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Subject: Board Resigns
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ConchoP
(Texas)

Posts:68


03/07/2017 12:04 PM  
In Texas what do you do when all but one board member resigns? Our President is the only one that stayed.

Bylaws state we must have 3 board members, no more than 5.

Our bylaws state:

Removal of Directors and Vacancies:

Vacancies. A director's position becomes vacant if the director dies, becomes incapacitated, resigns or is no longer a Member.

Successors. If a director is removed or a vacancy exists, a successor will be elected by the remaining directors for the reminder of the term.


Would a quorum of the board have to be met? or If Successors are elected by the remaining directors, then wouldn't the President be able to elect members to fill positions?

TimB4
(Virginia)

Posts:13855


03/07/2017 12:17 PM  
The remaining director may appoint others to the board even though a quorum doesn't exist.
This is standard Corporate law.
The Director may appoint everyone all at once or individually.

However, if appointed individually, then the two directors vote to appoint the third, etc. etc.

See: Texas BUSINESS ORGANIZATIONS CODE, TITLE 2. CORPORATIONS, CHAPTER 22. NONPROFIT CORPORATIONS, specifically Sec. 22.212 [emphasis added]:




Sec. 22.212. VACANCY. (a) Unless otherwise provided by the certificate of formation or bylaws of the corporation, a vacancy in the board of directors of a corporation shall be filled by the affirmative vote of the majority of the remaining directors, regardless of whether that majority is less than a quorum.
ConchoP
(Texas)

Posts:68


03/07/2017 12:38 PM  
Does this Corporate law hold true for Unincorporated Non profit Associations?

Sorry for not knowing...
KerryL1
(California)

Posts:3703


03/07/2017 12:39 PM  
What Tim cites is typical. Perhaps it's time for you to volunteer, Concho?
SheliaH
(Indiana)

Posts:1692


03/07/2017 12:41 PM  
I would think there's something similar, but you're better off checking with an attorney to be sure.

Since everyone else left the board and your president is the only one left standing, why not consider volunteering for a spot and you two can look for other board members (at least one more so you'll have three)? You still have an association to run and if there isn't a board of directors around to make decisions and something horrible happens, the entire community (that is, individual homeowners, including you) could be held personally liable.
ConchoP
(Texas)

Posts:68


03/07/2017 1:46 PM  
Please don't assume I didn't volunteer...the fact is I have. That being said...I'm trying to gather information so I don't have to go a lawyer.
A lawyer is already going to have to be retained for bigger fish our HOA has to fry. So information like TimB4 gave me to research help me have the information I need to go thru this process accordingly.
TimB4
(Virginia)

Posts:13855


03/07/2017 2:08 PM  
Posted By ConchoP on 03/07/2017 12:38 PM
Does this Corporate law hold true for Unincorporated Non profit Associations?

Sorry for not knowing...




Technically, no.

Your governing documents would apply.

However, based on what you cited, your documents didn't address quorum requirements to appoint to fill a vacancy.
An argument can be made to defend the President appointing replacements.
JohnC46
(South Carolina)

Posts:6437


03/07/2017 2:51 PM  
Concho

I say the President can appoint another owner to join the BOD then the two of them can appoint a 3rd member. The Bylaws will clarify how long the term of the two appointees will be. Typically it will be until next the Annual Election time or to fill the term of those they are replacing.
ConchoP
(Texas)

Posts:68


03/07/2017 3:45 PM  
TimB4 Thank you to add to our tangled mess....

The board members that resigned were on the ballot to re-elect, we had no other nominees, and we didn't meet our quorum for our election.

The reconvene meeting was scheduled but had to be postpone because of the mass exodus of the board members. Per our bylaws we have to give written notice 14 days in advance of a reconvene, we can't set a date until the President can elect at least two others to the board.

The persons he elects to be on the board,is essentially filling vacant positions. Therefore wouldn't their names be placed on the ballot for the reconvert meeting.

