Help Dissolve HOA

Started by MaridaN • 11 replies • 1400 views

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MaridaN (California)
Posts: 13

Posted:

Hi,

I am the treasurer of my HOA of 4 units in the city of Covina, California within Los Angeles county. We all would like to dissolve our HOA, but don't really know where to start. Can someone help point us into the right direction.

Thank you in advanced.

TimB4 (Tennessee)
Posts: 21,062

Posted:

You specify units vs. lots.
Therefore, I suspect that you are a condominium.

There are likely going to be issues that may not be resolved and could prevent you from dissolving the Association.
That said, the steps would be (as I understand it):

1) See if there is enough support to do this (2/3rds or more need to agree)
2) Check to see when contracts end for common services (trash/recycling - landscape - etc.) and make tentative arrangements.
3) Sell or convey all common components, amenities and land.
Note: this is where issues may arise. Can you sell the land, convey the parking area, turn the playground into a public park, transfer common lighting to individual meters (proper paperwork and electric company compliance is needed).
4) Amend the governing documents (get an attorney to assist).
5) file final taxes
6) Pay Bill and terminate contracts
7) Disperse funds and dissolve corporations (may or may not need court assistance).

I suspect this will be a year long (or perhaps longer) to complete.

What is it that makes you believe everyone simply wants to dissolve the Association?
Why do they want to do this?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Keep in mind that there will still have to be covenants to address the common walls, piping, etc.
Therefore, you can not simply eliminate the covenants.

Additionally, you should check with the local zoning commission to see what may need to be done there.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Mar
As others have said/asked. It appears you are a 4 unit building and if so you may share things like pipes, ventilation, halls, walkways, common entrance, trash disposal, etc. All of these things will need to be addressed and like it or not, Covenants, Ruels, etc. to control such.

MaridaN (California)
Posts: 13

Posted:

Thank you all for the information.

I am sorry I did not know that their was a difference between a lot versus a unit.

In this case, it is a lot. We all have our own space, and do not share a common wall.

The only thing we share is a common drive way and the trash bin.

MaridaN (California)
Posts: 13

Posted:

Well, the 4 houses (lots) have gotten together and kind of briefly touched on the issue and 3 out of the 4 houses agreed that it would be a good idea. The only common thing we are all paying for is the trash bin, and insurance for the common area.

We are currently taking care of our own landscaping that is within our adjacent property lines.

The main problem is that the HOA fees have gone way too expensive to continue to keep up with just 4 houses. We are all currently paying $250 per month, and this is to maintain a reserve in the HOA. Whenever we have excess amount in the HOA, we "splurge" it on hiring a landscaper to come and do some work otherwise we all just take care of our own.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Well, you will need to sell or convey any common area.
This will require surveys, subdividing the land and recording fees. It might also require an attorney to draw up the proper paperwork. The Association can sell the land to existing owners for $1. However, check with zoning as the PLAT may indicate that there is common area and, if need be, the PLAT will need to be amended and, perhaps approved by the zoning commission.

Are the streets private or public (some municipalities may take control but only with a special tax district set up to pay for the additional expense)?

What about street lights?

Basically, as a minimum, anything that the Reserves are covering, you will need to address.

MaridaN (California)
Posts: 13

Posted:

We don't have any streets going through the HOA property, its just a short driveway that we all share which leads from our homes to the public street.

TimB4 (Tennessee)
Posts: 21,062

Posted:

That short driveway will need to be maintained.
Probably one of the main reasons for the Association.

The City/County might take it over - but might not.
I'd start there to see if they are willing.

SueW6 (Michigan)
Posts: 814

Posted:

Why the high monthly fee? didn't the board ever look at the finances?

Just lower the to assessment to cover the actual basic costs of the road maintenance.

MaridaN (California)
Posts: 13

Posted:

Its high because we are trying to build up a reserve.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By MaridaN on 03/16/2017 7:06 AM
Its high because we are trying to build up a reserve.

Did you have a reserve study done to see how much you really need?

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