Mandatory Homeowners Association

Started by cksiiEditor • 4 replies • 2439 views

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cksiiEditor (Colorado)
Posts: 12

Posted:

When my community was developed, the developer did not make provision for a mandatory HOA in the covenants. As a result, we have had voluntary participation for many years with approximately forty percent of homeowners joining the HOA. Money has been used for capital improvements and covenant enforcement.
The initial 30-year term of the covenants will be reached in 2008 and there is a provision which allows for the automatic extension of the covenants for 10 years. However, at renewal time, a majority of homeowners can amend the covenants.
Here's my question. Does anyone have any experience with implementing a mandatory homeowners' association? I realize that it will require a community vote, as would any covenant change, but are there any specific steps or issues that would need to be addressed in the months leading up to the vote?
Thanks.

JohnM3 (Florida)
Posts: 288

Posted:

Get a association trained lawyer on board asap he/she must have a track record. I feel the smart thing to do is let your original covenants die and then mail out manditory notices registered mail return reciept requested to all members then write your own covenants take the original and delete the doppy lawyer stuf and make it manditory to be a member to live in the assoc. If you dont get hat you are dead. Thats were the lawyer comes in by the way the going rate is 150 to 400 bucks a hour. Make it manditory the only person able to call the lawyers is that person make them the comm of 1 to handle this project let them work it out with the lawyer try to pick some one who is retired and can devote time to the project it will be tedious and long start now and with luck you will be done by 2008.

Good luck

cksiiEditor (Colorado)
Posts: 12

Posted:

Thanks for your input, John.

Allowing the original covenants to 'die' is not an option because there is a provision for automatic extention for successive 10 year periods written into the original document. Our only option is to amend the existing document.

I do recognise the need for legal council. In fact, one of the things that our board did, when I was on the board a few years ago, was establish a relationship with the legal firm of Orten and Hindman. I also know that it is expensive, but, in my opinion, worth the cost. Your suggestion of having a single contact with council is prudent. It eliminates duplication of effort and expense.

What I'm hoping to get from this forum is someone who has gone through this process so that they might be able to describe some of the obticles, without having to incur the expense of getting much of this same information from council.

Thanks, again.

Greg Steward

RogerB (Colorado)
Posts: 5,067

Posted:

Greg, I would write amendments to the Covenants which the current owners/member will accept. One way is to convert from voluntary to manditory using language in the amendment which allows current members to elect either manditory or voluntary assessments and when the property is sold the assessments become manditory. That is how one Lone Tree, Colorado HOA accomplished the conversion. The key is not the attorney, it is getting the homeowners to pass the amendment.

Let me know if you need our help,

RogerB

cksiiEditor (Colorado)
Posts: 12

Posted:

Hi, Roger.
I completely agree that whatever is proposed must be acceptable to the ownership or we're dead in the water. I'm not quite clear on your point of members being able to elect the type of assessment. Are you saying that each member can decide for their individual property whether they want mandatory/voluntary assessments and at the same time they would be committing future owners to a mandatory assessment?

Thanks for taking the time to respond.

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