Oh what a tangled mess we weave....
MelissaP1
(Alabama)

Posts:6322


03/07/2017 4:08 PM  
I went through this in my HOA... We had like 5 Board members/officers. By the end of the year it was just me and the vice-president... And he was NOT paying his HOA dues... Oh and I even moved!

We also did not have a caveat or a rule about what happened when we lost board members. There was no "Appointment" rule. We had only 1 time a year in January to elect board members/officers. Of which I had already announced my stepping down.

Members kept asking "Why don't you appoint someone???". I was like "How about you???". Funny they stopped asking then... Had to explain why I was basically the only one running the HOA. Someone had to do it to sign the bills and to keep us afloat till elections.

So I say as long as you have someone that can sign the checks till can do proper elections... Keep it afloat till you can get others onto the sinking ship...

Former HOA President
TimB4
(Virginia)

Posts:13855


03/07/2017 7:23 PM  
Posted By ConchoP on 03/07/2017 3:45 PM

The reconvene meeting was scheduled but had to be postpone because of the mass exodus of the board members. Per our bylaws we have to give written notice 14 days in advance of a reconvene, we can't set a date until the President can elect at least two others to the board.




I would argue differently.
The decision to postpone and hold another meeting was already done.
The President is simply implementing the last direction given by the Board - to hold a meeting.


Posted By ConchoP on 03/07/2017 3:45 PM

The persons he elects to be on the board,is essentially filling vacant positions. Therefore wouldn't their names be placed on the ballot for the reconvert meeting.




As I understand it, no.

In fact, there is no need to hold another meeting if you don't want to.
Corporate statutes specify that Directors continue to serve until their replacement is elected/appointed unless they resign. They resigned. A new board will be appointed and can serve until the next election - next year.

However, if you want to hold the meeting - then hold it and add those names to it.
In reality, who is going to be bent out of shape enough to bring legal action?

If your concerned that legal action might (not could but might) happen, then consult with an attorney on the best course of action.
ConchoP
(Texas)

Posts:68


03/07/2017 7:45 PM  
TimB$

I apologize in advance, but I don't understand, if we had annual meeting of the members and had to schedule a reconvene, which was announced at the meeting but was postpone at a later date - no in a open meeting. How can we by pass the second reconvene? Is it because since the last open meeting (Annual Meeting of the Membership) all but one board member resigned so now we enter a filling of a Vacancy? I would has a lawyer, however the one we had can no longer help us, If I meet with another lawyer, I might get the first consult free and I would like to ask him about other issues which are bigger fish...

I'm not worried about the member balking, but we are still under developer control so I want to be on mark.


TimB4
(Virginia)

Posts:13855


03/07/2017 8:05 PM  
Posted By ConchoP on 03/07/2017 7:45 PM

I'm not worried about the member balking, but we are still under developer control so I want to be on mark.




Ahh, I understand.

Not sure how to help, but I understand.
JohnC46
(South Carolina)

Posts:6437


03/08/2017 5:33 AM  
Coccho

As you are still under Declarant control they will have all the voting power thus your BOD Members are merely figureheads. Why are you so concerned?
ConchoP
(Texas)

Posts:68


03/08/2017 7:38 AM  
Yes I understand, the board was his chosen board. But his chosen board jumped ship because of him....
JeffT2
(Iowa)

Posts:274


03/09/2017 9:23 AM  
Getting back to your original question, there may be a different section of your bylaws that gives the developer authority to appoint any board member(s) he wants.
JohnC46
(South Carolina)

Posts:6437


03/09/2017 9:33 AM  
Typically while under declarant control, there may not even have to be BOD of owners. Typically the Recorded Corporate BOD will be the Declarant and people like his lawyer, his wife, his son, etc. Some will have a "Advisory BOD" of owners but that is all they are. Advisors, not decision makers.

