Neighborhood Associations (HOA, condo, attorney) - New Jersey (NJ) - City-Data Forum

MHNA27 · 02-24-2011, 06:58 AM

Hi,
We are trying to create a local neighborhood association in North Jersey. I can not find any official process to do so. We would like to become a non-profit and would like to open a bank account. Do we need to legally get a name? What does this require? Can anyone recommend a process to become an official neighborhood association?
Thanks, Jeanne

joe moving · 02-24-2011, 07:15 AM

what do you mean by this? an HOA or just a loosely associated group?

MHNA27 · 02-24-2011, 07:34 AM

I mean a neighborhood association. Supposedly if we speak as an official group, we will have more clout. We would like to collect dues.

Obrero · 02-24-2011, 07:39 AM

Quote:

Originally Posted by MHNA27

I mean a neighborhood association. Supposedly if we speak as an official group, we will have more clout. We would like to collect dues.

Urgh. That is one of the best things about NJ. Hardly any HOAs.

manderly6 · 02-24-2011, 07:41 AM

Quote:

Originally Posted by Obrero

Urgh. That is one of the best things about NJ. Hardly any HOAs.

I don't know if I would say "hardly any".

MHNA27 · 02-24-2011, 07:55 AM

No, we don't want a HOA, from what I know about HOA, that is a completely different type of group-run by developers and/or realtors.

JCK7778 · 02-24-2011, 08:00 AM

MHNA - Any non-profit organization would be considered a HOA. I have a HOA in my condo and the board is made up of owners with everyone paying dues. HOA's generally have a board that is elected by the mebers of the association and are not run by developers or realtors.

What would the homeowners be getting for participating in this HOA? Would it be mandatory participation?

manderly6 · 02-24-2011, 08:16 AM

What exactly do you see the association doing? Why do you need dues?

NJGOAT · 02-24-2011, 08:18 AM

You could easily incorporate a non-profit group as something like the "XXX Civic Association" or the "XXX Neighborhood Association". When incorporating you would appoint directors for the organization and submit a charter. It may be as easy as going to an incorporation website and paying the fee. You could also have an attorney do it for you, but that will cost you more.

The thing is, you aren't going to have any teeth. HOA's are designed to exist from the start and are entrusted with powers and rules defined in their covenants and anyone who buys property in the HOA agrees to submit to the rules. It is possible to start one if you had unanimous support from all home owners in a defined area, but that would be a real tough thing to do.

What you will end up with is an organization that people can join voluntarily and that organization can collect dues and engage in fundraising. That money must then be spent on the purposes you outline in your charter for the non-profit.

MHNA27 · 02-24-2011, 08:34 AM

Thanks everyone for answering. We are not trying to form an HOA, rather we are trying to form a association in an established neighborhood in the suburbs. We will define an area, and anyone who wants to join from that area can become a member. We would collect fees because occasionally there would be things to spend money on for the group, such as a block party or payment for OPRA requested plans (for example). We want to make sure that we are doing everything legally. The money is the tricky part because if we open a bank account, we have to do it with a name so that no one person has to pay taxes on it. Do we have to register a name? I am worried that the whole process will be to costly.
I was hoping someone who is a member of a NJ Neighborhood Association could tell me how their organization went about opening a bank account. I may be making it more complicated than it is.