Can an HOA expire.

Started by WilliamK4 • 10 replies • 2213 views

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WilliamK4 (West Virginia)
Posts: 11

Posted:

This subdivision was built in 1969, and a sentence in the covenants has brought a great debate on whether the HOA has expired. "This agreement shall run with the land and be effective thereon for 35 years. " What does this mean?. Out of 200 plus homeowners maybe 30 are paying maintenence dues. This is not enough to maintain roads or commen areas.

GlenL (Ohio)
Posts: 5,491

Posted:

Duplicate post: http://www.hoatalk.com/Forum/tabid/55/view/post/postid/181405/forumid/1/Default.aspx

Studies show that 5 out of 4 people have problems with fractions

WilliamK4 (West Virginia)
Posts: 11

Posted:

The HOA is an LLC that is still in affect. Does that still mean the covenants have expired? I have been talking with attorneys, but I don't speak lawyer.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By WilliamK4 on 10/16/2014 10:49 AM
The HOA is an LLC that is still in affect. Does that still mean the covenants have expired? I have been talking with attorneys, but I don't speak lawyer.

USUALLY, here's what it means:

"The LLC is still in effect" = the LLC was registered as a corporation with your State. That registration has not been suspended or revoked by your State. Therefore, the corporation is still in effect.

"The covenants have expired" = the terms of the restrictive covenants ended on a particular date, and were not renewed.

Covenants could expire and the LLC could still be in effect. There is no way for the State to know that the corporation is no longer operational until the HOA files a form with the State that describes the change. Those forms are generally available for downloading from your Department of State's website.

Sikubali jukumu. Read all posts at your own risk.

LarryB13 (Arizona)
Posts: 4,099

Posted:

William,

It is common for covenants to contain an expiration date, but they usually also include language that says something like, "The covenants shall automatically be renewed every ten years unless the owners vote to terminate them." Is there any language like that in your covenants?

Are you sure that the HOA is an LLC? Most HOA's are incorporated as a non-profit corporation. I have never heard of a non-profit LLC. From what I have read, LLC's do not offer the same protection against personal liability that you would get with a corporation.

Even without covenants, owners are not off the hook for the costs of maintaining roads. There is a body of common law that holds that those who enjoy the use of a road have a legally enforceable obligation to contribute to its maintenance.

TimB4 (Tennessee)
Posts: 21,061

Posted:

William,

If the roads are private, there may be State statutes or County codes that address private road maintenance.

As Glen pointed out in your duplicate posting, your question is better answered by an attorney who is versed in local laws, State statutes and will have access to your governing documents. The devil, as they say, is in the details of those documents.

WilliamK4 (West Virginia)
Posts: 11

Posted:

Yes..The HOA is incorporated. Sorry.

WilliamK4 (West Virginia)
Posts: 11

Posted:

Thank you all for your help. I have an appointment on Monday with an attorney. The fees are primarily for road maintenance. We don't have a pool, clubhouse, or any of the other amenities that some HOA 'S have. This development is in a very rural area with roads that resemble logging trails now, and this is because of the lack of funds.

WilliamK4 (West Virginia)
Posts: 11

Posted:

DouglasK1 (Florida)
Posts: 2,046

Posted:

Most likely the city or county will not accept ownership or maintenance responsibility for the roads. If there are storm drains and/or retention ponds, they will fall in the same boat. If the local government does get involved, they might set up a special taxing district to pay for required maintenance. That could end up being more expensive than if the HOA had just taken care of them.

Escaped former treasurer and director of a self managed association.

WilliamK4 (West Virginia)
Posts: 11

Posted:

You are right. West Virginia had what was known as the HARP Program. That had lost funding. And the cost would have been astronomically high. This is why we are trying to find ways for those to pay. But so far nothing has worked.

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