To Divide and Conquer or to Unite and Fight. The City vs the HOA: A case for creating a Master HOA & fight back

To Divide and Conquer or to Unite and Fight? It's  The City versus   the Homelessness Association : A case for creating a Master HOA & fight back

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In general, developers often prioritize minimizing inventory exposure, and smaller projects can be a strategic way to achieve this goal, especially in uncertain market conditions or when faced with tight capita, resulting in smaller homeowners associations, with obvious potential downsides associated with smaller HOAs.

Downside of smaller HOAs

• Financial Vulnerability: With fewer members, the financial burden of unexpected repairs or special assessments can be more significantly felt by each homeowner.

• Difficulty Finding Volunteers: Recruiting willing and qualified individuals to serve on the HOA board can be a challenge in smaller communities.

• Potential for Disputes: Disputes over rule enforcement can become more personal and intense within a smaller group of neighbors.

• Lack of Resources and Expertise: Small HOAs may lack the experience or resources to handle complex legal or financial matters, potentially leading to errors in compliance or mismanagement.

Elected officials like the smaller homeowners associations. HOAs can take on the responsibility and associated costs of providing certain services that would otherwise fall to the city, such as maintaining parks,  landscaping of common areas and enforcement of parking regulations. The cities can divert funglds to pet projects, while  whitholding basic public safety and or public works services with minimum complaints, as the first line of defense is the homeowners associations.

Unite and Fight Back

One solution is to unite and fight back by creating a master homeowners association (HOAs) from existing HOAs in Washington State

Not an easy task, but it's doable.

1.  It requires recruiting a number of HOAs which share the vision.

2. It requires legal resources to develop governing documents:  a complex process that involves consolidating multiple sub-associations under a single governing entity to manage shared amenities, enforce consistent rules, and streamline operations across a larger community.

The process must comply with Washington State laws, including the Washington Uniform Common Interest Ownership Act (WUCIOA) (RCW 64.90) for communities formed after July 1, 2018, the Washington Homeowners Association Act (RCW 64.38) for older HOAs, and the Washington Nonprofit Corporation Act (RCW 24.03) for incorporated associations. 

Crowd Sourcing the creation of a template the governing?

Would any HOA lawyer on the state of Washington be willing to review and refine the template below so that anyone who wishes to form an HOA fill in the blanks with minimum help from attorneys?

Below is a detailed template to guide the creation of a master HOA, integrating legal requirements, practical steps, using  the Onion Framework (Why, What, Infrastructure, Communication, Control) to align with the leadership and communication principles discussed earlier.

Template for Creating a Master HOA from Existing HOAs in Washington State, courtesy of X1. Define the Purpose and Scope (Why)

• Objective: Establish a master HOA to unify governance, manage shared amenities (e.g., parks, pools, roads), ensure consistent standards, and enhance community cohesion across existing HOAs.
• Why (Onion Framework): Create a vibrant, equitable, and sustainable community that enhances property values and quality of life for all residents by streamlining management and reducing conflicts.
• Steps:
  • Conduct a feasibility study to assess the need for a master HOA. Identify shared resources (e.g., clubhouses, green spaces) and challenges (e.g., inconsistent rules, duplicated costs).
  • Engage stakeholders (existing HOA boards, homeowners) to build consensus on the unifying “Why” (e.g., “Unite for a Stronger Community”).
  • Document the purpose in a vision statement, ensuring it aligns with resident needs and Washington laws (e.g., WUCIOA’s focus on fair governance).