Fortunately our Declarant was an honest, above board, very open, etc. We had a very smooth transition. I was on the Declarant Appointed Advisory BOD (5 owners) and when we transitioned to owner control, we became the BOD until our first owner controlled Annual Meeting/election (about 10 months later). At that meeting, 4 of the existing 5 appointees were elected to the BOD.

NigelB
(Texas)

Posts:170


03/16/2017 8:01 AM  
Posted By ConchoP on 03/07/2017 7:45 PM
TimB$

I apologize in advance, but I don't understand, if we had annual meeting of the members and had to schedule a reconvene, which was announced at the meeting but was postpone at a later date - no in a open meeting. How can we by pass the second reconvene? Is it because since the last open meeting (Annual Meeting of the Membership) all but one board member resigned so now we enter a filling of a Vacancy? I would has a lawyer, however the one we had can no longer help us, If I meet with another lawyer, I might get the first consult free and I would like to ask him about other issues which are bigger fish...

I'm not worried about the member balking, but we are still under developer control so I want to be on mark.






If your association is still under developer control, then that's it. The developer can appoint whomever they wish to the board, the developer will typically have more voting rights than the individual lot owners also. Our CCR's gave the developer 3 votes for every lot they owned versus the 1 vote per individually owned lot. Basically, until the homeowners meet the requirements specified in your CCR's, the developer maintains total control over the HOA.
ConchoP
(Texas)

Posts:68


04/11/2017 3:49 PM  
Our President wants out due to his busy schedule. Can he appoint at new President out side of an open meeting...then the new President appoint new board members?
ConchoP
(Texas)

Posts:68


04/11/2017 3:49 PM  
Our President wants out due to his busy schedule. Can he appoint at new President out side of an open meeting...then the new President appoint new board members?
DouglasM6
(Arizona)

Posts:58


04/11/2017 3:58 PM  
Ask the president to appoint new board members before he leaves. Then the board can vote on a new president. Or, ask the the developer to do the appointing.
NigelB
(Texas)

Posts:170


04/11/2017 5:50 PM  
Posted By ConchoP on 04/11/2017 3:49 PM
Our President wants out due to his busy schedule. Can he appoint at new President out side of an open meeting...then the new President appoint new board members?





The governing documents will specify how the President and other officers are seated. Generally the President and the other officers of the association are elected by the Directors - so no, the President cannot appoint another to be President.

The governing documents will probably also specify as to what happens if a Director resigns or if a Director position becomes vacant - they probably allow the remaining Director(s) to appoint Directors to fill out the remainder of the term.

In this case it sounds like two of the Directors removed their names from consideration and the remaining Director (President) is not interested in running.

I'd say that the following could occur using March 30, 2017 just as an example of the anniversary date for the new election.

The President could appoint two new members to the board - but their terms would expire when the old members terms expired (March 30, 2017). They could then hold a Director meeting and elect new officers with the current President passing his position to whomever is elected. But terms still expire.

1. HOA sends out notification to members that positions are available for election and solicits names for ballots at least 10 days prior to date of election (per 209 Texas Property Code 209.00593(a-1)- the "at least" may be more but not less in the governing docs of the association
2. Ballots and proxies mailed
3. Meeting convened for purposes of election - March 30, 2017
No Quorum
4. Meeting reset (the quorum requirements for a reset meeting should be in the governing docs and would probably be 1/2 of the number for the original quorum)
5. Reconvened meeting - hopefully enough proxies or actual persons for a quorum

But if this is still under developer control why isn't the developer taking care of this. As the developer has more votes than the individual property owners - it makes no sense that the developer would pass total control over to the members. All the developer has to do is exercise their majority votes to achieve a quorum and elect whomever they wish to the board.
ConchoP
(Texas)

Posts:68


04/11/2017 6:00 PM  
The developer can out vote us 3 to 1.

That being said, we were in the middle of elections when the first 4 resigned, due to learning the developer and the HOA is name in a lawsuit.

No one fill out a nomination form, so the "then" directors were the only ones running.

We had one meeting where the quorum was not met, and set a date for the reconvene, that is when 4 of them jumped ship.


