We recently met with yet another homeowners association that had been abandoned by their developer. In an Oct. '08 posting I wrote about this same problem and unfortunately we, the management company, are again faced with the tremendous role of attempting to fill the role of a community developer. This is a serious situation for the community and as we have done in the past, we stressed that our role as the property management company has never changed. However, since the community is about half completed, what has changed is the number of builder initiated issues needing immediate attention.
It is common for homeowners to feel "stuck" or to think that they have few options in this situation. In reality, the residents can seize control of their Board of Directors if the existing Board is not fulfilling their duties and/or if they cannot be located. Be advised that the property management company and the homeowners wanting to take control should follow the deed restrictions or consult an attorney for guidance.
In my opinion, the most important needs to consider are those of the homeowners. They are frustrated, worried and I don't blame them. Fortunately, since we do have experience dealing with abandoned communities since 2006 we will make the effort to work with them through this process. Have you been in a similar situation? If so, what did you do?
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2 comments:
What about if builder still has control of HOA and then changes status of HOA entity with Secretary of State to Forfeited existence???
Good question. Since I'm not sure how a forfeited existence case can be addressed, allow me to do some research and I will respond to you soon.
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