who want to dissolve or disband a homeowners association (HOA) typically have a few options to consider. However, it’s important to note that the specific process may vary depending on the state laws and the governing documents of the HOA. Here are some common options
Review the HOA’s governing documents
The first step is to carefully review the HOA’s governing documents, such as the articles of incorporation, bylaws, and covenants, conditions, and restrictions (CC&Rs). These documents usually outline the procedures and requirements for dissolving the HOA.
Obtain support from fellow homeowners
Homeowners who wish to dissolve the HOA should try to gather support from other homeowners who share the same sentiment. This can be done through community meetings, surveys, or petitions. Having a significant number of homeowners in favor of dissolution can strengthen the case.
Seek legal advice
It is highly recommended to consult with an attorney who specializes in HOA law. They can provide guidance on the specific steps and legal requirements for dissolving the HOA, ensuring that the process is conducted in compliance with state laws and the governing documents.
Amend the governing documents
In some cases, the governing documents may include provisions for dissolving the HOA. Homeowners can explore the possibility of amending these documents to include dissolution procedures. This typically requires a vote from the homeowners, following the procedures outlined in the governing documents.
Vote for dissolution
If the governing documents do not provide specific dissolution procedures, homeowners may need to hold a formal vote to dissolve the HOA. This usually requires a supermajority vote, meaning a high percentage (e.g., two-thirds or three-fourths) of homeowners must vote in favor of dissolution.
File a lawsuit
In certain situations where there is significant opposition to dissolving the HOA or if the governing documents are unclear or silent on the matter, homeowners may need to file a lawsuit seeking a court order to dissolve the HOA. This option should be considered as a last resort and should be pursued with the guidance of an attorney.
Distribute assets and liabilities
Once the dissolution is approved, the HOA must distribute its assets and settle any outstanding liabilities. This may involve selling common property, paying off debts, and refunding any remaining funds to homeowners.