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Subject: Texas - When does the Developer/Declarant lose Control?

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MarleneS
(Texas)

Posts:7

07/10/2008 2:53 PM
I thought I read somewhere that the Declarant/Developer loses control over the subdivision if he owns 20% or less of the lots in a subdivision. I have been pouring through the Texas Property Codes and can't find that. Did I dream this up? If anyone has information on this I would greatly appreciate it. Thank you!

DonnaS
(Tennessee)

Posts:2509

07/10/2008 3:03 PM
Marlene, Each Developer will write into the CC&Rs, at which point he will do the Turnover. It varies from each Developer. I have usually advised to not be in a huge hurry to go into the turnover until you are sure that the Developer has fulfilled all of his obligations to the County and membership, including an engineering study of the infrastructure. Also to include that all of the documents areworkable. The Developer can write and rewrite anything into the CC&Rs as he pleases so if there is something that you really want removed, this is the easiest time to have it done.

MarleneS
(Texas)

Posts:7

07/10/2008 3:14 PM
Donna, Thank you for the quick reply! I'm a newly elected board member and have inherited a mess. According to the CCR's the Developer will have controlling votes (4 votes for every lot he sells) until he no longer owns a lot in the neighoborhood. The County has not released bonds for three (3) of his four (4) sections since he has not gone through his one year maintenance period (even though it's been three-four years.) He recently billed the association a special assessment for the roads even though he is in the maintenance period by the county and the bonds haven't been released for those sections. Is this even legal? Three of his appointees are on the board vs two that are actual residents. The two elected members (which includes me and another resident) are concerned that money is being intertwined with his development business. Both accounts are under one (1) bank account, yet two (2) sep. accts. I've looked over the financials and it looks like he is either pocketing some of the road use deposits b/c none have been deposited into the HOA account. The elected two board members aren't allowed to have contact with the HOA attorney per since the President (Developer) has appointed himself point of contact. So we're stuck in between a rock and a hard place when we have questions and have to rely on the President/Developer's word. Per the Articles the President cannot hold the position of Treasurer and President yet he does. What can be done about this? Should I consult an outside attorney? What a mess.

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Forums > Homeowner Association > HOA Discussions > Texas - When does the Developer/Declarant lose Control?

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