Should I dissolve HOA?

Started by PerryS • 14 replies • 1964 views

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PerryS (Florida)
Posts: 2

Posted:

Hello all, I'll try and make this brief.I live in and am the president of a very small (5 unit ) HOA. When I decided to buy, all but one unit was in foreclosure.The place was a mess. Over time I removed all dead landscaping and redid a very simple and cost effective landscaping package. The place is vastly improved. People could knock on my door any time on any day and I would help,(renters included) unfortunately, I could not get any of the homeowners to help and none cared.In fact none of the homeowners want to serve on board or help in any way,shape,or form.The HOA has NO money to enforce statutes, I try to keep things real and I'm only concerned with the worst offenders, I don't nitpick. Yards were destroyed,landscaping was destroyed,renters having roommates with no approval, owners paying 2 months late consistently,dogs not approved, fires in backyard pits,owners won't show proof of insurance,have asked repeatedly, etc....Its very frustrating for me.I can only ask politely to curtail the behavior. Even the owners who rent do not back me at all and take the renters side every time.
I would like to dissolve HOA, other than paying for landscaping and water for sprinklers its totally useless. I was forced into this because I wanted the community to look nice and be a safe place, unfortunately I am tired of doing this "thankless" job.
I do have all the normal concerns; Common roof,what if problems. What about painting, insurance etc....
Any help would be deeply appreciated....I'm at my wits end!!!!

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By PerryS on 05/24/2015 6:01 AM
Hello all, I'll try and make this brief.I live in and am the president of a very small (5 unit ) HOA. When I decided to buy, all but one unit was in foreclosure.The place was a mess. Over time I removed all dead landscaping and redid a very simple and cost effective landscaping package. The place is vastly improved. People could knock on my door any time on any day and I would help,(renters included) unfortunately, I could not get any of the homeowners to help and none cared.In fact none of the homeowners want to serve on board or help in any way,shape,or form.The HOA has NO money to enforce statutes, I try to keep things real and I'm only concerned with the worst offenders, I don't nitpick. Yards were destroyed,landscaping was destroyed,renters having roommates with no approval, owners paying 2 months late consistently,dogs not approved, fires in backyard pits,owners won't show proof of insurance,have asked repeatedly, etc....Its very frustrating for me.I can only ask politely to curtail the behavior. Even the owners who rent do not back me at all and take the renters side every time.
I would like to dissolve HOA, other than paying for landscaping and water for sprinklers its totally useless. I was forced into this because I wanted the community to look nice and be a safe place, unfortunately I am tired of doing this "thankless" job.
I do have all the normal concerns; Common roof,what if problems. What about painting, insurance etc....
Any help would be deeply appreciated....I'm at my wits end!!!!

Hi Perry. It would help if we understood:
1. Is there any common ground that your HOA owns?
2. What services, other than landscaping, does your HOA provide?
3. Has any money been accumulated from fees over the years?

Sikubali jukumu. Read all posts at your own risk.

CarolF (Florida)
Posts: 435

Posted:

Perry - are you a condo or townhouses that are set up under a condominium organization?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Stop looking at your HOA Presidency as a "Thankless" job. It is a THANKFULL one! Believe me you are talking to the SAME President who basically ran their HOA similar to what you are doing now. I did about everything when I started and improved the place. Then I adopted the attitude of "There is ALWAYS a bigger fish". Meaning that if someone see how "Easy/good" I am doing my job eventually they will want to do better...

That is what you need to do. Meaning put a fake smile on your face and pretend you are the happiest person on earth. Keep doing the good work your doing. That is the THANKFULL part of it. You know you are contributing and doing your best. Would you be so happy if you weren't?

Start doing a "Volunteer" day to create a way for your neighbors to get involved. They may want to be involved but see that your doing everything why should they contribute? I used to do projects where the HOA paid for supplies and the neighbors the labor. Be it cleaning the pool area before opening for summer, or doing a landscaping project. Find ways to integrate their help into what you do. That will help create what your looking for. Participation.

Also make sure people know that the HOA is ONLY funded by it's members FOR it's members. That way if they want something, then they need to contribute EQUALLY amongst all the other owners to make it happen. Also have them be in charge of the project they want to do. That way they will help you out and then maybe create a "Bigger fish" out of it...

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Perry,

You mention common roofs and units. I suspect that you are a condominium. As a condominium, I doubt you can dissolve the Association without one individual purchasing the entire property. Even if you are a homeowners association, you need to find someone to aquire the common areas and common utilities.

What needs to occur is someone needs to get tough. It's difficult (if not impossible) in such a small association, as you will not be making friends by being tough.

You also said that you did this and you did that. Are there other people on the Board with you?

I understand the issue of being tired of doing the job. You appear to have made things better. Do you think it will stay that way or go back to the way it was if you leave the Board? If you think the improvements you've made will revert once you leave, then you may need to stay.

