Crown Point Successful in Deposing Coastland Corp!
On Saturday, October 22nd, 2016, Crown Point owners voted unanimously to remove Coastland control of their POA board and make critical changes in their By-Laws! Crown Point homeowners have now taken full control of the POA Board and are in the process of transitioning to self-governance.
Crown Point owners successfully executed the strategy developed by the Governance Committee to use provisions in the North Carolina Planned Community Act of 1999 (PCA) to wrest control of the POA from Coastland Corp and vest it exclusively in the homeowners!
As we are all painfully aware, Coastland had maintained control using By-Laws they drafted over 40 years ago. Those By-Laws granted Coastland control of Crown Point until Coastland has sold every lot within the POA. Further, the By-Laws provide that this “control” provision, as well as control of the finances could only be amended by the Developer – i.e., Coastland.
This year, Governance discovered the way out and developed a strategy to implement it. The PCA provides rules governing planned communities. However, the PCA generally applies to planned communities formed after 1998, and OSPOA and Crown Point dated to the early 1970’s. In 2013 the PCA was amended to permit “Pre-1999” POA’s to change their Declaration of Restrictive Covenants (Declarations) by the vote or written consent of 67% of the POA membership. Because provisions in Declarations take precedence over By-Law provisions this provides a mechanism for homeowners to break the shackles of Developer control and achieve self-governance.
Crown Point secured the favorable written consent of over 90% of their owners in September to amend their Declarations to provide for a Board comprised solely of homeowners. Coastland refused to file the Declaration Amendment, so our attorney filed it directly with the Register of Deeds. Coastland dragged their heels in calling the required Special Meeting, but it was finally arranged for October 22 and the rest is now pleasant history.
The owners of Ocean Sands and Crown Point have now defeated Coastland Corp. on three separate issues:
- Coastland was against building the bike path unless families and children crossed Rte. 12 to get to it. Common sense prevailed;
- Coastland opposed the creation of the Storm Water Service district whose purpose is to solve flood problems. The County and OS owners felt differently;
- Now 27 years of Coastland control of the Crown Point community is at an end!
It is BIG NEWS that Crown Point was successful without having to file a lawsuit! This shows that this mechanism works. It will work for Ocean Sands North as well! Your understanding of the issues and process, support during the two upcoming votes and completion of necessary documents in a few months are all that is required! We look forward to continuing our dialog with all owners and controlling our own future.
If you are aware of any fellow owners who have not furnished their email address(es) to the Home Owners of Ocean Sands, at admin@oshoa.org,
please encourage them to do so. It is critical that we have 100% engagement !
And, as always stay updated on our website, http://www.oshoa.org!
CROWN POINT DID IT. OCEAN SANDS IS NEXT!
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