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NathynH (Tennessee)
Posts: 1
Posted:
Hi all, our subdivision is in a little turmoil and we are looking for some advice. Our neighborhood started development 7-8 years ago when the market was crashing, the developer has been slowly adding homes at random times, he is now desperate for cash, and in a really aggressive move he has started to level ground next door to us at the "premium end" of the subdivision. He is planning on building 2000 sqft homes next to 4000 sqft homes because he feels that these lots will sell better.

The last few homes he has built to rent have not been finished to the same standard as when he began, plastic doors, no light posts etc. There is a covenant and the community has a lawyer trying to get an injunction to make him stop.

My question to you is this; there was no HOA when we moved in, can we form one and force the developer to conform to our CCR's to ensure that even if we can't stop him from building small homes that they at least look like the others around it.

I've attached a picture link of our subdivision, the large red square is the neighborhood as a whole, the small red square is the cove that's affected, green houses are built and where current home owners live, the orange line is where the developers "premium" lots start and the blue stars are the new home sites. Ideally we just want/need to set something up in the smaller red square to protect our end, does the whole subdivision (large red square) have to agree 100% to an HOA? I know there are no HOA laws in TN, in that instance I imagine we don't need anyone's agreement to start one but could an HOA force the builder to comply?

Many Thanks

http://i.imgur.com/HHa4LXX.jpg
LarryB13 (Arizona)
Posts: 4,099
Posted:
Nathyn,

The problem is that you would need 100% of the property owners to agree to whatever restrictions you wish to impose. One of those owners is the developer and he is not likely to agree to be restricted.

One of the lessons I have learned from this forum is that buying into an incomplete development is risky because you never know what the developer may do after you purchase.

JeffT2 (Iowa)
Posts: 874
Posted:
Go to the local government, planning commission, zoning board (or whatever it is called in your area). Make sure the new houses compatible with the original plan and plat. See what they can do for you. It won't cost you anything to try.
DouglasK1 (Florida)
Posts: 2,045
Posted:
If you already have covenants, I'm not sure an HOA would make any difference. In either case if someone ignores the covenants the final recourse is in the courts. The neighboring homeowners can sue as easily as an HOA can. Have you talked to a lawyer yet? Assuming you haven't done so, have a lawyer send a demand letter to the developer letting them know they are violating the covenants and they should stop doing so or you'll pursue further. Beyond that, the lawyer could file for an injunction, and finally, sue to enforce the covenants. Since this will cost some money, it will be better if you can find like minded homeowners to join you in this effort. If nobody else cares enough to chip in, then you'll have to go it alone and expect to spend a fair amount of money.

Escaped former treasurer and director of a self managed association.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Nathyn,

In my previous response I overlooked the fact that there are already covenants in place. Just no HOA.

As others have suggested, you should be consulting an attorney. To that add, "ASAP." In my reading of court cases I have found that once you are aware that new construction will likely violate a covenant you need to act quickly. At the very least you (or your attorney) should send a letter by certified mail to the builder pointing out the exact covenants that his project is violating. Once he has notice from anyone that his work violates the covenants and he continues to build, "he proceeds at his own peril," in the words of several court decisions. If no one objects to new construction that violates the covenants, you will play hell trying to get it torn down. The worst possible thing you can do is to sit on your hands and take no meaningful action to protect your property values.

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