How Long Can a Builder Control the HOA
Hi there, is there any cap on the amount of time a builder can have controlling interest in the neighborhood HOA ? The builder that started our community has been in control since 2005, and the recent annual meeting indicated the builder will still be the “declarant” for another five years. In the meantime, the HOA is setting up community managers, unpaid residents of the community, to do the HOA’s job, since the HOA is not really managed by the community.
Also, what’s with the rule that a homeowner violating the CCRs must know who is complaining in order for the HOA to do something about it ? If a neighbor is afraid of the homeowner committing the violation, how can it ever be reported without fear of retribution ? There are two homes in my neighborhood who have chickens, and chickens are not allowed. Nobody will report them, because they fear what will happen to their properties, if they do. Meanwhile, snakes, mice, pigeons, and coyotes are more prevalent now in the neighborhood, as a result.
So, unless a person gives their name and address on a “concern form” that the HOA will give to the person committing the violation, nothing will happen. If you follow this logic, then, at some point, all neighbors could get chickens, since these people have chickens and nobody will do anything about it, even though it is against the rules. What happens, then, when the whole neighborhood has chickens ? Does the HOA change the CCRs ? This statute seems to have the ability to dissolve the rules that govern the community through fear of retribution. Is there any recourse ?
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Suzanne,
For condominiums the current law requires that declarant control ends when 75% of the units are sold to anyone other than a declarant. We tried last year to get a bill passed that would have improved on this and applied to planned communities as well. While that bill was passed it was watered down to be essentially useless and really provides no protection to homeowners in planned communities. The sponsor of that bill has committed to try again this year with a bill that I’ve drafted. Right now whatever your CC&Rs say about class B membership is what dictates the period of declarant control. We will get this fixed this year.
As for the due process associated with violation notices, the issue is the right of any individual to know their accuser. This is not about simple complaints if you don’t like something that someone else is doing. The association and the members have a right to enforce the documented governing documents. That enforcement comes with the power to apply fines and penalties to the violator. While I understand your concern about retaliation you need to recognize that a single homeowner has little power to retaliate against any other homeowner but the association does. I also understand that a bad neighbor can get to be a real threat to others and the law provides for protection against harassment totally outside of the common interest community statutes. The common interest. Immunity statutes are driven as constrains on the association from abuse of power over the homeowners.
If you believe that someone is violating the governing documents report the issue or nothing will happen. Fear of retaliation that may occur will not help you or anyone else in the community. Stand up for what is right and your community will be better, hide in the corner and your community will go to the chickens.
If you want change be part of that change.
Dennis