Amendments to Covenants

MagdaS: This is somewhat confusing since you state the Board in 2005 were "all Developer employees", but you don't state that you have been through the turnover from Developer now to resident-controlled Board.

Not certain which 'fee' you are questioning. You state you pay a Club fee for pool, clubhouse, tennis courts which cannot be increased more than $2 per year. And, you pay a Monthly Maintenance Fee but you "do not own anything except streets and certain common areas".

Your 'Maintenance Fee' is dictated by the normal operating expenses (example: electricity, lawn/tree maintenance, snow removal, trash pickup, etc.) plus an amount determined for the Capital Reserve Fund. Your documents will state the capital asset items for which the association is responsible to repair/maintain (pool, tennis court, clubhouse, & other???). A financial report/budget is normally issued annually which should reflect by line item where any increase has occurred. Any increase in assessment fees, to my knowledge, are not required to be filed as an 'amendment' to the original documents.

Don't know if I have clarified anything for you--if not, be more specific and we will try to help.

MagdaS: You are all under developer control and according to your post, you were to continue to be for 15 yrs. (2013)--but now the developer has upped the percentage required for turnover to occur. There is no way to predict the HOA market or how far into the future it will take for 90% of units to be sold prior to turnover. So, settle down, get comfortable because you are in for a l-o-o-o-ong ride.....

You need to review your documents (under Bylaws) which will state the "governmental process" the Developer is to use prior to turnover to
residents. It may state 'Appointed Board' as opposed to an 'Elected Board' (resident control). Normally, the developer appoints Directors of his choice to serve at his pleasure and for his interests, and the Directors don't need to be members of the association. However, it is common for the Developer to choose 1-resident to be on his Board as a courtesy and to promote goodwill.

Any concerns residents have at this point will need to be taken directly to the developer, his Board, the 'token' resident Board member, or the developer's Management Company if he has contracted one. A management company would certainly be in order especially since resident control will not take place for a long time. But, remember, the management company, and anyone else the developer wants in authority, is there for him and his interests. Your (resident) interests can only be voiced by the resident Board member if indeed there is one.

You will have 'big fish to fry' here, and to be concerned over a club fee being raised $3 per year is, IMO, nothing to lose sleep over and the very least of your worries. Again, fees will constantly change with the increased costs of running the association and I don't believe changed fees are an amendment to the recorded documents.

How are residents informed of anything in your developer-controlled community? Do you have member meetings? Are you given financial reports?
Do you know who is on the Developer Board? All this is extremely important at this time and you need to know your documents and what you can expect from the developer and 'his' people. Until the time of resident control, you may be at a severe loss do anything but pray! pray! pray! that units will be sold quickly. Good Luck!