how does a HOA get started

KristinR,

I wish I could be of help to you. I don’t know all the dos and don’ts of an HOA. I will congratulate you on your involvement in your community, though. As you may have heard, it is a “thankless” job. Many of the responses you will get are from people (on the board or once were on the BOD) that have a tremendous amount of pride in the community and for the safety of their family.

There is a incredible amount of previously posted topics very similar to your post.
I would suggest reading many of those too. Use the search box on the right hand side of the screen. That will help tremendously.

You came to the right place for advice.

I’m anxious to hear what advice you will receive on this topic.

Chuck W.

I thought this was a place that I could come to and get advice. If you knew what I have been through to try and find out what I need to do you might think twice about what you have said to me. I am the treasurer of our association and I do not have any backing from the rest of the board. I have been to an attorney however they charge $200 for each advice session and that is close to the cheapest I have found. We are not getting even 50% of our homeowners to pay. So I can not afford to continue getting advice. So thank you for making me feel like I have done everything wrong. To answer your question, I know what I am doing when it comes to my house. However, in this situation I have to take in consideration that I am doing this for 54 other homeowners and there is nothing written to tell me what to do. That is where I feel that if developers and cities are going to allow HOA’s then they should have “HEY HERE IS THE FIRST STEP” information. So the next time you want to tell someone that they have done everything wrong please take in consideration that they have no idea where to begin. When you went to school on your first day of kindergarten, did you not have someone show you to your class, or were you special and new just where to go?

Kristin,
Click on the Community Associations Network link to the right and then look over the sections on "Developer/Transition" and Board/Leadership", There are a number of articles there that will walk you through the basics of association operations. Also, on the blue menu bar, try "Checklists", and above that the State Info drop-down box for North Carolina.

The problems start with the statement "I don't have the backing of the rest of the obard" because without that, fixing things becomes almost impossible. So read the articles on "Fiduciary Duty" of board members, and then remind them that they can be held legally accountable for their actions or inactions, and if they're going to be on the board, at least do it right.

Failure to collect the assessments is a breach of fiduciary duty, and in order to accomplish anything else, you're going to need money in the bank. I would suggest a nice letter to the owners who are behind, reminding them that they agreed to pay the assessments when they purchased (it would be nice if they kept their promise), giving them a 30 day grace period to catch up or present a reasonable repayment program. You can say that the responsiblity to pay the assessments cannot be offset by lack of service or any other issue they may have with the association, it isn't an apartment. (There's an article on this in the Finance section). Then gently mention that after 30 days, it will be turned over to collections, with all of those costs added onto the late amount.

There is an HOA group in North Carolina that might be able to help, and I know that there is a CAI chapter, but you would probably have to join in order to get access. The information should be on the North Carolina page.

Joe

KristinR,

Keep up the good work!!

To first address your subsequent post due to what I consider to be a rather uncharacteristic response from a fellow poster, please do not give up on this site and those that wish to help you. Including the guy who's post you were offended by.

That said, any "mistakes" you may have made (and I use the word mistakes very loosely) seem to have been voted upon. Was the decision to incorporate the other phase made by membership/resident vote? If so, and not a vote by just the board members, than where's the harm?

I believe I recall your original post, wasn't the name of the new developement that of one of the owners?

Email me, I think you have the option to do so on this site, I'll have your email address then, perhaps I can be of assistance (offline). Let me know your original post subject line, and as many details about your site, and your questions/concerns if you are interested. I am not familiar with your state laws, will do research on your behalf. I have a great deal of experience in logistical association thinking, and have knowledge that applies to any community. For example, if your HOA is a qualified private community, are you entitled to municipal services reimbursement for what it costs the town to provide street lighting, snow removal from roadways, recycling/garbage pickup? If these services are budgeted and paid for entirely by your HOA, isn't that double taxation since you are paying taxes to the town, the same as the town residents who are getting these services as part of their taxes?

However, I would recommend you budget for and get an association attorney. Raise the dues if you have to. You are now assuming a new phase with two separate developers, and really need to think about the not-for-profit corporation ramifications of collecting dues for this development, and the transition related deficiencies of the old and new phases.

Best of success!!
GeraldT1
NNJ

Get a reputable management company.

LoriE, why is it neccessary to hire a management co? From my experience and hearing from other HOA's, the management co have no clue about the neighborhood or the people who live in it. Since they make the majority of the decisions anyway, there seems to be no need for a BOD. An HOA should be run by the people living in the HOA for the people in the HOA, not some distant dictatorship whose only goal is to take your money and tell you what to do.