Sub-HOA
The community where I reside is contemplating separating the community and forming a sub-HOA. Must the sub-HOA use the same property manager as the master HOA or can they choose their own? If there is pushback from the master, is there legislation that could be cited?
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Priscilla,
To accomplish what you are considering, if I understand you correctly, you will need to amend your CC&R’s to allow this separation. This will require the general approval of the specified number of owners in the master community (typically 2/3of all owners) and 100% of the owners in the new community under current Arizona law. This clearly is not an easy task. If you are able to achieve this, then you will be free to choose any community manager that you want.
While I’m not sure what and why you are trying to do this, I sure hope that you have hired an attorney to help guide you thru this process. I’m not aware of any community that has ever succeeded with such an effort. Maybe you should first look to understand why you are even considering such a move, and if that move will be any better than what you currently have. While the grass may look greener on the other side it seldom actually is. You will still be an HOA with a board and CC&R’s and will still be subject to the master association in some way.
If your issue is that you do not like the community manager, the right way to fix this is to address it with the board and if they do not fix it then recall and remove the board members and replace them with board members that will properly manage the community managers or replace them.
Dennis
Thank you, Dennis. I probably did not make my question clear. Our CC&Rs currently do allow for a sub-association to be formed. I am wondering if we, the newly formed sub-association, would have the option to choose our Property Management Company, or could the master association force us to use the Management Company used by the master association?
Priscilla,
This situation is very rare and nothing in law addresses it. As I stated earlier as a separate entity you are free to choose the management company of your choice. All of this will depend on exactly how your CC&R’s are written. To even have this option available in the CC&R’s is also very rare and unusual. If you send me a copy of your CC&R’s to the e-mail address on the web site, I’ll look them over and give you the appropriate feedback.
Dennis
We have a sub HOA condo community with in a master HOA residential housing and commercial development community that have other sub HOA’s, which has caused issues with who is responsible for what and if their reserves factor in any of the connected common areas and as there is changes in board members we become neglected. This can and has been a hassle to get resolved. Additionally, we have to pay 2 HOA monthly assessments and subject to special assessments by both too. We have had various property managers and now use the same one as the Master HOA.
Darlene,
There are many master association with sub associations within the greater community. All of those type communities typically require assessment from both the local and the master association. The CC&R’s for both associations should describe in detail the relationship and responsibilities of each association. If you have specific questions about the relationship, I’ll have to read a copy of each association CC&R’s to provide any clearer guidance.
Thank You
Dennis