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HOA - why two subdivision companies

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MABOAT

Member
What is the name of your state? SC

The developer to this date has control of the subdivision. He can maintain the total right until he sells the last lot. There is no board and it is entirely up to the developer to call a meeting per CC&R's. He has total control till he sells the last lot and only then does he have to convey the HOA over to the Home Owners (per CC&R's).

The developer has filed two companies with the state of SC. The first company is Subdivision, LLC and the second company is Subdivision Association - non profit.

Subdivision LLC has a recorded deed that holds the Association in "trust" till it is conveyed.

We received an invoice for our Assessments and the payment is to be written to Subdivision LLC.

The CC&R's state the dues will be paid to Subdivision Association. I can not read anywhere that they should be paid to another entity. The CC&R's also state an annual budget will be made and given to all homeowners. I have never received any financial documentation.

So, is there an issue with sending Assessments to Serenity Bay LLC? The CC&R's only talk about the budget but is there a SC HOA requirement that would give me the right to receive actual financials?
 


HomeGuru

Senior Member
What is the name of your state? SC

The developer to this date has control of the subdivision. He can maintain the total right until he sells the last lot. There is no board and it is entirely up to the developer to call a meeting per CC&R's. He has total control till he sells the last lot and only then does he have to convey the HOA over to the Home Owners (per CC&R's).

The developer has filed two companies with the state of SC. The first company is Subdivision, LLC and the second company is Subdivision Association - non profit.

Subdivision LLC has a recorded deed that holds the Association in "trust" till it is conveyed.

We received an invoice for our Assessments and the payment is to be written to Subdivision LLC.

The CC&R's state the dues will be paid to Subdivision Association. I can not read anywhere that they should be paid to another entity. The CC&R's also state an annual budget will be made and given to all homeowners. I have never received any financial documentation.

So, is there an issue with sending Assessments to Serenity Bay LLC? The CC&R's only talk about the budget but is there a SC HOA requirement that would give me the right to receive actual financials?

**A: get all the owners together and form an ad hoc association and hire legal counsel.
 

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