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JeffG9 (Florida)
Posts: 2
Posted:
I live in a small subdivision in Florida with 25 lots. I have some questions as to validity of the HOA as it exists today. The HOA was established in 2000 and transferred from the builder in 2005. Since then, only 1 person has been in control of the HOA. I'll call her Jane. In 2009, the HOA was dissolved by the State of Florida since Jane failed to pay an annual tax (Annual Report). Jane has declined to enforce any of the HOA rules, even when residents report a violation. She has increased the HOA dues beyond the allowable percentages declared in the by-laws. There has never been an HOA meeting, even when the builder was in charge prior to 2005. This means no budget meeting, no elections, etc..

So my questions:
-Since it was dissolved by the State, can the HOA still enforce collection of dues?

-What can be done to take over the HOA should some of the residents desire to do so?

-Can the HOA place a lien on a persons current home for prior year dues even though they have already sold their property in the subdivision?

-What recourse do the residents have if none of the requirements of the HOA have been met (Dues increase, annual meetings, etc)

I know that these questions need to be answered by an attorney before any action should be taken, but I'd like to know if anyone has run into these situations before, and what the outcome has been.

Thanks!
JeffG9 (Florida)
Posts: 2
Posted:
As it turns out, just after posting, another post with some of the same issues came to the top of the forum. Lot of good information. Still trying to go through it all.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
the HOA still exists, the state merely terminated the corporation

w/o the corporation each owner is now subject to personal liability

y'all still have common elements and deed restrictions

READ THE 'DOCS' UNTIL YOU UNDERSTAND THEM
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:

-What can be done to take over the HOA should some of the residents desire to do so?


Start by giving Jane a call, or knock on her door. Tell her you want to get more involved with the HOA and would like to setup a time to meet. No need to bring in the lawyers. Sheesh.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Just keep in mind through this entire process. There is no "us vs them" The HOA is yours. If stuff is not getting done, you need to step up and help out. Especially because your HOA only has 25 people.

Its likely she did not "raise your dues" on her own. Expenses go up, dues go up. There is not an unlimited source of money. So if expenses go up and dues do not go up, its time to start cutting expenses. Its really quite simple.
JH3 (Maryland)
Posts: 67
Posted:
1) If your HOA was dissolved by the state, you would know. When the state takes over an HOA, its a very unpleasant experience for everyone in the HOA. The state tells you what you're going to pay, and what you're going to do. They most likely revoked the corporate charter. So its still an HOA.

2) Your documents should provide for a special meeting to be held by the members to discuss a specific issue - in this case the removal of a board member. There is also a provision for removing board members. And the board generally is required to have at least 3 members, not only 1.

3) HOA's typically have a lien on the property, which never goes away, regardless if there is an outstanding amount or not. The association can go after you personally for not paying prior assessments, even after you have sold your home. Essentially, the association is suing you for unpaid assessments... and the HOA typically wins.

4) First, request a copy of the minutes, meeting notices, budget, etc for the years/months of concern. If you cannot obtain a copy, then its most likely that there isnt a copy, which means you have a basis for argument in court that the association's increase in fees was never officially passed.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JH3 on 01/30/2013 1:37 AM
1) If your HOA was dissolved by the state, you would know. When the state takes over an HOA, its a very unpleasant experience for everyone in the HOA. The state tells you what you're going to pay, and what you're going to do. They most likely revoked the corporate charter. So its still an HOA.

Wrong.

When the state dissolves a corporation, no one comes knocking on the door to take over.

I have a corporation that was administratively dissolved and I did not even know it until three years later.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JohnB26 on 01/29/2013 6:10 AM
the HOA still exists, the state merely terminated the corporation

w/o the corporation each owner is now subject to personal liability

y'all still have common elements and deed restrictions

READ THE 'DOCS' UNTIL YOU UNDERSTAND THEM

Oh, John! How I wish you would just see things correctly - you know, my way.

Seriously, by purchasing property subject to the CC&R's, the owners agreed to join the ABC Homeowners Association and somewhere in the CC&R's it will spell out that the association will be a Florida non-profit corporation. If that non-profit disappears for any reason, they got problems. The owners did not agree to join the XYZ association nor did they agree to join an unincorporated association. What they agreed to join no longer exists and without some sort of court order I see no legal way of forcing them to join some other organization.

Like the proverbial broken watch, John is right twice a day. The deed restrictions are still in force. If they prohibit pink flamingo lawn ornaments, you cannot put them in now just because the association is out of business.

I cannot let this go without a comment about the players in this situation. Jane assumed control of the HOA without much legal authority and ran it into the ground. Bad Jane. Bad, bad Jane. But what about the other 24 owners? They acquiesced to Jane's authority by taking CC&R complaints to her and they stood with their hands in their pockets while Jane imposed allegedly unlawful assessments. Nobody pressed for a meeting or a budget. Jane was a bad girl but she had 24 accomplices who stood by and did nothing.

A dissolved corporation normally does not cease to exist but it is limited as to what it may or may not do. Generally, the only activities it may carry on are those necessary to close out the corporation. This ranges from collecting money that was owed at the time of dissolution, being sued, and disposing of assets. In the case of an association, dissolution should preclude it from imposing new assessments or filing liens for assessments that became due after dissolution.

There is usually a period of time when a corporation may be reinstated. This may require payment of fines and/or late fees, payment of filing fees, and filing missing reports.

One thing to worry about is that during the period of dissolution the name of the corporation may be up for grabs. There was recently another thread on this forum where the association had been dissolved and the person who had a beef with them had formed a new corporation using that same name. Talk about messy.

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