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Old 12-11-2013, 11:15 AM
 
Location: Colorado
409 posts, read 558,645 times
Reputation: 351

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Good morning, all!

We're done with our house hunt and move and all, but I still have a lingering question. Many of the houses that we looked at were in neighborhoods 10-20 years old. Many of these neighborhoods originally had an HOA, but it is no longer active. Some had covenants, but the HOA was defunct and no longer enforcing the covenants.

How does that happen? When the builder leaves, do the homeowners just vote it out of existence? Does it just "expire"?

In the case where the HOA disappears, who maintains community signs and landscaping?

Thanks!
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Old 12-11-2013, 03:19 PM
 
96 posts, read 89,286 times
Reputation: 162
I wish ours would expire, instead they have progressed into a nazi gestapo! I had to leave early for work one morning. I started my truck and backed it out of the driveway and parked it on the curb, so it wasn't idling right under my daughters bedroom window. While sitting in my truck waiting for it to warm up, our HOA contract security guard (Barney Fife) pulled up and told me I needed to move my truck, as we are not allowed to park in the street. I explained that I was parked in the driveway, and just moved it to the curb to warm up. He again told me I was not allowed to park on the street, and if I didn't move it he would write me a citation.

I used to constantly get warnings in the mail for having a vehicle parked in the street, but the vehicle make, model, and license plate on the citation indicated they were other peoples cars. In order to avoid the fine, I would have to write them a letter explaining the violations were for cars belonging to other people, neighbors, or their friends.

I will never buy a home in a HOA neighborhood again!
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Old 12-11-2013, 04:17 PM
 
Location: Colorado
409 posts, read 558,645 times
Reputation: 351
Thankfully, ours doesn't have, or seem to enforce, a street parking rule! We've parked on the street occasionally, and I've noticed that when we do people don't seem to whip down our road quite as fast, so come summer (and kids playing out on summer nights) we'll probably do it more.
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Old 12-11-2013, 05:05 PM
 
Location: Na'alehu Hawaii/Buena Vista Colorado
4,629 posts, read 9,124,208 times
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Good question, Charlotte. I would think that there may be some level of HOA still collecting dues solely for the purpose of maintaining common areas. I'm not sure how the Colorado State law deals with defunct HOAs, but it could be that they stopped enforcing the CC&Rs but didn't legal dissolve the HOA so that they could continue to maintain the signs and landscaping.

For an HOA to actually dissolve, that does take a vote of the entire membership. There are lots of legal issues, such as ownership of the common areas, changing everyone's title to remove any reference to an HOA, etc., that some owners may not wish to get involved with.
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Old 12-11-2013, 07:40 PM
 
Location: Colorado Springs
18,958 posts, read 8,900,001 times
Reputation: 18331
Where do HOAs go? To hell, I hope.
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Old 12-12-2013, 08:49 AM
 
Location: Where the mountains touch the sky
577 posts, read 670,799 times
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Quote:
Originally Posted by phetaroi View Post
Where do HOAs go? To hell, I hope.
LOL I like that
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Old 12-12-2013, 09:20 PM
 
Location: Colorado Springs
18,958 posts, read 8,900,001 times
Reputation: 18331
Quote:
Originally Posted by StarrySkiesAbove View Post
LOL I like that
I should be more open about my feelings toward HOAs. I don't have a problem that they exist. But their power should be restricted to maintaining a community's infrastructure and controlling egregious decisions by owners. If there were an anti-HOA organization to join, I would...so far I haven't found such an organization.
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Old 12-13-2013, 12:24 AM
 
Location: 900 miles from my home in 80814
4,670 posts, read 6,748,293 times
Reputation: 7083
Quote:
Originally Posted by Dreaming of Hawaii View Post
Good question, Charlotte. I would think that there may be some level of HOA still collecting dues solely for the purpose of maintaining common areas. I'm not sure how the Colorado State law deals with defunct HOAs, but it could be that they stopped enforcing the CC&Rs but didn't legal dissolve the HOA so that they could continue to maintain the signs and landscaping.

For an HOA to actually dissolve, that does take a vote of the entire membership. There are lots of legal issues, such as ownership of the common areas, changing everyone's title to remove any reference to an HOA, etc., that some owners may not wish to get involved with.
This is exactly right. And, it's a legal nightmare to dissolve an HOA, so most will keep up a skeleton operation in that they won't hold meetings, or elect officers; they'll just operate enough to collect dues to keep themselves from having to dissolve for lack of activity.

Right now, the HOA I live under is horrible. The President is a control freak who wanders our neighborhood with a camera and a clipboard documenting every little violation of the CC&R's and sending violation notices, threatening fines, to every homeowner she finds fault with. The rest of the Board worship the ground she walks on, so they support her 100%. She makes our lives miserable. Elections come up in March, and her term, plus one other are up for relection. Little does she know, there's an underground movement to completely unseat her and her co-conspirator...
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Old 12-13-2013, 09:12 AM
 
3,493 posts, read 4,709,785 times
Reputation: 5358
Quote:
Originally Posted by colobill View Post
I wish ours would expire, instead they have progressed into a nazi gestapo!
I will never buy a home in a HOA neighborhood again!
This is what happens to HOAs. Some of them suck, and behave like the one described here. As a result, many buyers that don't want to be harassed look specifically for neighborhoods without HOAs. Because most neighborhoods are built with an HOA, but many people do not want to live in one, the people living there have two incentives to disband it. The first is that they won't be harassed anymore. The second is that the house value may take a bump upwards if there are not enough HOA-FREE neighborhoods. If buyers are constantly demanding to be free of HOAs but most neighborhoods are not, they may get a premium when selling. In other areas, the HOA can raise the value by enforcing rules that keep the area looking nice. It can largely be a measure of proportion.

I'm in the group that intentionally purchased in an area where is no HOA. Do my neighbors sometimes do things that annoy me. You bet! Do they send over a representative to talk to me when I'm doing something annoying, absolutely never. I'm happy with that compromise. I get to be free, they get to be free, and we wave to each other.
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Old 12-15-2013, 08:46 PM
 
574 posts, read 625,252 times
Reputation: 941
I bought a house in one of the developments with a defunct HOA. We're a small community with only 5 homes, and we have no community-owned property to maintain, but our developer gave us a bunch of very scary covenants including provisions for an Architectural Review process, a requirement for the HOA to maintain all the landscaping on people's individual lots, etc. None of the original homeowners wanted that level of interference, or to be bothered with the administrative burden of collecting dues and holding meetings, so they never even set up the board once the developer left the scene. Unfortunately, there's no consensus among the current group of homeowners about revising the covenants, so we're stuck in limbo. Far from increasing the value of the homes in our community, I think this situation makes it harder to sell -- I know that I almost backed out of the deal to buy my home entirely when I got the covenants from the title company with the other legal documents.
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