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Subject: Take Over HOA from Developer

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LA
(Arizona)

Posts:10

08/18/2008 11:52 AM
I'm in AZ and the developer still has control over our HOA. There are about 60 homes on a golf course in our community. How can us homeowners take over the HOA? This guy has done nothing, won't even provide us with any financial information, etc. Is there a way we can get it turned over to us?

BrianB
(California)

Posts:1732

08/18/2008 12:06 PM
unfortunately LA, there isn't much you can do. you bought into an undeveloped area, and you can generally do little until the Developer turns over the reins. That will come when he meets the requirements spelled out in the bylaws or covenants, often 50% or more sold units. until then, you are at his mercy, and have very few rights, except to potentially sue in court.

LA
(Arizona)

Posts:10

08/18/2008 12:50 PM
there are only 60 homes and all but eight are sold/lived in. Does that qualify? He is just refusing to turn over the HOA. Plus now he wants to increase them.

MaryA1
(Arizona)

Posts:2157

08/18/2008 12:57 PM
LA, This is the second time you're posting asking for our help. In the first message you stated, among other things, the developer was not providing copies of financial statements; the development has no street lights and there haven't been any road improvements. I suggested you contact the AZ Dept of Real Estate. I explained the public report and asked if you had been given a copy. You also stated you and a number of your neighbors have stopped paying your assessments. I advised you against this and explained how your homes could be foreclosed. I also suggested you give this info to your neighbors. Then in another message you stated a neighbor's home is being foreclosed and asked what can be done. Apparently my advice was not taken! I also gave you info on state statutes which apply to HOAs and advised you to read them to determine what laws the developer is not following. I offered my assistance -- provided you with my email address and even offered to contact a lobbyist I know who represents the Central AZ Assn of Homebuilders. You've never answered my messages, so I don't know what steps you've taken to resolve these issues. If you don't want my assistance that's fine with me. But continuing to post messages asking for help but not taking any advice given is a wasted effort on your part and a waste of time for all of us.

KirkW1
(Texas)

Posts:1110

08/18/2008 5:45 PM
You really need to read your documents. They will specify at what percentage the association transitions to owner control. They will also stipulate any rights the developer retains. In our association's case, the developer retains veto power as long as they own a single lot in the neighborhoods. Mary has shown a deep knowledge and her advice is good to follow to get financial information.

LA
(Arizona)

Posts:10

08/19/2008 10:41 AM
this is a TOTALY different question. Furthermore, how do you know I haven't looked at the websites? Do you know if I gave the info to the neighbors?? NO, you don't. Those didn't pertain to this questions. And you said you were going to contact your lobbyist friend. You didn't say "DID you want me to contact..."? What is your problem? Am I particularly asking you? NO. This question is totally different. Why don't you mind your own business?

LA
(Arizona)

Posts:10

08/19/2008 10:42 AM
This is the second time you're posting asking for our help. In the first message you stated, among other things, the developer was not providing copies of financial statements; the development has no street lights and there haven't been any road improvements. I suggested you contact the AZ Dept of Real Estate. I explained the public report and asked if you had been given a copy. You also stated you and a number of your neighbors have stopped paying your assessments. I advised you against this and explained how your homes could be foreclosed. I also suggested you give this info to your neighbors. Then in another message you stated a neighbor's home is being foreclosed and asked what can be done. Apparently my advice was not taken! I also gave you info on state statutes which apply to HOAs and advised you to read them to determine what laws the developer is not following. I offered my assistance -- provided you with my email address and even offered to contact a lobbyist I know who represents the Central AZ Assn of Homebuilders. You've never answered my messages, so I don't know what steps you've taken to resolve these issues. If you don't want my assistance that's fine with me. But continuing to post messages asking for help but not taking any advice given is a wasted effort on your part and a waste of time for all of us.

LA
(Arizona)

Posts:10

08/19/2008 10:44 AM
And by the way, I received a call from my lawyer this morning. You are TOTALLY OFF. You have no knowledge of this whatsoever. ALL of your "suggestions" were wrong. Good thing I didn't "follow your advice". So quit giving your "assistance". You have no idea what you are talking about.

GeraldT4

Posts:932

08/19/2008 11:11 AM
LA - Really, ALL of Mary's suggestions were wrong? She is TOTALLY OFF? Even the suggestion that you pay your maintenance? I think not LA. If your attorney told you, and or you believe that you can withhold maintenance than you've got another thing coming. Your neighbor, according to you, got called out on not paying the maintenance. Not that it makes much of a difference, but curious, you wrote there were about 50 homes in one of your previous posts, now you write there are about 60? Which one is it?

KirkW1
(Texas)

Posts:1110

08/19/2008 6:34 PM
This is going to sound really mean, but isn't meant that way. But if you don't like the advice, then don't ask for it. Then again, if i were paying a lawyer then I don't know if I would take the time to come here.

