BillS1 (New Mexico)
Posts: 5
Posts: 5
Posted:
My housing development is interested in developing a homeowners association. Can someone provide me with any guidance on how best to start this process...??
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Developing an Homeowners Association
Started by BillS1 • 10 replies • 1964 views
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HaroldS (Arizona)
Posts: 906
Posts: 906
Posted:
Bill - this has been discussed often here. Do a search for "starting an HOA" and you should get plenty of posts. If you are proposing to have a mandatory HOA in an existing development, (If none was established by the builder), you can pretty well forget it. Without covenants attached to the land, all you can have is a voluntary social club. Harold
BillS1 (New Mexico)
Posts: 5
Posts: 5
Posted:
Harold
The developer submitted the covanents to the county. The developer now wants the homeowners to develop an association to collet fees and to provide oversight of the existing covanents.
Do we contact all of the landowners to start this dicussion? Are there any specific rules that we should follow to avoid problems in developing this association?
TKS
The developer submitted the covanents to the county. The developer now wants the homeowners to develop an association to collet fees and to provide oversight of the existing covanents.
Do we contact all of the landowners to start this dicussion? Are there any specific rules that we should follow to avoid problems in developing this association?
TKS
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Bill, first check to determine if your Covenants allow for mandatory assessments or must you depend on voluntary dues payments. A voluntary HOA does not have funds to force compliance with restrictions in the Covenants.
To start the HOA first call a meeting of all owners. They are members of a manditory assessment HOA and potential members of a voluntary HOA. Select a temporary president to chair the meeting, setup a committee to establish By-laws, discuss the purpose of your association, establish candidates who would like to be voted onto the Board of Directors at the next meeting, and set a date to meet again.
At the second meeting approve the By-laws, elect Board members, and conduct any other business. After the Board is established they are responsible for the operations of the HOA. If there are manditory assessments they will want to look at incorporation, insurance, whether or not to hire a managing Agent, and in general conduct the business of the association.
To start the HOA first call a meeting of all owners. They are members of a manditory assessment HOA and potential members of a voluntary HOA. Select a temporary president to chair the meeting, setup a committee to establish By-laws, discuss the purpose of your association, establish candidates who would like to be voted onto the Board of Directors at the next meeting, and set a date to meet again.
At the second meeting approve the By-laws, elect Board members, and conduct any other business. After the Board is established they are responsible for the operations of the HOA. If there are manditory assessments they will want to look at incorporation, insurance, whether or not to hire a managing Agent, and in general conduct the business of the association.
BillS1 (New Mexico)
Posts: 5
Posts: 5
Posted:
Roger
I need to understand the use of "mandatory" membership. Assume that we have a meeting and of those present the majority is that they wish to develop a HOA. For those members that either were not present or those that wished not to participate with the hoa does the association have the authority to make them participate or collect dues.
I guess if benefits pass to all homeowners that are a result of the hoa dues etc. then all of the homeowners must pay the dues etc.
Please clarify the rights of those who wish not to participate in developing a HOA.
Thanks
I need to understand the use of "mandatory" membership. Assume that we have a meeting and of those present the majority is that they wish to develop a HOA. For those members that either were not present or those that wished not to participate with the hoa does the association have the authority to make them participate or collect dues.
I guess if benefits pass to all homeowners that are a result of the hoa dues etc. then all of the homeowners must pay the dues etc.
Please clarify the rights of those who wish not to participate in developing a HOA.
Thanks
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Bill, if your Declaratin allows the collection of assessments against the property it is a manditory association. If it does not you can not require payment from any owner. You can still form an association which charges dues. If owners pay the dues they are members of what is basically a social club. There is no authority to make owners pay dues or participate. The rights of those who wish not to participate are to be owners who do not have to pay anything to the association.
HaroldS (Arizona)
Posts: 906
Posts: 906
Posted:
Bill, you need to read your covenants before you do anything. Were you and every other homeowner given copies of the covenants the builder sent to the county when you purchased your homes? Did you sign a contract accepting these covenants when all of you bought your homes? Harold
BillS1 (New Mexico)
Posts: 5
Posts: 5
Posted:
Harold,
The covenants were provided at time of sale of the home or land. There was no agreement or signature required related to the formation of an association or that you agreed to participate.
My problem with what has happened in the past is that a handfull of homeowners were taking on issues in dealing with the County regarding signs and road repairs. Now we are having a meeting tomorrow night and the individual was told to contact all of the landowners and homeowners and she did not. She only contacted those idividuals that she believes want an association.
Any suggestions?
The covenants were provided at time of sale of the home or land. There was no agreement or signature required related to the formation of an association or that you agreed to participate.
My problem with what has happened in the past is that a handfull of homeowners were taking on issues in dealing with the County regarding signs and road repairs. Now we are having a meeting tomorrow night and the individual was told to contact all of the landowners and homeowners and she did not. She only contacted those idividuals that she believes want an association.
Any suggestions?
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
let them form an HOA, and stay the heck out.
the HOA they form (if what you say about the original covenants is true) will be a voluntary social experiment, with power only over those who agree to give it power. You don't agree to play, then you don't have to. they cannot vote you in "in absentia".
the HOA they form (if what you say about the original covenants is true) will be a voluntary social experiment, with power only over those who agree to give it power. You don't agree to play, then you don't have to. they cannot vote you in "in absentia".
BillS1 (New Mexico)
Posts: 5
Posts: 5
Posted:
Brian,
Thanks for your message regarding the HOA meeting. I have since talked to a number of other individuals that are attending the meeting and it would appear that they too are just as concerned as I am about the outcome.
In reading the covenant last night I found a reference to splitting of lots. It says "No lot may be subdivided into smaller dimensions than as shown on the plat." Lot 36 in the development is now under construction and it would appear that the new owner or contractor has split the lot and is preparing two house foundations. It would appear that we have a problem right from the GETGO!!! Any suggestions short of having to hire an attorney?
Bill
Thanks for your message regarding the HOA meeting. I have since talked to a number of other individuals that are attending the meeting and it would appear that they too are just as concerned as I am about the outcome.
In reading the covenant last night I found a reference to splitting of lots. It says "No lot may be subdivided into smaller dimensions than as shown on the plat." Lot 36 in the development is now under construction and it would appear that the new owner or contractor has split the lot and is preparing two house foundations. It would appear that we have a problem right from the GETGO!!! Any suggestions short of having to hire an attorney?
Bill
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Bill, does your Declaration state that only one house may be built on a lot? Perhaps the lot is not being split. If only one house per lot is allowed then they are violating the Declaration. Even a non manditory assessment association can chose to try to enforce Covenants on any lot in the platted development. The Covenants still apply to all lots not just those who chose to pay dues to the voluntary association.
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