Annexing an inactive HOA in Texas

Started by JoeR5 • 7 replies • 629 views

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JoeR5 (Texas)
Posts: 1

Posted:

Are Texas HOAs allowed to annex each other? A neighboring HOA is inactive. The neighboring residents HOA is nonprofit corporation,there is no board. They do not hold meetings. Our HOA is having to maintain the neighboring property and we want to align their covenants/restrictions with ours. What is the best course of action?

RoyalP
Posts: 1,104

Posted:

stop the maintenance of that which you do not own, forcing the actual owners to 'step up'

BillH10 (Texas)
Posts: 1,217

Posted:

To answer your question, you would most likely require 100% of the owners in the neighboring association to agree to be annexed. The odds of that happening are someplace between zero and the square root of minus 1, especially if they do not currently pay an assessment and annexation would result in assessments being levied.

Further, there would be considerable expense as the deed to every property in the inactive association would have to be amended. You would need the services of an attorney who would charge $375 or more per hour.

You should stop maintaining the neighboring property for at least two reasons:

1. It is not the property of your association. If someone wished to make an issue of it, your association/contractor is trespassing.
2. If you damage the neighboring property, or injure someone in the process of maintaining the property, your Association may have liability. You may find your insurance will not cover damages caused when your association is maintaining property they do not own.

You don't mention if you live in a city. Most cities have a code compliance office. If yours does, contact them for assistance. If your city does not have one, contact the office of your lowest political subdivision representative--council person for example--and ask for their guidance and assistance.

Good luck

GenoS (Florida)
Posts: 4,276

Posted:

I vote for the square root of minus 1.

I think you'd need to get 100% approval from all owners in both associations. Then, maybe, their mortgagees, too. It might be easier to dissolve the incorporated associations conditioned on everyone agreeing to form a newly incorporated association with a fresh set of governing documents.

It seems simple in theory. In practice I think you would be looking at huge legal fees and expenses.

SueW6 (Michigan)
Posts: 814

Posted:

What has been the feedback from the owners in this HOA?

Their corporate status may have run out if they had not met and/or filed with the state and/or IRS.

How much mire restrictive are your CCRs and other rules.

Do they have assets or liabilities that need attending to?

FredS7 (Arizona)
Posts: 927

Posted:

What BillH said.

AND #3. The association is obliged to spend its money on the things prescribed in the documents. Spending it in another way is open to challenge as an abuse of the Board's authority.

LetA (Nevada)
Posts: 2,679

Posted:

What document is compelling your HOA to provide landscaping and maintenance to the property you mention?

JohnS111 (New York)
Posts: 228

Posted:

Just have the inactive HOA dissolved and have its members join yours. Simple.

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