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Lot recombination

Started by OwenE • 12 replies • 3060 views

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OwenE (North Carolina)
Posts: 4
Posted:
Our Homeowners Association has decided that owners with recombined lots should pay two lot assessments reguardless of the reason the lot was recombined. In my case, the lots were recombined because one of the lots wouldn't perk. In several cases the adjoning lot wouldn't perk and was either given to the person purchasing the lot or sold at a discount. Three cases the lots were recombined because the owners purchased two lots and built their house in the center of the lots. The practice of charging for one lot has existed in some cases for almost twelve years. Our covenants do provide for lot recombinations.

I would like to hear some comments on this.

Thank you

Owen E
North Carolina
SusanW1 (Michigan)
Posts: 5,202
Posted:
Our single home subdivision used to be 40 foot lots on the lake and canals. As you can imagine, many homes were bought, torn down and larger houses built on the newly configured lot. Still, there is only one rate for "membership" - that provides water, etc. Road paving is a whole 'nuther things, and that goes by the running foot of the frontage. Our membership/assessment is based on "household" not the size of the lot.

But I have to tell you, there is "rumbling" about this kind of set-up, especially when it comes to water use. People living in small houses on 40 ft. lots are starting to complain and ask why they have to pay the same water rate as a huge house with larger family, plus a lawn watering system.
GeraldT4
Posts: 1,022
Posted:
OwenE - Very interesting situation you have there. Each lot owner in an association owns a percentage share in the HOA and usually each has one vote per lot. For example, in my association each lot has a .8 share in the association and the combined shares equal 100%. I imagine that all associations combined shares should equal 100%. So for combined lots it would give .16 share, and 2 votes, rather than one vote. If you are going to charge two lot assessments for combined lots, you'll have to consider the impact it will have on votes, meaning two votes for combined lots.
MicheleD (Kentucky)
Posts: 4,491
Posted:
In our jurisdiction, if the homeowner has TWO lots, even if they are next to each other, and builds a house in the MIDDLE of the two lots, they are assessed TWO membership assessments because they have TWO DEEDS.

The membership in OUR HOA is through the LOT, the property.

Now, we have about 4 residents who have purchased TWO lots in our subdivision. Two of those people built their home on ONE lot, as a normal placement and setback, and have a side lot now that they use sort of like a "buffer" between them and their neighbor.

One of those has purchased TWO lots, one on either side of his girlfriend's lot, and he has not built anything on it. He lives with his girlfriend, who owns the house and lot on which it sits. He is not on her deed. He pays for each lot, even though there is nothing built on it.

The 4th person bought TWO adjacent lots and placed her house on the middle of the two. We WERE sending her two assessment notices until she went downtown and had the two lots COMBINED into one single parcel.

NOW she only gets ONE assessment notice because she only owns ONE PARCEL (LOT), even though it is twice the size of the other lots.

We cannot change or increase/decrease annual assessments based on LOT/PARCEL SIZE. We have 9 separate sections and the lot sizes vary considerably among the 9 sections.

So, if the homeowner legally combines the two lots into a new, single parcel, according to OUR governing documents, we can only charge ONE assessment. Otherwise, if a homeowner owns two separate parcels, eve if they built a house in the middle of them, they still have TWO SEPARATE PARCELS, each one responsible for its own assessment fee.

MicheleD (Kentucky)
Posts: 4,491
Posted:
And, yes, as Gerald pointed out, those homeowners with two separate parcels DO have 2 votes, one for each parcel.

However, the homeowner who legally combined her lots into a single parcel, now only has ONE VOTE as a result.

MaryN (Virginia)
Posts: 125
Posted:
This has been an issue in our association. Several property owners combined their lots for "tax" purposes...but they still have 2 deeds..one for each lot. We have been told by council..to combine the lots as one..there is an a legal way to do so..but..it means changing the subdivision plat..and that will require 100% of the owners to sign on..please get good legal council..an attorney who deals with home owner association law. For years our association had billed one fee for combined lots. When challenged in court the Judge told the board that they had to bill according to deeds..
MaryN
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By GeraldT4 on 08/28/2008 5:56 AM
OwenE - Very interesting situation you have there. Each lot owner in an association owns a percentage share in the HOA and usually each has one vote per lot. For example, in my association each lot has a .8 share in the association and the combined shares equal 100%. I imagine that all associations combined shares should equal 100%. So for combined lots it would give .16 share, and 2 votes, rather than one vote. If you are going to charge two lot assessments for combined lots, you'll have to consider the impact it will have on votes, meaning two votes for combined lots.

