Block formation of HOA

Started by DougW2 • 6 replies • 3450 views

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DougW2 (North Carolina)
Posts: 2

Posted:

My developer went bankrupt before the creation of an HOA. Therefore, a HOA was never formed. However, there are Declaration of Covenants, Conditions, and Restrictions tied to the deeds for our subdivsion. The CCRs mention no formation plan of an HOA.

Now someone in the neighborhood wants to form an HOA. But I want no part of it. Things have been fine for 10 years and we don't need an HOA to govern our neighborhood.

How can I put a stop to him forming a HOA?

Thanks

MicheleD (Kentucky)
Posts: 4,491

Posted:

Hopefully you won't be able to.

By the way, the "association" doesn't "govern" the development, the CC&Rs do.

So everyone should and would still be liable for compliance to the deed restrictions even without an administrative board to handle the day-to-day business of the association.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Doug,

Actually the only way to "stop" an HOA from being formed is to ask all the property owners to vote "NO". A legal vote must be taken and in some states the requirement is for 100% approval of the property owners. I don't know what the requirements are for your state and, in fact, there may not even be case law on this issue which means it may take a court case to stop it.

What reason does this neighbor give for wanting to form an HOA? If there are no common areas that must be maintained, then there really is no reason to form an HOA. If the only reason is to enforce the deed restrictions, then, as Michele has said, each property owner has the authority to do that in a court of law, usually small claims/justice court.

DougW2 (North Carolina)
Posts: 2

Posted:

Quote:

Posted By MaryA1 on 06/03/2010 12:38 PM
Doug,

What reason does this neighbor give for wanting to form an HOA? If there are no common areas that must be maintained, then there really is no reason to form an HOA. If the only reason is to enforce the deed restrictions, then, as Michele has said, each property owner has the authority to do that in a court of law, usually small claims/justice court.

The only reason he wants to form is to have the street re-paved and asses each owner over $2000 each to do it. Which in most owners opinions, it does not need it.

Wonder how I can look up the North Carolina law on HOA voting requirements?

RichardP13 (California)
Posts: 1,767

Posted:

Doug

Try these two links for North Carolina Law

Condo Act
http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?Chapter=0047C

Planned Unit Developments
http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?Chapter=0047F

DanielH1 (California)
Posts: 482

Posted:

That's interesting -- about repaving.

To some homeowners, the street will never need to be repaved. A 100 years from now, they'll insist that the street is ok. "Looks fine to me," they'll say. They'll buy a 4x4 or a mountain bike rather than pay $2,000.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Doug,

So your streets are private? That, in itself, would be cause for having an HOA, IMO. Perhaps the prop owners can convince the co/city to take over maint of the streets -- or set up a special taxing district for that purpose --considering the fact that there is no HOA.

Frankly I doubt that you will find a state law addressing the voting requirements to form an HOA. A good HOA attorney should be able to assist you in this dept.

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