City Ordinances on PRD & HOA

Attorney Matthew Davis and David Andersson have often quoted city ordinance 19.29.020 to purportedly state, “Every PRD shall have a homeowners association.”  Ordinance 19.29.020 is quoted in their 4th Amended Complaint (pages 2, 3, 9) along with the claim that HNW (Homestead NW) can decide when and if to transfer the Common Open Space to our HOA.       

However, when we read ordinance 19.29.020  in Lynden’s municipal code, it consisted of one paragraph under the title “Scope”:
“The provisions of this chapter shall apply to all single family residential zones, the RMD (Residential Mixed Density) zone and all residential multi-family zones, provided that the project design includes areas of density within the overall project that are consistent with the density allowances of the multi-family zones.”

We eventually did find the correct ordinance in a letter from lawsuit-supporter, Lynn Button, to Lynden Mayor Scott Korthuis. Enclosed with his letter was a list of 235 signatures addressed to city officials for the following reason:
“We petition the City to exercise its power to enforce the Ordinance and the PRD Contract and compel the declarant to complete the formation and organization of the Homestead Owners Association (“HOA”), as required by the Ordinance.” 

Mr. Button referenced several ordinances, with ordinance 19.29.130 being the correct one: “To preserve and maintain community facilities and open space, every PRD or MPRD shall have a homeowner’s association and agreements and enforceable covenants to fund and effectively collect funds for such an organization.” 

The 2nd paragraph added more specifics: “Said restrictive covenants shall provide, inter alia (among other things), for the assessment, collection and enforcement of collection of such homeowner’s dues as are necessary for adequate maintenance of open space, common grounds and stormwater facilities, any private roads or utilities, and for performance of any other association obligations.“

So do we have an HOA or not?  According to Attorney Matt Davis in his post, “The Truth About Homestead Homeowners Association” on the plaintiffs/HOAG website: “Homestead already has an HOA.  It was formed in the restrictive covenants that were recorded in 1992… Whether the owners know it or not, they have an HOA, and they are members.”  Mr. Davis’ statement agrees with our CCRs, Article IV, that we indeed have a Homestead Owners Association.

Which brings us back to ordinance 19.29.130.  If every PRD is to have an HOA, and Homestead’s HOA has existed since 1992, what are we fighting about? Article IV, Section 4.3: As long as the owner retains ownership of the Common Open Space, our HOA operates “in advisory capacity only” and as an “unincorporated association.”

And when we read Article IV, Section 4.4.1: “In the event of transfer of the COS to the association…” makes it clear it’s up to the owner, not us.  So once again,   what are we fighting about?