License SUSPENDED with State of California

A couple months back I had psoted some serious problems with my HOA president, after reading all the welcomed replies, I started taking the steps suggested in those replies in regards to my HOA president and getting him removed from board and possibly recovering some of the ridiculous fines he has imposed on myself and many other homeowners over the past year or so.

In the long process of doing this, I came across some information that could be relevant to theps in this process and would like info on the situation.

WHen I searched the HOA in the Secretary of the State of Californias website, under the business search section, our HOA's license with the State of California is in a "SUSPENDED' status, and has been since May of 2009, apparently for not submitting a Failure to file a "Statement by Common Interest Development Association" with the Secretary of State. Because it has gone so long they also now have fines with the IRS.

My question is according to the Davis-Stirling Act
Failure to file a "Statement by Common Interest Development Association" with the Secretary of State.
Consequences of Suspension. Although corporations have standing to bring and defend against lawsuits, they lose that right once they are suspended. They also lose the right to enter into contracts, collect assessments, enforce rules, enforce vendor contracts, etc. In addition, associations can lose their corporate names if someone reserves their name during the suspension period.

Does this mean that since May of last year our HOA was not legally allowed to access fines, make new rules, hire new contractors etc.. And if this is the case and they were not allowed to do any of this, what can be done if they have been doing this and continue to do so?

take John's advice

However, it sure looks that way, if what you quote from DS is applicable (i don't know the law by heart, don't know the scope, and I don't know all the details of your HOA).

Your remedy to recover money is really twofold: get on the board and petition to return it to those it was wrongfully received from, or sue.

>>>> Any government entity would send reminder notices to any HOA that has failed to re-file or re-new a status. That's how they make their money.<<<<

This is true but check the address of record on the county website. That way you can determine if the notices went to the HOA verses someone's personal PO BOX or other address unrelated to your HOA.

As previously suggested, the important thing to do is consult an attorney about the HOA status/concerns. It may be possible to get re-instated.

Hope this helps.

The President of the Board is not trying to get it reinstated, as a matter of fact it does not matter to him that our license in suspended. We as homeowners are concerned. It does not matter to him that there has been no audit of the books for over 3 years, it matters to us, but we can't get him to even let us look at the books. Several owner and I have a meeting with the board this Thursday, we are hoping to get some things settled, but I doubt that that, this guy wants complete controll of everything, Judge, Jury and Executioner.

Davis-Stirling.Com

Suspended Corporation
Reasons for Suspension. Associations can have their corporate status suspended for the following reasons:

Failure to file tax returns (Rev. & Tax Code §23301).

Failure to pay taxes (Rev. & Tax Code §§23301.5, 23775).

Failure to file a "Statement by Domestic Nonprofit Corporation" with the Secretary of State.

Failure to file a "Statement by Common Interest Development Association" with the Secretary of State.

Associations can check their s corporate status by typing in their name in the Secretary of State's website. To find out why an association has been suspended, contact the Secretary of State's office and the Franchise Tax Board:

Consequences of Suspension. Although corporations have standing to bring and defend against lawsuits, they lose that right once they are suspended. They also lose the right to enter into contracts, collect assessments, enforce rules, enforce vendor contracts, etc. In addition, associations can lose their corporate names if someone reserves their name during the suspension period.

The name search needs to be the name registered with the state.

Check your CCR's inside cover page to verify what name was used for the county clerk/recorder.

;)