Do We Need to Form an HOA?

Question:

I live in an Ohio rural community that was developed in 1988. There are 20 homes in an area of 108 acres that share a private road. At the time of development there were land covenants filed with the local recorders office, however no bylaws were formed or filed. Recently there has been a dispute among select residents concerning needed repairs to our road that have since resulted in pending litigation by an anonymous resident due to questionable processes employed by board members in securing the contract for the repair. Community members are now questioning if we are required to form bylaws and/or form an official HOA? We have always operated by a gentleman’s agreement. The dispute has caused our board members to step down, and residents are in search of answers to these questions and more. Reading through the Ohio Revised code doesn’t give clear answers to these specific questions either and all funds were depleted with repair of the road. We need help!

– Jeanne

 

Answer:

Hi Jeanne,

Creating a formal HOA would be beneficial in your case. However, you must make sure that the members/residents are in agreement with this decision. Keep in mind that HOAs come with certain obligations and responsibilities, both from the side of the association and from the side of homeowners/members. When in doubt, it is best to seek advice from a lawyer.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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