Developer HOA issues (lease, HOA fees, insurance)

[NC HO]

I live in a small community with an HOA and about 35 homes and eventually there will be about 60 homes. The HOA is controlled by the developer becuase he wrote bylaws to say each lot he owns is worht 3 votes verses 1 for others. This gives him about 26 votes right now verses the 35 or so. The problem is we cannot get anything out of the HOA. We would just like to make sure the HOA has insurance and would like transparancy for our yearly HOA fees to see where it is going. He refuses to show anything saying he has control. In additon he voted in an HOA dues increase for next year.

He treatens to use HOA money to pay legal bills if we get a lawyer to get this information. We just want to make sure our money is being spend properly; just showing an insurance certificate and a bank statement would do this. The developer refuses these simple requests. Can he spend our money to defend the association he controls (which should be ours)? Any suggestions or referals to good inexpensive legal help would be appreciated. Is there anything in NC state law that can help? Attorney Generals office?

[WFW&P]

We have an HOA as well and each year members are presented with a budget/expenses/income. This is certified by an accounting firm so I would assume it is required by law.

[DevionisDream]

I feel that he can since he is the HOA =(. I know that if a person sues the HOA the HOA then uses the money to hire a lawyer and if the person wins than they are stuck with the lawyer fees. It seems to me that he is "dirty" and is pocketing the money. Why else would he not want to show it? Good Luck.

[DevionisDream]

What state are you from? Some times there are RE Agents on here that answer these questions and post links. Maybe you should post your state.

[laneynewport]

Check out this link North Carolina General Assembly - General Statutes - Chapter 47F: North Carolina Planned Community Act. I'm not sure if this applies to your community but based on what you said, it sounds like it might. Have you been given a copy of the HOA declaration that he drew up as the whole of the executive board? This cannot be right. I think he's scaring people off from bothering with getting a lawyer by threatening to spend all the money on his own representation and raising dues. Also, there is this subsection regarding voting:

[SIZE=3]§ 47F‑3‑110. Voting; proxies.[/SIZE]
[SIZE=3](a) If only one of the multiple owners of a lot is present at a meeting of the association, the owner who is present is entitled to cast all the votes allocated to that lot. If more than one of the multiple owners are present, the votes allocated to that lot may be cast only in accordance with the agreement of a majority in interest of the multiple owners, unless the declaration or bylaws expressly provide otherwise. Majority agreement is conclusively presumed if any one of the multiple owners casts the votes allocated to that lot without protest being made promptly to the person presiding over the meeting by any of the other owners of the lot.[/SIZE]
[SIZE=3](b) Votes allocated to a lot may be cast pursuant to a proxy duly executed by a lot owner. If a lot is owned by more than one person, each owner of the lot may vote or register protest to the casting of votes by the other owners of the lot through a duly executed proxy. A lot owner may not revoke a proxy given pursuant to this section except by actual notice of revocation to the person presiding over a meeting of the association. A proxy is void if it is not dated. A proxy terminates 11 months after its date, unless it specifies a shorter term.[/SIZE]
[SIZE=3](c) If the declaration requires that votes on specified matters affecting the planned community be cast by lessees rather than lot owners of leased lots, (i) the provisions of subsections (a) and (b) of this section apply to lessees as if they were lot owners; (ii) lot owners who have leased their lots to other persons may not cast votes on those specified matters; and (iii) lessees are entitled to notice of meetings, access to records, and other rights respecting those matters as if they were lot owners. Lot owners shall also be given notice, in the manner provided in G.S. 47F‑3‑108, of all meetings at which lessees may be entitled to vote.[/SIZE]
[SIZE=3](d) No votes allocated to a lot owned by the association may be cast.[/SIZE]
[SIZE=3](e) The declaration may provide that on specified issues only a defined subgroup of lot owners may vote provided:[/SIZE]
[SIZE=3](1) The issue being voted is of special interest solely to the members of the subgroup; and[/SIZE]
[SIZE=3](2) All except de minimis cost that will be incurred based on the vote taken will be assessed solely against those lot owners entitled to vote.[/SIZE]
[SIZE=3](f) For purposes of subdivision (e)(1) above, an issue to be voted on is not a special interest solely to a subgroup if it substantially affects the overall appearance of the planned community or substantially affects living conditions of lot owners not included in the voting subgroup. [/SIZE][SIZE=3](1998‑199, s. 1.)[/SIZE]

It states that no votes allocated to a lot owned by the association may be cast.

I don't know if this applies to you but this guy is an ass. Good luck.

[laneynewport]

and by the way, this sounds like dwight stone. he can't make himself the declarant and give himself three votes on lots he owns. and he can't do it even if the lots are in his company's name because he's still doing it for his own personal gain. also, he's required to give members a copy of the budget for the community within 30 days of adopting it and he also has to publish the names and addresses of officers and board members within 30 days of them being elected, although it sounds like he simply elected himself. i really hope you and the other homeowners get together and if nothing else, you can go to a lawyer and pay a modest fee for him to simply write him a letter informing him that he's full of crap and to quit throwing his weight around and threatening people with higher dues if they challenge him. most attorneys will write a letter on their letterhead letting them know they're violating state law and they know the terminology and jargon to use so once he gets that letter, he'll know that you guys are serious. and it won't cost nearly as much as actually retaining the lawyer to represent you.

[WFW&P]

Originally Posted by DevionisDream

What state are you from? Some times there are RE Agents on here that answer these questions and post links. Maybe you should post your state.

He did post it in the correct state, it's you that missed by an entire coast.

[DevionisDream]

Originally Posted by WFW&P

He did post it in the correct state, it's you that missed by an entire coast.

I like HOA forums. I know a few people who have purchased in an HOA but not enough so I've been studying HOAs and these forums since I may be purchasing in an HOA community. I admittedly didn't see the state because I just enter HOA in the search engine. Sorry.. my mistake.