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Maine Alliance for Road Associations

Incorporation

  • 03 Apr 2024 2:37 PM
    Message # 13338396

    Our statutory road association was formed in 2014.  Some members now want to incorporate the association for the protection provided to the individual members.  However, in the Guide to Forming Road Associations, I read that "...this type of organization is voluntary. ...  If an owner does not sign on, then the assessment of maintenance fees against that owner may be unenforceable."

    We have one member who has not paid dues in over 10 years;  we have recorded several liens against them.  Another lives out of state and does not respond to any correspondence.

    If voluntary, members could just not sign on and never have to pay dues.

    Should we just stay as a SRA and not incorporate?




  • 04 Apr 2024 8:02 AM
    Reply # 13338718 on 13338396
    Anonymous member (Administrator)

    I believe you can be both statutory and incorporated. If you filed for incorporation you would not lose your statutory status if you kept necessary records and mailed 30-day notice meetings according to 23 MRS 3101 - 3104. 

  • 04 Apr 2024 9:15 AM
    Reply # 13338750 on 13338396

    There is also the newer, ยง3121. Our We are not a statuary association but are incorporated and have By-laws that are statutory compliant but for whatever reason the formal process was never carried out. Our attorney told us that 3121 would compel all benefiting from the road to pay.

  • 04 Apr 2024 10:22 AM
    Reply # 13338789 on 13338396
    Anonymous member (Administrator)

    Kathy - 

    There are many associations that choose to be both non-profit and statutory so as to get the benefits of both.  I can't tell you exactly how they do it, but perhaps someone who has done it will jump in on this discussion.

    Scott -

    Unfortunately, I'm afraid your attorney is mistaken.  I am not an attorney, but I'm going to stick my neck out and say so anyway, at the risk of getting chastised by the MARA Board!  Section 3121 only kicks in " In the absence of any ... agreement, restriction, covenant, declaration, road association or method elected under section 3101,.."   (See section 3121, paragraph 1.)  So since you have a road association or agreement already, section 3121 doesn't apply.  Here's a link to the statute so you can read it for yourself: 

    https://legislature.maine.gov/legis/statutes/23/title23sec3121.html

    See also paragraph 4 of section 3121, which says that if you already have a road association or agreement, the terms of that road association or agreement control.

    Besides, section 3121 requires you to go to court to collect from non-payers, and I believe your existing road association could go to small claims court anyway.  Also, section 3121 only allows you to take legal action against a "residential property owner" who does not pay, and it doesn't define what constitutes a residential property.  Do undeveloped lots count?  The statute doesn't say.


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