Inactive Homeowners Association

Started by DonB5 • 5 replies • 3017 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.

Studies show that 5 out of 4 people have problems with fractions

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I've never heard of a common area like a pool having its own taxes. But it may. Usually, the common area has no taxes because its value is accounted for in the value of each property owner who use the common area. Who is the pool property deeded to?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Steve,

You may be thinking of a condo assn. I know that in AZ all planned communities of single family homes pay property taxes on the common areas which are deeded to the HOA. A number of years ago AZ reduced the tax rate so that it is very small for most assns.

DonB5 (Missouri)
Posts: 4

Posted:

THE POOL POOL IS DEEDED TO THE HOA. BACK TAXES ARE AT $3600 THROUGH MONTH ENDING AUGUST. THERE IS NO CORPORATION/MGT COMPANY OR INSURANCE. I'M HOPING AN ADDITIONAL MAILING OF 50+ LETTERS ALERTING THOSE WHO DID NOT VOTE WILL CONSIDER OUR POTENTIAL LEGAL LIABILITY. AS I UNDERSTAND IT, IF A CHILD SHOULD GET INSIDE THE FENCE AND DROWN SAY TRYING TO CATCH FROGS, THE PARENTS COULD SUE ALL OF THE HOMEOWNERS IN THE ASSOCIATION. I REALLY APPRECIATED YOUR FEEDBACK

TishS (Washington)
Posts: 116

Posted:

Don,

So, have your neighbors considered what will happen if that property is sold a tax auction? What are you going to have in that space? I think you seriously need to think of the worse case scenerio...your neighbors could really end up paying through the nose for ignoring this.

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