2. Assess Legal and Structural Requirements (What)

• Objective: Ensure the master HOA complies with Washington State laws and integrates existing HOAs’ governing documents.
• What (Onion Framework): Form a nonprofit corporation to govern the master community, with a master declaration, bylaws, and rules that supersede but respect sub-association documents.
• Steps:
  • Review Existing HOA Documents: Collect and analyze the Declarations of Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and articles of incorporation for each existing HOA. Ensure no conflicts with state laws (e.g., RCW 64.38, RCW 64.90).
  • Form a Nonprofit Corporation: File Articles of Incorporation with the Washington Secretary of State to establish the master HOA as a nonprofit corporation under RCW 24.03. Include the association’s name, purpose, and structure.
  • Draft Master Declaration: Create a master declaration that outlines:
    • Boundaries of the master community, including all sub-association properties.
    • Shared amenities and common areas (e.g., parks, pools).
    • Rules and regulations, ensuring sub-associations’ rules align and don’t contradict.
    • Voting rights and assessment structures for shared expenses.
  • Draft Bylaws: Define the master HOA’s operations, including board structure, meeting protocols, and voting procedures (e.g., 34% quorum per RCW 64.38.040).
  • Ensure Legal Compliance: Adhere to WUCIOA (RCW 64.90) for communities post-2018, RCW 64.38 for older HOAs, and federal laws like the Fair Housing Act. Consult an attorney specializing in HOA law to avoid issues like discriminatory provisions.
  • Obtain Approval: Secure a 67% vote from homeowners in each sub-association for amendments to their governing documents to join the master HOA, unless their declarations specify a different threshold.

3. Establish Infrastructure (Infrastructure)

• Objective: Build the operational framework to support the master HOA’s governance and services.
• Infrastructure (Onion Framework): Create systems for financial management, shared amenity maintenance, and dispute resolution across sub-associations.
• Steps:
  • Form a Master HOA Board: Elect a board of directors representing all sub-associations, with clear roles (president, secretary, treasurer). Define terms and election processes in bylaws.
  • Set Up Financial Systems:
    • Create a unified budget for shared expenses (e.g., landscaping, security).
    • Establish regular assessments and special assessments (if needed) for master HOA costs, ensuring transparency per RCW 64.38.045.
    • Conduct a reserve study for long-term capital planning (e.g., pool repairs).
    • Hire a CPA for annual audits if assessments exceed $50,000, or secure a majority vote to waive if below.
  • Manage Shared Amenities: Contract vendors for maintenance (e.g., landscaping, waste management) through a competitive bidding process. Consider a single management company for efficiency, avoiding conflicts from multiple firms.
  • Record Documents: File the master declaration, bylaws, and maps with the county recorder’s office in every county where the community is located.
  • Technology: Use property management software (e.g., DoorLoop) for budgeting, record-keeping, and homeowner communication.

4. Develop a Communication Strategy (Communication)

• Objective: Engage homeowners and sub-association boards to build trust, ensure transparency, and rally support for the master HOA.
• Communication (Onion Framework): Use clear, consistent messaging to align stakeholders with the “Why” and counter perceptions of top-down control or elitism.
• Steps:
  • Initial Outreach: Hold town halls and send notices (via email, newsletters, X posts) explaining the master HOA’s benefits (e.g., cost savings, unified standards). Provide 14–50 days’ notice for meetings per RCW 64.38.035.
  • Transparent Messaging: Use the unifying message “Freedom to Build a Better Community” (adapted from our earlier discussion) to emphasize shared goals. Highlight benefits like reduced costs, enhanced amenities, and anti-corruption measures (e.g., targeting mismanagement in sub-HOAs).
  • Engage on X: Leverage Musk’s platform to share updates, host Q&A sessions, and gather feedback, ensuring accessibility for all residents.
  • Regular Updates: Maintain a community website or newsletter for ongoing communication, per Habitat for Humanity’s tips on effective HOA communication.
  • Address Perceptions: Frame the master HOA as a grassroots effort to unify, not control, sub-associations. Highlight resident-driven governance to counter elitism.

