What Happens When An Hoa Is Dissolved?

Estate Planning Attorney Joseph Hudack says that after the HOA was disbanded, homeowners may have to deal with various everyday problems that the HOA had previously taken care of:

Who will care for the condominium building’s external and structural components, for instance, if the HOA is a condominium association?
Who will cover the maintenance costs, and how will payment be made?
What happens if a condominium or condominiums sustain damage from the common area of the building?
Who will cover the cost of damage repair?

Or, suppose the community of common interest has shared or private pathways that lead to the homes.

Easements between all community owners typically govern these passages. Who will cover road maintenance and repairs, and how will these expenses be covered? How will the costs incurred by the local governmental entity be covered, and will the roads become public roads if the local governmental body accepts responsibility for them? Will there be a need to end the easements, and if so, how? Can a property owner forbid visitors from using the sidewalk or path in front of their home?

Enforcing CC&Rs: Resolving Neighbor Disputes and Protecting Property Values

Another fictitious scenario is where the CC&Rs forbid property owners from engaging in activities that may bother other residents or depreciate their homes (such as keeping chickens, painting them a bright color, etc.). Who will stop a homeowner from damaging other homeowners with how they use their property? Will the homeowners harmed by a bad neighbor has to take legal action against them to enforce the CC&Rs?

The goals of HOAs are to uphold property values and enforce the CC&Rs’ obligations and restrictions. Therefore, dissolving your HOA is a time-consuming, complicated, and expensive process that, even if you are successful, may have effects that you hadn’t anticipated, regardless of how poorly run, mismanaged, or corrupt your HOA may seem. It could benefit you and the neighborhood to fix the HOA’s shortcomings rather than dissolve them. To learn more, speak with one of our HOA experts.

Ask an Estate Planning Attorney Today

For more information, go to Hudack Law Estate Planning Attorney and areas of service. We proudly serve California and Arizona; please call our California line at (877) 314-4309 or our Arizona line at (602) 777-7882.