Can we legally dissolve HOA in AZ

Our very small (26) lot subdivision in Queen Creek, prefers to legally dissolve our hoa. We do not have enough people willing to serve on the board, etc. Our CC&Rs are very restrictive; i.e., we're limited on what we can charge for annual fees and special assessments -- requires a vote of 75% (and vote of 75% to change the CC&Rs. The fees raised are not sufficient to hire someone to keep up common areas (very small, narrow perimeter areas) and few homeowners are interested in keeping up the common areas.

We have overwhelming support to dissolve the hoa. Our documents allow it with a 75% vote.

What else must we be concerned about? If we vote to dissolve, what else do we need to do?

Need help fast!

Thanks!

AHughes

Winston,
If you have the power to dissolve your association under state law, and want to do it, hire a lawyer and pay him to make it happen. I suspect the only way to solve your problems is for someonee to offer you a more expensive alternative to dissolving the association. I doubt anyone can led you through it and don't be surprised if you find it to be expensive and time consuming. If no one in the associoations is going to do the work necessary at the association level, the lawyer will probably take the job at so much/hour, in addition to other fees and charges. If anyowner objects I would think you will have a challenge in court, no matter what your documents say.

Keep a low profile and shoot for a quick clean break.

See ((((( )))))

Our very small (26) lot subdivision in Queen Creek ((((((What is this? Are you part of another association such as a POA? If you are they might want to take over your common property. At a cost to your members, maybe even a monthly fee. Also if Queen Creek has any vested interest in your subdivision, you will have to satisfy that interest.))))))))))))))))))))) prefers to legally dissolve our hoa. We do not have enough people willing to serve on the board, etc. Our CC&Rs are very restrictive; i.e., we're limited on what we can charge for annual fees and special assessments -- requires a vote of 75% (and vote of 75% to change the CC&Rs. The fees raised are not sufficient to hire someone to keep up common areas (very small, narrow perimeter areas) and few homeowners are interested in keeping up the common areas.

We have overwhelming support to dissolve the hoa. Our documents allow it with a 75% vote.

What else must we be concerned about? If we vote to dissolve, what else do we need to do?

Need help fast!

Thanks!

If Queen Creek is Incorporated and this HOA is a part of the city, then the Association is there because the city allowed it to be there. So, you might be able to get the city to annex the Real Property of the HOA and dissolve their control over the HOA. In any event, you better check with the city fathers and seek their advice. IMHO

Thanks for your response. Queen Creek is an incorporated town southeast of Phoenix. Our common areas consist of narrow "buffers" around the perimiter of the property which was required by the Town because we are an equestrian subdivision. We do not maintain any lights, streets, etc.

We have talked with the Town about taking over the 'buffer' areas to be made part of the Towns 'equestrian trail' system. That's still 'up in the air.' The north and south buffers are about 8 feet wide along highway/street rights of way.

We've been working with the Town in an effort to get them to take over our common areas which consist only of narrow 'buffer' areas. They were originally designed to be equestrian trails around and through the subdivision. The issue is complicated because when the subdivision was completed in about 2000, the developer 'left the scene' (around 2001 or so) without turning over the HOA to the homeowners. He also left before some of the planned work was completed. He left drainage issues unresolved, fencing incomplete, etc. He did install landscaping and a drip watering system in the common areas, but they have not been maintained in 7+ years. Most of the plant material has died. The developer did not, of course, leave with any homeowners any documents or records concerning the HOA, although the appropriate documents were filed with the County.

Early last year, a group of homeowners contacted an HOA attorney in an effort to get the HOA going. We had an annual meeting, elected a board, etc. It was necessary to reincorporate, have by-laws and Articles of Incorporation written, etc. The attorney did all of that, but his fees took about 75% of the first year's annual dues.

We sent out notices of annual dues ($280 per year). While there were sufficient votes at the annual meeting to reincorporate, a large number of the homeowners have fought the HOA all year. It took all year to collect some of the dues -- after large late fees and threats of liens, etc.

We also found that the taxes had not been paid on the common areas. They, in fact, had never been turned over to the HOA, but we were able to track down a former principal with the developer who signed a Quit Claim deed for the common areas. We then found the common areas had never been combined into one parcel, which we were able to do. However, there are back taxes going back to the early 2000s that must be paid -- almost $4,000 -- which the HOA can not afford.

As the board attempted to get estimates to repair the common areas, we found that our annual budget will never generate enough cash to repair the watering system and to replace plant material. (CC&Rs restrict annual dues increases to 5% -- and it takes a vote of 75% to levy a special assessment or to raise dues more than 5%.) At this point, we still have overgrown common areas, very unhappy homeowners and board that's tired of the uphill battle.

At this point in time, we feel most of our homeowners would prefer not to have an HOA. Allow governing documents allow us to dissolve with a vote of 75%. We just don't know what else needs to be done after the vote.

Thanks for your interest and suggestions/comments. I'll keep you posted.

Do you have any idea what happened to the developer? Where he is now, or what his business name is? Maybe find him and picket, if the state and local laws permit. Let his current market know what he did to you, just be very careful to be very accurate in what you say/print, so he cannot sue for libel or slander, etc...

Are you saying that you are a 26-home complex, with equestrian trails winding around and through the homes, with a few common areas.?

Are these trails being used by the residents? Are they open to the public for use as horse trails?

Are you saying that the consensus is to abandon these trails?

What will that do to your property values?

Have you requested a tax review hearing?

if the common areas were sold (half to county, half to others), then you dont own any common areas after all. And, if they were sold for the tax liens, then you don't owe any back taxes, right? Those were assumed by the new owners.

I hope the new owners don't intend to put a quad trail in on those 8 to 10 foot sections... the noise and dust would be horrible around the horses. Or a skateboard ramp/park area... again, there's not much that can be done, but why would someone buy that land if they didn't have some plan?

I think you need to research what the HOA actually does own and owe, and what it doesn't. This story gets more confusing as we progress, at least to me.

Mary, you may be right, and the city may absorb the cost of maintenance without passing it on. I know the City of Tempe would not do that, even in the 1990s and early 2000's, when it was flush with money and had a budget surplus. Perhaps Queen Creek still has a surplus, and can afford to take on the additional expense without getting paid, but after the OP's last post or two, i am not sure there are any common areas.... if they were sold at auction for the tax lien, then the areas are owned by other entities, not the HOA.

they may already be out of business.

predatory investments...Hmmmmmmmm

i can see several things to do with a ten foot strip of land that would make life miserable for those around it. SKateboard park. Quad trail or motocross trail. basketball court for teens to hang out all night. Car parking/sales area.

Good luck with Queen Creek taking over your debt. I personally doubt it will happen: cities don't typically want HOA's back, that's why they allowed them to be created in the first place, to not have to deal with maintenance, etc...

the only reason an investor would want that property is predatory investment, like the OP mentioned (hoping to turn a profit from the HOA with "threats"), or someone simply looking to cause trouble with threats to build on it, etc..