Question:
In Tennessee HoA laws are quite limited. But in 2005, a developer of a subdivision in Grundy County created an HoA (with Secretary of State). Till 95% complete, he was the only permissible officer. He now completed, not particularly done a good job enforcing any HoA regulations, and now suggest “I’m resigning”.
No one want to pick up the failing HoA; where do home owners go from here? How do we transition, as it does server the useful purpose of funding a common private gravel road (for about 50 lots).
– Paul
Answer:
Hi Paul,
Upon transition, the first thing associations must do is elect a set of board members. The HOA board will then be responsible for managing the community, which includes collecting fees, hiring vendors to perform maintenance and landscaping (among others), and enforcing the rules. If the previous officer (the developer) did not enforce the rules, the new HOA board should try its best to fix the situation. The board should educate the homeowners on what the rules are and what their responsibilities are. Let them know that things will change since the developer is now out of the picture.
If no one wants to run for the board, then the association will likely need a receiver. A receiver will be the one to manage the community. Keep in mind, though, that receivers don’t come cheap and they don’t always have the best interests of the community in mind.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
