Conflict of interest
The Association I live in consists of 3 board members all of which are the builder/developer/declarant. These 3 get 3 votes per property owned to our 1 vote. There is no owner representation and there won’t be for a very long time. Docs state that until the last lot is sold and closed or the year 2046 which ever comes first these 3 will be the Board. Some of the lots in this project will never be sold because they aren’t build-able. There are no dues paid by the builder/developer/owner, however they have 3 to 1 voting power.
One of the Board members is also the ARC, he charges $100 to review any plans (does not include new builds by outside builder). Payment is made payable to him not the HOA. There is no accounting for this, yet the CC&R’s state ARC rules exist. He alone, (no committee) makes all decisions, i.e. want to plant a tree, make a check payable to him for $100 and submit your request.
There is no quorum established at the annual meetings, the Secretary/Treasurer (same person as above) is the only attendee other that regular homeowners. We never see the President or VP, in fact it’s never announced who they are, they are part of the investors for this project. The 3 of them switch positions of and on when necessary.
The one Board member makes all the decisions concerning our project, if he wants to spend money on something it comes out of our dues. i.e. he is just finishing building a phase of about 28 homes, he pays no dues for unsold lots, he has built a model home which is for sale with a leaseback and put lovely landscaping in at the one street entrance (next to model). We were informed that all of the owners in the project will be paying for the upkeep of this entryway although none of the other streets have improved entry ways. This street is way down in the project and no one else gets the advantage of seeing this.
This one person is like the gestapo, he does what he wants, does not practice what he preaches. The docs state that there cannot be any outside “building” noise or work done on Sundays or major holidays, yet his crews are out working on those days.
He has taken HOA common area over for his purpose to build a road directly behind us.
Short of a class action law suit what can be done????
1 Response
Leave a Reply
You must be logged in to post a comment.
Debbie,
What you are experiencing is the dictatorial phase of all these communities known as the period of “declarant control “. During this period the declarant can grant themselves any right they want, they get to appoint the board that worked for the declarant and has absolutely no responsibility to the owners.
What I can tell you is that help is on the way. I’ve drafted legislation that will restrict the “period of declarant control for all communities to times periods established in state law. I have a sponsor for that legislation, and we held a meeting with all the stakeholders on Monday of this week to discuss this bill. The Builders association, Robson Communities, CAI, AACM and the Realtors were all there along with me. I believe that we are very close to a reasonable bill that will protect and establish the right of every homeowner to self-rule and the ability to participate in the governance of their communities. This will be a watershed bill and if passed will end your occupation 90 days after the effective date of that legislation. I’ll let everyone know when the bill is actually introduced for this coming session and will need everyone’s support from this coalition to help get this bill passed.
Until this bill is passed you and every other homeowner under declarant control have absolutely no say in your community.
Dennis