Receivership

The previous board should do it, but if they don't want to and no one else wants to be on the board, any homeowner should be able to do it - and he/she will have to pay for it, unless that homeowner can get together with a few other homeowners to share expenses. Court costs vary and you'll also have to pay for the receiver, so don't think this is equivalent to a filing in small claims court. Get an attorney (yes, you'll have to pay for that too) and discuss the pros and cons very carefully before you proceed.

Of course, if you can get those homeowners together, you may as well set yourselves up as the new board. Call a meeting of the homeowners and tell them as plainly as you can what the association is up against and how they're about to get a major reaming in the pocketbook unless they wake up and start getting involved. If you do a search on this board, you will find conversations on the pros (few) and cons (lots of them) on receivership and the homeowners need to understand that ultimately THEY are why you've come to this point. If they wake up, they can elect a new board.

That board should talk to the property manager, if you still have one, and get a handle on where the accounts are, how much money you're working with, who the vendors are, etc. You'll also need to talk to the HOA attorney, if you still have one, and talk about blasting information out of the previous board - they need to provide complete and accurate information on where things stood before they bailed. If they're not willing to cooperate, you may have to consider taking legal action against them.

Your main priority right now is to rally the homeowners together so you can stave off receivership because you DON'T want to go that route. Even if you get a working board, it will have a lot of work ahead to turn things around. It won't be easy and it will take time and money, so people need to brace themselves. Good luck to you - you'll need it.

I agree with Sheila that a receiver should be a last resort. The judge would appoint one, often a lawyer, who will then charge the association for any time they spend on association matter at their going rate. The receiver will typically hire a PM (if you don't have one already) to handle the day to day work, again at the association members expense. Expect dues to go up.

Hiring a PM or MC does not replace the Board. It may have the effect of more volunteers stepping forward, thinking that they have less to do.

Anyone may petition the court for receivership.

If your Association is large (over 100), the court will likely not look favorably on assigning a receiver.
Receivers answer to the court, not the membership.
Members will pay the Receivers fees/salary.
The Receiver, with the courts permission, may raise assessments or impose special assessments without members input or vote.

Translation: Be careful what you wish for.

Thank you so much. I called a management company and was given a lot of information. So this will be the 1st choice. Baby steps...right?

If you have anyone and their dog who will step up to the plate and serve ... take that step ... receivership will cost you potentially attorney fees (for attorney who is appointed as receiver for HOA), but also as others pointed out additional costs for PM. Potentially if you end up in receivership your HOA also may have not had proper reserve account and could end up with a potential “special assessment” on top of the above noted costs. Receiver should be an absolute last resort ... only after YOU and your neighbors have made every other effort to resolve the issues. Do you and your neighbors really want to pay out a huge amount of money in assessments ... just because you are all lazy and not willing to step up to the plate???