How to vote out an HOA and replace (Ohio)?

Here's our story (sorry for the length). Nice developing subdivision is 2/3 complete when the market collapses. Developer sells to a local businessman who unexpectedly passes away months later. Several years pass. The community remains undeveloped and the HOA passes off administrative duties to a family living in the community. No meetings, no agendas, no financial statements, no voting. And the common areas maintained by HOA and landowners deterioriate. We get a letter today from the landscape maintenance company telling us they haven;t been paid and will no longer maintain common areas. I press the HOA contact with these questions:

1. Who really makes up our HOA? Is there a board somewhere? Is it now the M_____ family? Do they meet? How often?

2. Are there any community meetings regularly scheduled aside from the impromptu chats in the park? Have residents ever had a vote - as property owners should - on any HOA motions?

3. What exactly makes up the $6000 in admin fees recently detailed on our billing statements?

4. Speaking of billing statements, how much money has been collected and what remains outstanding? I know my check was cashed quickly and I sure would like to see the grass cut regularly in the common areas.

and get this reply:

there currently is no board K_____ and I were asked by the M_____ family to manage the HOA last year. That entails selecting a lawncare company, collecting dues and paying bills. We are paid a fee of $500 per month to do this. Again that is what the M_____s told us what we were to be paid. About half of the dues have been collected from the residents so far. and Aprils dues have been collected from StoneyCrest Farms.

So - what can we as concerned residents join together and do to oust this "dictatorship" who collects dues (and keeps $6k/yr of the money!) and then cannot even pay for the landscaping? We'd like to form a board of multiple residents for maintenance and oversight but do not know where to start.

Thanks!

Mark,

From your post it sounds like your Association is still under control of the developer (or their estate). It appears that the executor of the estate "hired" the "M" family to perform the duties of a property manager. When they got tired of doing it the "K" was "hired" to do those duties. If the developer still controls the Association then there is rarely meetings as all decisions are made by the developer, who controls the votes for the unsold lots.

If an association was formed and incorporated, then you should check your State Corporate laws (non-profit or non-stock) to see if an annual meeting is required or not. If it is, then point out to "K" that under corporate laws annual meetings are to be held.

You posting also indicates that the person is being honest with you and answering your questions. I suspect that they are just doing what they were "hired" to do and it might be the executor of the estate that needs to hold the meetings as it may not be the responsibility of the person "hired" to collect the checks and pay the bills.

If you are inclined, you might want to see if you can get a group of members together and request that the executor turn the Association over to the membership early. If they agree, then you can organize the meeting to elect the Board.

Hope this helps,

Tim

Mark, what do your CC&R's say about turnover? They should specify when the corporation (HOA) is turned over to the homeowners, usually when a certain percentage is sold OR X number of years have passed. Unfortunately the legislation for HOA's in OH is stalled in the House so contact your State Representative and tell them to get on the ball.

Clarification: R_____ and K______ are husband and wife "running" this thing.

RichardD5
They are homeowners, they pay dues, they want answers. A judge can force this if necessary.

Question is..... how far are you willing to go just to keep some basic info about where their money goes a secret? Not giving them answers could result in legal bills for years. Why not just tell people, whats the big deal?

Hit send too fast.

the things the OP wants not going to happen until then.

I read it.

Even under developer control, a court could force the changeover from developer to association. Depends on what kind of case they have. (although it sounds weak so far)

Barbara, our SoS cannot "dissolve" an HOA.

If an HOA has not turned in its annual report, the SoS can list the corporation as "inactive," but it can still conduct business and is not "dissolved."

At almost anytime after-the-fact the HOA can file the annual report and pay the back fees (generally no more than $4 to $7 per year) and become "active" again.

The SoS doesn't have a thing to do with tax filings, however. That's the area for the IRS.

Even then, the HOA can be fined for failing to file taxes, but can pay the fines and file the back forms and be just fine.