MaryA1
(Arizona)

Posts:2157

08/20/2008 7:13 AM
Posted By LA on 08/19/2008 10:41 AM this is a TOTALY different question. Furthermore, how do you know I haven't looked at the websites? Do you know if I gave the info to the neighbors?? NO, you don't. Those didn't pertain to this questions. And you said you were going to contact your lobbyist friend. You didn't say "DID you want me to contact..."? What is your problem? Am I particularly asking you? NO. This question is totally different. Why don't you mind your own business? LA, No, I did not bother to contact the lobbyist. Why? Because you didn't bother to respond to my messages where I offered assistance. I specifically asked if you had received a copy of the public report. Why should I make any further inquiries on your behalf if you can't be bothered to respond to my messages? Now you have the gall to tell me to mind my own business. If that's your attitude, why are you bothering to post messages seeking help on this forum? When you don't get the answers you're looking for you say, "mind your own business"! People like you deserve what they get! BTW, please DON'T take my advice about paying your assessments. Did you ask your attorney about that piece of "wrong advice" I gave you?

MaryA1
(Arizona)

Posts:2157

08/20/2008 7:21 AM
Posted By LA on 08/19/2008 10:44 AM And by the way, I received a call from my lawyer this morning. You are TOTALLY OFF. You have no knowledge of this whatsoever. ALL of your "suggestions" were wrong. Good thing I didn't "follow your advice". So quit giving your "assistance". You have no idea what you are talking about. LA, Here's my response to your message on another thread in which you again attack my credibility. I'll be waiting for your reply indicating exactly what misinformation I gave you! And, not to worry; never again will I offer a bit of advice to you! And with your attitude, I'll be surprised that anyone else on this forum bothers with you either. Posted By LA on 08/19/2008 10:51 AM Do not listen to MaryA1. She does not know what she is talking about. (obviously) She "tried" to give me advice and it was completely wrong. I checked with a lawyer. Good thing I didn't listen to her. LA, OK, I know you now have a chip on your shoulder because you didn't like hearing what I had to say to you on another thread. But think twice before you claim "She does not know what she is talking about" and "She "tried" to give me advice and it was completely wrong". I've reviewed everything I wrote you that could be construed as "advice" and stand by my every word. I don't know who your lawyer is and I don't know what you actually told him I said, but if you quoted anything I said then I would say your lawyer doesn't know what he's talking about! Now, be man enough to tell me exactly what "advice" I gave you that was wrong. To make it easier for you, I've copied below all the perceived "advice" I wrote to you. I'm not afraid to admit when I've made a mistake, but this is not one of those times! In fact, everything I said to you can be verified by state law; but I'm sure you didn't bother to take the time to read the HOA state laws which I also referenced for you. 1. First of all, it's not uncommon for the developer to not hold any meetings while still in control of the assn. 2. Secondly, regardless of what the developer has failed to do, it's very important to CONTINUE PAYING YOUR ASSN ASSESSMENTS. Please heed my words, you home could be foreclosed if you do not pay your assessments! Please inform you neighbors of this also. 3. When you purchased your home you should have been given a copy of the pubic report. This document will give you information regarding the development and the homeowners association. The developer is required, by the Dept. of Real Estate, to give you a copy of this report before you purchase a lot and the potential buyer is required to sign a receipt acknowledging receipt of the report. 4. The AZ Dept of Real Estate is the point of contact for you. I would suggest calling the office, explaining the major things that have not been completed, i.e. any amenities not completed, lack of street lights and road improvements. 5. A few others on this forum have suggested filing a claim with the Office of Admin. Hearings (OAH). While this is an avenue available to homeowners for settling disputes, I would recommend not considering this at this time. If no state laws have been broken or covenants violated there is no basis for a claim with the OAH. I know you've stated there are a number of things the developer isn't doing; however, that doesn't mean he has broken any laws. 6. The HOA has the same lien authority as the mortgage company. If you don't pay your mortgage, the mortgage company can foreclose. If you don't pay your HOA assessments, the HOA can foreclose. And, just like a mortgage company, if the HOA forecloses you have no homestead exemption protection for whatever equity (up to $150,000) you have in your home. This is also spelled out in state statutes -- 33-1256 if you're in a condo assn or 33-1807 if you're in a planned community. 7. I guess this developer doesn't know the laws governing HOAs! Even while the assn is under control of the developer, the members do have certain rights. And, the right to see financial statements is one of them. 8. Both you and your neighbor, who has now been liened, must pay up NOW. The next step after the lien is foreclosure. AZ law states a foreclosure cannot be entered into until the delinquent assessments amount to $1,200 or until delinquent for one year, whichever comes first. However, late fees, costs and attorney fees will continue to mount up until the delinquency is completely paid off. As for your 2-months delinquency, it's only a matter of time b/4 your property is liened. Withholding your assessments because you have a beef with the developer or the BOD is the worst thing an HOA member can do.

GeraldT4

Posts:932

08/20/2008 7:35 AM
MaryA1 - LA's posts to you were extreme, kind of like a rabid dog that bites the hand that feeds it. I'd take the harsh response and misguided approach for what's it's worth, nothing.

MaryA1
(Arizona)

Posts:2157

08/20/2008 7:45 AM
Thx Gerald! It's just that I don't like being told IN AN OPEN FORUM that my advice was totally wrong, I don't know what I'm talking about, etc., etc.; at least not in the manner in which he said it. Only an AZ advocate knows the AZ HOA statutes; we have people on this forum from all over the country. I don't like my credibility being lamblasted in this manner.

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