The advice I have is pick your battles. If people pay late, they should incur late charges. Late payments are easy to prove. I have been successful in encourage our late payers to utilize their financial institutions bill pay service. Many banks offer it for free and the payments can be automatic once set up.

PerryS (Florida)
Posts: 2

Posted:

Thanks for the replies. It's a town home complex. Common area would be small backyards. No pools or other amenities. Four out of 5 units owed $20,000 or more in HOA fees. Of course the banks would would wait as long as possible hoping the property values would increase in the years following the recession,(which they did) knowing their units would be maintained. They then would foreclose on unit knowing full well they're only required to pay 12 months HOA fees by law. This hurt our little community very badly.So no, there is no money for legal counsel for any ongoing problems. I've been operating the HOA on a shoestring budget. I have out of state owners wbo just want to collect they're rent checks.The only owner who lives here just scrutinizes everything and feels she should get more for her HOA fees,but yet doesn't want to be on the board.The only services the HOA provides is limited landscaping and watering, liability insurance, and Directors insurance.

PitA
Posts: 311

Posted:

Petition the courts to appoint a corporate receiver.

Temporarily expensive, but, will put y'all back on track.

The petition itself may 'create' volunteers for the BOD.

however

? Do y'all really want incompetent volunteers ?

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By PitA on 05/24/2015 9:07 AM
Petition the courts to appoint a corporate receiver.

Temporarily expensive, but, will put y'all back on track.

The petition itself may 'create' volunteers for the BOD.

however

? Do y'all really want incompetent volunteers ?

5 unit HOA. Don't think receivership appropriate to pursue at this stage.

Sikubali jukumu. Read all posts at your own risk.

AllisonD (Florida)
Posts: 449

Posted:

Perry, if you are trying to collect dues, you can collect it from the tenants. If you get a property management company even for 1 year, they can help you enforce your rules, raise dues to cover the expense of it and collect from the tenants. This will wake up your out of town homeowners and they will see you mean business. Do your docs give you the ability to fine for non-compliance?

LarryB13 (Arizona)
Posts: 4,099

Posted:

Isn't there a Florida statute that says, in effect, no matter how a person acquired the property that he is liable for all unpaid assessments since the beginning of time? Is that still in effect and does it apply to condos? If this is applicable, start filing liens and foreclosing.

If you are the only owner paying his assessments then you are also the only owner who may be eligible to vote. Until the deadbeats pay up you are in complete control. Revise the rules and bylaws as you wish. New rule number one: All rent must be paid to the association, which will then deduct any assessments due before sending the balance, if any, to the owner. Rule approved by 100% of the eligible voters.

GenoS (Florida)
Posts: 4,276

Posted:

As Allison noted, FS 720.3085(8)(a) says, "... the association may demand that the tenant pay to the association the subsequent rental payments...".

Florida statute 720.305(4) allows an HOA to suspend the voting rights of an owner who falls 90 days behind in their assessments.

Even if you've had enough - and good for you trying to fix it first - and dissolution is the way you choose to procede, use everything at your disposal first to try and shake the owners out of their slumber. Once the rent checks stop arriving they'll sit up and take notice.

PitA
Posts: 311

Posted:

KevinK7 (Florida)
Posts: 1,343

Posted:

Quote:

Posted By GenoS on 05/24/2015 4:33 PM
As Allison noted, FS 720.3085(8)(a) says, "... the association may demand that the tenant pay to the association the subsequent rental payments...".

Florida statute 720.305(4) allows an HOA to suspend the voting rights of an owner who falls 90 days behind in their assessments.

Even if you've had enough - and good for you trying to fix it first - and dissolution is the way you choose to procede, use everything at your disposal first to try and shake the owners out of their slumber. Once the rent checks stop arriving they'll sit up and take notice.

Doing so would require money. This is where I could see a management company playing a good role as an enforcer.

CarolF (Florida)
Posts: 435

Posted:

Geno - you are quoting 720 - the HOA statutes. If this is a condominium, as it seems to be, the 718 statutes would apply.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By CarolF on 05/25/2015 11:40 AM
Geno - you are quoting 720 - the HOA statutes. If this is a condominium, as it seems to be, the 718 statutes would apply.

Yeah it's not really clear. PerryS says "HOA" in his original post but he mentions "common roof" which would be more likely in a condo association.

In any case Florida condo law, FS 718.116(11)(a) says, "... the association may make a written demand that the tenant pay to the association the subsequent rental payments...", and FS 718.303(5) says, "An association may suspend the voting rights of a unit or member due to nonpayment of any monetary obligation due to the association which is more than 90 days delinquent."

Florida law between condos and HOAs can be very different but in this case they seem to agree.

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