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Subject: Developer in control but violations exist
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Author Messages
DavidH35
(Indiana)

Posts:4


12/13/2016 4:06 PM  
Our single family development has recently sold all homes. The developer has restrictions and covenants filed with the county of Clark in So Indiana. There are a couple of violations of the restrictions. With no HOA, how should the developer be approached in 1) the violations 2) turning over control to an HOA?

Our lots are small and a few homes have work vehicles/RV/large boat. Some of these vehicles interfere with the sidewalk. They are expressly forbidden in the restrictions yet they exist for our entire 2 years. Now that the homes are sold, I would like to see if others feel like we do and have the vehicles moved to a storage lot before others follow suit.

Any suggestions would be appreciated. Thanks.
SheliaH
(Indiana)

Posts:1692


12/21/2016 9:22 AM  
Until the developer officially turns over the community to the homeowners, it will have to enforce the CCRs, if you're looking for an outside entity to do it. CCR violations can also be enforced by one homeowner against another, so if your next door neighbor's doing this and you haven't been successful at resolving the problem by talking to him/her, you might be able to pursue this in small claims court. However, if the neighbor still refuses to comply, you may have to go back to court and that can take more time and money.

Why not ask the developer when the community will be turned over and offer to join the initial HOA board of directors? You can also talk to the developer about the problem and see how it will address it in the meantime.

When you get a new HOA board, it can take a homeowner poll to see how others feel about the problem and identify what's really getting on people's nerves and go from there. The association attorney (once you hire one) can help you put together a good rules enforcement policy to address this and other CCR violations.
SueW6
(Michigan)

Posts:164


12/21/2016 2:32 PM  
David,

I'm kind of surprised that you don't know when the Developer is obligated to turn over the development to the member HOA.

What does your original deed say, CCRs or current Bylaws about criteria for a turnover?
DavidH35
(Indiana)

Posts:4


12/23/2016 6:11 AM  
Thanks for your responses. I have spoken to about 4 other homeowners and only 2 were all for an HOA. That is not a large number to base any decisions. There is no date of turning over of the Covenants and Restrictions to an HOA. It is mentioned briefly," ...and any time prior to the development being turned over to a Homeowners Association".

I will write a letter to the Developer stating my displeasure over the lack of enforcing the restrictions, inquire about the timeframe of turning the Covenents and Restrictions over to an HOA and speak to others about also writing to the Developer and their thoughts of forming an HOA.

Thanks again and I will view this site more to add where I can.
KerryL1
(California)

Posts:3703


12/23/2016 11:34 AM  
I think that you ARE in an HOA, David. What is missing is an HOA board of directors made up of homeowners. Or do the covenants and restriction imply that there is no HOA?

Are you a corporation? I'm a little confused.
SueW6
(Michigan)

Posts:164


12/24/2016 10:58 AM  
Look at your CCR's from the developer. There MUST be criteria stated as to WHEN his/her role ends and an HOA run by homeowners begins.

DavidH35
(Indiana)

Posts:4


12/28/2016 11:18 AM  
To all, there is no set event or date in the current restrictions. I will speak to others soon and ask that they also write a letter to the developer to enforce the restrictions. Thanks.
TimB4
(Virginia)

Posts:13855


12/29/2016 4:53 AM  
This info is sometimes located in the Bylaws or Articles of incorporation under membership classes.

The membership class for the developer should identify when that membership class goes away.

Additionally, control will naturally turn over to the members as more and more lots are sold because the voting power of the developer will decrease.
KerryL1
(California)

Posts:3703


12/29/2016 3:43 PM  
Tim is correct to suggest you look at others of your governing documents. So there's no help in your "restrictions" (aka, covenants, CC&Rs, declaration); but there might be in your bylaws or possibly your articles.

State statute probably does not help you on the occupancy limitations topic, but your local codes might offer a good guide, e.g., occupancy might be limited to two people per room or per bedroom. or????
JohnC46
(South Carolina)

Posts:6437


12/29/2016 5:18 PM  
David

You should be working on how to the association turned over to the owners then you all can do as you wish to enforce the Covenants/Bylaws.

Typically the Declarant/Developer must turn the association over when a specified number of units are sold and/or a specific time frame. There have been some Covenants that say as long as the Declarant/Developer owns one unit, they remain in control but I believe in many cases this has been overturned by the courts.

Time to figure out how to get the owners in control and it may require legal assistance/advice.
DavidH35
(Indiana)

Posts:4


04/13/2017 6:44 PM  
Hello all, I have been in discussions with the Developer. He said that the Covenants and Restrictions are 'self regulating'. HaHaHa, I did stop from laughing into the phone. Of course violations continue.

Anyway this gave me the ok to then go out and talk to 16 of the 47 homeowners and all but one of those are all for an HOA being formed.

I will search the forums for ways to start the vote and what to watch for to ensure that the vote is valid. Thanks to all who gave opinions.
JanetB2
(Colorado)

Posts:2665


04/13/2017 10:50 PM  
Posted By DavidH35 on 04/13/2017 6:44 PM
Hello all, I have been in discussions with the Developer. He said that the Covenants and Restrictions are 'self regulating'. HaHaHa, I did stop from laughing into the phone. Of course violations continue.


Ha ha ha ... in essence developer does not want to be bothered as long as you do not step on his toes. Call a meeting with Developer OK to elect a Board of Directors . The directors can then issue letters and fines for the violations. Hopefully then they will not continue and everyone will comply.
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