Builder has "closed doors" HOA still under his control

Started by KathyS4 • 4 replies • 1115 views

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KathyS4 (North Carolina)
Posts: 1

Posted:

Builder has "closed doors" -HOA had been 100%under control of builder - dues being paid to builder. Does anyone has knowledge on what "close door" means in a case like this - what should homeowners do to take control of HOA and elect board? Swimming pool has been locked as not enough money for maintnance, many lots have just slabs, no houses - does "close doors" means builder may, when economic conditions improve, come back in without recourse?

SusanW1 (Michigan)
Posts: 5,202

Posted:

You need a better definition than "closed doors" - bankrupt? in foreclosure? left town? Any legal papers been filed?

You need to call a meeting of the residents and get a plan.

KirkW1 (Texas)
Posts: 1,665

Posted:

Unfortunately, there are no hard answers that work in every case. One poster here lived in a neighborhood where a judge ruled that since no turnover occurred before the declarant dissolved there was no HOA.

As for the developer coming back, your guess is as good as mine without more information and unfortunately that can be hard to come by. I would contact City Hall and see if someone can help you there. Try to contact the developer and see if you can get a response. Best of luck to you in this bad situation.

GeraldT4
Posts: 1,022

Posted:

KathyS4 - Is there a local municipal department, housing a mayor, clerk, building code department, assessor, in your area? If so that would be a good place for you and a group of owners to interact with. Express your concerns, etc. It's in everyone's best interest to have homes built and sold, especially the municipality to collect taxes. There may be architectural plans of your community, as well as a Developer's Agreement on file that can show you what was promised to be built. Do you have a prospectus (governing documents) provided to you for review prior to, and a copy to keep at the close of your home? If so, is there an estimated budget?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Kathy,

Perhaps a group of homeowners could arrange a meeting with the developer to find out exactly what his plans are. As Gerald suggests, try contacting a local or state agency for info. In AZ, the State Dept of R.E. oversees the building of all developments.

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