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CarolD2 (Michigan)
Posts: 6
Posted:
I will try and make this simple. Our subdivision has been around since 1958 and had added 9 other subdivisions through the years. All the subdivisions have separate Deed restrictions but are pretty much the same. The only difference is the year they were built and the fee structure for Maintenance Fund which states $ .20 per front foot all lots commencing and then the year the sub was built like July 1995 was our last subdivision. Also, to determine the maintenance charge for corner lots, the frontage thereof shall be one-half of the sum of the front and rear lot lines, plus thirty percent thereof. Said fund may be adjusted from year to year but cannot be more than doubled in any one year.

The dictators of our subdivision do not bill the members as our deed restrictions are written and charge whatever they want and are making up their own rules. Also, the board has never in its existence filed for taxes even though they take in over $200,000.00 per year and have made thousands in interest over the years. Long story just like a lot of other people here money doesn't match up. I would like to know if they have never filed for taxes are they still a legal association? Yes they do file with the state, though they did miss filing 3 years in a row and got themselves in a lawsuit and found out they weren't incorporated and had the attorney re-instate them so they could take money out of the association and pay themselves back for attorney fees they acquired through the personal lawsuit. Let me also add that these were also board members who waived their dues and were not volunteer like our by-laws state. Doesn't the membership have to vote on re-instating the association?

Please no advise on removing the board we have already been there 3 years in a row. Board is vicious and threatens anyone who tries to run for a board seat. I thank you all in advance for your comments.
BrianB (California)
Posts: 2,820
Posted:
"democracy is the system of governance that gives people the leaders they deserve."

You don't want advice on removing the board. what exactly are you looking for? advice on how to get someone else to come in and solve all the problems your owners created? If your owners are unwilling to change anything on their own, who do they think will change it for them?

as my dad would say "you made that bed son, now sleep in it. You've got no one to blame but yourself"
DonnaS (Tennessee)
Posts: 5,671
Posted:

Carol,

Other than a total mess, this entire association needs a good housecleaning. The only way I see any positive results is to hire a professional management company, replace the Board...again as you say and seek legal advice. This will cost every member and probably a good deal. How could this get so screwed up? Was anyone paying attention? The "Dictators" have done a job that no one is pleased with but where are the "no ones" When the members are so apathetic that no one steps up to take ove and make changes, then, well, you get what you got.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Carol:

You will need to read your HOA documents and State Statutes which can be found here:
http://www.legislature.mi.gov/(S(yrke3eeyqkx5qxbb25z22q3h))/mileg.aspx?page=ChapterIndex

What you stated here is usually not allowed in most states:
β€œLet me also add that these were also board members who waived their dues. β€œ

In most states HOA dues/fees are to be applied equally between all property owners.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Carol - you have made so many accusations that it's hard to get them straight.

But let's start with the board waiving their dues. Is that renumeration allowed, according to your bylaws?

How do you know for a fact that their dues were waived/
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By CarolD2 on 02/03/2011 8:34 AM

The dictators of our subdivision do not bill the members as our deed restrictions are written and charge whatever they want and are making up their own rules.

The only way to really correct this problem is to get other people on the board. If the Association can not get this to happen, then they will be stuck with the mess they find themselves in.

Quote:
Posted By CarolD2 on 02/03/2011 8:34 AM

Also, the board has never in its existence filed for taxes even though they take in over $200,000.00 per year and have made thousands in interest over the years.

I would like to know if they have never filed for taxes are they still a legal association?

Every business must file a tax return. Failure to file does not abolish the business anymore then an individual failing to file makes them a non-citizen. It does inure penalties and interest.

Please note: Most Associations are incorporated as non-profit. Therefore, the actual assessments would not be considered income.

If you truly believe that they have not filed and the Board will not listen that they have to, you may always contact the IRS and ask.

Quote:
Posted By CarolD2 on 02/03/2011 8:34 AM

Doesn't the membership have to vote on re-instating the association?

No. The membership would have to vote on dissolving the association. Failure to file an annual report or taxes does not prevent the Association from collecting assessments, providing services and/or enforcing the rules. As you discovered, it does incur penalties and other fees that the membership is responsible for paying.

Again, the only way to correct these problems is to get people on the board that will take the time to properly do the job or to hire someone (a management company or independent contractor) to the job for them.

Tim

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