Legal Question in Real Estate Law in Washington
Homeowners Association
We recently built a new house in the second phase of a development. When we first purchased the lot and began the permitting process, we found out that phase 1 HOA was disputing an easement issue with the developer of our phase(2) part of the neighborhood. The dispute continues even though our developer has informed us that the HOA of phase 1 has received money to resolve the issue and phase 2 is supposed to elect HOA board members. At this point, since the homeowners in phase 2 seem to be considered seperate from phase 1 can we vote to dissolve our association with phase 1 and dissolve our phase 2 association as well without repurcussions from the phase 1 HOA? We were given the same copy of the CCR's as the people in phase 1 when we purchased the land, but have not been invited to be involved in any HOA meetings because we are seemingly considered seperate. There is supposed to be a HOA meeting where phase 1 and 2 members are to vote on a merger. We are very dissatisfied with the way the board members of phase 1 HOA are handling the association's affairs and would like to divorce ourselves from the HOA entirely.
1 Answer from Attorneys
Re: Homeowners Association
You need to review the CC&Rs you signed when you purchased the property. The HOA model is a mechanism for a developer to pass on the costs associated with neighborhood management to the end purchasers. HOAs are a great deal for developers and cities/counties, and can be a double-edged sword for homeowners. Some HOAs are great and operate exactly as intended, others are an opportunity for the most irritating homeowner in the neighborhood to sieze power and make all the other neighbors miserable.
Your developer is not the person to be asking for legal advice. You should review the closing papers you signed at escrow and if necessary have a local attorney who understands HOA issues review it with you so you understand what exactly is required of you and what benefits you receive.
Unfortunately, the end HOA does not necessarily have the power to unilaterally disband. There are other interests - (the developer and the city) that want the HOA to continue, so the option to "opt-out" is likley not available to you.
I am saying that without reviewing any of your documents, and perhaps a disincorporation option is available to you. I can't know that on these facts.
You might do better to read up on the HOA, review the books, and if you feel as though the previous board is not doing their job, perhaps you should run for a board position?
The other way to check out your disincorporation options is to talk to the City/County Planning Department. That office will be familiar with your situation and can at least point you in the right direction.
Hope this helps. Powell
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