Dissolved HOA

[jshebester]

Jurisdiction

Colorado

I purchased a condo in Colorado Springs in December of 2014. I was told the HOA dues would be 100 dollars per month. When I discovered that the HOA dues were not being deducted out of my mortgage I tried to contact the HOA company but was unable to reach anyone. After a few months of noticing that there was no maintenance being completed I just gave up. During 2015 the parking lot was never patched or plowed, my carport was neglected to the point that it collapsed, the insurance policy expired, garbage stopped getting collected, etc, etc. A few months ago I was contacted by another owner in the complex and was informed that the old HOA collapsed and pretty much everyone involved with it disappeared and that they were in the process of setting up a new HOA. The new HOA was set up this past December and they are now demanding all of the back dues owed to the old HOA all the way back to May of 2014, 8 months before I even purchased the property. I really want to tell them to go pound sand and that I'm not paying the new HOA for services that were never delivered by the old HOA. If they decide to sue me for the back dues, will they have a case? Should I just shut up and color and give them the 2000 dollars they are asking for? Thank you in advance for your advice!

 

[army judge]

I purchased a condo in Colorado Springs in December of 2014. I was told the HOA dues would be 100 dollars per month. When I discovered that the HOA dues were not being deducted out of my mortgage I tried to contact the HOA company but was unable to reach anyone. After a few months of noticing that there was no maintenance being completed I just gave up. During 2015 the parking lot was never patched or plowed, my carport was neglected to the point that it collapsed, the insurance policy expired, garbage stopped getting collected, etc, etc. A few months ago I was contacted by another owner in the complex and was informed that the old HOA collapsed and pretty much everyone involved with it disappeared and that they were in the process of setting up a new HOA. The new HOA was set up this past December and they are now demanding all of the back dues owed to the old HOA all the way back to May of 2014, 8 months before I even purchased the property. I really want to tell them to go pound sand and that I'm not paying the new HOA for services that were never delivered by the old HOA. If they decide to sue me for the back dues, will they have a case? Should I just shut up and color and give them the 2000 dollars they are asking for? Thank you in advance for your advice!

If the previous HOA was dissolved, the new HOAv2.0 isn't entitled to any alleged debts owed BEFORE HOAv2.0 was created.

Hence, your defense if sued would be that if anyone is owed any money, it would be HOAv2.0.

Beyond the issue of any monies alleged owed to any other entity, is that you have no HOA. That implies that before a new HOA can be created, the residents would have to vote to allow the new HOA to govern.

In other words, I'd argue that HOAv2.0 has no lawful authority to evy dues,fines, or fees for anything.

I suggest you discuss this with a couple real estate lawyers in your county. The initial cnsultation is normally free.

This might be resolved in your deed. I doubt it, but the deed might cover one HOA dying, and allowing another to be born. I doubt it, but its worth getting this matter clarified.

I wouldn't want to just cough up two grand to an organization that has no legal standing to demand it.

 

[jshebester]

Thank you so much for the super fast reply....especially because it was the answer I was hoping to see! The new HOA actually was voted into existence by a majority of the owners and dues were increased to 150, which I have been paying since December. I just thought their notion that they were entitled to demand payment for services they freely acknowledge were never delivered was absolutely absurd. I have letters from the new HOA and the management company that admit that the old HOA stopped operations and pretty much ceased to exist in early 2015. I don't have a problem paying the new HOA for services that are actually delivered, but they won't be seeing a dime for the services the old HOA failed to deliver. Thanks again!

 

[army judge]

Thank you so much for the super fast reply....especially because it was the answer I was hoping to see! The new HOA actually was voted into existence by a majority of the owners and dues were increased to 150, which I have been paying since December. I just thought their notion that they were entitled to demand payment for services they freely acknowledge were never delivered was absolutely absurd. I have letters from the new HOA and the management company that admit that the old HOA stopped operations and pretty much ceased to exist in early 2015. I don't have a problem paying the new HOA for services that are actually delivered, but they won't be seeing a dime for the services the old HOA failed to deliver. Thanks again!

You must understand, mate, that the HOAv2.0 might not see it the way you and I do.

If they disagree, the greedy HOA nazi-imitators are likely to file a lien (if your deed covenants permit), or sue you for monies they allege you owe.

I'd never own a home under such restrictive and controlling conditions.

I suggest you discuss the matter further with a couple of real estate attorneys. If your HOA behaves as all the others I've seen, they'll probably file a lien against your property and sue you for the arrearage the crooks claim you owe them. LOL

 

[jshebester]

Oh, I know they don't see it the way I do! I figure worst case scenario is that they sue me and win, in which case I would just have to pay what they are asking for now. I honestly don't see how they could win a case, the only documentation they have is who has paid and who has not paid, and that's just in spreadsheet form. They can't produce any legitimate documentation showing that the property was taken care of in any way because it wasn't taken care of beyond the lawns getting mowed a couple times by the old HOA manager's boyfriend. They wouldn't be able to just seize my property without it ever appearing before a judge, would they?

 

[army judge]

Oh, I know they don't see it the way I do! I figure worst case scenario is that they sue me and win, in which case I would just have to pay what they are asking for now. I honestly don't see how they could win a case, the only documentation they have is who has paid and who has not paid, and that's just in spreadsheet form. They can't produce any legitimate documentation showing that the property was taken care of in any way because it wasn't taken care of beyond the lawns getting mowed a couple times by the old HOA manager's boyfriend. They wouldn't be able to just seize my property without it ever appearing before a judge, would they?

No, it's almost impossible for an HOA to dispossess a person from his or her home.

I'd say the odds are in your favor, because the bullies have no proof.

 

[jshebester]

I just emailed the HOA president and told him that I would pay all current dues as they come up, but that I do not recognize their claim to the back dues from the old HOA. I'll let you know his response. Thank you again so much for backing up what I already suspected to be the case!