Two Sections in the Woodlands Not Legally Part of the HOA Says Attorney

May WHOA Meeting during BSO presentation

By: Sharon Aron Baron

After 40 years, the assumption that our homeowners association included every section in the Woodlands proved otherwise when board members produced Articles of Incorporation that showed that there were two sections that weren’t even part of the HOA at Monday night’s meeting.

President Patti Fox and board member Larry Torn presented a legal opinion from the Law firm of Becker and Poliakoff that showed that Woodlands Sections three and four were never in the master documents for the HOA.

The lands included within the Woodlands subdivision are described as follows: Section 1, phase 1 and Section 1, phase 2, Section 2, Phase 1, Section 5, Section 6, Section 7 and Section 8
As you know, this description above noticeably leaves out Section 3 and Section 4 from the lands described.”  – Lance D. Clouse, Esq.

Amending these documents would be difficult and would require two things: The association would need to decide if they wanted to include section three and four going forward and secondly, would sections three and four want to be a part of the documents. If they both agreed, it would need to be approved by two-thirds of the members of the Association present at a meeting.

Both section three and four do not have clubhouses and each section has voluntary dues. Section three has 18 homes and only one is in arrears. However, Section four has 35 homes and 14 homes are in arrears. Residents that do pay their annual dues pay the portions of the non payers themselves to make the monthly payments to the WHOA. According to their treasurer, they don’t have enough funds to pay the HOA to the end of the 2014.

At the end of the discussion, after 40 years of the two sections faithfully participating and making payments, although not legally required to do so, the WHOA made a motion to remove all of their rights to vote from that night forward. The motion was seconded and voted forward.

In the board’s race to assure that the two sections would no longer have a vote, they didn’t realize that there could be possible ramifications. Namely, section three and four had no legal obligation to pay them from that moment forward.

If there was a chance there would be goodwill payments through 2014 from sections III and IV, the decision to abruptly remove their voting rights on May 12, 2014 may have damaged the 40 year relationship between the HOA and the two sections.

Legal opinion (click to make larger)