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Old 03-02-2017, 12:37 PM
 
Location: Free State of Florida
4,960 posts, read 2,238,771 times
Reputation: 5839

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We live in a new development that was initially owned by a local bank. Most of the lots were sold to two builders and bylaws/covenants were agreed upon and provided to anyone seriously looking to purchase in the development.

As I understand it, the bank enforces the HOA and it is presided over by an employee of the bank. This is to be turned over to the homeowners when the bank sells the 4 remaining lots owned by the bank. Currently, the homeowners pay no dues.

An issue has arising where one of the builders (the one that built my house) gave permission to a new homeowner to install unapproved fencing (a six-foot tall, white, PVC privacy fence). The bylaws do not clearly state the fencing type allowed but it does clearly state that ANY fencing must be approved by the ADC (in this case, the president of the HOA). I have spoken to him, as well as nearly all homeowners on the street, and the fencing was not approved as specified in the bylaws. The only approved fencing in our neighborhood is a very specific type that several homes have installed. The bank has refused to enforce the bylaws, but are unwilling to turn over the HOA.

The bank said that we can sue the homeowner, but it seems that would be an action to be taken by the HOA. Can the HOA be taken from the bank? Can we establish our own HOA?

To be clear, I am not a HOA Nazi. But I do want the bylaws enforced. If there are amendment to the bylaws, I would like the homeowners to be involved. And I sure as hell don't want things to get out of control.

What's a good path forward?
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Old 03-02-2017, 01:17 PM
 
1,835 posts, read 3,267,339 times
Reputation: 3789
Quote:
Originally Posted by Mad_Jasper View Post
We live in a new development that was initially owned by a local bank. Most of the lots were sold to two builders and bylaws/covenants were agreed upon and provided to anyone seriously looking to purchase in the development.

As I understand it, the bank enforces the HOA and it is presided over by an employee of the bank. This is to be turned over to the homeowners when the bank sells the 4 remaining lots owned by the bank. Currently, the homeowners pay no dues.

An issue has arising where one of the builders (the one that built my house) gave permission to a new homeowner to install unapproved fencing (a six-foot tall, white, PVC privacy fence). The bylaws do not clearly state the fencing type allowed but it does clearly state that ANY fencing must be approved by the ADC (in this case, the president of the HOA). I have spoken to him, as well as nearly all homeowners on the street, and the fencing was not approved as specified in the bylaws. The only approved fencing in our neighborhood is a very specific type that several homes have installed. The bank has refused to enforce the bylaws, but are unwilling to turn over the HOA.

The bank said that we can sue the homeowner, but it seems that would be an action to be taken by the HOA. Can the HOA be taken from the bank? Can we establish our own HOA?

To be clear, I am not a HOA Nazi. But I do want the bylaws enforced. If there are amendment to the bylaws, I would like the homeowners to be involved. And I sure as hell don't want things to get out of control.

What's a good path forward?
Is the president of the HOA a bank employee? If so, you may be wasting your time.
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Old 03-02-2017, 01:24 PM
 
Location: Free State of Florida
4,960 posts, read 2,238,771 times
Reputation: 5839
Quote:
Originally Posted by marksmu View Post
Is the president of the HOA a bank employee? If so, you may be wasting your time.
Yep. He agrees with us, but the bank attorney is "meh".
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Old 03-02-2017, 01:39 PM
 
Location: Central Virginia
6,562 posts, read 8,396,092 times
Reputation: 18804
Quote:
Originally Posted by Mad_Jasper View Post
We live in a new development that was initially owned by a local bank. Most of the lots were sold to two builders and bylaws/covenants were agreed upon and provided to anyone seriously looking to purchase in the development.

As I understand it, the bank enforces the HOA and it is presided over by an employee of the bank. This is to be turned over to the homeowners when the bank sells the 4 remaining lots owned by the bank. Currently, the homeowners pay no dues.

An issue has arising where one of the builders (the one that built my house) gave permission to a new homeowner to install unapproved fencing (a six-foot tall, white, PVC privacy fence). The bylaws do not clearly state the fencing type allowed but it does clearly state that ANY fencing must be approved by the ADC (in this case, the president of the HOA). I have spoken to him, as well as nearly all homeowners on the street, and the fencing was not approved as specified in the bylaws. The only approved fencing in our neighborhood is a very specific type that several homes have installed. The bank has refused to enforce the bylaws, but are unwilling to turn over the HOA.

The bank said that we can sue the homeowner, but it seems that would be an action to be taken by the HOA. Can the HOA be taken from the bank? Can we establish our own HOA?

