Dissolved HOA
In 2002 our HOA was dissolved by the AZ Corp. Commission. I found out and notified the other 51 homeowners. I went to the next assoc. meeting and the president called 911 and had me removed from the meeting because I was the one who notified the homeowners about what was going on. I then contacted the sheriff’s dept. three times because the board was collecting monies illegally and then they stole all of the money in the bank account, No one ever responded. Fast forward,,,we have a common area with a dilapidated pool and pool house, the taxes are being paid by a resident in here who does not want the area cleaned up. Now, the county has informed all of us that we are responsible for boarding up the pool building, About 45 of these properties have been bought and sold mutiple times since 2002 and not one title company, real estate agent indicated there was a HOA in here. Do you know what we can do about this situation? Any help or advice would be greatly appreciated….
About Post Author
1 Response
Leave a Reply
You must be logged in to post a comment.
LaNah,
First the Arizona Corporations commission has no authority to dissolve the HOA. It was established as a non-profit corporation by authority of the ACC, but if the association fails to submit the annual reports that corporation can be suspended. What that does is put the association in jeopardy with the IRS because it is registered as a nonprofit corporation and if it’s status as such has been suspended then it must file taxes as an unincorporated entity. This is a big deal but does not dissolve the community or the HOA. The CC&R’s created the HOA and only a recorded termination of the CC&R’s can dissolve the association. No matter what happens with the ACC the HOA still exist if the declaration is recorded, if it was never recorded than it never existed and it never had the right to collect assessments or enforce restrictions.
It the association truly embezzled funds from the association that is criminal and needs to be reported to the police and county attorney. Because someone mistakenly assumes that money is missing does not constitute a crime. If you have proof provide that to law enforcement and the county attorney. Speculation and i think does not constitute proof.
If you are an HOA, the seller is required by law to provide you a copy of the governing documents prior to any sale of a property within the HOA. They do that by notifying the association and the association then must provide the documentation. The first thing you need to do is identify if you are an HOA with a recorded declaration, if you are than the disclosure requirements apply to your community. If you were not provided the documentation, then you have the right to sue the seller and the association over that violation of law.
The pool situation is puzzling, is the pool and building private property as you describe or is it common property. it cannot be both. Either it’s private property and the owner alone is responsible for its upkeep or it’s common property in which all of you are responsible, but no single homeowner has any right to dictate what happens with the property.
I can help you, but you need to get your facts clear and correct so that i can understand what is going on.
Dennis