It’s no secret that I’ve called for putting an end to the POA; however, most of my detractors never ask why. The knee-jerk reaction most people have is, “my homeowner’s association back home is good, therefore most are good.” My guess is that anyone with that attitude has an HOA that is run by a property management company. They do all the real work behind the scenes, they update the CC&R’s every year to reflect changes in county, state or federal laws, they schedule annual meetings, and they usually do a good job of keeping the board members from getting into legal trouble by overstepping their authority. Right?
Unfortunately, for Millsite POA, we don’t bring in enough in annual dues to pay the minimum fee to hire a property management company. I researched it. We have very few core responsibilities codified, and those that are, are often treated merely as suggestions. Literally, anyone who runs the POA can choose to run it as they see fit, unless someone is going to sue them. Last year, that is exactly what I was planning to do, had things not went the way they did. (BTW, the thought of suing all my neighbors was something I wanted to avoid, because every Millsite member would have been responsible for both sets of legal fees had I won)
Yes, you are legally accountable for whatever the board representing Millsite does. If you haven’t read the CC&R section yet, you might want to check it out. I don’t digress into the details of them. Just the top 3 key points. The only thing Millsite POA is responsible for is the roads (common areas). If a new board decided to enforce a CC&R they misinterpret, and lost a court case, we would all be on the hook for paying those legal bills. Oh, and we are pretty broke – broke enough to not be able to afford a lawyer without an assessment (which would need 20 of the 29 lot members to pass). From what I’ve read, the legal system has very little patience with screwed up HOA’s.
Why do I want to dissolve the POA?
- I resent the legal risks and liabilities that the POA foists upon me.
- The POA has done nothing positive for me since I’ve lived here
- The POA, thru apathy or incompetence, let our shared water system die
- The POA has not focused on road maintenance, a core responsibility
- The POA has had a history of dishonesty and self-serving leadership
Ok. If you are knowledgeable about HOA’s, I probably know what you are thinking: “It takes 100% agreement to dissolve a property owners association, unless it says so otherwise.” Well, it just so happens that Millsite’s Articles of Incorporation specifically do set forth the requirements in Article IX, which is titled “Dissolution”:
“Article IX – Dissolution’ specifies that if 80% of the member lot owners wish to dissolve the POA and they can transfer the assets to any organization devoted to similar purposes – in other words, a road maintenance fund. So, we need of 24 of our 29 member lots to agree for dissolution to make it happen. There are no requirements for a meeting or a discussion or a one-day vote or anything like that.
Dissolving the POA leaves two loose ends. The POA still owns a tiny parcel of land 205-26-037, which is 0.14 acres – it’s the tiny sliver of land that connects the southern portion of Millsite (lots 1-7) to the northern portion of Millsite (lots 8-35). It’s called Tract B. We will need to auction it off to the highest bidder (who is also a Millsite member) where the proceeds will go towards the second loose end – the funds that Millsite current has.
Millsite’s funds will need to be transferred to a Road Maintenance Account (which qualifies as “purposes similar” as set forth by Article IX). I’ll use this website (which I pay for out of my own pocket) to show the account balances, expenses and donations. Yes, the road account will need to be funded through donations and will only spend funds Millsite’s roads. Someone will even donate the expense of sending out donation requests. I will for as long as I’m running it. I live here full time. I actually care about this place.
We are hoping that people who have homes on Millsite will donate $500 a year towards the roads, and that people who have lots that the main road crosses kick in $100 a year. We will record every donation on the website – people who chip in should be recognized. We have no right to ask any other lot owners for donations especially if they are on Lake Drive, because that road is unmaintained and impassable since no one ever uses it.
If someone is interested in clearing the fallen trees and the shrubs growing up in the middle of Lake Drive, let me know! I might be able to organize a weekend this summer where we get people to pitch in and help. I can help and I have some equipment that could be useful.
Pros and Cons of Dissolution:
The only negative thing about dissolution is that we would lose a mechanism that forces every lot owner to pay a pittance (29 lots x $175 = $5075 annually) into a fund that is supposed to be used on the roads.
The positive things are that we don’t have to worry about some idiot taking over the POA and getting us sued. We don’t have to deal with someone deciding to interpret CC&R’s the way they see fit instead of how they are written. We don’t have to deal with a bunch of bureaucracy that turns off people from wanting to participate (these are things usually handled by property management companies).
Another positive thing is that we have total fairness between the gates. We don’t have some owners who must pay annually and live under the CC&R’s while other owners do not have to.
Millsite Village Property Owners Association 