Terminate from HOA

Our HOA had been built over 40 years ago. 20 years ago they added a street of houses, and
a couple streets of townhouses and called it The Heights. The members of the Association
voted for us to be part of the HOA.

A year later they extended our street but the HOA did not want these additional 30 homes as part
of the HOA. You have to drive through the HOA to get to these additional 30 homes. So they are not
part of the HOA and do not have to pay the monthly assessment.

We have a document that says our "covenents" run for 21 years from the date of first occupancy
which would be March 2013. My question is: 90% of the homeowners do not want to be in the association.
Is there a way we could terminate ourselves from being part of this HOA?

Thanks!!
Cheryl

You will need a lawyer. Get everyone together to pitch in some money and appoint 2 people to go see a lawyer.

If you have common areas that need to be maintained such as a playground, pool, road, etc. Its unlikely you can leave the HOA. You need someone who can look at "your" HOA docs and give you an opinion. Every HOA is different, with different docs, different property, etc.

We have no common areas to maintain and the township maintains our roads.
We really don't benefit other than garbage and it would be cheaper to pay for
garbage on our own. The last phase of our development is not in the HOA and they
drive through to get to their houses.

Yes they are definitely township roads and are maintained by the township.
Since our whole street isn't part of the HOA isn't there something we could do
since we are part of the street that doesn't belong?

I used to live in Pennsylvania and understand a bit about townships. I would contact the township and find out what the HOA may need to do to convert to the garbage pickup system. We had dumpsters in our HOA versus the city pickup service due to access issues for that service. If they already serve the other area, then they can make arrangements for your area if it's accessible in a similar way. Just don't expect to have any rules in enforcing when you can leave a garbage can out or nor. A HOA could possibly control that while a non-HOA can't.

What does the dues pay for? That needs to be established so it can be determined if those are costs that can go individually. I found costs for services MUCH MUCH cheaper in my HOA than as an individual owner. Example: My garbage pickup cost me $13.50 a month through my city's pickup. It was about $5 out of the $50 I paid out of my HOA dues. This included recycling. So you want to double check the costs of individual versus group rate before you disband. There are power in numbers sometimes. Which a HOA can offer...

Your HOA does have some common interest. That is the pool and insurance. The insurance could be for the pool and/or board members. The issue would be if the pool pass sales would be enough to cover the costs of pool operation/maintenance/insurance. There would have to be a responsible party to control the pool ultimately. Right now that is the owner's in the HOA and general area.

The options may be to sell the pool to a third party to run as a business. This way ALL people who want to use the pool have to pay for it's use. There would be no membership requirements except those set up by the pool owner. This option could then allow the dissolving of the HOA and individual's taking up their own costs.

We have a neigbhorhood that is NOT an HOA that has a pool. Not sure how they handle it, but do know they sell memberships to the pool. It's open to those outside the neighborhood but at a more expense. I think the neighborhood has a "Pool committee" rather than a HOA. Which would make it voluntary. IF you have enough interested owners willing to form a pool committee to operate the pool, then the pool can stay open and operate on it's own separate from the HOA.

Basically, if there was an accident at the pool area, it would put the ENTIRE HOA at risk of a lawsuit. That means all the owner's in the HOA are liable. Disbanding the HOA and creating a separate committee/third party owner, the liability would fall somewhere else. I am sure a liability form would be required for those using the pool if the HOA was to disband. Another legal cost you may want to consider if you were to disband.

Cheryl,

Yes you can dissolve your HOA but it is a long and expensive legal process and may require 85% of owners to agree which, as you say, is not a problem. If you do not renew the covenants your association could be dissolved automatically. But, again, it depends on the state laws. Even though your docs may say the covenants may expire after 21 years there is something called ‘Marketable Title Record Act’, which prevails. In most states it is 30 years, meaning the covenants would not expire for 30 years regardless what your documents say. But, I do not know PA laws.

As someone suggested you need to review all your covenants and restrictions (which may include water agreements with the town, etc.) and then find a good property attorney who is well versed in this area to explain the process. That is extremely important. Any such attorney should give you one hour free consultation. Ask for it and make sure you have all the questions and docs organized in chronological order when you go.

I guess I shouldn't have titled this terminate HOA. I am just talking about the new section
that was voted in almost 20 years ago. When they first built the HOA it was over 40 years ago.
When they built the new homes and townhomes 20 years ago they voted to take us into the HOA.
We now want out-just the new section pf the HOA. Like I said, part of our street isn't in the
HOA, that was the last phase and they didn't vote them in. (I am sure they wish they would have-
more revenue!)

When they voted to take in "The Heights" into the HOA does anyone know
if and what type of document there would be. No one seems to know. I would
assume they would have had to draw up some sort of document, right? Or
would a vote be enough?

'When they voted to take in "The Heights" into the HOA does anyone know
if and what type of document there would be. No one seems to know. I would
assume they would have had to draw up some sort of document, right? Or
would a vote be enough. Sheryl'

Sheryl,

I am confused. Who is ‘they voted to take in ‘The Heights in’? The old section? Did the vote taken place before the new section was built/sold? Who owned The Heights land?

Yes, there must be documents namely Covenants and restrictions and the Plat, i.e. a legal description of the Association grounds. You need to find the original documents (recorded 40 years ago) and all the amendments. You should also check your deed to see if it is subject to the covenants and restrictions. Something simply does not compute. All these documents should be in your association files. Or, can you access all these documents on line? If not, you may have to go to the court house to get them.
Last question. When you bought your property were you given a copy of all HOA documents?

The land was owned by the developer.

‘Our CC&R is from 1970.’

Sheryl,

The By-laws have nothing to do with this. If the CR&Rs were not amended 20 years ago, or whenever the vote took place, it may not be a valid merger, in my opinion. The vote alone just does not cut it. Also, you ought to also get Articles of Incorporation, providing you are incorporated. These will be filed with the Secretary of State.

Possible. But if the neighborhood was still under control of the developer, he may have had a vote as a formality, but it would have still been his decision to include the new neighborhood without a vote. Too many missing pieces to figure out what really happened. We are just tossing ideas out there.

Sheryl,

Steve said, ‘too many missing pieces’ and that is very true. But still, if the original Plat did not include the land of ‘The Heights’ and this development has a different name the legal paperwork gets a little more complicated. On the other hand the new laws would not apply. You have to revert to the laws and procedures applicable 20 years ago. More research the community does less expensive the attorney’s fees will be, I believe. Also, you did not answer the question when exactly was the vote taken? Before the The Heights were even built? Do the original covenants allow for the Phased approach?

Steve, all we can do at this point is to guide Sheryl to get the info she needs. So far, it looks bleak. She needs to get hold of all the documents and ell what they say. Talking to the ex-Board members is not going to help much, I do not think.