To Reactivate HOA or Not?

Started by DianaB7 • 5 replies • 718 views

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DianaB7 (Florida)
Posts: 3

Posted:

Hi, I live in a fairly new subdivision with about 28 properties (8 lots without homes but NOT owned by developer). In 2006 the 1st developer created an LLC and INC that are cited in the covenants he established for the area (includes plats of land not in our subdivision). He went bankrupt and dissolved the LLC and INC (this is FL) a few years later. In 2012 a second developer bought the land and built homes on them...the HOA was never mentioned but he did file a road maintenance agreement stating he was responsible for roads and drainage until an HOA was established. He just recently sold the last lot and turned off the lights in the neighborhood. The homeowners want them back on so we all met to see about setting up an hoa to cover the cost of the lights. This opened a can of worms bc we had half that didn't want an hoa and half that did. The road is private so it would take leg work to see if it meets DOT standards and could be sold to the county for them to assume maintenance responsibility and one of the homeowners told everyone the lights could only be turned on by having an est LLC. So at the first meeting everyone (that attended) voted to start the process of getting the hoa started again and elected board members. There were no minutes taken and no information sent out to owners who didn't attend. My question is, is it worth having an hoa for a small subdivision? Is the first meeting even official since the processes weren't followed described in the FL statutes about meetings and minutes and voting?

DianaB7 (Florida)
Posts: 3

Posted:

I also want to add there are no common area to up keep and a sign at the front of the subdivision that is wooden that has been maintained by the homeowners.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By DianaB7 on 07/16/2018 9:54 PM
Hi, I live in a fairly new subdivision with about 28 properties (8 lots without homes but NOT owned by developer). In 2006 the 1st developer created an LLC and INC that are cited in the covenants he established for the area (includes plats of land not in our subdivision). He went bankrupt and dissolved the LLC and INC (this is FL) a few years later. In 2012 a second developer bought the land and built homes on them...the HOA was never mentioned but he did file a road maintenance agreement stating he was responsible for roads and drainage until an HOA was established. He just recently sold the last lot and turned off the lights in the neighborhood. The homeowners want them back on so we all met to see about setting up an hoa to cover the cost of the lights. This opened a can of worms bc we had half that didn't want an hoa and half that did. The road is private so it would take leg work to see if it meets DOT standards and could be sold to the county for them to assume maintenance responsibility and one of the homeowners told everyone the lights could only be turned on by having an est LLC. So at the first meeting everyone (that attended) voted to start the process of getting the hoa started again and elected board members. There were no minutes taken and no information sent out to owners who didn't attend. My question is, is it worth having an hoa for a small subdivision? Is the first meeting even official since the processes weren't followed described in the FL statutes about meetings and minutes and voting?

When someone states “includes plats of land not in our subdivision” that generally gives me a red flag that the Developer potentially had surrounding land and possibly “reserved” the right to add that land as future lots to the HOA.

If the second developer was responsible for other roads and drainage until HOA was established ... who is responsible for maintaining the roads and drainage after the HOA is established?

LOL ... If the lights were turned off ... then potentially the HOA is responsible for those lights?

It is worth having an HOA if you want the roads maintained, the lights turned on, etc. If you go to your local County Records and you look at what is attached to your Property Title ... I would bet the CCR’s and other documents will show up which means you are an HOA. To disolve an HOA which has any items to be paid for or maintained via association dues is difficult and I would contend near impossible.

While potentially the first meeting might not be official ... the minutes can note as such and that it was just the owners discussing concerns and how to best establish the HOA moving forward. When it comes to Voting for BOD and other very official items you just need to be sure to follow your Documents and your State Laws.

DianaB7 (Florida)
Posts: 3

Posted:

Thanks for your reply. We (the homeowners) were just trying to figure out if reestablishing the HOA was worth it...the lights are an easy fix as our county can do a voluntary assessment and pay our bill while we pay them back when property tax is paid. The road maintenance agreement says the second builder is responsible until the HOA us established...so if we dont establish it then hes still responsible. It was up to him to restart the HOA and pay to have all of it up and current but he chose not to.

Reestablishing the HOA means paying $155 to get the LLC active again per year that it was dormant and the INC included in the original covenants. Those covenants were there before the second builder took over (theres 6 years where no one built) and the second builder did not follow some aspects of the covenants...sold those homes and now the homeowners are finding out about all this. A lot of us dont want an HOA and that's what attracted us to this street in the first place. Plus, what happens if we reactivate these entities and find out theres some lawsuit tied to them? Both builders associated with this have filed bankruptcy so I'm sure their past business practices were not squeaky clean. The original HOA never had any dues paid in because there were no houses built yet. Then a few homes were built on neighboring streets that were included in the plats but those homes are not in the subdivision and shouldn't have to pay for our sign upkeep or lights...or street. If the county will take the street and we get the lights squared away then I dont see the benefit of having an HOA that will dictate fees and restrictions. I'm trying to gather from others some plausible benefits for it in our case or for them to bring up issues we haven't thought of. Again, thanks for your feedback.

GenoS (Florida)
Posts: 4,276

Posted:

A plat should make it crystal clear which parcels are included in the platted subdivision and which are not. I'm not sure what, "homes were built on neighboring streets that were included in the plats but those homes are not in the subdivision" means. I think you should start by carefully examining the plat and look into whether or not any re-plats were filed for the subdivision that conceivably could change the parcels (lots) that were being platted. Check the deeds of those homes "not in the subdivision" and see if they reference the plat.

JanetB2 (Colorado)
Posts: 4,219

Posted:

I am with Geno ... your first item should be to look at the plats and note if filed with your HOA. Also I would recommend going to your local government Planning Department or Government Council and ask them what is the deal with your subdivision. HINT: Sometimes you have to ask them very direct questions. Some will bounce around an issue, but cannot outright lie.

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