Georgia and it gets rather hot here...we have a water bill for the sprinkler system and electric for the lights at the entrance. It's not much, but 6 people should not have to pay for 100+. I was very successful in collecting dues from 30% of the home owners, but it came at a cost to me personaly. I wowed them with a 4 page front and back color brochure which I did as cheaply as possible at home. I paid for most of it my self. My plan is to give a professional touch to every thing I do to win over as many residents as possible and then reduce my costs in the future when we see more money coming in.
I was hoping to find a real estate attorney to adivise me on the cheap, but that hasn't happened and I'm reserving my personal expenses to absolute necessities for now.
Thank you for responding!
JamieZ (Georgia)
Posts: 5
Posted:
Well, I moved into the subdivision 4 years ago and took this role on 5 months ago. I did not know there was a hoa for at least a year. They were using one page fliers stuck to the mail box and it probably blew away. I went to the 1st mtg. just to meet my neighbors. I was surprised that only a few people showed up and the discussion was about party planning. After attending a few mtgs. I finaly spoke up about attendance and a few minor neighborhood issues,we have a very nice middle class neighborhood and these things were not being discussed. I'm very social, but could care less about the parties. I just could not figure out why they couldn't get a pitiful $40.00 annual due out of the homes. I knew nothing about HOA's other than to pay my dues. I found out that they didn't either. I have done some research...I found 4 former "Presidents" and "Treasures" and it just never entered their minds to do any research. It's like living in the twilite zone. I think I may have alienated some people I interviewed, because they could not even understand why I thought this might be important. No one ever recorded the mtgs, no one had covenants, the meetings were highly informal.

We have paid no taxes on common land. In the covenants under "SUBDIVISION ENTRANCE/EASEMENTS; Easements for marquee or entrance signs, fencing and landscaping are reserved to the owner and are located on lots 40 & 41, Block H, and Lots 1,2,3, & 4, Block I and within island area as shown on attaached easement plat and are identified on said plat as Easement A, B, & C. Reference being made to said plat for a more complete and accurate description of the metes, bounds and location of said easements."
I assume "owner" is the original land owner?

We have no board of directors. What we have is a "president" a "treasurer" and a "land scaping committee".

I have interviewed the President of the subdivision down the street from ours. She has a "proper" hoa, very organized, great website and she gave me a lot of advice about how her organization runs, but has no experience with empty pockets and empty heads. Her covenants do have a provision for the organization of a hoa and she has bi-laws...our covenants have no such provision and it seems no one ever followed up when the builders exited the land.
So, 15 yrs later I arrive and have nothing. I sent out a 2 page resident survey after my first newsletter and no one understands that we have a voluntary HOA or what that means, they haven't been paying dues because they feel the HOA is not doing their job and spending the dues on parties - it hasn't they were getting so little in dues they had to shut off the sprinkler system at the entrance last year. The whole thing is a mess. Some home owners (including me) closed with a line that says that there IS a home owners assoc.(I received no bi-laws)and some did not. I need to let every one know that this is not a true HOA, we can not enforce any thing, but we can use the volunteer association to be the ones to maintain the entrance,to call if there is a city violation, road repair, We could start a neighborhood watch or email alert system if there is any crime that occurs and yes organize social events, yard sales. I need to let people know why the hoa has been ineffective and will be with the issues that annoy them most like parking on the street which we will have to defer to the local authorities and laws governing those issues. We can not risk enforcing the covenants on our own with out the risk of being individually sued. However the benefits of having a volunteer assoc. far out weighs having none at all.
I just need to know if there are any legal liablilites and going forward how to create a well working volunteer organization.

Thanks so much for responding. Sorry so long.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Robert, your comments re: South Carolina duly noted. Of course the perpetual caveat for all post comments and advice: Your state/local laws may vary.

Still, in Kentucky and other states, only the Deed Covenants are filed in the County Deed room. All other governing documents are filed with the Secretary of State's office, and even then, only the Articles of Incorporation, I believe, are mandatory. The by-laws may or may not be filed, and rarely are re-filed if/when amended.

