Dissolving an HOA in Nebraska

Hi Heidi,

If the association is incorporated as a non-profit organization, you may refer to the Nebraska Nonprofit Corporation Act Section 21-19,130(a) which states that dissolution is authorized if approved by:

• The board
• The members (by a two-thirds vote or a majority of the voting power, whichever is less)
• In writing by person/s whose approval is required

The governing documents may also include a higher voting percentage or other approvals, so kindly review them for further guidance. Moreover, a plan of dissolution may be required, and Section 21-19,130(f) states that “The plan of dissolution shall indicate to whom the assets owned or held by the corporation will be distributed after all creditors have been paid.”

The HOA should also have a plan regarding its creditors and third parties. For example, it may need to pay off obligations for an HOA loan, cancel or negotiate a construction contract, or complete an agreement with a vendor. Furthermore, the HOA should review its governing documents to see if there are specific steps and requirements regarding dissolution. Some HOAs may need additional documentation.

After authorization, the HOA may need to prepare the Articles of Dissolution to be delivered to the Secretary of State according to Section 21-19,132. Homeowners’ deeds may also need to be redrafted or rerecorded, which may require cooperation with mortgage lenders. It may also be best to work with an experienced lawyer to help you through the dissolution process.