HOA minimum legal requirements

Started by SusanS8 • 5 replies • 3103 views

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SusanS8 (Washington)
Posts: 3

Posted:

Hello everyone,

I posted on here a while ago needing help with our ultra small HOA. Can anyone help me figure out what are the minimum legal requirements to run an HOA in WA? The More info I find out the worse the feeling I get about this whole thing. Are there any guidelines/books/websites out there that actually tell you exactly what is required to do in my state as far as records, taxes, filing with the county etc? Does anyone know of a book for dummies on running a HOA. I am getting very frustrated with this whole thing and think we made a big mistake with buying our home which we love. I need real help with real answers. I don't even know who to ask or what to ask at the moment. Where do I start??

HELP!
SusanS8

BrianB (California)
Posts: 2,820

Posted:

Quote:

Posted By SusanS8 on 09/10/2009 3:11 PM
Hello everyone,

I posted on here a while ago needing help with our ultra small HOA. Can anyone help me figure out what are the minimum legal requirements to run an HOA in WA? The More info I find out the worse the feeling I get about this whole thing. Are there any guidelines/books/websites out there that actually tell you exactly what is required to do in my state as far as records, taxes, filing with the county etc? Does anyone know of a book for dummies on running a HOA. I am getting very frustrated with this whole thing and think we made a big mistake with buying our home which we love. I need real help with real answers. I don't even know who to ask or what to ask at the moment. Where do I start??

HELP!
SusanS8

It's not gospel, but here's a start:

You will need to file with the state as a corporation. easy to do, usually, and update occasionally (annually) as officers change, etc.
you will file tax forms with IRS, perhaps State IRS too. Fairly simple, actually.
You will want policies... see threads in this forum for some good ideas on what you might need, and some you can copy.
You will probably need a bank account/checking account
need a PO box or place to receive mail that doesn't change every election
you will need to know your restrictions, codes and covenants, and all other policies/rules/regs very well.

SusanS8 (Washington)
Posts: 3

Posted:

OK, Thanks for a starting place. We are a HOA of 2 units(ultra ultra small) which seems very ridiculous to even have one but there must be insurance for the overall building and the water sewer is one meter.

Doing a search I found that we were registered as a corporation with the state but that has expired.
I called the sec of state filing office and was told the law states we "may" register but it is not required. They were not really much help with that. What are the reasons to register as a nonprofit if it is not required?

How do I figure out what tax forms to file?? How do I find out the TaxId for the HOA?

I have a copy of the declaration of condominium and the articles of incorporation.

We have a checking account for the HOA.

Pardon my ignorance.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

SusanS8,
Look on left of this page and scroll till you see some sponsors highlighted in yellow. Click on CAN and look that site over good. Lots of info there and be sure to check states and the Library site.

If they allow two unit HOA's in WA I would look around your area for some small HOA and stop in and see what they do. While you are looking around can't the other party involved help? Talk to them. They may not want to get involved, so your make them a deal they can't refuse, something like; " if we can't work this out between us I am going to a lawyer and send you half the Bill. If you don't pay it, I am going to court to get a court order."

RickW (Illinois)
Posts: 169

Posted:

Susan,

I agree with Robert as a starting point. I went to CAN and looked under the State of Washington. You can find links to state laws concerning HOAs. I'm sure if you look further you might find other ways to find guidance from those that know your state laws. That's the first step.

Once you determine you legally are/can be a HOA, you need to find out what was filed as a corporation previously. I would think that paperwork would have a deed or covenant that might help.

EllenS1 (Florida)
Posts: 1,148

Posted:

Why on earth would you want to be involved in this mess? I'd talk to the other owner and get separate water meters. Your corporation has expired. What benefit would you have as an HOA? Why are you interested in filng a tax form? If your corporation has expired I doubt your covenants mean anything. Yours sound much like a duplex and not an HOA. Talk to your insurance agent to make certain you are protected and leave it at that.

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