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The Declarant Plans to Stay Forever

Our Community has 79 lots, 6 are owned by the Declarant. All others are owned provately. While the Community is nearly complete and 14 years old, the Declarant ammended the CC&Rs 13 years ago to allow the annexatioon of adjacent land owned by the Declarant and land enough to build 300-500 more homes was added and left undeveloped. The Declarant also rejggered the number of votes his lots carry to 9 vs 1 for each homeowner’s lot.
The Declarant provides no management outside of our HOA comapany, does not come to annual meetings yet continues to keep assessmnts to $870. Roughly half of this money goes into a long-term reserve fund.
Also no homeowers are on the board and have no say about anything.
The Declarant is the guest who came to dinner and never left.
How can we get rid of this paracite?

1 Response

  1. dennisl

    Frank;

    Unfortunately your community is still under declarant control. While the change that your declarant recorded 13 years ago actually violated Arizona Law without unanimous consent of all homeowners in the community at that time you are now beyond the statute of limitation for that violation of the law to challenge that amendment in court. I’ve had very similar situations in communities south of Tucson and those communities have been continuing to chip away at what the declarant is attempting to do with he ill gained power.

    Because of the very strong lobbying power of the Arizona Builders association and the fundamental property rights of the declarants to sell their properties as they see fit, the period of declarant control is absolute hell on all homeowners. You relinquish all rights when buying a home in a community under declarant control. You will be taxed (assessments) totally without representation. The single issue that initiated the creation of this great country in the first place.

    The one saving grace is that Arizona law does have one provision that stipulates that irrespective of any provision in the declaration (CC&R’s) the period of Declarant control will terminate 4 years after all declarants have stopped active sales of any property in the community. While the declarant may have annexed the adjacent property if he has not actively tried to sell any of that property for 4 years or more he will have given up his rights as declarant and the association will be free to elect new board members. Any remaining lots in the community under the declarants name will be counted on a one for one bass relative to voting power. This may still give the declarant considerable power based on his superior voting power, but at least the homeowners have a chase if they work together.

    Dennis

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