To be clear, I am not a HOA Nazi. But I do want the bylaws enforced. If there are amendment to the bylaws, I would like the homeowners to be involved. And I sure as hell don't want things to get out of control.

What's a good path forward?
The statements I bolded are contradicting one another. It sounds like the President of the HOA could give his approval on any type of fencing since the bylaws don't specify it must conform to a certain material/height/type, etc. As long as he's cool with it, anything goes.
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Old 03-02-2017, 01:51 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
Reputation: 57821
Quote:
Originally Posted by HokieFan View Post
The statements I bolded are contradicting one another. It sounds like the President of the HOA could give his approval on any type of fencing since the bylaws don't specify it must conform to a certain material/height/type, etc. As long as he's cool with it, anything goes.
I have to agree. The lack of action by the president now constitutes approval of the new fence. For you to sue would require proof that the president does not approve of it. I suspect that at this point the bank doesn't care what happens since they have made most of their money already and are close to turning it over.
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Old 03-02-2017, 02:07 PM
 
Location: Free State of Florida
4,960 posts, read 2,238,771 times
Reputation: 5839
Quote:
Originally Posted by Hemlock140 View Post
I have to agree. The lack of action by the president now constitutes approval of the new fence. For you to sue would require proof that the president does not approve of it. I suspect that at this point the bank doesn't care what happens since they have made most of their money already and are close to turning it over.
The president is willing to act, but the bank attorney is not (or the bank is not allowing the attorney to move forward). The president admitted that he did not approve the fence. He is meeting with the neighborhood tonight.
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Old 03-03-2017, 06:58 AM
 
Location: Free State of Florida
4,960 posts, read 2,238,771 times
Reputation: 5839
We had a meeting last night. As I now understand, there is presently no HOA. The developer created the covenants and is responsible for enforcing them until it is decided to allow the residents to create the HOA. The bank has no real desire to enforce the covenants. We are writing a letter to request transfer of the yet-to-be created HOA to us. I'm not sure of how that is to be written, but I'm researching it.

It was a bit contentious at times. The builders had been telling buyers that only a certain type of fencing was allowed, until this one builder approved the privacy fence. Per the covenants, neither builder had the right to determine what buyers could erect. The covenants clearly states that approval must be provided by the ADC.

There are 5 phases in our development. Ours is the 1st phase and has nothing to do with the 4 phases. The remaining 4 phases have an allowance for rear privacy fences as long as there are no street-facing panels and there is a set distance between the rear panels and the buffer for the lot. I recommended a compromise that would follow those guidelines and the builder agreed to help the homeowner with expenses of modifying the fence.

All in all, it went better than expected.
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Old 03-03-2017, 07:46 AM
 
5,046 posts, read 9,624,436 times
Reputation: 4181
There is a large development not far from us where there are numerous versions of the covenants and restrictions. As some people bought and wanted or did not want this and that, those items were added to or subtracted from the restrictions. But only for that particular buyer. Different for the next buyer, etc. Reason is the developer was in dire straights, trouble selling and doing anything to make the sale.

Hope your home and community get things on track for your peace of mind.
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Old 03-03-2017, 08:02 AM
 
Location: Free State of Florida
4,960 posts, read 2,238,771 times
Reputation: 5839
Quote:
Originally Posted by cully View Post
There is a large development not far from us where there are numerous versions of the covenants and restrictions. As some people bought and wanted or did not want this and that, those items were added to or subtracted from the restrictions. But only for that particular buyer. Different for the next buyer, etc. Reason is the developer was in dire straights, trouble selling and doing anything to make the sale.

Hope your home and community get things on track for your peace of mind.
One thing is certain and that is that our subdivision is a rising market. They can't build houses fast enough. I think there are 32 lots in our section and only 14-15 have been sold. I'm not sure if we will be able to get control of the HOA yet. I think the legal threshold is 90 occupied.

Hopefully, the compromise will be successful and we can gain control of the approval process.
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Old 03-03-2017, 08:19 AM
 
5,046 posts, read 9,624,436 times
Reputation: 4181
Quote:
Originally Posted by Mad_Jasper View Post
One thing is certain and that is that our subdivision is a rising market. They can't build houses fast enough. I think there are 32 lots in our section and only 14-15 have been sold. I'm not sure if we will be able to get control of the HOA yet. I think the legal threshold is 90 occupied.

Hopefully, the compromise will be successful and we can gain control of the approval process.
All the best. Keep us updated.
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