Inactive Homeowners Association

Started by DonB5 • 1 replies • 4485 views

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DonB5 (Missouri)
Posts: 4

Posted:

I live in a neighborhood that had a homeowners association. It was run by the builder. however in 1999, the builder left and no dues were collected and services performed. Basically the association has been inactive for 11 years. There is a pool which has back taxes associated with it over the years as the statements were sent to a non existing address. The pool is an eyesore with dirty water, frogs, snakes & weeds. We now have a buyer who wants to buy the pool for $1 and fill it in. I read the by-laws and saw where we needed a 75% majority of votes to allow me to dissolve the association and sell the pool for $1. ( approx 211 dwellings ) I have obtained over 100 votes authorizing me to do this but it is short of 75%. The remaining homeowners were either told there was no association when they moved in or do not want to sign anything. Is there a precedent where I can get this resolved with what I have here in Platte County, Missouri?

GlenL (Ohio)
Posts: 5,491

Posted:

Don, you might explain to them that as long as the HOA exists whether it is active or not and has common property that all homes are obligated to maintain it is a ticking time bomb. I'm not an attorney and this is not legal advice so you should check with licensed attorney where you live.

Since the HOA is inactive with no assessments collected, I'm assuming there is no insurance on the common areas, i.e. pool. Now along comes little Billy who thinks it would be great fun to catch some of the frogs. Well if little Billy should fall in and be injured or drown who do you think his mom and dad are going to sue? They can’t sue the HOA it no longer is a viable corporation and there is no insurance so they get to sue each and every member of the HOA; remember just because everyone pretends it isn’t there doesn’t mean you are not all still legally responsible for it. The term is jointly and severally, meaning the parents can sue each and every one of the property owners and collect from them all.

You could also explain to them that a small dedicated group of homeowners could conceivably re-activate the corporation that is the HOA and everyone would be on the hook to pay duly levied assessments. I also wouldn't sell the pool without consulting an attorney as s/he may see some problems or advise some conditions on the sale to prevent it from coming back to haunt everyone. You will also need to do something about the tax liens before the sale as I'm sure the buyer won't be willing to assume them.

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