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Subject: HOA has not had board for years...
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Author Messages
KarL
(Missouri)

Posts:19


06/27/2021 8:22 AM  
Problem:
We have a HOA, but it has not been enforced for years. There are common areas and drainage areas that are now silted in and need repair. (At this point EPA violations & etc.) Having detention ponds was and is a requirement of the subdivision.

The HOA covenant says that any homeowner has the right to set up and enforce the HOA covenant, and if legal action is required that the HOA is required to foot the bill.

My goal is to see that the ponds are dredged out, pipes repaired, and that the common areas are well kept.
I am willing to pay for some of this and set up the HOA, but it should be a shared responsibility. So far, none of the other homeowners are interested in fixing the problem.

The city said it was a civil/internal matter and is unwilling to help.



QUESTION:

What steps do I need to take to set up a HOA? Do I need to hire a management company?

Do I need a court ruling? I am willing to pay for some of this, but this should be a shared responsibility.
I do not want to involved EPA. I am sure that would cost us all a small fortune. The repairs could be done in stages.

Has anyone encountered this situation before and what steps did you take?
MelissaP1
(Alabama)

Posts:10461


06/27/2021 8:32 AM  
First are you still Developer owned? If so, it's the Developer's issue. You can volunteer if you want with them if they allow it.

2nd a HOA means you should already be incorporated. Most likely as a "non-profit". That is NOT a charitable one. So spending your own money is a no-no. Just don't do it beyond your dues payments. A HOA is ONLY funded by it's members for it's members. So who is handling your dues now?

A Management company is a contractor the HOA hires to do certain jobs. Example be the dues collector and accountant etc... So hiring a manager is just an expense you may or may not need. There are plenty of self managed HOA's out there. Which if you are stepping up you can do.

It will be a lot of work but first know what a HOA is before jumping in. READ your documents and find out what can/can not do.

Former HOA President
AugustinD


Posts:1585


06/27/2021 8:38 AM  
-- KarL, it would be best by far if you consulted an attorney. To save money, you can post your covenants and bylaws here (with identifying information redacted. Several long-time members of this forum might then review the covenants and Bylaws and offer you suggestions that will save you time with the attorney and so money.

-- I am aware Missouri is one of those states whose HOA/COA statutes are light on substance. Missouri's Nonprofit Corporation statute likely does apply, and it will offer some insight to how to proceed. It would help if you can assure the forum that your HOA is a nonprofit corporation listed at the Missouri Secretary of State site, either as an active corporation or an inactive one. One may google to find the Missouri Secretary of State site and easily search its corporation list.

-- I have watched a lot of folks here post seeking specific steps as you are doing on an enormous task. The reality is that it is exceedingly rare (never, to be exact) that any of these folks can do what you want to do successfully and legally without using an attorney. There's a reason law school is three years; the bar exam exists; and new attorneys are best served by working for some years under a seasoned attorney.
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