HOA Not Incorporated

Well, as I started to dog through the required documents to get our building FHA approved, I cannot seem to find our Articles of Incorporation. The Secretary of State's office doesn't have any record of our Association which was formed in 1995.

Is this even possible?

We have a tax ID - does that not matter to whether or not we are incorporated?

Is it a big deal if we aren't incorporated?

We need to incorporate for FHA, so is it an easy process?

Thank you for your help!

Matt ... check with the County Records to see if they have Articles of Incorporation recorded.

Here is a link for your State Statutes:
http://www.ilga.gov/legislation/ilcs/ilcs.asp

You may want to review the following areas … it appears possibly you may not need to be incorporated, but in one of these it states you may be able to choose to incorporate later if you follow your documents regarding votes, amending, etc.

765 ILCS 115/ Property of Unincorporated Associations Act.
765 ILCS 160/ Common Interest Community Association Act.
805 ILCS 105/ General Not For Profit Corporation Act of 1986
805 ILCS 125/ Special Charter Not for Profit Corporations Act.

Have you verified who the tax ID is officially registered under?

Hope this helps.

Anyone can file for an EIN number (38 number)

This is used to open a checking acct and to file other paperwork.

The IRS would then give you a non profit corporation status.

All this is filed with the State.

Hey Rubi, thanks for the reply. We actually didn't hear about the re certification requirement which they enacted in 2010 (required to renew every 24 months), we are trying to get our building approved for the first time.

Did you have to create a LLC for your Association and then apply to the IRS for a tax exempt non profit LLC? Can I ask what the steps were that you needed to do to become an incorporated association?

You can find some of this paperwork at a Staples or other office supply store. Usually under $20. It is wherever they sell Rental agreement documentation. If they don't have it atleast get the name of the company who provides the software/paperwork and order it online. Some of the packages come with just paperwork and some with CD's. It should be helpful as a guideline on what to do and if you feel capable filing it yourself. However, I would recommend doing the paperwork and hiring a lawyer to cover your basis.

Remember a non-profit status means your association has to spend as much as it receives in. This is adequate for those associations with no expansion plans. If your HOA does have expansion plans or would like to share in the profits, then For-Profit status may be an option. However, it really comes down to TAXES and how much you really want to pay...

As far as the FHA requirements not sure on that. I do know that HUD does send out a form to be filled out anually about the status of the HOA. I've also had to fill out that form on certain types of loan closings. Which may have been FHA related for the homeowner.

We had to update and change our Bylaws, Incorporation, and documentation a few years back. I recall it was filed in our County's courthouse and stamped. So it is part of the public record if you need to find the documentation. A Real Estate agent should be able to guide you to the records department and request the documentation.