HOA completely disfunctional

I can't find my old thread, as I wanted to add on to it as an update. This will likely get long, as I'm trying to convey the intricacies. Since nobody is stepping up, I'm seriously considering taking over as HOA president, just to cover my own butt, because if it dissolves we're much worse. None of our properties could be sold, because the dam needs major work and the HOA is broke. And if it breaks we'll all get sued and will likely loose our houses. There's no insurance and our personal insurances wouldn't cover, because it's neglect.

I bought a house in a lake community in Georgia 2 years ago. I didn't know there was an HOA and I've learned that I'm now part of a huge mess and am trying to get this straightened out. The president of the HOA told me that the HOA has no money, because most people (20 owners that share the lake) aren't paying in and there's no way to enforce it. I have told him that there must be legal ways etc. He said he had no documents. I then tried to recreate everything and go the original LLC paperwork from the secretary of state and the deeds where the lake portions were deeded to the llc/HOA. I offered to sit down with him and give him everything and he said that he never told me that he doesn't have paperwork. I insisted that he did or why would I have otherwise spent hours in the courthouse pulling those documents together. He then said that I called him a liar and he doesn't want me in the HOA and give me back my dues. He also sent a letter to the active members (8 of us) stating that one of the members called him a liar and he would reimburse them and they would no longer be part of the HOA. That was January 2020

January 2021 (never responded to him in any way this past year) he sent a letter that he wants to step down and if someone would like to take over, he'd share whatever he has and what needs to be done. And that we should probably have a meeting, maybe via zoom. A month went by and I finally had enough. Googled some more and came up with the Georgia Property owner Association act, which specifies that we can set liens etc. Our original LLC paperwork specifies nothing. He claimed he has nothing that allows to place liens.

So, what I'm now thinking is that a 2/3rd vote of the voting members (6 votes out of 8) would allow us to adopt the Georgia Property owners Association Act as our governing law. I think we could get that vote. I actually printed it out 8 times and included it with a letter to those active members, stating that we could create a business plan, with the objective of getting a loan or credit line to clean up the lake and fix the dam, with the lake as security. Then create a special assessment to be paid by 20 home owners. Those that won't pay will get liens against their properties, which then can get auctioned off and repay the loan.

2 of the members called me. 1 of them is sort of a friend with the president and he's been trying to get him to call back and he won't. Wednesday morning I sent an email to the president, suggesting that we'll put ego aside and work together to get this straightened out. We don't have to like each other, but we're on the same side. I offered my big deck as meeting place for this weekend, where everyone can stay more than 6' apart and wear a mask. No response. That other member friend again tried to get him to to discuss with him, but president won't call him back.

Sooooo, what would you do in my place? I'd really prefer to not be on the board, because my plan is to be a back-up buyer for the liens, since Georgia HOA liens aren't super liens and I don't know how many companies buy them, since they're not like tax liens. I don't want to have to do that, but I feel it's a good back=up plan and if I'm part of the HOA that would be a conflict of interest. Or if I step up to become president and forego being the back-up buyer of those liens, I guess the HOA could then be the one foreclosing. Not fun, but in the real world, everyone would pay their share of dues and this forum wouldn't even be necessary.

I know nothing about running an HOA and I doubt the president would explain anything to me, as it seems to be a personal issue between us and ego is in the way. Where would I go to find out what needs to be done? Supposedly secretary and treasurer stepped down last year and there's only 1 person. I'm not a detail person and I suck at paperwork and accounting. It's the stuff that I hate most in life lol. I know nothing about lakes and what needs to be done. I even tried to get a company to get me a quote on what needs to be done with the dam, but they charge for an estimate and the HOA has no money to pay for that. And we need that to even try to get a loan for that work. So, that would probably have to come out of my pocket. I don't know if it costs 30K or 300K.

What would you do and where would you start? I've already been in contact with my Legal shield lawyer and she's ready to help, but of course that's beyond the legal shield membership and would have to come out of my pocket.

In reading your previous thread, I like the option you thought of with one minor change (in bold):

What are our options? Disband the HOA (it was set up very informally, described on the original plat map, but nothing formal), in which case ownership of the lake would go to each adjoining parcel up to the middle of the lake, within their property lines? And then get code enforcement or even the EPA involved to force each homeowner and city to pay their share for clean-up?

He's used the word 'voluntary', but I think he meant that there were simply no teeth in the paperwork in the original llc documents, so he saw this as no way to enforceable and thus voluntary. I don't know exactly what he thinks/thought, because he won't talk to me. I initially just went by what he said, but now I'm no longer sitting back.

He did announce that he was going to give me back my dues, but he never did. And he did name me as one of the 8 active HOA members in the letter last month.

I really think this is about male ego. I don't want to offend any of your men here, so, please just take it as I write it. I'm a doer and I can be a pushy broad and I'm not willing to do what all of these other HOA members have done for many, many years: sit back and wring their hands and wait for the president to do or don't do something. So, when the president and previous president announced that they can't collect anything, they just took it.

Deed restrictions would be available at the court house/property office.

IF the Association is voluntary, then you can't force individuals to be a member.
This likely also means you can't force them to pay.

Thank you so much for your time and knowledge.

I don't know how to add a document, so, I'm going to write out what it says:

" To the Superior court of said county:
The petition of xxxxxxxx respectfully shows:

1. Petitioners desire for themselves, their successors and assigns, to be incorporated under the name and style of: YYYYYYYYYY for a period of 35 years, with the right of renewal from time to time as required by law.

2. Said corporation is not organized and shall not be operated for pecuniary pain or profit.

3. No part of the property of said corporation, and no part of its net earnings shall ever at any time inure to the benefit of any of its members, directors or other individuals.

4. The general nature of the business to be transacted by said corporation, shall be preservation, maintenance and improvement of Lake H. ; the regulation and control of said lake; to make the residential subdivision surrounding said lake a more beautiful, wholesome and otherwise desirable place in which to live, and the performance of any and all other acts and things necessary, convenient or expedient to the accomplishment of the foregoing.

5. The corporation, upon the vote of a majority of its trustees then in office, shall have the power to do and perform any of the powers conferred by this charter, or the laws of the State of Georgia, now or hereafter may be vested in similar corporations.

6. The principal office shall be in Fulton County, Georgia.

7. Any member of said corporation, his heirs, successors or assigns who shall convey real property to the corporation shall be entitled, upon dissolution of said corporation, to have said property returned to such member, his heirs, successors or assigns.

Wherefore petitioners pray that they may incorporated under the name and style aforesaid, with all the rights, privileges and immunities herinabove said forth, and such other rights, powers, privileges and immunities as are now or may be hereafter conferred upon corporations of like character under the laws of Georgia. "

And then an order of jan 26th, 1965 by a judge granting the corporation

Closing docs mention no HOA at all. They refer to the original plat map, which have those deed restrictions, but no buyer or attorney looks at old plat maps when they do a title search. The assumption being that it's only the boundary lines that are shown on those.

Ahh, I was unaware that each member deeded their portion of the lake to the corporation.
That explains the section that property deeded to the corporation is returned if the corporation is abolished.

I don't think it makes membership mandatory. However, it might.

At this point, I would recommend contacting an attorney versed in corporate and property law.
Once they reviewed all available documents, they can give a legal opinion.

Another option is to simply dissolve the corporation, returning the lake property to the owners and everyone is responsible for their portion. I would then lobby the city to create a special taxing district of the lake front properties to maintain the lake.

Tim, your answers are very detailed and full of excellent information. Seriously, I recommend that you should start an HOA consulting firm that handles all the type of issues that we find in this forum.