HOA Dissolution in Ohio

Started by AlA1 • 6 replies • 497 views

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AlA1 (Ohio)
Posts: 3

Posted:

Hi All,
A small HOA in Twinsburg, OHio is looking for an Attorney to dissolve the HOA or practical advice and/or guidance from someone who successfully dissolved the HOA in Ohio. Thank you in advance. help.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Read your documents. Dissolution may not be an option. Also not necessarily a good idea to dissolve a HOA. Especially if it has common property or elements. If not incorporated then how going to legally collect money to cover those expenses?

Plus in my HOA we could dissolve if we became no longer self managed. It would be owned and operated by a property company. They would have all the voting and setting dues rights. This includes their salary... Something to think about.

Former HOA President

AlA1 (Ohio)
Posts: 3

Posted:

Thank you for replay.
The management company increased cost to the point we can't provide any lohger. We have two lihting post, two car visitor's parking lot, plus unincorporated road we use along with much large HOA. We have CC&Rs and By-Law. Which document might have a dissolution restriction? Thank you for help.

TimB4 (Tennessee)
Posts: 21,059

Posted:

To dissolve an Association, one must first amend the covenants so the Association provides zero services.
The Association would then have to sell off common area and common elements or find someone willing to take over the responsibilities of providing said services or maintaining said common areas/elements.

You may be able to get the Master Association to agree to take over those responsibilities or you might not.

Typically, it takes 2/3 of the membership to agree to amend the covenants. This is very difficult to obtain but can be done.

Regarding the cost of the management company, the best ways to minimize or eliminate this cost is:

1) Volunteer to serve on the board and committees so you don't have to pay someone else to do the work.
2) Make sure the board bids out the MC contract every time it's up for renewal - this way the Board knows it's getting a fair market price.

DouglasK1 (Florida)
Posts: 2,046

Posted:

I don't recall reading that any of the regular posters here mentioning having any experience with dissolving an association so you might not get any direct experience replies, especially Ohio specific.

I assume you've already done some web searching, hopefully that would provide some useful info although of course you can't trust everything you read online, including here.

As Tim mentioned any infrastructure that the association is responsible for (roads, storm drainage system, etc.) will need to be transferred to some entity that will accept the responsibility of maintaining such. That could be a master association or city/county government. Governments typically won't accept infrastructure unless it meets their standards, which could involve expensive reports or rebuilding.

It's very possible your governing docs don't say anything about dissolution, I'd say Tim is on the right track with amending the CCRs to provide no duties for the HOA. In any case, I don't think this is a DIY project, legal assistance will help keep this from turning into a legal mess. Another thing to consider is that it's possible that having an HOA is required by the local government conditions of approval for your development, so another thing to try to track down.

Not in Ohio, but my daughter lives in a subdivision where the HOA was dissolved, her neighbor was on the board at the time. I've talked to him briefly about it but didn't get too far into details so don't know much other than they had to deed some retention ponds to the county, and of course the county had to be willing to accept them.

Escaped former treasurer and director of a self managed association.

DouglasK1 (Florida)
Posts: 2,046

Posted:

repairs, not reports

Escaped former treasurer and director of a self managed association.

AlA1 (Ohio)
Posts: 3

Posted:

Not in Ohio, but my daughter lives in a subdivision where the HOA was dissolved, her neighbor was on the board at the time. I've talked to him briefly about it but didn't get too far into details so don't know much other than they had to deed some retention ponds to the county, and of course the county had to be willing to accept them.Thank you so much for your replay.

Would you please be kind enough to help me get in contact with the person who was involved in the HOA dissolution? My email is [email protected] and my phone is 216-640-7251. Your help is greatly appreciated. There is nothing about the HOA dissolution written in our CC&Rs and/or bylaws. Our common elements consist of 2 car visitor parking areas with about 250 s/f of adjacent grass, maintained by our management company, plus two lighting posts. We pay real estate taxes on parking areas and electricity for lighting. Is it possible to dissolve the HOA without giving away the common elements? Any practical advice is greatly appreciated. Thank you in advance. Alex

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