MarkK20 (Kentucky)
Posts: 3
Posts: 3
Posted:
A few residents and myself are looking into either deannexing or completely removing our HOA. I am wondering if anyone here could help in this matter. Thank you.
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Question on deannexiation
Started by MarkK20 • 10 replies • 668 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
I recommend you begin by reviewing all of the documents of your association to determine if there is any language which is relevant. If you dissolve the HOA you will likely dissolve the corporation, your state laws will be relevant.
Taking this action will be potentially costly and time consuming. If your association has common areas, who would be responsible for those? This is very important if you have capital improvements such as a pool, clubhouse, tennis courts, etc. The same holds if your association is responsible for the roads? Will the local governmental jurisdiction be willing to take them off your hands? All of the foregoing, and much, much more will have to be addressed.
What's going on that you and others are discussing this? There may be, and probably are, far easier and less costly solutions to the issue(s) about which you are concerned.
Taking this action will be potentially costly and time consuming. If your association has common areas, who would be responsible for those? This is very important if you have capital improvements such as a pool, clubhouse, tennis courts, etc. The same holds if your association is responsible for the roads? Will the local governmental jurisdiction be willing to take them off your hands? All of the foregoing, and much, much more will have to be addressed.
What's going on that you and others are discussing this? There may be, and probably are, far easier and less costly solutions to the issue(s) about which you are concerned.
DouglasK1 (Florida)
Posts: 2,046
Posts: 2,046
Posted:
Associations are generally formed by covenants attached to your deed. The procedure for modifying these covenants usually involves assent of a super majority of property owners, often 2/3 or 75%. It's also possible in in case of dissolving or removing properties from an association that agreement might be needed by the mortgage holders of the properties.
If you are serious about perusing this, I would suggest talking to an attorney.
If you are serious about perusing this, I would suggest talking to an attorney.
Escaped former treasurer and director of a self managed association.
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
MarkK,
Why do you want to dissolve the HOA?
Why do you want to dissolve the HOA?
MarkK20 (Kentucky)
Posts: 3
Posts: 3
Posted:
A lot of the residents were not aware of the HOA when buying their houses. We are not a gated community and the only common area is a drainage ditch that was seeded to the HOA supposedly.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Mark,
When you purchased you should have been made aware of deed restrictions (covenants) to your property.
It's these covenants that create the HOA.
I suspect that you purchased in a new development where the homes were/are still being built.
Often the builder/developer/Declarant will mention, but downplay the covenants.
The declarant also tends to keep the assessments artificially low by making up the difference. Once the Association is turned over to the membership, expect an increase in assessments.
As others have said, if you want to abolish the Association you will have to:
Find someone to take over the common areas (perhaps the County with a special tax district option)
Find someone or abolish the common amenities (playgrounds/pools/etc.)
At the same time, amend the covenants to remove the Association and any requirements for an Association (no approval for exterior changes, no services like trash/recycling or snow removal, etc.) and abolish the corporation (you should not do one without doing the other).
When you purchased you should have been made aware of deed restrictions (covenants) to your property.
It's these covenants that create the HOA.
I suspect that you purchased in a new development where the homes were/are still being built.
Often the builder/developer/Declarant will mention, but downplay the covenants.
The declarant also tends to keep the assessments artificially low by making up the difference. Once the Association is turned over to the membership, expect an increase in assessments.
As others have said, if you want to abolish the Association you will have to:
Find someone to take over the common areas (perhaps the County with a special tax district option)
Find someone or abolish the common amenities (playgrounds/pools/etc.)
At the same time, amend the covenants to remove the Association and any requirements for an Association (no approval for exterior changes, no services like trash/recycling or snow removal, etc.) and abolish the corporation (you should not do one without doing the other).
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
MarkK,
So, you and your neighbors do not see any advantage to governing yourselves in order to maintain values and to prevent outlier behavior from owners?
So, you and your neighbors do not see any advantage to governing yourselves in order to maintain values and to prevent outlier behavior from owners?
MarkK20 (Kentucky)
Posts: 3
Posts: 3
Posted:
We believe that the people living in the neighborhood have enough self respect that we don’t have to worry about them trashing their yards/houses. Also, several people have been told that living in an HOA has hurt the resale value of their houses.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
I'd suggest petitioning the development and see if you have at least 2/3 of the lots supporting abolishing the HOA (remember, you can keep the covenants but abolish the Association). If you have the support, the next step would be to contact an attorney to see what has to be done to dispose of the Association responsibilities, common areas and common amenities.
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
MarkK,
Much has been written regarding the positive effects of HOAs. Those that support property rights above all else will likely disagree with any analysis.
I have lived in many neighborhoods where it SEEMED everyone was going to care for their property ...in one example 25% moved over a five year period - and were replaced by folks who cared not all what the neighborhood used to be - had to fight them on a riding academy (think traffic), building structures in common walking trails, building multiple shed structures, chickens and goats, multiple driveway openings, 800 sf houses on open lots, etc.
Be careful and strategic in your thinking - things change - plan for this.
Much has been written regarding the positive effects of HOAs. Those that support property rights above all else will likely disagree with any analysis.
I have lived in many neighborhoods where it SEEMED everyone was going to care for their property ...in one example 25% moved over a five year period - and were replaced by folks who cared not all what the neighborhood used to be - had to fight them on a riding academy (think traffic), building structures in common walking trails, building multiple shed structures, chickens and goats, multiple driveway openings, 800 sf houses on open lots, etc.
Be careful and strategic in your thinking - things change - plan for this.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By GeorgeS21 on 09/11/2018 5:23 AM
MarkK,
Much has been written regarding the positive effects of HOAs. Those that support property rights above all else will likely disagree with any analysis.
I have lived in many neighborhoods where it SEEMED everyone was going to care for their property ...in one example 25% moved over a five year period - and were replaced by folks who cared not all what the neighborhood used to be - had to fight them on a riding academy (think traffic), building structures in common walking trails, building multiple shed structures, chickens and goats, multiple driveway openings, 800 sf houses on open lots, etc.
Be careful and strategic in your thinking - things change - plan for this.
MarkK,
Much has been written regarding the positive effects of HOAs. Those that support property rights above all else will likely disagree with any analysis.
I have lived in many neighborhoods where it SEEMED everyone was going to care for their property ...in one example 25% moved over a five year period - and were replaced by folks who cared not all what the neighborhood used to be - had to fight them on a riding academy (think traffic), building structures in common walking trails, building multiple shed structures, chickens and goats, multiple driveway openings, 800 sf houses on open lots, etc.
Be careful and strategic in your thinking - things change - plan for this.
Pay attention to this. Things/people change. $hit happens.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here