Collections of dues before HOA Incorporated

Daniel,

Typically the requirement to pay assessments is contained in your deed restrictions (CC&Rs). These same deed restrictions typically call for the creation of an Association to oversee the CC&Rs, collect assessments and pay the bills.

There is zero requirement that an association be incorporated in order to do this (unless State law mandates it).

An Association, incorporated or not, typically has bylaws to provide a written procedure on how the Association will be managed.

Incorporating gives the Association certain rights under the law (and most do incorporate at some point in time).

You are right that these items are usually done close together. However, other than the deed restrictions being the first document there is no specified order for the other two.

Hope this helps,

Tim

The declaration is dated October of 2004, but recorded in May 2006.
It is not recorded in the County of the development. Instead it is recorded in neighboring Harris County.

I am a the resident member of the Board. When I took the position it was after 2 other residents had tired from dealing with our developer. I guess I have bought into a place with a very poor developer. In my other experiences the developer has the HOA buttoned up pretty nicely from the start of the developement.

In my current case, the developer is running the thing with an iron fist. I am pressing to follow the rules of the HOA as defined in the by-laws, and CC&Rs. But things just seem to happen without meetings, without discussion, withou votes and without recording in meeting minutes.

My point in this thread is to ensure the CC&Rs he is running the place by are binding and when. I have seen other HOA's that began almost with the first street being built and way before a home was sold.

One example. Rules outlined in our CC&Rs demand collection of dues from developer owned lots at one rate and resident owned lots at another. If the HOA was formed in 2004 with the completion of streets and final plat, then dues should be collected for year 2004 on. If the HOA was not formed until 2006, then dues for previous years (in my mind) should not be collected.

My thought is that the HOA does not exist, until the proper papers (CC&Rs, By-Laws and Article of Incorporation) are filed within the county of the development. I stand to be corrected. When does an HOA begin? What documents give the HOA legal right to collect assessments in the HOA's name.

My goal is to establish procedures in our HOA and follow the rules that the Declarant has put in front of us. I also want to ensre that the rules of establishing an HOA properly within our state were followed.

Dan

Thanks for the answers and it seems to be clearing things up some.

Are you saying the developer still controls the association?

If yes, then does he do so under the CC&R's?

Many out here do not like the "way" something is being controlled but the ultimate/bottom line question, like it or not, is: Is the place being controlled legally?

I think in most cases places are being "legally" controlled and therein is the rub. "Not liking the way it is controlled".....verus it is being done so legally.

Many say/believe that when you buy into/join in a group vote thingy (HOA, COA, POA, whatever) that you do surrender some personal rights for the greater good of the group. The moral is, be sure of what you are surrendering before you "choose" to do so....not after....as after is to often to late.

Daniel,

When you purchased your property were you told of (or signed anything) that said there were deed restrictions?