Quote:
Posted By EmmaT1 on 03/03/2025 2:15 PM
My twelve household HOA was administratively dissolved after more than 5 years not paying fee and file reports to Washington States.
Observations:
-- At this point, the corporation does still exist, but Washington statutes highly limit what the corporation can lawfully do. From RCW 23B.14.050:
"A dissolved corporation continues its corporate existence but may not carry on any business except that appropriate to wind up and liquidate its business and affairs, including: [see the rest at https://app.leg.wa.gov/rcw/default.aspx?cite=23B.14.050]"
-- On the other hand, the
association is a creature of the covenants. Also, and this is important,
the covenants do not go away just because the corporation is in the process of fully terminating, or even if the corporation ceases to exist. The covenants are still enforceable, with some caveats that will depend on the wording. -- the association is likely still subject to the state's HOA statutes. (RCW 64.38 for one says a HOA does not have to be incorporated.)
-- Do the covenants require the association to be incorporated? The covenants often do. Hence the board has a legal duty to file as a 'new entity' (meaning simply a new corporation).
-- Filing as a new entity means coming up with Articles of Incorporation. For strong legal reasons, I advise using the old Articles of Incorporation and the new corporation's new Articles of Incorporation.
-- Did someone ask the Secretary of State whether it perhaps has a copy of the original bylaws?
-- Did someone check with the county to see if per chance the bylaws were recorded with the county? That is not usual but it does happen sometimes.
-- Regarding what happens to the old bylaws: For various, strong legal reasons, I believe the board is obliged to continue with the bylaws in place when the administrative dissolution occurred. If these bylaws absolutely cannot be found, then RCW 24.03A.125 ways "
The board shall adopt initial bylaws for the corporation. -- Some study of state statutes and the covenants is needed to begin to figure out how to proceed. The land mines here are huge.
-- This is only an introduction. It is of the essence that your board seek the advice of counsel post haste.