We are in the process of creating a statutory Road Association and have and will incur expenses before the SRA is formally created - such as legal fees and postage, etc. for the notice of the organizational meeting.  How have others handled these costs prior to official formation and has anyone dealt with a failure of formation after costs have been incurred?

We went from an informal road Association with by-laws to a new Statutory Road Association with By-laws revised with attorney advice.. The reimbursement of expenses for the formation of the were part of the proposed budget. 

In your situation, I would include formation expenses in the budget you all vote on at the initial meeting for formation of your statutory association.