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HuskyP (Michigan)
Posts: 2
Posted:
Hello everyone,
We live in a very rural sub ran by a seemingly non existent HOA. Our 4 roads within the HOA are gravel and have not been kept up and are considered non passable. People are starting to drive on others lawns to avoid the pot holes. The main road off the sub is public road and gets fixed routinely by the county. For whatever reason, ours are now neglected by the HOA and are not graded or fixed and now yards are taking a toll. I recently went on the Licensing and Regulatory Affairs site and see that our HOA has a filing status of "Automatic Dissolution" and has had the status since 2013. All reports are listed on the state ran site for nearly every year up until 2010 and then in 2013 listed as dissolved. So, current day nothing is getting fixed but here we are still getting our bill to pay the yearly HOA fee.

What's next? Do we ask the county to take over the up keep of the roads if the HOA has been automatically dissolved? Are they allowed to still collect HOA fees?

Any insight is so appreciated!!
NpS (Pennsylvania)
Posts: 4,216
Posted:
Automatic dissolution just means that someone didn't file a require form with the state in 2013. Not a big deal to get it reinstated - Can probably use the same govt website to do the filing. May have to pay a few years of fees.

HOA still exists. But until it's reinstated, it doesn't have the protection of corporate laws. You may be individually liable.

Yes the HOA can still collect fees.

Your road issue is more complex. Depends what your Declaration (something that should have been filed with the local Recorder of Deeds) says.

Recently, we went to our township asking them to take over our roads. They said it will never happen if our roads weren't dedicated when we were established.


Sikubali jukumu. Read all posts at your own risk.
HuskyP (Michigan)
Posts: 2
Posted:
Thank you for your insight. Is an automatic dissolution due to negligence? Would this typically raise any eyebrows with other members if this were brought to light? We have one meeting per year and it's in June- just wondering if I should bring it up.

Thanks!
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By HuskyP on 04/12/2016 9:27 AM
Thank you for your insight. Is an automatic dissolution due to negligence? Would this typically raise any eyebrows with other members if this were brought to light? We have one meeting per year and it's in June- just wondering if I should bring it up.

Thanks!


More likely ignorance or laziness. Somebody missed a filing deadline.

Should definitely bring it up at your meeting. Cost to reinstate is cheap, and protection under your state's corporate laws is a good thing to have.

Sikubali jukumu. Read all posts at your own risk.
DouglasK1 (Florida)
Posts: 2,046
Posted:
As mentioned, even if the corporation is inactive, the HOA still exists. Since you're getting bills for dues, I assume there is still a board of directors, they would be your first contact to get more info about what is and isn't happening and why or why not. Have you tried contacting them? If your board has hired a management company to help with the running of the association, they might have delegated some communication duties to them too, so if your bills appear to come from an MC, you could contact them also.

Do you get copies of the annual budget or any other financial reports so you can see where the money is being spent?

Does your association hold elections for the board at the annual meeting? If so, and the current board is not doing a good job, maybe it's time for you and like minded neighbors to step up and serve. You would need to gather support (in the form of owners willing to vote for you), so there will be some legwork involved.

Escaped former treasurer and director of a self managed association.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 04/12/2016 7:55 AM
Automatic dissolution just means that someone didn't file a require form with the state in 2013. Not a big deal to get it reinstated - Can probably use the same govt website to do the filing. May have to pay a few years of fees.

HOA still exists. But until it's reinstated, it doesn't have the protection of corporate laws. You may be individually liable.


I agree.

Quote:

Yes the HOA can still collect fees.


I disagree. In most states a dissolved corporation may not carry on its normal business activities; it may only engage in those activities to bring the business to a close. Collecting assessments levied after the dissolution became effective would not qualify as part of winding the corporation down.

Quote:

Your road issue is more complex. Depends what your Declaration (something that should have been filed with the local Recorder of Deeds) says.

Recently, we went to our township asking them to take over our roads. They said it will never happen if our roads weren't dedicated when we were established.


Normally a public body will not accept ownership of roads that do not meet their standards for width, type of surface, and depth of pavement. Even if you were to improve the roads there is no guarantee that the public body would accept them. This seems to be especially true if the roads are just cul-de-sacs serving private driveways, something the general public would have no reason to ever use.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 04/12/2016 3:37 PM

Yes the HOA can still collect fees.


I disagree. In most states a dissolved corporation may not carry on its normal business activities; it may only engage in those activities to bring the business to a close. Collecting assessments levied after the dissolution became effective would not qualify as part of winding the corporation down.

Technically, you may have a point.

But in practice, that would be rare outcome.

Especially since reinstatement is so easy to accomplish.

Probably lapsed because someone wasn't paying attention. If a homeowner argues that dues don't have to be paid, all someone has to do is file for reinstatement and that homeowner's argument goes away.

Sikubali jukumu. Read all posts at your own risk.

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