Our bylaws state:

Removal of Directors and Vacancies:

Vacancies. A director's position becomes vacant if the director dies, becomes incapacitated, resigns or is no longer a Member.

Successors. If a director is removed or a vacancy exists, a successor will be elected by the remaining directors for the reminder of the term.

But now the President wants out...but he does want to appoint a board...but with his schedule he is having a hard time setting a date to meet.

He asked if he can appoint a President, the let that President appoint new board members.

But by Texas open meeting act a appointment of a board member must be done in a open board meeting.
ConchoP
(Texas)

Posts:68


04/11/2017 6:00 PM  
The developer can out vote us 3 to 1.

That being said, we were in the middle of elections when the first 4 resigned, due to learning the developer and the HOA is name in a lawsuit.

No one fill out a nomination form, so the "then" directors were the only ones running.

We had one meeting where the quorum was not met, and set a date for the reconvene, that is when 4 of them jumped ship.


Our bylaws state:

Removal of Directors and Vacancies:

Vacancies. A director's position becomes vacant if the director dies, becomes incapacitated, resigns or is no longer a Member.

Successors. If a director is removed or a vacancy exists, a successor will be elected by the remaining directors for the reminder of the term.

But now the President wants out...but he does want to appoint a board...but with his schedule he is having a hard time setting a date to meet.

He asked if he can appoint a President, the let that President appoint new board members.

But by Texas open meeting act a appointment of a board member must be done in a open board meeting.
JanetB2
(Colorado)

Posts:2665


04/11/2017 10:55 PM  
Does your developer care who is on the BOD??? Per your conversations it potentially appears the developer maybe has no desire to run or have others on the BOD. If this is the case just have the President due to past officer's resigned appoint new officers for remaining term of office until the next official Annual Meeting. At that time the owners can elect others they desire to fill the positions.

Sometimes you do what you need to in order to move forward.
ConchoP
(Texas)

Posts:68


04/18/2017 11:13 AM  
Don't know what to do, The President and prospective board member were going to meet and talk face to face about all the problems before he would appoint them in at open board meeting. He texted me and said he wants out and couldn't come to the meeting that night. I asked him not to resign until we could appoint.. and never heard back. Then after the Easter break, I found out he did turn in his resignation to the developer. Now all our board members have resigned.

We don't know what to do... we don't have go thru another election, the developer has not turned over funds like he was suppose to and we already paid for some of the elections out of our pocket.
ConchoP
(Texas)

Posts:68


04/18/2017 11:22 AM  
Sorry - We don't want to go thru another election...specially because we were told by a lawyer to get insurance first... we can't keep asking people to pay for stuff because the developer wont' turn over funds. And now with now board even if he would turn over funds we has no one to turn them over too.

This is a complete cluster#@$!
GenoS
(Florida)

Posts:1057


04/18/2017 1:41 PM  
Sounds like the homeowners need an attorney. That lawsuit hanging over the developer and the HOA's heads is like a huge millstone around everyones' necks. Without knowing any details, I'd approach this from the point of view that the developer's "long game" is to screw the homeowners over. Competent legal advice is called for.
ConchoP
(Texas)

Posts:68


04/18/2017 3:08 PM  
Been though 4 attorney, one helped us get our elections going...then jumped ship when the lawsuit came around. One was just BS, the other was great but not in his realm. This last one said it will be hard to find attorney in town that doesn't have a conflict of interest because almost all of them have someone in the firm that represents the local title companies, which of course the developers provide them business. I'm half way wanting to call the lawyer that is his client is suing the developer and tell him don't sue the HOA, we want to sue the developer. lol or write our own injunction to try to get the court to stop letting him build until things are fixed.
JanetB2
(Colorado)

Posts:2665


04/19/2017 12:00 AM  
Have you talked to your Local County or State Attorney General? At this time that would be my personal choice. You appear very familiar with your documents ... just make sure you are also familiar with your State Laws when approach. Depending on your documents and state laws dictating when the developer was required to turn over HOA money is the question. If the timeline has passed those entities may be able to help.
TimB4
(Virginia)

Posts:13855


04/19/2017 6:43 AM  
Posted By ConchoP on 04/18/2017 3:08 PM

I'm half way wanting to call the lawyer that is his client is suing the developer and tell him don't sue the HOA, we want to sue the developer. lol or write our own injunction to try to get the court to stop letting him build until things are fixed.




