Post by Admin on Dec 29, 2014 6:22:48 GMT -5
Here is a brief discussion by an attorney of the consequences of expired covenants:
Notice the attorney advised "immediate steps" to revitalize expired covenants. These directors are vulnerable to being sued by owners. They likely knew the covenants were expired in late 2012 or even earlier (some owners recall this being casually discussed by a former board member years earlier). They were advised by my demand letter in May 2013 that the covenants were expired...and did nothing. Instead, they dug their heels in, diddled around with the Management Company's drooling lawyers, cost Saddlebaggers a mountain of money, jeopardized the land titles of all owners and generally created an unnecessary 3-ring circus.
Why? That is the question. Perhaps that will be revealed in the post-circus aftermath.
The ramifications of allowing Covenants and Restrictions to expire and then failing to revitalize the same are grave.
First and foremost, the Association cannot lien property and collect payments from Owners who are failing or refusing to pay assessments. While the Association still remains a corporate entity, it becomes a voluntary homeowners association. Therefore, the Association would be relying on the willingness of Owners within the community to pay an association fee in order for the Association to continue to operate the common areas.
Second, while the Association would still be responsible for the common areas, it may not have the money to pay for maintaining, repairing and replacing the same. If it does not have the money to maintain, repair and replace the same, it may be breaching its obligations to the water management district or another governmental entity, not to mention its obligations to the Owners. Further, with a lack of money, the Association may be put in a financial bind and need to sell the common areas or transfer them to the local government, if that is even possible.
Third, if the Covenants and Restrictions have expired, the Association no longer has Architectural Control, if the Association had such power under its Covenants and Restrictions. Further, the Association cannot enforce the rules set forth in the Covenants and Restrictions, which means provisions governing parking, signs, pets, etc., would not be enforceable by the Association.
Therefore, if your Covenants and Restrictions have expired, the Association must make immediate attempts to revitalize them.
First and foremost, the Association cannot lien property and collect payments from Owners who are failing or refusing to pay assessments. While the Association still remains a corporate entity, it becomes a voluntary homeowners association. Therefore, the Association would be relying on the willingness of Owners within the community to pay an association fee in order for the Association to continue to operate the common areas.
Second, while the Association would still be responsible for the common areas, it may not have the money to pay for maintaining, repairing and replacing the same. If it does not have the money to maintain, repair and replace the same, it may be breaching its obligations to the water management district or another governmental entity, not to mention its obligations to the Owners. Further, with a lack of money, the Association may be put in a financial bind and need to sell the common areas or transfer them to the local government, if that is even possible.
Third, if the Covenants and Restrictions have expired, the Association no longer has Architectural Control, if the Association had such power under its Covenants and Restrictions. Further, the Association cannot enforce the rules set forth in the Covenants and Restrictions, which means provisions governing parking, signs, pets, etc., would not be enforceable by the Association.
Therefore, if your Covenants and Restrictions have expired, the Association must make immediate attempts to revitalize them.
Why? That is the question. Perhaps that will be revealed in the post-circus aftermath.
