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Tuesday, January 16, 2018
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Subject: Board Membership
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ConchoP
(Texas)

Posts:101


01/01/2018 10:52 AM  
Please, I need interpretation of this section of Texas Property Code 209.00591(c)

Sec. 209.00591. BOARD MEMBERSHIP.

(c) The declaration may provide for a period of declarant control of the association during which a declarant, or persons designated by the declarant, may appoint and remove board members and the officers of the association, other than board members or officers elected by members of the property owners' association. Regardless of the period of declarant control provided by the declaration, on or before the 120th day after the date 75 percent of the lots that may be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members must be elected by owners other than the declarant. If the declaration does not include the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.

We are a phased community, the developer does not have a number of lots stated in the CCR or Bylaws. The CCR is dated April 2008. Our Bylaws call for 5 board members. Due to a mixture of clusters..... we have not yet been able to vote in a board, and the developer has 3 votes to homeowners one. Our elections are slated for February.

If I am interpreting this section correctly. Because the developer (the declarant) does not have the number of lots stated in the CCR and the date of the CCR;
he can only vote for 3 board members and homeowners can vote in 2. Am I understanding this correctly?
PaiN


Posts:0


01/01/2018 11:18 AM  
no

while the developer is 'in control' because of no. of lots (25%+ owned) he can appoint BOD members as he chooses w/o holding an election UNLESS they were elected by the 'membership at large'


after he 'loses control' he STILL has 3 votes to 1 for each lot still owned


he 'loses' control also after 10 years UNLESS the declaration specifies the no. of lots incl. therein

he can ALWAYS vote his votes


y'all are screwed until he leaves
ConchoP
(Texas)

Posts:101


01/01/2018 11:39 AM  
Yes, we was to appoint board members by Feb. 2016, that was never done. So as I understand from the lawyer at that time it was up to the homeowners to have an election to get an HOA going. We understood the fact that he will always out vote us because there is no way every homeowner will vote.

It says.. if the declaration does not include the number of lots that my be created, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded. I understand it as the 75% would not pertain to us because he doesn't state how many homes will be created. So even though he out votes us, he can only vote in 3 board members.
PaiN


Posts:0


01/01/2018 1:14 PM  
you may be correct


BUT


it makes NO DIFFERENCE as he will control 3 out of 5


ps.

..... elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded. .....


I believe that is a misquote, s/b AFTER 10 years etc.
ConchoP
(Texas)

Posts:101


01/01/2018 2:07 PM  
I understand, but that's all we got so it's better than nothing.

I agree it must be a typeo or something, I copied it straight from the source.
JohnC46
(South Carolina)

Posts:7113


01/01/2018 3:28 PM  
Concho

Accept the fact that you are under declarant control and well could be for a lengthy time. Many large scale developers just keep adding sections as they go thus maintaining control over some HOA's for as long as 20 to 30 years. Often in a large development it is better they run it then let the inmates run the asylum.

What is is you do not like about how your HOA is operated? Please simplify in as few a words as possible.
ConchoP
(Texas)

Posts:101


01/01/2018 5:48 PM  
JohnC46

I'm just asking for an interpretation of Texas Property Code 209.00591(c) nothing more, I don't need to constantly be reminding of what I already know.
I know we are out voted for the Century. I know the developer runs the show, I"m just looking for help understanding this sentence that seems to be worded strangely.

Especially this section: If the declaration does not include the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.

JohnC46
(South Carolina)

Posts:7113


01/02/2018 7:34 AM  
Concho

(c) The declaration may provide for a period of declarant control of the association during which a declarant, or persons designated by the declarant, may appoint and remove board members and the officers of the association, other than board members or officers elected by members of the property owners' association. Regardless of the period of declarant control provided by the declaration, on or before the 120th day after the date 75 percent of the lots that may be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members must be elected by owners other than the declarant. If the declaration does not include the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.

I believe the above is fairly simple and basically says:

1) If the amount of lots is listed in the Covenants then within 120 days of 75% being sold, one third of the BOD Members must be elected by the owners. This says no specific date but just when it happens,

2. If the amount of lots is NOT listed in the Covenants then no later then the 10th anniversary of the date the Covenants were recorded, one third of the BOD Members must be elected by the owners. This is a specific date no matter how many homes planned or sold.

I say you fall under #2 and it will have to happen in 2018 based you saying the Covenants were filed in 2008.

You say you have a BOD of five but most Bylaws will say a BOD of 3 to 9. Were I the Declarant I would want a BOD of 9 thus 3 (1/3) are elected by the owners and I get to appoint the other 6 like my son, my wife, etc. Guess who controls?


ConchoP
(Texas)

Posts:101


01/02/2018 8:39 AM  
thank you john I appreciate the explanation. Even though he will be in control with his people at least 2 homeowners will be on the board.

Even boards who are not under developer control still are over zealous and corrupt,but this is the hand we have to play.

Thank you.
MelissaP1
(Alabama)

Posts:6904


01/02/2018 3:33 PM  
So all HOA boards are corrupt? I take offense to that. You can never have an above board board if you only want to call them corrupt or crooked. Our HOA ran openly and by the rules. I brought the rules to each meeting! If someone asked a question, I would reference the rules before answering. We held our meetings OPENLY and announced. If you wanted to know something, you just asked at the meeting or via a letter that we read at a meeting.

So before you go and label ALL HOA's are crooked and corrupt you had best know you get what you put out. A HOA is only a reflection of it's members. If you don't like the reflection don't blame the mirror....

Former HOA President
ConchoP
(Texas)

Posts:101


01/02/2018 6:33 PM  
MellisaP1 Thank you for pointing that out..yes it is not ALL boards are corrupt. I think it was a simple grammar error when typing the sentence. I shall be more careful of my witting in the future.
PaiN


Posts:0


01/03/2018 7:43 AM  
aaaaah

another has succumbed to the wrath of lady M

DouglasM6
(Arizona)

Posts:537


01/03/2018 9:37 AM  
Posted By PaiN on 01/03/2018 7:43 AM
aaaaah

another has succumbed to the wrath of lady M






LOL. It's the "Former HOA President" in her sig line that does it!
DouglasK1
(Florida)

Posts:924


01/03/2018 10:20 AM  
Posted By DouglasM6 on 01/03/2018 9:37 AM
Posted By PaiN on 01/03/2018 7:43 AM
aaaaah

another has succumbed to the wrath of lady M






LOL. It's the "Former HOA President" in her sig line that does it!


I've been meaning to add "former boy scout patrol leader" to my sig but haven't had a chance yet.
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