Anyone have any experience, or any real estate attorneys care to shed some light?

-Have just been elected to the board of our HOA.

-Elections were held under the premise that the original developer(declarant) was relinquishing declarant rights.

-Declarant did not participate in elections other than to abstain and allow the removel of the board they installed that consisted of corporate officers of their company.

-First board meeting was delivered a notice from declarant's attorney of these intents:
Declarant may amend the CC&Rs unilaterally. CC&Rs Sec 6.2(a). (Aside: It's not uncommon for the board to ask the developer to use its amendment right to change something in the CC&Rs.)
Lots owned by Declarant are exempt from assessment by the HOA. CC&Rs Sec. 5.1(a).
Each lot owned by Declarant controls 100 votes in the affairs of the HOA. CC&Rs Sec. 4.3.
Declarant may assign its declarant status to another builder, developer, or investor. CC&Rs Sec. 6.7.
Declarant is not subject to control by the board, the Association, or the Architectural Committee. CC&Rs Sec. 6.6.

-As a board we are all involved in real estate I do lending, one does insurance, one does real estate developing.

-As we are still 20 of 100 2 acre lots from completion, and the developer has already tried some BS on finish out, amenities, and square footage, we are very suspect.

Just trying to get a better grasp of the situation before we retain counsel.

Thanks

I would go ahead and find a lawyer and pay them for a consult.

Developers do some shady chit when it comes to HOAs. Reminds me of the Creek Meadows developer that loaned money to the HOA when the neighborhood was getting started. This way he could portray a nice hood with low HOA dues to attract buyers. Once the neighborhood was almost finished out, he called the loan forcing everybody's dues to go up to pay for what was done in the past. Profit for him.

This is where we are basically at, I really don't want to sue anyone on someone else's dime if I don't have to.

A quick review of your governing doc's should tell you if declarant is within his rights with regards to his intentions.Everything he put in his intentions is pretty well normal operating procedure in most new communities where the developer still owns property.

It is pretty much Standard practice in board elections, when transferring to homeowners, is for developer not to vote.

His letter was just reminding you that even though you comprise the board members, he still really controls the community.

Keep in mind, any money you spend on attorneys is really coming out of your pocket and your neighbors pocket. I would review the doc's first thing to make sure you have a leg to stand on.

I was HOA president for 6 years. Carefully check definition of "Lot". Our CCRs stated each lot had to pay annual dues, but the declarant had defined "Lot" in CCRs as parcel of platted land. He platted only 2 of remaining unsold lots and avoided significant annual dues. However, his 10 votes per lot were also limited only to his 2 lots, so he was unable to have gorilla vote control.