all BOD resigning

BOD are all resigning at the same time effective our meeting tonight. Our deed restrictions originated in 1970 and are still under the original platt owners and the architectural committee. Although, an HOA has been in existence since the late 1970's and has been filed with secretary of state in Texas, it was never filed with the county except for the original deed restrictions. If we all resign, who is responsible for cancelling the HOA with the Texas secretary of state and for refunding the monies collected during our tenure. There has been monies stolen before with past HOAs and we do not want any lawsuits. There is no one else to take over since hardly anyone attends the meetings. We are concerned that the bad crowd might get access the $$$ in our bank acct. What is the proper procedure?

First of all, "cancelling an HOA" isn't as easy as you seem to think it will be - this is not a block club.

If your community has common areas, you'll need to determine who will take care of them if there isn't an HOA. In some areas, a special tax district might need to be created to take care of the common areas, such as the streets, and everyone in this community, including you, will be required to pay them. that's assuming the city or county would be willing to do so - a big reason HOAs are established is so that the county or city won't have to pay those costs.

Such a takeover wouldn't happen overnight and would likely require some costs and resources provided by the homeowners - you think everyone wants to do this? What happens if someone gets hurt on common area and decides to sue? Did you know without an HOA, each and every homeowner can be held PERSONALLY liable? Do you have several thousand or tens of thousands lying around for an event like that? You'll also have to figure out how to handle those deed restrictions if there's no HOA.

If you and your colleagues on the board have had enough, you need an orderly transition - that's how grown people handle their problems instead of saying goodbye and good luck. Why not tell the community point blank what the issues are and how they can help resolve them - starting with electing a new board, so the old board can help transition them to running things? If no one's willing, go to your association attorney and have him/her petition a court to put your HOA into receivership - and trust me, you don't want to do that.

If the HOA goes into receivership, the judge will appoint a receiver who will basically run the association in lieu of a board, and NONE OR YOU will have any say over any decisions made because he/she answers to the judge. Receivers are usually interested in getting the bills paid, so if your assessments have to go up to do this, so be it. Oh, you'll also have to pay the receiver's fee AND court costs which will add more to your assessments. So, in addition to the hit on your pocketbook, do you want your property values to go down the toilet because no one wants to move in a community under receivership where they have no say in what's going on?

Now, why don't you and your board members sit down and reconsider what you want to do. You can still resign if you want to, but be prepared to deal with any fallout - and the first set of folk who'll be blamed will be you, even if some of this really is the fault of the homeowners (which it is if things have deteroriated to this point). Have fun.

I agree 100% with Sheila and Tim, and will add that the receiver is often an attorney and for any time they spend they will bill at their hour rate (easily $200 or more per hour). They will also probably hire a management company to handle day-to-day operations, and won't necessarily be looking for the most cost effective one.

Right.

If you want to abolish the Association, there are several steps that must be taken.

1) Arrange for private amenities (common areas, playgrounds, sidewalks, etc.) to be sold,transferred or donated. Keeping in mind if you have private roads, the municipality is most likely to not accept them as they don't want the added expense. However, a special tax district suggestion might change their mind.

2) Arrange for Cancelling, paying off or transferring any contracts for maintenance of common areas, street lights, trash service, etc.

3) Amend the CC&Rs to remove any verbage about the association, common areas, services to be provided, etc. Don't forget to pay to record those.

4) If everything above occurs, you still need to file final taxes and corporate paperwork.

There are likely a whole lot of small details I didn't mention.
There is likely a few large details I overlooked.
However, in a nutshell, that is what would have to happen.

If any of the above steps can not be accomplished, then the Association stays in existence.