Articles of Incorporation of HOA

Started by SandraE2 • 5 replies • 1179 views

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SandraE2 (Missouri)
Posts: 7

Posted:

We are trying to register our HOA with the SOS office and one of the questions they asked us is how the assets of the corporation will be distributed upon dissolution. We are not clear as to how this applies to a non-profit HOA. We have lots of common ground and a pool, but nothing else that we could "sell". As an HOA, doesn't everything belong to and is shared by the residents of the subdivision?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sandra

Although it is just some bureaucratic question which probably could be answered with a statement like "As Equally as Possible", do you not have a lawyer overseeing all of this such as answering those type questions?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Our HOA we are to turn over to a Management company if we are to dissolve. I think that is what this question is about. That basically means that the owners will no longer be in control but allow an actual management company to take over. It's much like how an apartment complex works. You will no longer have voting rights to elect a board and the MC will basically "own" the HOA.

Former HOA President

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By SandraE2 on 10/21/2016 6:48 PM
We are trying to register our HOA with the SOS office and one of the questions they asked us is how the assets of the corporation will be distributed upon dissolution. We are not clear as to how this applies to a non-profit HOA. We have lots of common ground and a pool, but nothing else that we could "sell". As an HOA, doesn't everything belong to and is shared by the residents of the subdivision?

How about:
Upon dissolution, each member of the association, or his successor, shall be entitled to an undivided share of the real property owned by the association as tenants in common. Personal property of the association shall be liquidated and distributed to the members in equal shares.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By SandraE2 on 10/21/2016 6:48 PM
As an HOA, doesn't everything belong to and is shared by the residents of the subdivision?

For condominiums, that may be true. For HOA's the common area is owned and controlled (typically with rights to sell if desired) by the Association. Keep in mind that although the Association is made up of members, the Association itself is considered a separate entity under the law.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By TimB4 on 10/22/2016 11:15 AM

Posted By SandraE2 on 10/21/2016 6:48 PM
As an HOA, doesn't everything belong to and is shared by the residents of the subdivision?

For condominiums, that may be true.

Most condo associations own no real estate, as that is owned by the unit owners, each of whom has an undivided interest.

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