Jamie:

It sounds to me like you have a mandatory HOA and not a voluntary one. It just seems to have been effectively "abandoned" by the members.

I would still suggest you do a search in the Secretary of State's website on the name of the developer and see what turns up.

Best of luck to you.
JamieZ (Georgia)
Posts: 5
Posted:
I will contact the secratary of state for georgia for bi-laws...no stone unturned. I know after interviewing the subdivision President down the street from our own that her covenants and bi-laws were filed as one in the deed book at the county clerk office. She's the one who told me where I should be able to find mine. After finding our covenants, but no bi-laws I asked the clerk where else I could look for bi-laws or assoc. info. or ANY other info. He didn't know any other place. Not knowing any thing myself...I asked about the builders of the homes, that's how I found the grantor/grantee book.
The covenants are mandatory, but who enforces them and on what authority? I have no proof that a true hoa exists. We have no proof that a nonprofit corp. ever existed. A nonprofit gives the members a lot of protection from liability.
If I have no proof of the above and decide to enforce the covenants on file at the courthouse I will have to go through the local government and have them enforced that way and for most of those infractions there are already laws governing them like building codes, etc...
Really, a hoa goes beyond the local laws. Like parking in the driveway rather than on the street. Local laws in my area any way say it's O.K as long as the car parked on the street is pointed in the direction of traffic, not abandoned and driveable. However its really annoying and a hazaard when a third of the neighborhood parks on the street. Our covanants say we must park in the driveway, but if I call a tow truck - I'll personaly be sued for towing some one's car away. If I call the police and show them the covenants they will say it's a civil matter. Either way I'm pretty well screwed with trying to enforce the covanants on their own merits.
If you know a better way let me know. I did find the company that signed and filed the covanants and have been working on contacting them. The signer is the owner of the company is uber rich, eccentric and it's very unlikely I will be recieving much sympathy or communication with him.
Good adivise with the sec. of state! Thanks!!
RogerB (Colorado)
Posts: 5,067
Posted:
Jamie, I believe you will find the Covenants (Declaration of CC&Rs) filed with the County Clerk and Recorder. If there is nothing in the Covenants about a manditory assessment then you have a voluntary HOA. The HOA is usually formed, and may have been incorporated with the Secretary of State, by the Developer's Board of Directors. If incorporated the state may have required filing Bylaws with the Articles of Incorporation. If not incorporated, or if no formal HOA with Bylaws was created then the current members of the HOA can create new Bylaws. They can also amend and restate if necessary any existing Bylaws. And if the voluntary HOA is not incorporated they can chose to do so with the Secretary of State as a nonprofit association. These may seem confusing at first to one who is not aware of the procedures but it is not too difficult for a novice to learn.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Jamie,
Well I think we are making some progress. As a "quickie" you could go on line at the STATE WEBSITE, and look for Businesses in the State of Georgie. Plug in you Subdivision name. Normally, if you are not there you are not a Business and can't be an HOA. While you are at it, plug in your neighbors HOA and see if they are listed. They are, you are not...........you knolw answer to that. They are not, you are not................check with this person to see how they can be a HOA and how do they file taxes.

There is another condsideration. It is possible there is a difference in age of development. Some earlier subdivision may be operating under laws different than those current, but, there normally be some courthouse record of all this. I suggested looking at Master plan for your area at court house. If nothing pops up, ask the oldest tenured person there if they have any recollection of your Subdivision. Somebody knows something. If all else fails, Roger's advice seems sound, but I doubt I would start spending personal funds and expect to get it back.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Jamie:

Please quote for us the section of your covenants that mention the assessment.

I'm still betting on it being mandatory and NOT voluntary.

Regarding who enforces, your documents may also mention that somewhere.

But you do have the ability to enforce, and no, the local police or zoning cannot enforce your covenants for you.

This is where a board of directors comes in handy, and a little bit of money in the bank for the association.

The board can send out violation notice letters, then move to an action in civil court if compliance is not obtained.

