Can an unelected HOA charge with no budget? (Alpharetta: real estate, 2013)

[toocold4me2013]

Our subdivision had no amenities. That's fine. Many of us moved here because we didn't want to pay to maintain pools, etc. However, the current builder chose our corporate HOA which charges us $225 a year. The first builder bankrupted the subdivision. The HOA does nothing but send us a bill every year. We never get an actual budget. It's always "provisional". I don't even know if they're current on insurance or reserve. We could get stuck for something in the future. I'm tired of paying for nothing. The city maintains the streets, sidewalks, and street lights. We pay the city for trash pickup, water, and sewer. The HOA does nothing to enforce covenants especially where the current builder is concerned. Our entrance looks like the subdivision has been abandoned. There's a drainage pond with a pump that never works. Does anyone know how to get rid of a corporate HOA or at least force them to reduce the fee? It's been 8 years since the subdivision started and it's never going to be finished.

[cully]

Are you sure you are in a HOA? And the builder chose to incorporate? And there was no notice of this?

If you haven't done so already, you want to be sure you are in a HOA for real. That it's a registered corporation and Active. I have found some that let their corporation lapse or were just a week short of the status expiring. They cannot collect money if they are not a corporation.

HOAs need to be registered corporations...that is, registered with the state. I'm thinking you are in Ga. If so, in Georgia, you can look up the Sect of State Corporations Division which you can probably search right now online. Go to the link, page down to the middle "Search". Use the name of your HOA. Leave the entity search alone and at entity status...well, see if it work without that just to see if some other status comes up such as expired or cancelled or something. Otherwise, start with the entity status Active.

In Ga you must have Articles of Incorporation, officers,

I believe, as a HOA, you'd need to have a Declaration and covenants.

Do you know who your manager is? If you're paying, there should be a contact. In Ga the mgr usually needs to be only a broker licensed by the Ga. Real Estate Commission.

You might also find useful info in the Ga. Condo Act and Ga. Property Onwer's Association Act which you can access online.

[toocold4me2013]

Thanks for the information.

Yes, it's an active corporation.
https://cgov.sos.state.ga.us/BizEnti...ntityId=286836

The Officers are all in Alpharetta where the management company is located. No residents are officers. When we bought our homes we received covenants. They're mostly about modifications and landscaping. I was told that the subdivision had to be completed before we could elect our own HOA. Never imagined in 2005 that it still wouldn't be finished. Most of the empty lots are hanging off cliffs. We're paying them to send a bill. It's listed as a non-profit but the company collects anywhere from $10K - $12K in a fee every year. IMHO, doesn't sound ethical to me.

[LovelySummer]

This is the way it always happens but usually the community is finished in a timely manner. Are you sure the entire community has to be finished or does it have to be a percentage? What do your docs say? You should have a copy so you can see for yourself and if you don't know where your copy is, send a letter to the HOA and officially request a copy.

Before the HOA turns things over, the community can form a steering committee that works with the HOA. And then ask the HOA to turn the community over to you guys if you want them to do so. Is that what you want or do you want them to just stop charging you?

Originally Posted by toocold4me2013

Thanks for the information.

Yes, it's an active corporation.
https://cgov.sos.state.ga.us/BizEnti...ntityId=286836

The Officers are all in Alpharetta where the management company is located. No residents are officers. When we bought our homes we received covenants. They're mostly about modifications and landscaping. I was told that the subdivision had to be completed before we could elect our own HOA. Never imagined in 2005 that it still wouldn't be finished. Most of the empty lots are hanging off cliffs. We're paying them to send a bill. It's listed as a non-profit but the company collects anywhere from $10K - $12K in a fee every year. IMHO, doesn't sound ethical to me.

[cully]

Originally Posted by toocold4me2013

Thanks for the information.

Yes, it's an active corporation.
https://cgov.sos.state.ga.us/BizEnti...ntityId=286836

The Officers are all in Alpharetta where the management company is located. No residents are officers. When we bought our homes we received covenants. They're mostly about modifications and landscaping. I was told that the subdivision had to be completed before we could elect our own HOA. Never imagined in 2005 that it still wouldn't be finished. Most of the empty lots are hanging off cliffs. We're paying them to send a bill. It's listed as a non-profit but the company collects anywhere from $10K - $12K in a fee every year. IMHO, doesn't sound ethical to me.

I'll get back later. But let me say one thing that can influence point of view. When you say 'before we could elect our own hoa' be sure you realize you mean 'before we elect our own hoa board'. All the residents for the Home Owners' Association.

[cully]

Referencing you opening post, so you understand, a builder doesn't chose a corporate HOA that charges you. The very brief version is the builder writes up paperwork with a lawyer, files paperwork and eventually transitions his project from his control to the control of the home owners. (More legal stuff) In this process, the builder can choose a provisional board of directors. The board of directors can hire a management company. Eventually, the home owners get to vote in a board of directors and the home owners have their truer home owners association.

That said, there are differences and illegalities in this process wherever you go.

This process is governed by the HOA legal documents. Most state to elect board members (and when to do so) by 75% vote or more of the lot owners. This is laid out in the Property Owner Association Act. The Condo Act is different, but you don't seem to have condos in your community. So you know, both these Acts are Georgia Code (Law).

Yours is a tough situation because the builder needed to backtrack. I wonder if he ever even thought of having an HOA from the start. Or if he thought it was a serviceable idea after a while and then back peddled.

You do need some legal input. I'm not a lawyer. You need more than an ordinary lawyer. You need someone aware of HOAs and the declarent to home owner turnover process. And also how one fixes back peddling and if it can even be done.

[cully]

There are several things in the Ga POAA (Prop Owners Assoc Act) that address your issues.

One is the frequency of meetings. Shall be held in accordance with the bylaws and in any event not less frequently than annually. This goes on about meetings. Notice shall be given. It is to each lot owner. It is at least 21 days in advance of any annual meeting. 21 days in advance of any regularly scheduled meeting. Seven days in advance of any other meetings. Shall state the time and place. For special meetings, shall additionally state the purpose of the meeting. This communication shall be delivered personally or electronically or by US mail and in what manner...postage prepaid. If someone has a lot and there is no other house address for the owner...send it to their lot address.

And what will be the content of the annual meeting? Lays that out too. Comprehensive reports of the affairs. Comprehensive reports of the finances. Comprehensive reports of the budget projections of the association "shall be made to the lot owners."

That's "shall". Not "may".

Sounds like meetings and communications are pretty well covered in Ga. Law.