Missouri Ct. Says Actions of Improperly Constituted HOA Board are “Null and Void.”

Missouri Appellate Court decision (October 28, 2014).

This case involved numerous disputed issues pertaining to an 18 home subdivision where the original developer (“Developer”) went out of business after selling 5 homes and the remaining 13 undeveloped lots were acquired by Developer’s lender (“Lender”) through foreclosure proceedings following defaults on loans made by Lender to Developer. As a consequence of the foreclosure of the 13 lots, Lender acquired majority voting power among the lot owners. The original declaration for the subdivision (“Declaration”) required the creation of a homeowners association in which board members were residents of the subdivision.