HOA to Annex into the City

Started by DanielA2 • 7 replies • 958 views

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DanielA2 (Michigan)
Posts: 8

Posted:

Any one has any info, lessons learned, good hints about being a defaulted HOA and going through the process of being Annex into the city.
I asked in another thread about this HOA and got some very useful advise. But the HOA is still a failure from 2012. Some things have gone right, but after talking to most of the 28 homes, annex seems a lot better choice. I have maps with parcel numbers, a letter as to why, and the overall condition of the properties, and can get signatures of home owners, all? but high%
"Doing the same thing over and expecting a different result is not smart"

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Are you talking about disbanding your HOA and incorporating into the city? That's not the same as annexing into the city. You may be talking about multiple processes your HOA will need to do. Which may involved going to conservancy. Which means you stay a HOA but are managed by another entity.

Your HOA if incorporated will need to end it's incorporation if you disband. You will need a corporate lawyer advice on that. Your HOA still had taxes to pay or certain filings. So that is another ball of wax.

Our HOA could not disband according to our documents. We could only turn ourselves over to a management company. Which is a bit different than conservancy. We would be paying a management company to run our HOA without any votes/rights. Basically being owned by that MC.

Annexing into the city, is just the process of moving your land to the city to receive city services. Which may entail turning your streets public. Your going to be paying city taxes. The HOA can still be in existence. Just would have to change the rules to reflect the city interaction.

So which one are you wanting to do? Disband or annex?

Former HOA President

DanielA2 (Michigan)
Posts: 8

Posted:

We pay the same city tax as every home in city, except we don't get services. The HOA is not viable per state or IRS.
Don't always need a lawyer, to be paid to do things right, glad you do!
We have been a blank HOA with no anything since 2012.
Question is has any one did the annex into a city, I work for the city so don't need BS need to know process from experience not guesses>

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Daniel, since you work for the city, sounds like you have a handle on it.

Seriously, have you been on the Board of your HOA? You didn’t mention your involvement in the governance of your HOA since 2012.

With only 28 properties, it would seem straightforward to involve the other 27 in a coordinated effort.

However, it does sound like you need legal assistance.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Well you provided not so clear details/intention of why going to the city annexation route. Do you think being annexed into the city relieves the HOA from existence? That is my question.

Yes, you do need legal advice on this. It's complicated situation that will involve multiple legal decisions. You may need both a real estate or corporate lawyer. Normally I don't recommend a Real Estate attorney for an HOA. They aren't dealing in real estate. However, in this case it involves a shift in real estate to different terms.

Our HOA turned over to the City years ago. We were in the county. We ran into multiple issues. Our streets were not wide enough. We had to change our street signs. No parking policy had to be developed and rewritten. The streets are no PUBLIC which means we can't restrict anyone using our roads.

If you think that changing over to the city dissolves your HOA or lets them take over, it doesn't work that way. Your HOA still exists either way. It's just the HOA has an additional government entity it has to work with. Which means you may want things to change, but you still have to go to the HOA board whom represents the HOA as a whole. So your HOA board would have to go to or work with the City. It's not going to be an individual thing.

Plus you need a majority of the owners to agree to this. My neighborhood is a mix of city/county. 2 neighbors are county and my other 2 city. My county neighbors pay less taxes. They also have less restrictions. They call the police the county has to respond even though they are technically in the city. Their kids have to go to the county school. Which is 10 miles away. I am in the city. Pay more for taxes. Have restrictions like noise and animals. The good news is the city school system is better than the county. So most people here convert over to the city for their kids. I know because ALL the neighbors have to get a notification to show up to the City meeting to voice any rejections before they let that property into the city.

Former HOA President

DanielA2 (Michigan)
Posts: 8

Posted:

Working for the City only part time gave me the people to talk to yes. The city will have to determine some facts, yes, but overall the property is in code compliance shape. This is a dead end cul-de-sac so not much extra traffic or chance of. I found a Michigan State Dept web site that was helpful. The letter I have started list details of the properties, number of storm drains and the like, but have to get as much detail in it as I can think of. We have no common area! And all units are new since 2001. Hoping the city will give a estimate of the cost to annex so all can figure out what to do next.
The HOA has not had anything to do with this place since 2012, no street lights, no plowing and so on, mis managed is not even telling the story to say the least.

SueW6 (Michigan)
Posts: 814

Posted:

Daniel
What about sewer and water?

DeanaD1 (Tennessee)
Posts: 7

Posted:

We de-annexed from the city. Double taxes for nothing. A few street signs and that was it.

Took a lot of work. Everyone is happy to be rid of the City. Saves homeowners around 2500.00 each year.
We're only 45 5+ acre tracts with about 12 homes so far.

Annexation had to be contiguous. They skipped a small area of land owned by a farmer so that was our out after weeks & months of searching for an out finally found it on Google Maps.

Sewer was promised in a "reasonable" time . . . never received. Many other issues.

They say you can't fight city hall but we did and won.

The developer had annexed into city for some underhanded deals for liquor license for the event center for weddings and such . . .

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