How to handle a HOA that has lost its way?

Paul,

Your post leaves many questions, perhaps based on the terminology you are using.


This sentence is indicating that you had no Association.

However, Associations are created by the Deed Restrictions (aka the CC&Rs or the Declaration of Covenants). Does your property, and your neighbors, have deed restrictions?

The power and authority of the Association is exercised by the Board of Directors.
Having nobody serving on the Board doesn't mean that you have no Association. It just means that you have no Board of Directors making decisions for the Association.


Ah, so you are talking about not having a Board of Directors.


OR are you saying that you never had an Association?

I hope you see the confusion I'm trying to express.


I'm expecting that this made them the Board of Directors for the Association.
Am I correct with this expectation?



They should have had meetings.
They should have had elections.
They may or may not have made decisions.
The Board should have appointed Officers.

Let me try and explain a few things.

IF your property has deed restrictions and/or identifies common area (green spaces, streets, parking lots, etc.) or amenities (playgrounds, clubhouse, pool, etc.) then the deed restrictions likely created an Association to oversee and maintain these common areas and/or amenities.

Homeowner Associations are governed by a chain of governing documents and laws.
The governing documents include:
The Deed Restrictions (CC&Rs)
The Articles of Incorporation (if the Association is incorporated)
The Bylaws
Resolutions (formal decisions of the Board of Directors).

The Board of Directors exercise the authority and the power of the Association by making the decisions on what assessments will be, what the money will be spent on, what contracts to award, etc.

The Board will usually appoint individuals (typically from amongst themselves) to serve as Officers. The Officers carry out the day to day tasks of running the Association (collect and deposit money, pay bills, organize meetings, oversee contracts, etc.).


The Board and Officers of the Association should be complying with the governing documents. If they do not, then it's up to the membership (the rest of the homeowners) to make sure that they do. This might be done by asking questions, replacing the board or, in worst cases, going through the courts.


That would typically be a decision handled at the Board level.


Is it legal, probably.
Is it being ran properly, based on your posts - I doubt it.

What can you do about it -

1) Offer to serve on the Board and be part of the decision process.

2) Offer to organize a meeting of the general membership so elections can be held. If there is only one person on the board it could be that they simply have too much work to do and some things are dropped. It shouldn't happen but it does. This is why I suggest that you offer to help with the work load.

3) Encourage others to serve on the Board.

4) Worst case, if nobody wants to serve on the Board, petition the courts for receivership. It's not the best option as assessments will go up to pay for the receiver (the individual who the court places in charge to straighten things out)

5) Read and understand your governing documents.

6) Participate in the process by serving on committees, serving on the Board, offering to help, talk with the neighbors and gather support. etc.

I hope this helps,

Tim

Paul,

Tim's comments are right on the money.

Perhaps the most crucial question is whether there were any restrictions in effect when you purchased your home? Looking at your deed should answer this question; if the deed says something like "subject to the restrictions recorded" with a reference to where the restrictions are found, then there are some restrictions and you need to find out what those restrictions are.

If there are no restrictions or if the restrictions do not require membership in an association, then you cannot be forced to become a member of an association without your consent. If there is no mandatory membership in an HOA, then what these others have formed is essentially a voluntary civic improvement association.

yes we had deed restrictions, but no one enforces them, even though we have a property manager.

We have not had any type of real HOA since 95, since then its been nothing but fighting and no one wants anything to do with being on the HOA. We only have 64 homes.

For the past three years we have only had "one BOD" with no meetings, no votes, no anything, in over a year, he runs the "HOA" as if he is the King of our subdivision and does whatever he wants... including replacing all the street signs in our Sub. at a cost of 13K with no meeting or votes.

Really this is legal, this is binding to all of us???