Question:
Our current HOA is made up of 23 units. Mix of single family homes and duplexes. One neighborhood has 15 units and the other neighborhood has 8 units. The Neighborhoods are separated by the main resort and have experienced very different needs in regards to insurance (flood /earth movement), painting, roofing, parking and general maintenence due to the location of the very different neighborhoods. One is on the mountainside and the other at the base of the mountain. Our bookkeeper is comfortable separating our finances (including capital reserve) as it has been fairly straightforward with dues etc over the past 20 years.
Our HOA is part of a Master Association HOA. The Master Association feels separating is a good idea due to the above concerns.
Can we dissolve the current HOA and form 2 two HOA’s? Will we need to have a legal expert write the separate Declarations, ByLaws and Articles of Incorporation or can we do that ourselves by simply modify to cover each separate neighborhood?
Thank you,
– Linda
Answer:
Hi Linda,
Yes, HOAs may dissolve and form two new homeowners associations. The process may be outlined in the governing documents, and the decision usually requires a vote. It’s best to seek legal counsel to ensure everything proceeds smoothly.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
