Developer Turnover of HOA and Lack of Meetings

Question:

When we bought our house in our newly constructed neighborhood, the sales rep told us that once the construction was complete and all the houses sold, the HOA, which was being run by three women in some HOA management company, would be given over to the residents entirely. It’s been three years, and all the HOA did was appoint three residents to be members but didn’t even give them titles, nor did anyone get to vote, and we have no idea how long we have to put up with them before we can actually vote on who we want. We have yet to have an in-person meeting, and have only had ONE online meeting where we had any time to ask questions (they gave us 5 minutes at the end of the meeting.) In the meantime, if they take a picture of our yard because our grass grew a little taller than they like after a week of rain, they bill us $8, well now it’s gone to $20 because they can’t figure out how to send emails with pictures attached. They ignore most of our phone calls, refuse to upkeep our playground or pick up trash out of the “natural” areas of the neighborhood. They don’t live here, so they don’t give a darn what this place looks like. Is there any way we can force the management corporation to give us elections and let the home owners actually run the home owners association?

– Jeff

 

Answer:

Hi Jeff,

According to the Texas Property Code Section 209.00591(c), the declaration may provide a period of declarant control wherein the developer may appoint board members. However, it also states that regardless of the period provided, then on or before the 120th day after the date 75% of the lots are sold to homeowners other than the developer or builder, at least one-third of the board must be elected by the homeowners other than the developer.

The section also states that if the declaration does not state the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.

Kindly review the governing documents to verify the period of developer control. It would also help to verify whether or not 75% of the lots have already been sold. If so, you may raise the aforementioned section with the developer and have an election. You may also have an election of a third of the board 10 years have passed since the declaration was recorded.

As for the meeting, Section 209.014(b) states that members may demand a meeting (via letter sent by certified mail, return receipt requested) of the members if the board has not called an annual meeting. A copy of the notice must be sent to each property owner who is a member of the association. The HOA must hold the meeting not later than 30 days after the demand. You may write a demand to hold the annual meeting if the HOA has not held one.

 

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

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