Gerald,

Do you live in a condo assn? The description of a planned community (at least in AZ) is that the assn owns the common areas. The individual property owners (members) do NOT own a % of the common area (or HOA as you put it); they only own their individual property. The description of a condo is that the property owner owns a separate interest in his unit together with an undivided interest in the common area.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Owen,

I would say the answer to your dilemna should be found in your gov. docs. If it specified every lot owner is a member of the assn, then anyone who owns 2 lots would have 2 memberships and pay 2 assessments. If some of the lots have been recombined then, IMO, the plat should be changed to reflect the changed number of lots. Exactly what do your docs say about "recombining" lots?
OwenE (North Carolina)
Posts: 4
Posted:
Four of the lots were recombined by the developer and three were recombined by the owner, however, only one deed each exist for all seven of the lots. Nowhere in all the records I have reviewed show that I have two lots. My deed, the plat plan and the tax records show me with owning one lot. In my case, I have a septic mound covering two thirds of the second lot that the HOA claims I own.

Any comments?

OwenE
North Carolina
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By OwenE on 08/28/2008 7:47 AM
Four of the lots were recombined by the developer and three were recombined by the owner, however, only one deed each exist for all seven of the lots. Nowhere in all the records I have reviewed show that I have two lots. My deed, the plat plan and the tax records show me with owning one lot. In my case, I have a septic mound covering two thirds of the second lot that the HOA claims I own.

Any comments?

OwenE
North Carolina

Owen,

If you have only one deed that covers the entire sq footage of all your property then I would say that should suffice as proof that you do not have 2 lots! I don't know how the BOD can say you have 2 lots if you're only being taxed for one! Show them this proof, if need be.
OwenE (North Carolina)
Posts: 4
Posted:
The board will not listen to reason. They are convinced that we should be paying two lot assessments and until our attorney can convinced their attorney that's how it stands. Five of us have hired an attorney and this is going to cost the HOA as well as five homeowners quiet a bit of money unless we happen to win. If we win we will be asking that the HOA pay our attorney fees. Also this has caused a lot of discontent among the neighborhood. Most of the neighborhood is on our side as it stands. Our covenants clearly defines a "lot" and also provides for lot recombinations.
LindaC3 (Florida)
Posts: 526
Posted:
Our HOA is PLATTED by the County as a P.U.D.( planned urban development ) and our docs state that we are a community of 299 ( 3 ) acre lots.... We may not deviate from what was platted and approved at the COunty level.You may want to look into this with your county land and planning dept..... We are however allowed to do unity of title IF someone owns 2 lots side by side.... It only allows them to lower their tax assessment per the County BUT our docs clearly state they MUST pay a monthly assessment for EACH LOT and are entitled to one vote per lot.......... 299 votes in our HOA..........
We also MUST follow the established setbacks for each lot UNLESS the owner does unity of title BUT they still are deemed by wording of the docs to be 2 lots...... If they go over the setbacks say when building their homes they must sell the entire 2 parcels as one to any prospective buyer and let them know that they still must pay 2 assessments.......
Owen...I would highly suggest you contact your county and see what they have to say about this......Keep us informed as to what you find out...
LindaC3
MaryN (Virginia)
Posts: 125
Posted:
Owen,

We are your neighbors in VA..and 5 property owners worked with the same issue for over 10 years. We are now in a law suit which has cost over $30000 and we aren't even in court yet. We have hired very good attorneys that specialize in HOA law. They are the attorneys we asked our BOD to hire. In researching the case..the original paperwork was never filed properly..and our HOA does not qualify under the property owners act of VA as a HOA..it is a voluntary association and is like a Civic Association. Our CCR(we have no declaration)states each owner shall pay their equal share of road maintenance..so each lot pays per lot..Please get a really, really well versed in HOA law attorney.
MaryN

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