Or ask if they would also represent the HOA.
JohnC46
(South Carolina)

Posts:6437


04/19/2017 7:30 AM  
Concho

I am having trouble with what you want. You are under developer control yet you seem to think the answer is to get a BOD elected. While under developer control, typically a BOD is nothing more than a figurehead as in powerless.

I am not saying you do not have problems but an impotent BOD is not the answer. The answer may well be gathering fellow owners and legally going after the developer.
ConchoP
(Texas)

Posts:68


04/19/2017 8:49 AM  
John

Yes board that jumped ship was voted in by the developer hand picked they were hard for him to find anyway...and they jumped ship as soon as they heard about the lawsuit.With this lawsuit in place no one will want to be on the board. Before the president resigned we had a chance to put in our own choice of people who were willing to pay for insurance out of their pocket until we could get funds from the developer.

I'm going to contact our County Commissioner and see if the County Attorney can help.
JanetB2
(Colorado)

Posts:2665


04/19/2017 9:00 PM  
Who all is named in the lawsuit??? Is it just the developer or did they include the HOA?
ConchoP
(Texas)

Posts:68


04/20/2017 7:58 AM  
The lawsuit names the HOA, the builder and developer (who is one in the same)

They served a citation to all three, the HOA citation was served to the developers bother because he was listed on the management certificate.
The certificate was not changed when the board was elected.
JohnC46
(South Carolina)

Posts:6437


04/20/2017 10:21 AM  
Cocho

Please elaborate. Who is suing and what are they contending?
ConchoP
(Texas)

Posts:68


04/20/2017 1:42 PM  
A person came thru the development and hit a dip in the road. They said they were driving 14 mph, and didn't see it ..it took is bumper off, caused car damage and he was hurt. He claimed the dip is hard to see and there was no signage. From what I could understand from the public deposition, this person tried repeatedly to contact the developer and work something out.

It doesn't surprise me that the developer didn't do anything. Heck I knew the dips were in the development somewhere,and found one it at night and slammed on my brakes... you can't really see the dip looking at the road and there was signage (signage may have been up when this accident happened)...a very small non-reflective sign on a very tall pole. Everyone in development hates those dips because they are so deep, if you are pulling a trailer you have zig zag.

I'll try to timeline:

2008: Development was made; from 2010 - 2016 homeowners were asking when was the HOA is going to be effective.

2014: HOA bylaws were effective; ...yes homeowners did not know until 2016 ... at that time the developer, his bother and his lawyer were named as the board.
He had until Feb. 2016 to appoint five directors, that didn't happen. No annual dues were invoiced to homeowners, but since the deed restrictions say you will pay the first year at closing, some paid a HOA fee at closing, others did not.

2015: Person hits dip

2016: Feb. 2016 Person files lawsuit on HOA, builder's company, and developer.

Aug 2016 - we found out about the HOA we met and his lawyer and other lawyer determined that because he missed the deadline to appoint five directors
that we had an HOA with no board. We were advised to hold an election to get a board up and running.

Nov. 2016- first board elected

2017: We had two board meetings, started new elections; in March 2016 incumbent board members meet with developer to discus some items...they are told he is under a lawsuit and they may be dragged in. Four out of five board members jump ship, last board member jump in April.






NigelB
(Texas)

Posts:170


04/20/2017 6:11 PM  
Posted By ConchoP on 04/20/2017 1:42 PM
A person came thru the development and hit a dip in the road. They said they were driving 14 mph, and didn't see it ..it took is bumper off, caused car damage and he was hurt. He claimed the dip is hard to see and there was no signage. From what I could understand from the public deposition, this person tried repeatedly to contact the developer and work something out.

