Development starting again from scratch

Started by CarolynF1 • 9 replies • 1497 views

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CarolynF1 (Pennsylvania)
Posts: 3

Posted:

We are an old development that over the years had numerous people in charge...the last person in charge moved and took the books with them. I started it up again, was on the phone for 2 1/2 hours with IRS to open checking account. We sent letters out, got most of the monies except 5 property owners. We want to know the by laws. We are a development of 18 lots. We have 10 permanent residences and 5 vacant lots. What are our rights as far as leins? I started the assn. up again because the road is in deplorable condition.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Carolyn

Interesting.

Are you saying there was an Incorporated HOA (CC&R's, Bylaws, taxes filed, etc.) but is has been dormant (no money in, no money out, no tax filings) for a few years?

Regardless, why would you wish to restart it?

Thanks

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Carolyn:

Welcome to HOATalk.

I am guessing you must be a privately owned road?

Statutes: http://www.pacondolaw.com/statutes_upca1.html

Insure “Uniformed Planned Community Act” is highlighted. You then will have various sections as noted in the next line including those in the grey boxes. If you have problems, please let me know.

Regarding liens for Planned Community:
http://www.pacondolaw.com/upca/upca5315.html

You might double check with your local county records as in some states the Bylaws are required to be filed, but not positive on PA. If not there check with your HOA neighbors to see if someone has copy of original bylaws. Last option check with surrounding HOA’s to see if they might help out to get you going again with an example of their Bylaws for your HOA to review, change (if needed), then adopt.

CarolynF1 (Pennsylvania)
Posts: 3

Posted:

no tax filings because whenI originally started it in '95 we did not have to do this. Lately the guy who snowplows would collect the monies.

CarolynF1 (Pennsylvania)
Posts: 3

Posted:

we restarted it because the the road is in bad shape and we need to repair it and the funds just are not there.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Car

Sorry for the questions but I think more information is needed for some to be able to give you their (maybe not the best, but their) advice.

1. You say "you" started it in 1995. Please clarify, you started what?

1a. What did you legally file/register/incorporate to start it?

2. You have said several years back, it died. Were you an owner when it died?

2a. Did you agree with/allow it to die?

Thanks

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By CarolynF1 on 02/14/2012 1:48 PM
no tax filings because whenI originally started it in '95 we did not have to do this. Lately the guy who snowplows would collect the monies.

Really? Who told you that?

Why do you think you didn't have to file a tax return?

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By CarolynF1 on 02/14/2012 12:40 PM
What are our rights as far as leins?

The rights of the Association should be part of the deed restrictions.

If you don't have a copy, you need to visit your county courthouse or zoning department and get a copy. They may be able to help you with who owns the vacant lots as well.

The State Corporation Commission may, I say may as it depends on how long ago your Association would have been administratively dissolved due to failure to file annual reports, have an old copy of your Articles of Incorporation (if the Association was incorporated).

TimB4 (Tennessee)
Posts: 21,061

Posted:

Forgot to add, and this is very very important:

Until the Association is an active incorporation, the Association typically may not lien anyone.
This is because an Association that isn't incorporated typically isn't seen as a legal entity and only legal entities may file court papers.
Obviously, you need to verify this with a local attorney.

SusanW1 (Michigan)
Posts: 5,202

Posted:

If you were on the phone for 5 hours with the IRS, i am sure they told you that the corporation was "inactive" - not dissolved - and your state probably determined that, too. So you have to catch up with the annual reports to the state.

Your revenues were probably below $25,000 annually, so you have been under the IRS radar, too.

So, what is being revitalized is the board, since the corporation has been there all along. (It sounds like the road maintenance guy has been acting as a one man board.)

So - meet, and determine the road needs and start there. I think liens are not an option for you at this time, since this HOA has been lax about taking care of business and failed to do its part in taking care of business, itself. How could you lien a homeowner when there has not been a fiancially responsible board for so many years?

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