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Maine Alliance for Road Associations

Abolishing an HOA.

  • 09 Feb 2025 8:02 PM
    Message # 13461030

    I know there are pros and cons to an HOA. There are currently 3 property’s on the road. Are there any prior HOA’s that successfully  dissolved? How would the road get plowed or maintained? Thank you in advance!

  • 10 Feb 2025 11:19 AM
    Reply # 13461233 on 13461030
    Anonymous member (Administrator)

    I don't know much about HOA's, so maybe someone else can answer on that.  I didn't know one could be dissolved - especially if your deeds say you must be a member.  But if you did dissolve it, I would think road maintenance would have to be provided by a road association of some sort, the difference being that a homeowners' association can do things not related to road maintenance, (grounds maintenance etc.,) where a road association is only concerned with maintenance of the road.  

    You say there are only three properties, so you cannot form a statutory road association under 23 MRS section 3101-3104, which require at least 4 benefited properties.  You could still use those statutes as a guideline for how to proceed, which would assure that you are providing due process and that you have some structural guidelines.  However, you could not claim to actually be a statutory road association, and therefore you would not have the liability protection or the enforcement powers of a statutory road association.

    Your other choices for road maintenance would be either an informal or voluntary association, where each person chips in on the cost but there is no means to force them to pay, or one person can just take over road maintenance and hope the others will pitch in on the cost. 

    One other option would be to try to use 23 MRS section 3121, which says that when more than one residential property shares a common benefit from a private road, if there is no road association or road maintenance agreement it's assumed they each share equally in the cost of maintenance.  That statute provides no structure or due process, which is why I would advise using 3101-3104 as a guideline anyway.  Section 3121 does provide some enforcement power by giving one landowner the right to sue another who does not pay.  But that's not a great way to maintain friendly relations with your neighbors! 

    The route you  decide to go may depend partly on why the HOA is dissolving.  Is it because everyone agrees you don't need anything beyond road maintenance, or is it because the three landowners cannot agree?  If the three of you get along, I'm sure you can work out a way to share the cost so your access remains passable for all of you.  If you don't get along, trying to force compliance by any means will likely be met with resistance.

    Here are links to the statutes I mentioned:

    https://legislature.maine.gov/legis/statutes/23/title23sec3101.html

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

  • 11 Feb 2025 11:50 AM
    Reply # 13461753 on 13461030

    Thank you so much for your reply. This is new for us and there have been questions brought up regarding plowing. Not a money issue but more a schedule of when it gets done b/c there are two residences that people still work full time and need to get out. One residence has refused to pay two years in a row-I know there are steps to take but this has been an overwhelming process. We are just trying to look at all avenues. 


  • 31 Mar 2025 7:58 PM
    Reply # 13481460 on 13461030

    Thanks so much for your reply Roberta. The last property on the road is now for sale and will bring the total residences to 4.  One of the residences has refused to pay for owing for the last 3 years. I understand the process of trying to get them to pay which I am working on- this is all new to me and so much to comprehend.  This was all kind of dropped in my lap but the other neighbors have been very supportive.I recently sent them a certified return receipt letter asking for reimbursement for this year and the last two totalling $1200.  I will wait the 30 days then send them a letter of intent to place a lien on their property if not paid within 20 days, but my hunch is he will not care. Do you have a recommendation for an Attorney that knows the HOA  rules/laws and real estate laws?? Much appreciate all your input. 

  • 01 Apr 2025 10:22 AM
    Reply # 13481631 on 13461030
    Anonymous member (Administrator)

    Before going to the expense of hiring an attorney, I would contact the realtor who is handling the sale and tell them how much is owed.  A reputable realtor will not want a cloud on the title, and will usually see to it that the owed amount gets paid - either by the seller as a deduction from the proceeds of the sale, or if the seller is really uncooperative I've occasionally seen the buyer agree to pay it.

    If you do decide you need an attorney, of course Mary Denison in Winthrop (who speaks at our annual conference) is the expert on this, but she may be too busy to take on another client.  If so, maybe she can recommend someone.  

  • 02 Apr 2025 3:38 PM
    Reply # 13482477 on 13461030
    Deleted user

    As I understand it, the Association is dissolved if and when a majority of owners vote to dissolve the previously approved road association. That's what happened to our formal association after just one year when a couple of the "old-timers" (sons or daughters of the original group) went around telling stories to get others to follow their lead and change their vote. They just couldn't bear it that a "new comer" could make changes that they didn't initiate themselves.  I'm not giving up, though.

  • 02 Apr 2025 3:47 PM
    Reply # 13482482 on 13461030
    Deleted user

    Virginia Walker: Please don't use the term "lien" in your notice to delinquents. Although it's similar, the Maine term is "Notice of Claim". A displeased owner may claim that you didn't use the right term, and you'd probably have to start the process all over again. One significant difference is that a Notice of Claim cannot be used to take a property.

  • 03 Apr 2025 5:07 PM
    Reply # 13483033 on 13461030

    To Bob and Virginia

    Bob, Virginia's property is subject to a recorded road maintenance declaration established when the property was subdivided and mentioned in her deed. So that is not a "road association" as you are thinking (statutory road association) and cannot be easily abolished. Also, the maintenance declaration is very clear on apportionment of expenses and obligations to pay and specifically mentions that unpaid funds are a "lien against" the non paying property. That likely means that it will be treated as a mechanic's lien rather than a notice of claim - however those terms may be parsed.

    Virginia, as we discussed on this forum during January 2024, your rights are very well defined and you are entitled to place a lien on the offending property. However, as discussed, the maintenance agreement requires (Paragraph 7) Binding Arbitration and the cost of the arbitration is to be split one half by the owners bringing the complaint and one half  by the owners opposed.   So it behoves you to get together with your supporting neighbor and file a claim for arbitration because the two of you will only pay half while the offending owner will have to pay half.  At this point it is well worth both of you to pool your money and sit  down with an attorney to steer you in the right direction.  In my opinion you do not need a specialist attorney experienced in complex private road matters but any decent attorney with real estate and debt collection experience.  You may not recoup all of your expenses but you can set the record straight on how this group will operate in the future, including the new lot owner and the faster you get a new lot owner the less you will have to contribute to the road maintenance in the future. If the offending owner still refuses to pay then you can confidently engage an attorney to collect the debt and expect to recover attorney fees - that's in the declaration!  Good luck.   

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