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KarenH2 (Texas)
Posts: 5
Posted:
What happens to the association if all the board members resign and no one volunteers to replace them? Is there any kind of legal basis that the board members have to follow if no one is replacing them? (this is with the thought process that they are leaving before their term is complete).
JanaC (Tennessee)
Posts: 31
Posted:
I don't know, but I've got simular situation. What happens to the bylaws, Articles, and Declarations if the HOA is dissolved?

JanaC.
RogerB (Colorado)
Posts: 5,067
Posted:
Karen, voluntary associations just fade into the night along with property values. For manditory assessment associations where the association is responsible for maintaining property (such as drainage, retention pond, amenities, etc.) it will get very expensive for the homeowners. The court process and appointment of management for the association will raise your assessments tremendously. Let the owners know and encourage them to consider their alternatives ... hire a MC and/or changing the By-laws to be able to pay Board members. These choices are much less expensive.
AsunteW (North Carolina)
Posts: 6
Posted:
There is no legal basis. I am a Board of Director in my association. We volunteer for you. What happens even as I have experienced it, people want someone to fight for them and the ones you are fighting for are fighting against you. I have even had Board members do things to each other. People get tired of the effort they put in. I know I am set to resign my position early 2007. The Management of the builder (the developer) will have to set someone in motion. They do not want the responsibility because of warranty, liability, etc. Until someone steps up, you are responsible for yourselves. The problem is once you become and active member on the Board of Directors, you will see what we put up with. Most of your problems are renters not owners. The community needs cooperation. When people do not care about how they live why should I cut my schedule in enjoying life trying to your life in order. Volunteer or you are on your own. There is no legal binding...
BrianB (California)
Posts: 2,820
Posted:
Of more concern if a board resigns/HOA disbands is what happens when the county taxes are due? Who will file with the IRS come April next year? Who will pay the bills with the city for water, lights, power, etc.? Whow pays for cleaning, landscaping, etc.?

The HOA may forget one or two things, but eventually, the IRS, State and County will come for their money/forms/filings, and when they do, EVERYONE will be in a world of hurt.

BrianB (California)
Posts: 2,820
Posted:
And, heaven forbid the common area insurance lapses, and then someone get's hurt.

Every homeowner will be paying through the nose for that lawsuit.
JanaC (Tennessee)
Posts: 31
Posted:
Our Common area can be donated or sold to. Which the owners next to it would gladly take it and most here would glady donote it to them or sell to them for $5.00 bucks, then it would be just like any neighbor hood, each homeowner pays their own taxes and so fourth. I lived in a neighborhood without a HOA and it was nice, people took care of their yards and were friendly. We didn't pay through the nose we paid our taxes.

JanaC
BrianB (California)
Posts: 2,820
Posted:
if the deed restrictions on the common area property allow it to be sold (sometimes it can't be, or if it can be sold, it cannot be rezoned, used, etc.), then by all means, sell it and get out of the HOA business, if that is what the owners desire.

SidneyP (Florida)
Posts: 302
Posted:
JanaC....I have been in three HOA developements and I have found none of them to work. In any community you will always have those who do not give a darn about their property and not always renters (though they are the worst offenders). As I have stated before in another post, you just send notice after notice after notice and by the time you get through w/all that, they violate something else or move and you start all over again....I live beside a rental & one across the street ($250,000.-290,000 neighborhood), managed by MC. During the summer, I have to call the MC every week to have the renters cut their grass. Also when we bought our home, we bought into a single family neighborhood but our local Real Estate MC will turns around and rents to 5/6 single young people. Along w/them come 5/6 cars and parties. I think our BOD's tried at first but it was a loosing battle and now nothing is enforced...The TH I own has a renter next to it and a HO who has not paid dues for over a year. Do you think they care what the renter is doing. Nothing was done until I(became a Board member) took pictures and mailed them to the MC. Letters were sent but nothing was ever followed through. I had begged for them to be fined, MC said the Board would have to set the fines. I have ask the President to do this, she has done nothing. Our fountain has been broken since April, our park entry way is falling apart, we have about 20 bushes that are dead, about 12/13 delinquent accounts> I could go on and on. Our BOD's are not doing anything. I don't like including myself w/this Board because I keep pushing and the other two are upset w/me. They say they don't have alot of time. They won't step down because like you said Jana, there is no one standing up to take their job. HO's have shown no interest(though the President has sent NO newsletters or information to them) in our community at all. I was elected for two years and want to fulfill my obligation but my hands are tied if the other two won't act. I am wasting all my time and efforts and am also thinking about resigning.. And what if we happen to get a HO who does care and decides to sue because of the condition of the community and our lack of carrying out our duties(and I don't thin we have D&O insurance)....I have also lived in a NON-HOA community and it was very nice.
JeanW2 (California)
Posts: 8
Posted:
Roger, is this what is known as "receivership?" It is mentioned at Davis-Srirling.com (California law. You mention being able to pay Board members. Would you know if this is possible in CA?

Thanks,
Jean
RogerB (Colorado)
Posts: 5,067
Posted:
Posted By JeanW2 on 11/18/2006 6:38 AM
Roger, is this what is known as "receivership?" It is mentioned at Davis-Srirling.com (California law. You mention being able to pay Board members. Would you know if this is possible in CA?
Thanks, Jean

Yes Jean it is called receivership when the court appoint a conservator (management of the HOA). I am not aware of whether or not it is possible in California. Most think Board members may not be paid but that is not necessarily true. It must be allowed by law and may require amending the association's By-laws.

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