Builder can't finish the community so HOA not formed

Started by LisaS21 • 3 replies • 1676 views

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

⚡ Takes 30 seconds

Already a member? Log in

LisaS21 (Oregon)
Posts: 2

Posted:

The builder has not finished our community so they HOA cannot be formed according to the bylaws. As far as I know the builder can't secure a loan to finish the development but we have a management company that is lacking. They are charging us for items that haven't been done and raised the HOA fees to cover sewer and water. But we were paying sewer and water and it was only half as much as the fee increase. What can we do about the management company if we can't form an HOA - if the builder can't finish the development after two years, is there a provision for starting an HOA without the completion?

I'm in Tigard (suburb of Portland) Oregon.

Thanks for your comments.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Lisa,

In AZ the HOA is incorporated b/4 the developer even starts to build any houses. I don't know what the laws are in OR. You may want to contact the state agency that governs development of raw land. In AZ that would be the Dept of Real Estate.

Exactly what do your bylaws say about forming an HOA?

Since the developer is still in control there's not much the h/o's can do. The mgmt co was hired by him to manage the property -- there's nothing you can do about their job performance. If the assessments have been increased it's because the developer has instructed it. Because he has the majority votes he can pretty much do as he chooses.

GlenL (Ohio)
Posts: 5,491

Posted:

Lisa, you and your neighbors should chip a few dollars into a pot and hire an attorney experienced in real estate to explain what your options are. As Mary said the corporation that is the HOA is usually formed before the first shovel of dirt is turned; it may be possible to take control of it early.

Studies show that 5 out of 4 people have problems with fractions

LisaS21 (Oregon)
Posts: 2

Posted:

Thanks to both of you... I'm going to explore the possibilities. It's community of 18 but was supposed to be 48. They haven't built a thing since I purchased my place over two years ago. There must be something we can do... you give me hope.

🎯 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