Developer Turnover in Texas HOA

Question:

We have a subdivision that is more than 80% built out but the developer keeps adding more property to the development. He has consistently made bad decisions for the HOA and threatens anyone that indicates they will seek counsel to get him removed. He says he has 51% of the vote for the HOA which makes all of our property owners votes null and void. How can we get control over our HOA?

– Lori

 

Answer:

Hi Lori,

According to the Texas Property Code Section 209.00591(c), the declaration may provide a period of developer control. You may review the declaration to determine when the developer is already supposed to turn over the community.

The same section also states that, regardless of the period of developer control stated in the declaration, one-third of the board members must be elected by owners other than the declarant:

  • On or before the 120th day after the date that 75% of the lots (that may be created and made subject to the declaration) are conveyed to owners other than the developer or a builder in the business of constructing homes
  • If the declaration doesn’t specify the number of lots that may be created and made subject to the declaration, not later than the 10th anniversary of the declaration’s recordation date

Kindly verify whether the community meets these requirements so the residents may hold an election. For further guidance, kindly consult a lawyer.

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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