Private road wants to break from subd HOA HOW

We're located in St Charles MO. We're a private road in a subd. we'd like to break away from the subd. and form our own Association. There's nothing in our Indentures/Covenants that address this issue.

Can we do this?

Since you use the word "association" I assume you are subject to some covenants.

The covenants will describe a process for making changes. Usually changes are difficult even for non-controversial matters. If this is likely to cause controversy within the community you can count on "very difficult" to "impossible,"

Beth,

What are the issues that makes you want to break away?

We pay our own Road Maintenance fees that include snow removal and any repairs..we have an account separate from the subd.

We've already gotten info regarding street light bills, liability insurance. We're scheduling a meeting next week with the lot owners on our street...we already know about 1/4 of them want to break away.

After we get the opinions of residents we plan to contact a lawyer for all necessary state, local paperwork. Our plan is to basically use the current Indentures just eliminating the subd portions.

The reasons we want out is the other two trustees (I am the third one) have been interpreting the Indentures as they see fit, they call it "clarifying" but the clarifications are actual changes to the current Indentures. The other Board members make decisions without input from residents or the the third trustee. They've setup an operating budgets for some committees with no oversight except for the committee chair and the association president.

These 2 Board members tried to take over the Road Maintenance account and deny access to questions regarding that account (money matters)with our local City & Village Tax Office to only the association president and an appointed (unelected) Treasurer.

It's gotten so bad I've started BCC residents on my street on email correspondence with these guys...just for my own protection.

We have some "selling" points to convince the Board to release us. The Indenture change vote is 67%. But there is nothing in our Indentures that state how our private road could break away.

Steve,

My understanding is that Beth is on her Board of Directors.

> We're scheduling a meeting next week with the lot owners on our street...we already know about 1/4 of them want to break away.

You need to read the procedures carefully...but...you need MORE than approval of the residents on your street, you need approval of a big enough percentage of ALL the residents. (That is, in the usual way these things are written).

Covenants are usually written so that they are very difficult to change. There is a great tendency not to vote or to vote against when a person is not sure that there are adverse consequences to him personally. And usually covenant changes require a specified fraction of the TOTAL number of possible votes, not a fraction of those voting.

But...you have your covenants, what do they say??

Another selling point is that the Board could be rid of me. I'm a stickler about keeping ALL the residents informed and this Board doesn't like that. I believe my neighbors should know what's going on in our subd. whether they attend meetings or not.

If you and your neighbors feels so stong about this, and apathy is rampant, why cant you and all your neighbors run for office and help the HOA instead of leaving it?

Steve:

Point 1: we can get insurance for $425 per year, subd. pays $1600+

Point 2: It would a nominal change in what they may pay or what we would pay. Subd pays $90 per year (that includes private street residents) Private street pays $300 per year. We are 21 lots out of 217.

Point 3: The roads into the subd. are public, the county maintains them.

Those are all good points for you, the people wanting to leave the HOA. But how are you going to talk the other 200+ owners paying more money each year is good deal for them?

An expense split 217 costs less per house than split 200 ways. Simple math.



Obviously the income is not covering the expenses. There is something your not telling us.



Lights are pretty cheap.... nice try. Liability insurance cost will remain the same price, it will not go down if you leave.

Just trying to show you how weak your argument is "before" you try and talk the other homeowners into it.

Point 1: simple math = $1200+ per year saved on subd lighting, accounts for the 7 street lights on our street.

Point 2: The income is covering everything with a surplus. Let's see the new president wants to install a sprinkler system @$2400 + yearly fees for opening/closing system in an area about 20 x 40 feet. The new pres wants to install picnic tables and playground equipment in a common ground area roughly 1.88 acres. This area has access between 2 residents yards, no area for parking and this will increase liability insurance for the subd. That might be the something I'm not telling you. The new pres decided he didn't like to signs that announce subd meetings and had nearly $500 in new sign expense, then just over $300 for banners announcing "Beautification Day" and "Garage Sale Day". Oh yeah I almost forgot he had business cards printed for himself.

Actually, you seem a bit sarcastic toward me -ex: "There is something your not telling us."

If you checked with an insurance agent on what it may cost if you became your own Association, do not equate that cost as savings to the other Association. There are certain costs that must be applied to all policies. When you remove one section of a policy (roads for instance) then the remaining costs may or may not be adjusted. For example, having just renewed our policy, the cost for liability on our 1 mile of roads is only $29.

As for savings on street lights, you may need to find out how they are metered. Our subdivision has three separate bills for our street lights. 1 bill for section 1 (which was built first). 1 bill for section 2 and 1 bill for lights the Association added later. We looked at getting all of these bills combined but the cost to the Association to rewire the meters just wasn't worth it. The cost of remetering the lights on your street might not be worth it either.