Odd Property, is it possible to create an HOA for 2 properties?

[Mindy Jensen]

Odd property, one house and one 5 unit building being sold together. Separate lots, taxes, insurance, but combined water and sewer.

To separate the utilities would cost $40k for tap fees and sewer, because sewer runs one direction, water runs the other.

Can an HOA be created to cover the water/sewer bills between the two properties to sell the house and keep the building?

Any other creative solutions to this weird property? @Jeff F.

[Matt Devincenzo]

Yes you can create an HOA if you wanted to. Small HOAs here in CA are a lower regulatory level than large HOAs and can be completed privately without going through the DRE, so how complex it might be will be a local consideration based on State requirements.

Sewer is likely easier addressed with a maintenance agreement or something similar, since you don't have the same day to day billing costs to consider. For the water you could also do a cost sharing and/or maintenance agreement, but the HOA does provide the ability to collect periodic 'dues' to then pay for things when they break ect. A water cost sharing agreement may be more feasible if you sub-meter the two services (house and 5 unit) then you could just specify who keeps the bill in their name and how they collect the sub-meter charges form the other party.

There are a few ways to skin this cat, and each consultant (attorney, civil engineer ect) will have their own take on the best solution. None are necessarily right or wrong, just how would you prefer to handle it.