It doesn't surprise me that the developer didn't do anything. Heck I knew the dips were in the development somewhere,and found one it at night and slammed on my brakes... you can't really see the dip looking at the road and there was signage (signage may have been up when this accident happened)...a very small non-reflective sign on a very tall pole. Everyone in development hates those dips because they are so deep, if you are pulling a trailer you have zig zag.

I'll try to timeline:

2008: Development was made; from 2010 - 2016 homeowners were asking when was the HOA is going to be effective.

2014: HOA bylaws were effective; ...yes homeowners did not know until 2016 ... at that time the developer, his bother and his lawyer were named as the board.
He had until Feb. 2016 to appoint five directors, that didn't happen. No annual dues were invoiced to homeowners, but since the deed restrictions say you will pay the first year at closing, some paid a HOA fee at closing, others did not.

2015: Person hits dip

2016: Feb. 2016 Person files lawsuit on HOA, builder's company, and developer.

Aug 2016 - we found out about the HOA we met and his lawyer and other lawyer determined that because he missed the deadline to appoint five directors
that we had an HOA with no board. We were advised to hold an election to get a board up and running.

Nov. 2016- first board elected

2017: We had two board meetings, started new elections; in March 2016 incumbent board members meet with developer to discus some items...they are told he is under a lawsuit and they may be dragged in. Four out of five board members jump ship, last board member jump in April.






Who owns the roads? The City, County, or Developer (HOA). If it is the latter then the problem is that if the developer formed an HOA every dwelling in the subdivision is a member and unless the developer or HOA have liability insurance, could possibly be held liable through a special assessment to pay for the defense and also pay any awarded damages.

It the City or County own the roads then the HOA is not liable (although it still could be named in the lawsuit and have to hire counsel)
TimB4
(Virginia)

Posts:13855


04/20/2017 7:40 PM  
Concho,

If you are not on the Board, and there is no-one on the the board to appoint, then the proper procedure would be to petition the court for a receiver until the issue is resolved.

This will cause assessments to increase, as you need to pay the receiver.
However, the legality issues may be resolved by doing this.
JohnC46
(South Carolina)

Posts:6437


04/21/2017 3:54 AM  
Posted By TimB4 on 04/20/2017 7:40 PM
Concho,

If you are not on the Board, and there is no-one on the the board to appoint, then the proper procedure would be to petition the court for a receiver until the issue is resolved.

This will cause assessments to increase, as you need to pay the receiver.
However, the legality issues may be resolved by doing this.




Tim
Concho's association is still under developer control. Concho goes along as if it is not.

DouglasM6
(Arizona)

Posts:58


04/21/2017 7:05 AM  
If you're still under developer control, it'll be the developer held liable. Also, if you're still under developer control you should send them a certified letter asking them to fix the problem. I would get some stripping paint and mark the ones that affect me immediately. But that's just me. It sounds like this "Issue" has been around for a long time and people have ignored it.

Maybe it's just fun to watch people hit it hard and the bumpers fall off!
ConchoP
(Texas)

Posts:68


04/21/2017 7:51 AM  
John ,

I understand the developer has controlling votes and the HOA is just his management company. I get that.... but remember he voted in a board that jumped ship
as soon as there was a problem. He voted in a board that he did not release funds too, He voted in a board that did not purchase insurance for themselves because he would not release funds.

I understand that he can rape his own board members and homeowners and walk away laughing to the bank.
JanetB2
(Colorado)

Posts:2665


04/21/2017 12:12 PM  
Concho:

If I remember you stated they are not collecting assessments yet and that could be possibly due to the developer control. Check your State Laws because in my state the Developer is responsible for costs for all property (common area) being used for development purpose. Are the roads going to be "private" or is the local government in future going to take over the streets and make them "public"? If going to be eventually public the local government will make developer abide by their standards in order to take over in future. Potentially the membership can refuse to take over the HOA until items the Developer is supposed to fix such as the roads and settle the lawsuit takes place. The lawsuit was filed before owner's take over (you stated BOD was appointed / elected by developer and all resigned) ... is best left in the Developer's possession and hopefully financial liability..

