Is new HOA Legal?

Started by ChipC1 • 7 replies • 1338 views

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ChipC1 (California)
Posts: 2

Posted:

Hello

This is my first time posting here. I have never dealt with HOA's so I thought I would ask for some expert advice.
My dilemma is this:
I own a undeveloped parcel of land on a private drive (one lane). All land is zoned agriculture. On this drive are two homes (one of which is owned by the business owner), my vacant lot, and a large business. The owner of the business wants to start an HOA in order to collect money to re-pave the roads. This all started because he wants me to pay for the next repaving which I would not have a problem with except 99% of the traffic on the road is associated with his business. He owns approximately 75% of the land on this private drive. I thought an HOA was a residential institution, Can a business be part of an HOA? Further, can an HOA be started with only three owners? I have no problem with HOA's but in this case, I do not get along with this businessman and believe he will make it difficult for me to develop my property if he establishes an HOA. If I had more neighbors I wouldn't be concerned, but potentially, it looks like I could be out voted on everything.
Any advice is greatly appreciated. Thanks.

BrianB (California)
Posts: 2,820

Posted:

more or less, an HOA is a voluntary contract between two or more people. Usually, that contract is agreed upon and tattooed into the property/title for all future owners. In your case, it sounds like this person wants you to be the first to join a new HOA.. an HOA of three, which is legal. So is a rural HOA. He is within legal rights to ask you to join.

However, I believe it would be voluntary at this stage for you to join. Once you join, however, it would be mandatory to pay the assessments, and they would transfer with your land (most likely scenario). Honestly, I would talk to the guy about other alternatives, ie, he pays X percent for the traffic he brings in, you pay X percent for your traffic, or whatever... it will come down to some wording between you that you can both live with, in some kind of renewable contract, that isn't an HOA.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Dont join the HOA whatever you do. You will never be able to get out of it. You will be forced by law to pay for what ever improvements the "board" decided to make in the future.

The road is private? Who is it owned by? If owned by no one, it may be private because the city doesnt want to take possession of it.

- Talk to the guy about turning the road over to the town/city. He might not of thought of that.

- Its a vacant lot. Its zoned agriculture. You dont even use it. Offer to toss him a $1000 or so to be nice. Otherwise just tell him you are happy with the way it is right now.

- If you believe he will make it difficult for me to develop my property later down the road, he will. HOA or not. You can cross that bridge when you come to it.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Chip writes:

>>>I do not get along with this businessman and believe he will make it difficult for me to develop my property if he establishes an HOA.<<<

As The Left Bank put it:

Just walk away, Renee.

And I wouldn't toss him $1K to be nice, either. If you're happy with the road, why complicate your life and finances?

ChipC1 (California)
Posts: 2

Posted:

So it sounds like since it is a new HOA, membership would be voluntary. If I were to sell, would the next owner have the same option?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I you join the HOA, the person you sell to will become an automatic member of the association. There is no choice. They cannot opt out.

If you want to help out with $$ for the paving, work it out with the other owners, but do not start or join an association. You can deal with expenses like the road on a case by case basis.

DJ1 (Ontario)
Posts: 798

Posted:

It really comes down to whether you want to encumber your property or not. If no, then you have your answer about whether to join a HOA or not. As others suggested, there are ways to address the paving ie cost sharing etc, without possibly imposing other conditions on your property now, OR IN THE FUTURE, that you may not be able to live with.

KirkW1 (Texas)
Posts: 1,665

Posted:

You really should look up your state laws concerning the subject. I can tell you about Texas, but that would not be definitive for CA.

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