HOA Manager of a Dormant Community Places Lien on Property

Question:

I am a teacher and I have been a homeowner for 17 years. The HOA members and management has dissolved for over 10 years. The property management was substantial during my first 5 years of ownership. There were active board members, yearly meetings, information reported and disseminated quarterly, property maintenance effectively provided, grounds keeping, etc. The HOA manager died and someone became the manager (2011) and soon after he deserted his duties. The HOA board membership dissolved, property maintenance declined and disrepair is in every lot. The manager has harassed residents, provided poor communication, and many owners have sold or tried selling their units due to his poor treatment, dereliction of duties and mismanagement. Many of the residents planned to petition to have him removed, to seek a new property manager and revive the HOA member’s board. The properties have depreciated in value and has become an eyesore on the once immaculate street. Recently (January 20th), I received a letter stating that he is going to place a lien on my property due to an attempt to collect a five year span of late fees totaling $1700 if not paid by February 5, 2024. This amount is an error and I am seeking representation immediately to circumvent and to countersue, if possible, or to acquire legal advice on what to do in this dire situation.
Please advise.
Thank you,

– Cherie

 

Answer:

Hi Cherie,

Kindly verify whether the HOA has officially been dissolved or is only dormant. If the HOA was incorporated as a non-profit, it must have followed the provisions outlined in the Ohio Nonprofit Corporation Law Section 1702.47 or met certain conditions to dissolve. Usually, the organization expires if the period of existence specified in the articles has expired. In this case, the HOA may not be allowed to collect assessments or place a lien on the property. However, it’s best to consult a legal professional for further guidance on this.

If the HOA simply became inactive, it might be a little more complicated. The governing documents may still be active and the community’s duty to pay HOA fees may still be intact. It may be wise to reinstate the HOA by electing a board to address the community’s issues.

You may also opt to remove the HOA manager according to the provisions outlined in the governing documents. There may also be legal requirements according to the contract the HOA signed with the current HOA manager or management company regarding removal. Again, it’s best to consult a lawyer as this process and its issues are complex.

Apart from this, according to the Ohio Planned Community Law Section 5312.12(D), homeowners may commence an action to discharge the lien in the court of common pleas of the county where the HOA is located if the owner believes that the liability for the unpaid assessment for the certificate of lien was improperly charged. You may do this to discharge the lien on your property, but you may need to support your case.

 

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

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