You may only need to do this once or twice and word will get out that covenant enforcement is happening and people will need to comply.
JamieZ (Georgia)
Posts: 5
Posted:
Michele,

There is no section for assessments.
The Georgia Secratary of State site is very well organized. I had several options in searching a business entity. I could use exact name, sounds like, any words, all words, etc... and I did not get a hit on my subdivision. The search included non-profits, LLc's, etc... and status active/dissolution...
It's hard when your reading words, so I want to be sure you understand I'm not being sarcastic when I say - thank you (really!) what a great site to be introduced to and going forward I at least narrowed my options.
Like I said our covenants are only 5 pages one sided, so theres not much there. I have read them very carefully.

Under
ENFORCEMENT: Enforcement shall be by proceedings at law or in equity against any person or persons violating or attempting to violate any covenant either to restrain violation or to recover damages.

I think they tried to make the whole thing as brief and vague as possible to get out of dodge. I sent a letter today to the company that created our covenants in hopes that they might have further information in regards to a HOA. I was oh so polite :-)

I don't mind persuing HOA documentation if it exists and I will be thrilled beyond belief if I find it, but in the mean time I need to run some sort of a organization. The words Board of Directors suggests that our group has more authority (and money) than we actually do. If you read my initial post again it pretty well explains the position I'm currently in. If my subdivision has no legal documentation (for now) that a HOA exists...what advise can you give me to run a voluntary HOA/can I even call it that? I don't think it's in the community's best interest for me to possibly have to fight and pay for a legal HOA for now. Perhaps in the future after I have a successful voluntary organization that would be a strong possiblity.
Thanks again for your help.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Jamie,

Many properties have deed restrictions that "run with the land" but there is no HOA to enforce them. In that case each individual property owner has the power to enforce them by filing a claim in small claims court or justice court. However, since your covenants explicitly refer to a board of directors and an architectural committee I'm of the opinion the intent was to form an HOA. Since there is no mention of mandatory assessments in the covenants, the HOA would be strictly voluntary. The HOA would have the ability to enforce the covenants on each property owner regardless of whether or not they were a member of the HOA.

Regarding the absense of bylaws; some states do not require bylaws to be filed with the articles of inc or to be recorded with the covenants. Usually the declarant prepares the bylaws but in some cases this does not happen. I would suggest getting the board members together to draft up a set of bylaws. This is an important document to have as all the management procedures will be outlined therein, including how elections are handled, the make-up of the BOD including their powers and duties and the duties of each board member; the membership; how meetings are handled, including proxies and quorums;etc. You can probably go online to see sample bylaws. You can check with the Sec of State to find out whether the HOA has been inc. as a nonprofit. If not, I would suggest doing this. The cost may be in the neighborhood of $300-400, the bulk of that being for the required newspaper announcement.

There are many pros and cons regarding whether an assn should be voluntary or mandatory. However, if a voluntary assn is formed and the members later decide a mandatory assn would be more beneficial, a 100% vote of the property owners would most likely be required. There is case law in several states attesting to this but not in all states.
GlenL (Ohio)
Posts: 5,491
Posted:
Jamie since you have common areas that must be maintained I would presume that you are a mandatory not voluntary association. Look for language such as this in the Declarations you found. (This is for an Ohio condo Association but you should get the drift)

Section 4.1. Membership. Declarant has caused to be formed an Ohio Corporation not for profit, called the “Happy Daze Condominium Unit Owners’ Association”, the Articles of Incorporation for which are attached hereto as Exhibit “B”, which shall administer the Condominium Property subject to the provisions of Article V hereof. Each unit owner, upon acquisition of the ownership interest in a unit within the Condominium Property shall automatically become a member of the Association. Such membership shall terminate upon the sale or other disposition of his ownership interest, at which time the new owner of such ownership interest shall automatically become a member of the Association.

Also I would check with the Zoning Board and see if they have any records mentioning the HOA.

Studies show that 5 out of 4 people have problems with fractions
MicheleD (Kentucky)
Posts: 4,491
Posted:
Just to clarify, Mary.

The HOA would (could) be voluntary, but adherence to the deed restrictions is not.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Good point, Michele. I should have mentioned that as it is an extremely important fact!

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here