Disolvement of HOA

The question has been posed to be me how to disolve an HOA?

What are the legal ramafications, and what has to be done to do it in TX.

If your HOA is mandatory, then at a minimum you will need to amend the covenants. In many cases this requires 66 to 75% of the ownership to agree to the change. In this area most HOAs don't actually bother with dissolution. They simply become inactive because it is much easier. The problem is that it leaves open the door that a few people can resurrect the HOA again. I would never personally agree to that idea.

But before you venture out on this track I would suggest that you get a good read from many many neighbors. You might find yourself surprised at the number of people who don't want to do a thing but will vote to keep the HOA.

Sell the common areas to the next closest land owner for $1. It will not be a common area anymore, but at least your one step closer to dissolving the HOA.

They wouldn't "want" the water retention area, but it would solve the issue of dissolving the HOA which is the point of this thread. Everyone wins.

Another thing you could do...... once the common area is sold to the new owner for $1. The new owner could fail to pay taxes on the land and let the city take it.

Let the city/county/state take it in a back tax sale, auction it off to someone, and that someone buy it with the city agreeing to change zoning on it...

and now, you have a brand new car lot, or quickie mart, or gang hang out, or junkyard, or halfway home for drug recoverying mental health sex offender felon parolees, right in the middle of your now non existant HOA...

not likely, but it could happen.

And remember, the person who bought it and then failed to pay taxes has to agree to the blight on their credit rating for years, and perhaps still being liable for penalties, interest and taxes, should the state wish to collect. Just because you fail to pay the taxes doesn't mean the state forgives them.

BrianB
Think about it..... property taxes are not even connected to your social security number. Why would it be on a credit report? I have never seen property tax liens from any of three credit reporting agencies.

OK Steve but this altruistic homeowner willing to take one for the team better have great insurance should anyone be injured or killed on their new property.

I offer action plans, you offer excuses. Somewhere in the middle is the solution.

Gotta start somewhere.

Michele,

I quit replying to Steve because it's apparent he "thinks" he knows it all, but his remarks tell us otherwise. He should lean to quit while he's ahead instead of continuing to dig a deeper hole!

What happens in Mass is not likely legal in other places.

It would not be remotely "legal" in Kentucky, and it would not happen the way you claim this resident "did" it.

So, I will state again, with all due respect, your so-called "action plans" are faulty.

The legitimate concerns raised about them are not "excuses," but serious issues that should not be dismissed so cavalierly.

Kirk,

How do you know your docs would not stop you from transferring ownership even if your assn did own land? The CCRs of my former assn (also in Glendale, AZ) stated maint. of the common areas could not be terminated w/o the approval of the City. We checked into it and were told the City would NOT take back ownership of any common areas.

Also, I'm curious to know why there is an assn if there is no common areas or other amenities to maintain. Along with all the common areas that my assn actually owns, we are also resp. for maintaining City right-of-way areas along several major streets that traverse through our HOA. I believe this is not uncommon. We're in the process now of upgrading the landscaping along one City right-of-way that will end up costing us tens of thousands of dollars with not a penny coming from the city, but we were required to obtain approval to remove a number of dead or dying citrus trees.

Beth since you stated in one of your other posts that you were a 10 unit condo I don't even want to think of the hoops you would have to jump through to dissolve your COA but yes it's possible the steps required should be in your CC&R's somewhere. Generally it would probably require the approval of 100% of the owners and the mortgage holders if any; you may also need the approval of the zoning commission as they often allow things to be built on smaller parcels depending on their planed use. In addition you will need to find a way to fund and maintain the common areas, hallways, parking lot/garages, landscaping and roofs; you know the things the HOA are required to maintain. What type of condos are you? Are the units all in one building, are they townhomes or are they free standing on their own plot of land that's commonly owned?

Glen makes some excellent points. I too think the mortgage holders would be quick to object.

Brian,

Ha! Ha! I agree it's not like communism. But, some people do refer to the HOA Board as the Gestapo which was the enforment agency for Nazi Germany, a facist govenment. Some people might even call our FBI and DEA agencys the Gestapo! LOL I think Charles is not speaking of the HOA, but rather rather the BOD (enforcement agency) of the HOA. Yeah, we do buy into the HOA with our eyes wide open but we don't know what route our leaders (the BOD) will take.

Out of respect for RobertR, I withheld my second recommendation, which would be for an unhappy resident to run for the board himself and promoted the "kick the bums out" idea first.