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At what point can a HOA be dissolved?

SunnyD

SunnyD

Belgian Waffler
Basically our HOA is useless and doesn't enforce jack shit and hasn't for years now. Sure, the HOA dues are essentially meaningless (they're about $12/month), but still it's free money to the board to do with what they please. Odds are they'll probably consider raising the dues here in the coming year, but as I said, they quite honestly do nothing in terms of enforcing the covenant and the members of the community have absolutely no say in the board - it's run by the former home builders with no intent to change it. There is also no incentives provided by the HOA for the community members.

So my question is given the continued neglect and dereliction of duty by the HOA, is there any real recourse to simply dissolve a HOA and all associated covenants? I mean given nearly every single covenant rule in the book has been broken at this point and nothing has been done or will be ever done about it... is there any precedent for this?

ATOT armchair lawyers, have at it!
 
Yeah, that board that is spending as they please are made up of your neighbors. Get on the board and start pushing your agenda.
 
Yeah and it's relatively cheap for each individual but if you have 100 homes, that's $25K per year that they might be using to take themselves to Vegas for their annual "board meeting". I'd try to find out WTF they're doing with the money.
 
CPA said:
Yeah, that board that is spending as they please are made up of your neighbors. Get on the board and start pushing your agenda.
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As I said - the HOA "board" is not comprised of any of the community. The HOA is run by individual membership installed by the previous homebuilders (developers) of the community prior to being sold to the new developers. The community has no say in anything HOA related, there is no votes and no way for the community to take over the HOA. Any dues are simply residual income going to the former homebuilders at this point. They have absolutely no interest in performing any function other than collecting their money.
 
Review your HOA contract, find what they aren't doing that they should be, start recording it, bring your findings to a lawyer, sue them.

This will result in a new HOA board that actually does something or a dissolving of the current HOA.

A HOA is a contract between the community, it has legal merit and can also be contested.
 
my parents did this in their development. it took ~year, a lawyer, the original developer, and a bunch of meetings... funny thing - the developer moved into a house after the HOA was dissolved.
 
SunnyD said:
As I said - the HOA "board" is not comprised of any of the community. The HOA is run by individual membership installed by the previous homebuilders (developers) of the community prior to being sold to the new developers. The community has no say in anything HOA related, there is no votes and no way for the community to take over the HOA. Any dues are simply residual income going to the former homebuilders at this point. They have absolutely no interest in performing any function other than collecting their money.
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Okay, then, missed that part. That royally sucks. Never been in an HOA that the board wasn't made up of the homeowners, at least partially.

BTW, do they ever send an annual statement of Revenue and Expenses? I know ours does. You might want to check your state laws regarding that.
 
CPA said:
BTW, do they ever send an annual statement of Revenue and Expenses? I know ours does. You might want to check your state laws regarding that.
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Yes, along with the bill.

The only thing they ever really do is grounds keeping at either entrance maybe 6 times a year when it gets way too overgrown to see anything and pay whatever management company they use to send out the bills and collect the money. There are no facilities or other amenities to spend money for upkeep on.

Expenses are quite low.
 
SunnyD said:
As I said - the HOA "board" is not comprised of any of the community. The HOA is run by individual membership installed by the previous homebuilders (developers) of the community prior to being sold to the new developers. The community has no say in anything HOA related, there is no votes and no way for the community to take over the HOA. Any dues are simply residual income going to the former homebuilders at this point. They have absolutely no interest in performing any function other than collecting their money.
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Screw that.
 
SunnyD said:
Yes, along with the bill.

The only thing they ever really do is grounds keeping at either entrance maybe 6 times a year when it gets way too overgrown to see anything and pay whatever management company they use to send out the bills and collect the money. There are no facilities or other amenities to spend money for upkeep on.

Expenses are quite low.
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Is there a fence or wall around the perimeter of the subdivision? If so, this money may be used to repair damage to the fence or wall.
 
Tread carefully. You may be able to get the HOA dissolved but not the encumbrance (like an easement on your property) which is how the HOA gets their claws in. Truth is you may never be able to fully get rid of them.

I know of a friend of a friend that got the HOA dissolved but the dissolution was anything but orderly. As a result, every home still had this encumbrance on the titles of their real property. It took a massive undertaking for some of these homeowners to be able to sell their houses down the road. The HOA ceased to exist but there was no entity to answer for this encumbrance when it came up in a title search. And a judge is not just going to get rid of that encumbrance so easily either...

Dont just stop at dissolving the HOA, get them off of your title too.
 
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SunnyD said:
Basically our HOA is useless and doesn't enforce jack shit and hasn't for years now. Sure, the HOA dues are essentially meaningless (they're about $12/month), but still it's free money to the board to do with what they please. Odds are they'll probably consider raising the dues here in the coming year, but as I said, they quite honestly do nothing in terms of enforcing the covenant and the members of the community have absolutely no say in the board - it's run by the former home builders with no intent to change it. There is also no incentives provided by the HOA for the community members.

So my question is given the continued neglect and dereliction of duty by the HOA, is there any real recourse to simply dissolve a HOA and all associated covenants? I mean given nearly every single covenant rule in the book has been broken at this point and nothing has been done or will be ever done about it... is there any precedent for this?

ATOT armchair lawyers, have at it!
Click to expand...

What state are you in? And do your HOA docs say anything about dissolving the board?

Typically an HOA is run by homebuilders until there are a threshold number of homes built, then it is transferred to the homeowners or a disinterested 3rd party.
 
NetWareHead said:
Tread carefully. You may be able to get the HOA dissolved but not the encumbrance (like an easement on your property) which is how the HOA gets their claws in. Truth is you may never be able to fully get rid of them.

I know of a friend of a friend that got the HOA dissolved but the dissolution was nothing but orderly. As a result, every home still had this encumbrance on the titles of their real property. It took a massive undertaking for some of these homeowners to be able to sell their houses down the road. The HOA ceased to exist but there was no entity to answer for this encumbrance when it came up in a title search. And a judge is not just going to get rid of that encumbrance so easily either...

Dont just stop at dissolving the HOA, get them off of your title too.
Click to expand...

Yeah removing an HOA encumberance can be no joke. Might have to issue a new deed for all the homes in the neighborhood.
 
When more than one family tracks their HOA not doing what they promise then that makes them(THE HOA) in default and voids any agreement because they broke any agreement that you signed and makes it no longer valid.

It is no longer a valid contract when you are not getting what you signed for.

Always keep proofs of payment when you hear from other home owners.
 
highland145 said:
You guys are making Sunny's day for sure.
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What state do you live in, many states require Hoa boards to be elected after a certain number of people move in. You might have an illegal Hoa and need to talk to a lawyer asap.
 
Maybe nothing has been done about the violations because your neighbors are all cool with it and never complained to the HOA...?
 
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