End Master HOA Relationship

I am a new member to HOATalk and want to start by thanking all involved for providing a great forum to search, ask, and receive information regarding HOA’s.

My wife and I purchased a new townhome this past year where we came to find out later had no active HOA board, never has had (development is approximately 5 years old). Wanting to help, I along with two other concerned owners, volunteered to occupy the townhome board. Our townhome HOA which consists of 34 luxury townhomes has its own CC&R’s and bylaws, but is also part of a master HOA within a subdivision of approximately 70 conventional homes (townhome owners pay dues to both). Having an HOA board within a HOA board makes communication and cooperation between the two extremely critical. Needless to say we have neither, and it isn’t due to the lake of effort on our part. Another issue for our townhome board is the master does not enforce the CC&R’s and bylaws in the subdivision; our board does within the townhomes.

My question: Is it possible/legal for our townhome HOA to end or dissolve our relationship with the master HOA? It would be an absolute last resort for us to take this action but would like to possibly use it as leverage to induce some activity within the master board.

Thank you for your time.

Brad,

I'm a master association president and can understand your opinion. Our master association does not involve itself in enforcing CCRs and by-laws in "territories" governed by a direct HOA board - condo HOA board for our condos, town home HOA board for our town home neighborhoods. We focus on the common amenities shared by all the sub-communities, enforcing the rules that apply to our park, lake, pool and dog park but can mediate disputes (but never do) if a sub-HOA board really finds itself in an unworkable situation. The individual town home and condo HOA boards meet monthly. Our master association meets quarterly when things are well on the property. We provide oversight of operations through a property manager. The sub-boards must be more "hands on." A lack of communication may, in fact, be a reflection of a separation of powers concept.

Don't wish for a meddling master association if there are other "local" HOA boards serving segments of your neighborhood. You'll find the master association board will, eventually, make rules interpretations on behalf of, and at possible odds with, your town home board. Portions of the neighborhood not served by a sub-HOA board SHOULD be guided by master association direction. In these areas, you have a beef.

Floating the idea of dissolving your town homes' participation in the master association is likely near-impossible, would isolate your homes when your residents could not use amenities and possibly inflict a fatal wound on the master association's finances - which is absolutely worse than having soft enforcement of by-laws. In many cases, volunteer board members can't bring themselves to confront their own neighbors over violations due to the stereotype of being an HOA officer. This is where property managers, paid professionals, are best equipped to handle "dirty work." But, I digress.

I can tell you, though, that operating a quality HOA board, even at the neighborhood level, is infectious and will build credibility as other boards see how you work and whether you're effective without falling into stereotypical HOA board conflicts that arise when conducting business and confronting controversial topics.

I'm a village president in a muti-level HOA. One of our village board members keeps bringing up breaking away from the master association until he's reminded that the master association owns the roads in the development.

Brad,

It certainly is legal to dissolve the relationship. Check your governing documents as it should provide guidance.

For example, our master association by-laws will not allow us to dissolve - or even close the legacy amenities - without 100% affirmation of ALL property owners. That's an impossible hurdle for our organization IF the situation arose.

Removing your town homes from the master association won't solve your complaint - only cement the fact that you and your neighbors get ignored by most of those around you on business matters.

Hi Susan-

The townhome streets are at the entrance of the subdivision. Two of the three streets leading into the subdivision pass though the townhomes; but again they are technically city streets. Water lines and landlocks are not an issue.

Within the townhomes we pay to have our driveways, sidewalks,and (city) streets maintained because the city is often slow to get to the subdivision streets. It costs us but the townhome owners feel it's worth it.

Other than the money, there are no ties. We cover 100% of our own expenses, plus subsidize the rest of the subdivision, which is my point. The fact the master will not cooperate and communicate in my opinion unacceptable and leads to the aggravation.

Here is my dilema. I live in a sub-association and the president of the sub-associaton is also the registered agent of the master association.

The sub-association is charged a master assesment, we have a common area that is owned by the master association (not maintained) and the sub also pays to have the common area maintained.

There are three sub-associations that share a lake, last year my association paid over 4,000 for lake fees.

I feel that we are getting hit from both ends - how can we get away from the master association?

thanks,