Dealing with Bad HOAs in Washington State

Homeowners’ associations (HOAs) can be both a boon and a bane for homeowners. While they offer amenities and services, they also come with rules, fees, and potential conflicts. Some homeowners may wonder if there are legal methods to get rid of HOAs in Washington State. While it’s not easy to dissolve an HOA, there are processes in place to address this issue. In this article, we’ll explore the legal methods to potentially disband an HOA in Washington State.

Amendment of Governing Documents:

One way to alter the course of an HOA is to amend its governing documents. In Washington State, these documents typically include the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and the bylaws. To dissolve the HOA, homeowners would need to follow a specific amendment process outlined in these documents. This often requires a supermajority vote of homeowners, typically 75% or more, in favor of dissolution.

Litigation:

If a significant number of homeowners are in favor of dissolving the HOA, but the governing documents do not allow for it or the supermajority vote is unattainable, homeowners may resort to litigation. They can file a lawsuit seeking judicial intervention to dissolve the HOA. However, this is a complex and expensive option that requires strong legal grounds, such as mismanagement, fraud, or abuse of power.

Consent from the Developer:

In some cases, if the HOA is still under the control of the developer, the homeowners may negotiate with the developer to dissolve the HOA. This would require the developer’s consent and a written agreement outlining the terms of dissolution.

Bankruptcy:

If the HOA is facing insurmountable financial difficulties and debts, it may file for bankruptcy. In such cases, the bankruptcy court could oversee the sale of common property and the dissolution of the HOA.

Municipal Involvement:

Local municipalities may also play a role in HOA dissolution. Some cities or counties have ordinances or processes in place to address HOAs that are not functioning properly or are causing widespread problems. Residents can approach their local government authorities to explore options.

Consolidation with Other HOAs:

In certain situations, homeowners may consider merging their HOA with another nearby association. This could result in a more manageable and efficient structure, especially if both HOAs are struggling financially or operationally.

Conclusion

Dissolving a homeowner’s association in Washington State is a complex and challenging process that requires careful consideration and adherence to legal procedures. Homeowners should first thoroughly review their HOA’s governing documents to understand the requirements for dissolution. Engaging legal counsel and seeking consensus among fellow homeowners is essential.

Ultimately, homeowners who are dissatisfied with their HOA should explore alternatives such as amending governing documents, negotiating with developers, or working with local authorities. While dissolution is a possibility, it should be pursued only when all other avenues have been exhausted, as it can have far-reaching consequences for the community and its residents.