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Subject: Anyone have Experience turning a Voluntary HOA into Mandatory One?
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Author Messages
RM
(Indiana)

Posts:2


08/07/2006 11:13 AM  
We live in a nicer established neighborhood that has had a HOA since day one , it just was voluntary. Well as the 20+ years has gone by the HOA has become more of a paper tiger and the improvements being done are being paid for by fewer and fewer members (membership dropping). The improvements are things such as victorian street lights, electricity for them, up keep of entrances and plants ect.. We have lived here for 2 years and joined the HOA because I believe that they are typically a good thing for controlling property values (as much as possible that is). We have had in the recent same time many new owners (older couples leaving and new younger families coming in) which is great because of the improvements and work people are putting into the houses. As typical though you get some yahoos coming in a not doing the same. We have covenants which state no barns ect. but some moron brought his old one with him from his previous residence (can you imagine). Also there have been others who the idea of cutting their lawn is once every 2 weeks and recreating the hay fields of the midwest. We are now beginning the initial stages to look at converting our neighborhood into a mandatory HOA. Has anyone had any experience with this? Thanks for any info.
HaroldS
(Arizona)

Posts:904


08/07/2006 11:33 AM  
Good Luck! You will need the signature of every single owner, and I doubt the "barn owner" would sign. So there it goes.
Do a search here for something like New HOA and read the past comments. I don't recall ever reading where this has been accomplished.
Actually, what you are describing is the ebb and flow of neighborhoods. Sometimes it it good and some times it isn't. You need to try this when it is in a "good" flows and still hope every owner will sign - not when it has gone into a "bad" flow. Harold
RM
(Indiana)

Posts:2


08/08/2006 5:54 AM  
We just found out from the HOA attorney all we need in our state of Indiana is a majority in each section of the neighborhood to make it mandatory. With 180 Homes in the whole neighborhood and 110 belonging to it we have a shot. I did find out that the memebership hit an all time high when the HOA was starting to put in the new victorian street lights. I think our approach will be one of the old carrot and stick routine. I have started to think that all new improvements should be more selective in who it helps. Such as no longer will we do what I call community projects that help those that are paying members and those that are not. Also I think we need to stress the benefits to us having a mandatory HOA. Do I think we realistically will get 100% wanting a mandatory HOA; no, but I think getting enough to make it the rule & law is possible. I would be interested in anyone that has any positives to list for doing a HOA, along with any projects that one can do that would only benefit paying members. I have given some thought to setting up a discount with local home improvement stores, paint stores, lawn care services, alarm companies ect.. for members only.
RogerB
(Colorado)

Posts:3702


08/08/2006 6:53 AM  
RM, I suggst you ask your HOA attorney for the Indiana statute on which he bases his interpretation that all you need is "a majority in each section of the neighborhood to make it mandatory". I am not aware of Indiana's laws. But I can not believe that anyone in the United States who has a recorded deed to property which does not include a Declaration with the option for manditory assessment can be forced to join into a manditory HOA by a simple majority vote.

Roger Borcherding
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DARCO Property Management (Colorado)
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CharlesW1
(Georgia)

Posts:818


08/08/2006 8:08 AM  
RM-
I think if you could put together benefits to those HO’s that have paid their dues, that would be great. That is great idea! Thank you.
I’ll say this first. I am all in favor of a community that has an HOA established prior to me building my home, although I don’t think it is right of you to try to establish one, even if you can. Many of your neighbors may have chosen to live in the community because it didn’t have governing bylaws, or CC&Rs.

I would think about that change long and hard before jumping in.

Do what’s best for the community!
Keep us posted

Chuck W.

Charles E. Wafer Jr.
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Forums > Homeowner Association > HOA Discussions > Anyone have Experience turning a Voluntary HOA into Mandatory One?



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