My last HOA and another that the developer had ... we refused to take over the HOA until the developer fixed issues responsible for repairing. If you talked to the developers attorney of course he wants you all to take over the mess. As long as you are not being charged assessments (which could be due to provisions in your state law) I would let Developer dig himself out of his own hole. The alternative is as Tim stated ... look at obtaining receivership. However, a receiver will start charging assessments if for anything will be to pay receiver's fee and which are not cheap.

ConchoP
(Texas)

Posts:68


04/23/2017 12:45 PM  
The developer never collected annual assessments, the new board had no clue in the clue bag and didn't invoice assessments this year.
The developer has been maintaining all the roads and common area because he never conveyed them to the HOA. They are public county roads, the developer claims he built them to county spec, but doesn't have any paperwork to show that they were built to spec so the county won't take them over and in addition, the county doesn't have the funds to maintain the roads, that being said the county will work with development but want 25 - 35k per mile, but that will get them to take over the roads for ever.

One lawyer said they could come after the funds the HOA has ( that the developer hasn't turned over) and if necessary they can put a lien on future assessments.
JanetB2
(Colorado)

Posts:2665


04/23/2017 7:03 PM  
Ask the County for a copy of the contract they have with the Developer for his Site Improvements or check with your Country Records ... in my area they are filed with the County Records and usually noted as the Site Improvement Agreement (SIA). Generally when a developer approaches the local government to put in a subdivision they have to sign a contract and put up $$$ which are not released back until the contract requirements are met. Potentially this is the money the County should use to complete or fix items the developer was responsible for doing per his contract, if not done or incorrectly done. If there is a deposit on hold when the developer asks for its release it usually is approved by the local government via a Council Meeting. So the homeowners need to keep an eye on the County meeting agenda's if there is money the County has not yet released, so you can fight at any meeting against releasing.

In the meantime I personally (not being an attorney) would sit back and just keep a keen eye on the developer and his actions ... essentially watch him dig himself out of his hole ... and their might be some good laughs while watching. I did this and just weekly would check the County Records regarding my HOA and the Developer (can look up under their names) to see if any documents were filed. If documents were filed I visually checked them out to see exactly what they were. I mostly was making sure in future no more illegal CCR's were filed for my HOA. Also, the court records for his lawsuit should also be open source so you could watch that also to see where trending.

Keep in mind patience is a virtue and knowledge is power. Have a large binder with all HOA and Developer documents (such as his County agreement and lawsuit copies for the different court filings. Then watch him root around trying to figure out his way out of his mess. Once in blue moon after our lawsuit I would have to address some BS the developer was trying to pull and always astounded them how I knew. LOL ... my developer essentially could not take a dump without me knowing about it.
JanetB2
(Colorado)

Posts:2665


04/23/2017 7:49 PM  
Posted By ConchoP on 04/23/2017 12:45 PM

One lawyer said they could come after the funds the HOA has ( that the developer hasn't turned over) and if necessary they can put a lien on future assessments.


Does your CCR's show the roads as "common property"? Does your CCR's note anything about "future" road maintenance? If they do not then most likely the Contract with the developer noted that the County would take over the roads. If the HOA does not own the property, I would question how the County could place a lien against the HOA. He who owns the property is the entity who could receive a lien for said property.
JanetB2
(Colorado)

Posts:2665


04/23/2017 8:07 PM  
Sorry ... Missed where you said the roads are "Public County Roads". In that case the County and the Developer need to duke it out. I would contend the County is responsible for making sure the Developer abides by what was agreed between themselves. They potentially have the obligation to protect the property owners with regards to what was implied and expressed.
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