HOA question

[cry884]

I would recommend Jordan Price if you need HOA attorneys.

That being said, if you PM me the name of the association, I may be able to help you find out more. If you're not incorporated correctly, you will have to pay taxes. The comment about 2/3 majority to change the covenants does not apply, because you're not trying to change your covenants - you're trying to incorporate. Articles, by-laws, and covenants are all separate.

That said, you probably are already incorporated. The developers do that before recording covenants. PM me and I'll see what I can do for free before you have to pay the Jordan Price law firm.

[wolfcub]

Originally Posted by cry884

I would recommend Jordan Price if you need HOA attorneys.

That being said, if you PM me the name of the association, I may be able to help you find out more. If you're not incorporated correctly, you will have to pay taxes. The comment about 2/3 majority to change the covenants does not apply, because you're not trying to change your covenants - you're trying to incorporate. Articles, by-laws, and covenants are all separate.

That said, you probably are already incorporated. The developers do that before recording covenants. PM me and I'll see what I can do for free before you have to pay the Jordan Price law firm.

You are correct that it does not apply to the Incorproation but they also mentioned changing them to limit the developers power. That would require a change to the covenants since it is spelled out in them.

[jackie111]

The articles of incorporation should already be on file with the clerk of court. You are probably already a non-profit corporation that are exempt from paying taxes. Not sure if you have to file anything though.

[susangkane]

Thanks!!!!!

[cry884]

Originally Posted by susangkane

Also, we want to change our covenants, which reference rights of the developer. The developer no longer owns any lots and is no longer in the picture. What is the best way to do this? Can I just re-write them, get them approved by the homeowners, and record them with the register of deeds?

Thanks for your help.

The covenants should note a "class A control period" where the developers have rights and a "class b control period" when the homeowners are in control. I would like to see the covenants. If you've already completed transition, you shouldn't need to re-write anything.

[susangkane]

Originally Posted by cry884

The covenants should note a "class A control period" where the developers have rights and a "class b control period" when the homeowners are in control. I would like to see the covenants. If you've already completed transition, you shouldn't need to re-write anything.

There is no mention of a control period. It does address class A and class B members as far as voting rights and position on the Board of Directors, but nothing about a transition after the developer has sold the lots. There has been no formal transition to my knowledge.

[tony23]

I don't know about HOA's specifically, but Articles of Incorporation are filed with the Secretary of State North Carolina Secretary of State, and many non-profit organizations can be granted non-profit status by both the state and the IRS without incorporating. This appears to be permitted under NC law: North Carolina General Statutes Chapter 59B Uniform Unincorporated Nonprofit Association Act - Legal Research

Maybe some of that info will be helpful...