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AnneH (Arizona)
Posts: 11
Posted:
We are a small, 26-lot, subdivision in Queen Creek, AZ. The developer established the HOA as well as common areas (consisting of bridle trails around perimeter and through center of development). An automatic watering system was installed and the common areas were nicely landscaped with trees, shrubbery, etc. White rail fencing surrounds the subdivision. Before the HOA was turned over to the homeowners, the developer went bankrupt and left the scene.

This all occured in the 1999 - 2001 time frame. Only four of the original homeowners remain in the subdivision. Most of the homes have been sold with the understanding "there is no HOA."

One of the original homeowners recalls that the developer was acting as the management company, collecting HOA dues, etc. When the developer left, any HOA dues apparently disappeared. The water and electricity were turned off and there are large unpaid water bills. There were no minutes of HOA meetings, etc., left. All we have are the documents we are able to download from the County Recorders Office. These are the only documents the original homeowners received.

We just learned that our common ares are divided into six tax parcels and the tax liens are scheduled to be sold on 2/1/07. Trees and shrubbery have died and the common areas, including the entrance to the subdivision, are being overgrown with weeds.

Some of the homeowners are interested in getting together to attempt to resurrect the HOA in some minimal form with the intent of assessing sufficient dues to provide liability insurance for common areas, provide maintenance for common areas, etc.

Any suggestions on how, where to start?

Thanks!

AnneH
RogerB (Colorado)
Posts: 5,067
Posted:
Anne, read your Declaration of CC&Rs to make sure they provide for a manditory assessment (probably they do since there are common areas which should have been maintained). If so, see if you were incorporated by going to AZ secretary of state's website (if once incorporated, probably inactive now). If once incorporated you can find names of people originally involved and try to contact them to see if there is a copy of the By-laws. If a copy of the By-laws can be obtained from anyone use these to call a meeting.

If no By-laws can be found the interested owners can call an exploratory meeting to find out if a large majority of the owners want to reactivate the HOA. If there is sufficient interest then elect a Board of Directors, establish the amount of assessment for the needed budget, contact the County to check on paying back taxes and also try to get tax exemption for the common area tracts, establish By-laws, get incorporated, get D&O and liability insurance, get water (and electric?) turned on, and start saving/maintaining existing landscaping in common areas.

It will take a core of determined owners who are supported by the rest of the community.

Good Luck
AnneH (Arizona)
Posts: 11
Posted:
Thanks, Roger. We had our first meeting today with a small group of interested property owners and decided to meet with an attorney who specializes in HOA stuff. We'll see what happens.

AnneH
GlenL (Ohio)
Posts: 5,491
Posted:
Most importantly do whatever you can to keep the common areas from being sold. There was a story posted within the last few months of an Association who unknowingly lost part of the common area to tax sale and the person who bought it was trying to hold them up for big bucks to get it back.


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