Posted By GaryM on 08/17/2007 4:28 AM
Thanks for your input
Developer has consistently muddled the distinctions between:
a) Construction Company
b) Development Corporation
c) Homeowner Association & its Board.
(All run by the same individual)
2. Developer Has mingled funds of Association with the Developer Corp.
We pay our assessment to developer corp.
3. The Clubhouse is owned by Developer but Assoc. funds go to its maintenance.
4. Developer has Failed for 6 years:
a) To Submit Annual Budget,
b) To give itemized financial accounting of preceding year,
c) To give notice of Quarterly Board Meetings,
d) To pay Assessments on Lots owned by Developer,
e) To create and fund a Reserve Fund,
f) To call meeting to elect Homeowner Board after 3 years,
g) To properly notify Homeowners of Amended Declaration,
In short: Has failed the Association in his fiduciary duty to exercise the utmost good faith and not to further his own interests.
The biggest problem is member ignorance and apathy.
At 6 years we are still only about 33% sold.
I would call 6 years a bit of apathy.
A developer likely doesn't have to find a reserve. the purpse of the reserve is so that there is an assurance that the association has money to fix things in a timely manner. A developer has deep pockets, so that concern isn't there. If he's failed to submit any budgets, how are your maintenance fees set? There has to be a budget to set your fees, unless your fees haven't gone up in 6 years, in which case you should shut your trap and lay low.
Fiduciary duty is an elastic concept. Things are different for a developer, as their interests are to sell units and thats well understood. Take your list of violations and spend enough money to buy 1 hour of an HOA attorney's time. It might be a goldmine for you. Or at least it might clue you in on what things you should be investigating. Suing developers is a big deal. Its a lot easier to sue a bunch of clueless board members.