How to know if we are a legal HOA?

Started by KateN • 5 replies • 1412 views

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KateN (Wisconsin)
Posts: 1

Posted:

I live in a new subdivision in Wisconsin- roughly 60 homes. Our developer still has control over our HOA because there are still a number of lots open. Many in the subdivision believe the developer is not being truthful. First of all, he doesn't take care of his responsibilities in a timely manner- snow plowing, outlot maintenance, etc. Secondly, we don't think he has filed the proper documents with the state and paid the proper fees/taxes. People just think he's pocketing our money. About 17 houses in our subdivision refused to pay last years dues. I think it's unfair because we had to at closing and now the rest of us who did pay are "paying" for their stubbornness because the costs associated with him taking these people to collections are coming out of our association's dues. Does anyone know how I can find out if our HOA is legal and copacetic? I searched WI's gov site and couldn't find anything. And is there a way to get him to turn the HOA over to us before he technically has to? (which is all lots sold or 10 years).
Thanks!
Kate

SusanW1 (Michigan)
Posts: 5,202

Posted:

Is there a board set up? Do you have an annual meeting?

Get some homeowners together and demand a meeting. He MUST maintain the HOA.

PS. In MI. all corporations are on file with the Sec. of State, and Dept. of Commerce - corporate division.

EverettC (Maryland)
Posts: 90

Posted:

In Wisconsin, corporation documents are filed with the Dept of Financial Institutions - see https://www.wdfi.org/apps/CorpSearch/Search.aspx?

RogerB (Colorado)
Posts: 5,067

Posted:

Kate, If at closing a title company required HOA payments then you do have a legal HOA and you should have been provided at a minimum the Declaration of CC&Rs (Covenants) at closing. I would contact those who mailed you a statement of the assessment due and request they or the Board of Directors of the HOA provide you with the Covenants, Bylaws, and any other governing documents. If they don't, then the Covenants are on file with the County in which your property is located; you can purchase a copy through the County Clerk's office. If the HOA is incorporated you can go to the Wisconsin Secretary of State's web page and enter the name of your HOA to find and download the Articles of Incorporation.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Go on-line to county Courthouse records, Property and Court records. Use your Association name and search. Use developers name and search all that. Lot's of stuff on County Records. The more you know, the better you are, don't just stop with seeing your association name registered somewhere, copy all information and build folder for reference.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Kate,

Sounds like there's a lot of speculation going on but does anyone have proof of all these allegations? Without proof there isn't anything that can be done.

The worst thing to do is withhold payment of assessments -- for any reason. Please inform all your friends and neighbors to NOT do this. Foreclosure would be the worst thing that can happen, but in the meantime there will be late fees, demand letter fees and other attorney fees attached to their account. It's not uncommon for a $50 assessment fee to snowball in the thousands in a few months!

The fact that you were obligated to pay an assessment fee at closing means there is an HOA legally in place. However, you can check this out on your County website. Just key in the name of your assn and you should be able to find the recorded CCRs. Actually the recording number may be stamped on your copy of the CCRs. This is an indication that the CCRs were recorded making them a legal document. You should be able to access your Sec of State's website to find out if your HOA has been legally set up as a nonprofit corp.

Whatever the CCRs state as being the transition date is what must be followed by the developer. The member's do not have the authority to change this. All you can do is petition the developer to transition early, but, IMO he does not have to honor your request. How many unsold homes are there? If there are still a large number of homes unsold and if the developer is obligated to make up any financial losses during the year, IMO, it would not be wise for the members to take over early as it most likely would necessitate an increase in assessments and/or a special assessment.

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