"You were never an HOA"

RickM1 (Texas)
Posts: 9

Posted:

I'm a new "volunteer" board member of our little HOA in Texas. (26 owners) The developer started the subdivision in 1983 and turned over control to the HOA in 1985 via an amended Covenants filed with the local County. But, it was not until 1995 that the HOA created some Bylaws....the lots developed slowly. Reading the records, life was good and quiet until 1999, when the existing board clashed with a homeowner who had not paid dues for the past 5 years by taking him to court.

The homeowner claimed that the HOA was not legal because they did not form within 100 days back in the beginning and that the HOA did not file its assessment methods with the County. The Covenants filed by the developer do not mention such a timeline. The HOA always followed the assessment methods in the developers original Covenants. (NOTE: Homeowner had lawyer, HOA did not.)

The homeowner won and was awarded his legal fees as well by the local JP. (The Covenants say we won't pay anyone's legal fees...but the HOA did in 1999.)

As a result, in 2000, an attorney helped (for a fee) the HOA hold a notarized vote to create a new assessment structure and got an Affidavit and Conveyance Regarding Restrictive Covenants and Common Elements from the original developer. It basically said "Hey, I really did pass control to the HOA." Both were filed with County. 15 of 26 voted...11 did not bother.

Today, the homeowner still does not pay dues because "he never joined the HOA". His son has also purchased lots in the subdivision and sends VERY threatening letters back to HOA secretary if she sends him a Dues Due letter. (Says he will sue everyone.) The son says he never joined the HOA either. His lots are a years-old jungle and the current HOA officers are reluctant to take any action. The Covenants have always been mandatory.

So, is everyone who bought property BEFORE the year 2000 really not members and need not pay dues. All members got a copy of the Covevants and Bylaws. Dues are only $130 a year and really can't keep the roads in proper shape even if everyone paid dues. I've read much online about the "heavyhanded HOA" ...but it seems a "heavyhanded member" is not that unusual either.

Suggestions? Thanks in advance to all, it's a great site! Sorry for the lenght.

"A Babe In The HOA Woods"

RogerB (Colorado)
Posts: 5,067

Posted:

Rick, check the plat to see which lots were included at the time the Covenants were filed with the County. Make sure that the lots were sold by the developer after the date of filing or else there are notorized agreements by owners who purchased before date of filing. Looks to me like you needed a better HOA attorney

The declaration may only apply to 15 of the 26 lot owners. Also, passing control of the association to the owners has nothing to do with who has the covenants attached to their deeds.

If assessments are manditory then those for which the Covenants apply need to pay AFTER the HOA has properly voted on the amount of assessments AND notified those owners to whom assessments apply.

BTW Covenants which state we won't pay anyone's legal fees has no legal standing when a judge orders payment.

RickM1 (Texas)
Posts: 9

Posted:

Ok, thanks for your reply. The covenants still used today are as filed originally in 1985 by the developer. They were mandantory. All original lots in plat were sold before 1999.