Forming new HOA Ohio

Started by MikeB18 • 6 replies • 1278 views

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MikeB18 (Ohio)
Posts: 2

Posted:

We live in a 16 unit community what was formed about 50 years ago. Most of the property deeds have covenant/restriction which property owners should follow. New several owners wish to form a HOA covering all the properties under common covenents and restriction. Can this be done after the fact? Can it be voluntary, until the property is resold some time in future? All the information I find only covers starting a new HOA when property is originally sold off as lots.

JanetB2 (Colorado)
Posts: 4,219

Posted:

That is most likely a question you need to ask an attorney. If you do some homework and have your ducks in a row, then it may not cost that much to get a legal opinion. You may also want to read your state statutes for HOA's to see if there might be something there to help:

http://law.justia.com/codes/ohio/2011/title53/chapter5312

Also, get a copy of any filed documents from your local County Records and see what has been attached to various properties. The plat filed with the CCR's is also good start.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Mike,

Yes you can form a new HOA after-the-fact. I can see two problems. First, the original CC&R's must have some provision to allow them to be amended. The second catch is that each owner has to agree to be subject to the HOA. Good luck with that.

So why can't the amended CC&R's make the HOA membership mandatory? Court decisions in many states have held that an amendment to the CC&R's cannot make them more restrictive and/or add an unforeseeable burden.

As Janet stated above, you should consult an attorney before embarking on this.

MikeB18 (Ohio)
Posts: 2

Posted:

I am not familiar with the term CC&R? We do have deed restrictions individually for each property. Most read the same. Several Properties have no restrictions. I doubt very much if we would get 100 % participation.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By MikeB18 on 02/13/2017 2:33 PM
I am not familiar with the term CC&R? We do have deed restrictions individually for each property. Most read the same. Several Properties have no restrictions. I doubt very much if we would get 100 % participation.

CC&R = Declaration of Covenants, Conditions, and Restrictions.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By MikeB18 on 02/13/2017 2:33 PM
I am not familiar with the term CC&R? We do have deed restrictions individually for each property. Most read the same. Several Properties have no restrictions. I doubt very much if we would get 100 % participation.

If as you noted several have no restrictions the chances are very slim to none that anyone of those will agree to having deed restrictions added to their property titles. Many realtors will advertise properties in my area as "Having No HOA" because you have many people who do not want to live in an HOA.

JanetB2 (Colorado)
Posts: 4,219

Posted:

I'm curious if it has been inactive for that long of a period of time ... why would owners want to reactivate? Unless there is common area property or other items shared by all owners, what are they stating as the benefit to impose an HOA?

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