5. Establish Governance and Control Mechanisms (Control)

• Objective: Ensure the master HOA maintains authority while empowering sub-associations and homeowners, aligning with anti-corruption and accountability goals.
• Control (Onion Framework): Create checks and balances to prevent mismanagement, ensure fair representation, and align with your suggested reforms (e.g., term limits, anti-corruption).
• Steps:
  • Board Representation: Allocate board seats proportionally to sub-associations to ensure fair representation. Implement term limits (e.g., 3–6 years) to prevent entrenched power, mirroring your congressional reform idea.
  • Anti-Corruption Measures: Establish an independent oversight committee to audit financials and investigate mismanagement, inspired by your suggestion to target corrupt legislators. Make records accessible to homeowners per RCW 64.38.045, except for privileged documents.
  • Voting and Amendments: Require a 67% homeowner vote for major changes (e.g., amending the master declaration) and 80% for dissolution, per RCW 64.90.
  • Sub-Association Autonomy: Allow sub-associations to retain control over local rules (e.g., architectural standards) as long as they don’t conflict with the master declaration.
  • Dispute Resolution: Create a mediation process for conflicts between sub-associations or homeowners, aligning with WUCIOA’s emphasis on dispute resolution.
  • Compliance: Ensure the master HOA adheres to state and federal laws (e.g., Fair Housing Act, Washington State Civil Rights Act) to avoid legal challenges.

6. Secure Approval and Launch

• Objective: Formalize the master HOA and transition operations from sub-associations.
• Steps:
  • Homeowner Vote: Secure a 67% approval vote from each sub-association’s homeowners to adopt the master declaration and bylaws, as required by RCW 64.38 or sub-association documents.
  • File Documents: Submit Articles of Incorporation, master declaration, and bylaws to the Washington Secretary of State and county recorder’s offices.
  • Transition Management: Consolidate vendor contracts and management services under the master HOA, ensuring sub-associations’ needs are met.
  • Launch Communication: Announce the master HOA’s formation via X, newsletters, and a community event, reinforcing the “Freedom to Build a Better Community” message.
  • Monitor and Adjust: Hold regular board meetings (with 14–50 days’ notice) and annual homeowner meetings to review performance and address concerns.

Integration with Onion Framework and Leadership PrinciplesYour Onion Framework enhances this template by ensuring the master HOA’s “Why” (unified, thriving community) translates into actionable steps:

• Why: “Freedom to Build a Better Community” aligns with Musk’s visionary leadership and your suggested reforms (balanced budget, term limits, anti-corruption), making the master HOA a model of accountable governance.
• What: The 6-point platform (fiscal responsibility, term limits, anti-corruption, free speech, sustainable energy, immigration reform) can inspire the master HOA’s priorities, e.g., transparent budgeting and fair rule enforcement.
• Infrastructure: Physical (amenity maintenance) and systemic (financial systems, oversight committees) structures ensure execution.
• Communication: Using X and town halls mirrors Musk’s transparent, direct engagement style, countering elitism by involving all residents.
• Control: Term limits and anti-corruption measures reflect your legislative reform ideas, ensuring resident empowerment and accountability.

Legal and Practical Considerations

• Legal Expertise: Hire an attorney with HOA expertise to draft documents and ensure compliance with RCW 64.38, RCW 64.90, and RCW 24.03.
• Financial Transparency: Maintain detailed records and annual financial statements, accessible to homeowners, to build trust.
• Sub-Association Alignment: Ensure sub-associations’ rules don’t contradict the master declaration, as required by WUCIOA.
• Homeowner Buy-In: Address resistance by highlighting cost savings (e.g., shared vendor contracts) and improved amenities, using your Communication layer to persuade.

Sample Timeline

• Month 1–3: Feasibility study, stakeholder engagement, legal review.
• Month 4–6: Draft master declaration, bylaws; file Articles of Incorporation.
• Month 7–9: Campaign for homeowner approval (67% vote); communicate via X, town halls.
• Month 10–12: File documents, elect board, transition management, launch master HOA.

Questions for You

1. Specific 6-Point Platform: Does this template align with your vision for the master HOA’s priorities, or do you have a specific 6-point platform in mind (e.g., incorporating your balanced budget, term limits, anti-corruption ideas directly)?
2. Unifying Message: Is “Freedom to Build a Better Community” inspiring enough, or do you see a different “Why” for the master HOA?
3. Onion Framework Application: Are there specific infrastructure, communication, or control tactics you’d prioritize for the master HOA (e.g., specific tech for communication, like X)?

This template provides a roadmap to create a master HOA in Washington State, grounded in legal requirements and your Onion Framework. Share your 6-point platform or any specific tweaks to refine it further!