What if no HOA has been set up?

Question

So, we have this really interesting situation:

A partner and I have picked up 6 duplexes in one 'cul-de-sac' (It's really a private drive that feeds all of these duplexes. It turns out that they were never officially subdivided and there's a total of 8 duplexes in this one block and each one owns 1/8th of the total lot.

The 8th duplex is no problem, because it's on an outer corner and has road frontage on 2 sides.

But there's a 7th duplex and the owner doesn't want to do anything. there's kudzu crawling around everywhere and already going under his siding. He doesn't want to get together with us.

We want to spend some money to improve this cul-de-sac, as it hurts all of our property values having big holes in the driveways and no landscaping (just weeds) and kudzu crawling around.

Is there any way to force him to pay his share of the improvements, since there was never an HOA set up? Can we clean up everything and then put a lien against his property for 1/7th of the outlay?

No, we don't want to go through all of the trouble of setting up an HOA, which is very involved.

Lynn McGeein · Answer

If they look at it like a condo development, aren't condos seriously regulated? And if they deem it a condo, can't you create bylaws, rules and regs, etc., with a 2/3 vote, which you would have? A good lawyer is likely needed here, especially if you want to pressure him into selling or paying for his portion of the improvements, as I believe a condo can vote on improvements and then require each unit owner to pay their assessed portion.

Roy N. · Answer

Michaela:

I agree with you an HOA would be a painful money-pit. Without a body holding responsibility over all the commons, I don't know how you would legally compel him to contribute ... but I'm not an attorney. Could you legally charge him a "toll" for using the infrastructure you have upgraded and are maintaining?

What if you approached #7 and told him it was going to cost $X to affect the needed work on the common amenities and as an owner, you would be looking to him to contribute his portion P%. When he balks, explain that reaching an working agreement is far better, and less costly for all, than incorporating an HOA, and that you are trying to avoid a trip to that station .... which may become the only (un)workable resolution if he continues not to participate.

If he believes you are serious about forcing an HOA upon him, he may budge before you waste any real time or money.

Michaela G. · Answer

As mentioned, we're not interested in setting up HOA or condo association. The cost and headache involved would way surpass anything we'd get out of that owner.

I had just hoped that someone would know some legal maneuvering, where we could put a mechanics lien against his property or similar

Roy N. · Answer

@Michaela G.

@Lynn M. may be on to something.

The first mess is to figure out the legality of the subdivision. This appears to be a disconnect at the local government level. I'm amazed the plot is recorded and the tax assessor sees it as eight separate lots, if the development never received approval from planning and zoning.

If the City considers it a condominium development, then you could organise an HOA. Get an attorney, draft the articles and regulations, set the fees (apportioning the startup costs amongst the 16-properties), call a meeting of the 16-owners to vote on accepting the inception of an HOA. When it passes, buddy with the 12.5% of the vote will either sell or open his wallet.

The downside is, if he sells (to you), then you are stuck with a condominium complex and HOA which, unless you plan to sell off units, is additional cost and overhead (if you were planning to operate the properties as rentals).

Michaela G. · Answer

One more thing: According to the city, they look at it like a condo development, with 16 condos. So, I don't know if HOA is the right term. But there are common areas, like a driveway, landscaping and whatever else.

Michaela G. · Answer

I could be mean and add a gate with lock and not give him details to enter, but legally I wouldn't have standing to do that, since this has been a common driveway for many, many years.

Michaela G. · Answer

Yep, tried it. He's not interested. He's in 'wait and see' mode - probably meaning that he'll wait for us to put 25K into repaving, fencing, landscaping and then he might come around and renovate his and not pay a dime for anything.

I do want to add that on paper this block is all split up into 8 lots. That plat has been recorded with at the courthouse, the tax assessor and the legal description is accordingly. So, everyone thought that they bought a separate lot, holding a duplex. We only found out once we tried to get permits, that this subdivision never went through the planing, zoning, permit offices.

That owner doesn't believe me and still thinks that he owns that lot, as per legal description, so we can't really do anything on 'his property'. But the driveway into the cul-de-sac' is actually on 'my property' (running between 2 of my duplexes)

Roy N. · Answer

Michaela:

I'm sure you've already tested this option - Any chance he's willing to sell?

What if no HOA has been set up?

What if no HOA has been set up?

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