40+ Tennessee Tiny-home owners sue over ‘zombie HOA’ they say developer still controls

Residents of the Retreat at Deer Lick Falls sued Hayes over alleged HOA control and fund mismanagement. (Realtor.com photos) More than 40 homeowners in three tiny-home communities in Tennessee are taking legal action against developer Claude 'Chip' Hayes III, accusing him of retaining control of their homeowners associations (HOAs) and mismanaging association funds. They are seeking $5 million in damages, along with control over HOA funds and records.The dispute centres on three developments including the Retreat at Deer Lick Falls, the Retreat at Sunset Bluff and Water’s Edge, Realtor.com reported. Residents there say Hayes continued to control their HOAs beyond the period allowed under the communities’ governing documents. They called it a 'zombie HOA', where a developer remains in control after residents are expected to take over.Hayes’ business model involved selling land to residents, developing roads and offering community amenities. Buyers could choose from several tiny-home models and either live in their homes or rent them as holiday properties through a property management service run by the developer. Residents also paid fees to an HOA that Hayes managed.Homeowners say p...