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Started by GeorgiaG • 4 replies • 1064 views

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GeorgiaG (Georgia)
Posts: 2

Posted:

Hello, I live in Loganville, GA and in a small community with about 45 homes, this year we did not receive any notification of any meeting, name of board members are an invoice. It has been rumored that the current board (unknown to me) is trying to dissolve the HOA. Is this possible? If this happens can the city take over. In a community that sits in both Gwinnett and Walton county, if this is possible who would be responsible-Gwinnett or Walton County?

I am very concerned as I have already seen the results of no actions by the HOA.

Thanks!

LetA (Nevada)
Posts: 2,679

Posted:

There are so many variables, where to begin? First, is your HOA managed by the BOD themselves or through a management company? Are you paying dues? Are your dues being returned? Is your HOA a LLC? Easiest is to Check with your county recorder or accessors office. HOA's have to be listed on the deed. Check with your secretary of state for Georgia. You can get the full legal name of your HOA by checking with the accessors or recorders office.

Dunno about the city or county taking over, I believe the ombudsman's office or someone from the state appoints someone to over see the community affairs
until a board can be seated.

GenoS (Florida)
Posts: 4,276

Posted:

The answer depends on your HOA's governing documents, state statutes, county codes and municpial/city ordinances. I'm afraid you're going to have to obtain copies of all those and read them to find your answer.

In the most general terms, USUALLY an HOA board of directors cannot dissolve the whole ball of wax on its own. USUALLY it takes some high percentage of homeowners to vote in favor of a drastic action like that. Start with the HOA's governing documents. Is the developer of the community still in control or is it out of the picture at this point?

TimB4 (Tennessee)
Posts: 21,059

Posted:

My understanding is that in order to dissolve an Association, the following must occur:

1) remove all common areas (sell or donate) amend plats showing the changes, etc.

2) remove all common amenities (pools, club house, playgrounds, etc.)

3) remove the requirement to provide common services (trash collection, recycling collection, snow removal, etc.) Normally, if your streets are private, it is very difficult to have the city/county take control of the streets.

4) Amend the CC&Rs (typically anywhere from 2/3 to 100% membership approval required) to remove the need to maintain common areas (as those had been sold/given away), remove the common amenities (as those were sold/given away) and abolish the requirement to provide common services. Note: this does not remove the deed restrictions.

5) Terminate (or pay off) existing contracts for existing services

6) Determine how association funds will be distributed (if they can be distributed) to members (some of which may be taxable income if given to members).

7) File appropriate paperwork with the State to dissolve the corporation

8) Administrative tasks to close out the books of the Association

None of this is easy. Some steps must be completed before others may begin. Not all steps may be listed (as I have never done this). Any one step not being completed can slam the door on the whole thing (perhaps leaving more of a mess then one originally had).

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By GeorgiaG on 07/03/2017 9:10 PM

I am very concerned as I have already seen the results of no actions by the HOA.

Are you concerned enough to gather support and serve on the Board (hence being part of the decision process to allow the HOA to take action)?

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