What Vote Percentage Is Required to Dissolve an HOA?

Dissolving a homeowners association is a monumental step that requires near-unanimous agreement. You typically need a vote of 100% of all homeowners, not just those who cast a ballot, to legally terminate an HOA. This high bar is set because dissolution affects every property’s deed and legal standing.

You might wonder if there are any exceptions to this demanding rule. The answer depends heavily on your state’s laws and your HOA’s own governing documents. Some states or specific covenants may allow for dissolution with a supermajority vote, such as 80% or 67%, but a full 100% approval is the most common and safest legal requirement.

Navigating this complex process involves more than just a vote count. This article walks you through the critical steps, from a deep dive into your governing documents to handling the final legal and financial loose ends. You will learn about common roadblocks, what happens to common property, and practical alternatives if full dissolution seems out of reach.

Understanding HOA Dissolution and Member Approval

Dissolving a homeowners association is a monumental decision, not unlike a group of neighbors deciding to collectively sell their entire street. This process legally terminates the corporation that manages your community, fundamentally altering property ownership and responsibilities. You are essentially voting to unwind a legally binding agreement that governs your homes. From here, most dissolutions follow a step-by-step process to dissolve HOA that can vary by state. This guide outlines the essential steps to dissolve an HOA.

The core principle driving dissolution is member approval. Because an HOA is a democratic entity, its existence hinges on the collective will of the homeowners it serves. This isn’t a decision a board can make unilaterally; it requires a significant show of support from the community to proceed. Even a single homeowner or a small group can spark the process by proposing dissolution, but they still must rally enough members to meet the required thresholds. In the end, it remains a community-wide vote, not the will of a lone advocate.

Legal Vote Thresholds for HOA Dissolution

The number of votes needed isn’t a random figure plucked from thin air. State statutes provide the foundational legal framework that dictates the minimum approval percentage for dissolution. Failing to meet this state-mandated threshold will stop the process before it even begins.

How State Laws Set Minimum Vote Requirements

Every state has its own nonprofit corporation act or a similar set of laws that govern HOAs. These laws typically set a default dissolution vote requirement, often falling between 67% and 80% of all voting members. This is not a simple majority of those who show up to vote.

You must achieve a percentage of the *total* membership. For example, in a 100-home HOA with a 67% state requirement, you need 67 homeowners to vote “yes,” not just 67% of the 40 owners who cast a ballot. This high bar ensures that such a drastic measure reflects the genuine will of the entire community, not just an active minority.

• California often requires a two-thirds (66.67%) majority.
• Florida typically mandates 80% approval for planned communities.
• Texas usually sets the bar at 67% for many associations.

When Governing Documents Specify Higher Vote Percentages

Your HOA’s own governing documents can—and often do—demand more from homeowners. Your Covenants, Conditions, and Restrictions (CC&Rs) or Bylaws can legally impose a stricter supermajority requirement than state law. The stricter rule always wins. In the legal hierarchy, state law governs. Where a conflict exists, state statutes and decisions take precedence over HOA bylaws and CC&Rs.

If state law says 67% but your CC&Rs explicitly require 80% of all members to approve dissolution, you must meet the 80% threshold. Always review your own governing documents first, as they hold the definitive answer for your specific community. This is the most critical step in planning your strategy.

The Step-by-Step HOA Dissolution Process

Dissolving an HOA is a multi-stage legal marathon, not a sprint. The process begins with a thorough review of your state’s statutes and your HOA’s governing documents to confirm the exact vote percentage and procedural rules. Guessing at this stage can invalidate the entire effort later on. Are there legal grounds for dissolution under state law? If so, those grounds will influence the required steps, notices, and approvals.

Next, a formal written plan of dissolution must be drafted. This plan details exactly what will happen to all HOA assets, common areas, and outstanding debts, providing clarity and building trust among homeowners. Voters need to know the concrete consequences of their decision. Tax implications and other financial consequences—such as how assessments, reserves, and debts are settled—are also important to understand. These considerations help answer the question of what the tax and financial consequences of dissolving the HOA will be.

1. Secure legal and financial counsel to guide the process.
2. Draft and distribute the formal plan of dissolution to all members.
3. Hold a formal meeting to discuss the plan and call for a vote.
4. Conduct the vote, ensuring it meets the required supermajority.
5. File the official articles of dissolution with your state.
6. Settle all debts and distribute any remaining assets as outlined in the plan.

Finally, the approved dissolution must be formally filed with the appropriate state agency, usually the Secretary of State. Properly filing the articles of dissolution is the final legal step that officially ends your HOA’s corporate existence. From that point forward, the association is no longer a legal entity. The cost to dissolve an HOA can vary by state and the specifics of the dissolution. It typically includes filing fees and any professional fees such as attorney or dissolution service costs.

Overcoming Common HOA Dissolution Challenges

Getting the required homeowner vote percentage is often the biggest hurdle. Many associations struggle to achieve a supermajority because it requires near-universal agreement on a complex issue. Even with strong initial support, getting every single vote can feel like an impossible task.

Strategies for Building Consensus

A successful campaign needs a clear plan. You cannot just send one letter and hope for the best.

• Host multiple informal meetings to explain the long-term benefits and address fears directly.
• Create a detailed FAQ document that answers every possible question about property values and future maintenance.
• Use a professional mediator if discussions become too heated or contentious among neighbors.

Dealing with Apathetic or Opposed Homeowners

You will likely encounter homeowners who are indifferent or actively against dissolution.

• For the undecided, focus on how dissolution simplifies their life by eliminating monthly dues and restrictive rules.
• For the opposed, listen to their specific concerns about property values or shared amenities and provide factual data to counter misconceptions.
• Consider a compromise for holdouts, such as a temporary reduction in their share of the remaining HOA assets.

Navigating Financial and Legal Obstacles

The financial state of the HOA can make or break the dissolution effort.

• Outstanding debts or loans must be paid off before final dissolution, which may require a special assessment.
• You must have a precise plan for distributing any remaining HOA funds or assets to homeowners after all bills are paid.
• Always hire a real estate attorney experienced with HOAs to review your governing documents and draft the final dissolution agreement. This prevents costly legal mistakes.

What Happens After a Successful Dissolution Vote

Passing the vote is a major victory, but the process is not over. The period immediately following the vote involves winding down the corporation’s affairs in a legally sound manner. This phase is called “winding up.”

The Official Wind-Down Process

The HOA board remains in place temporarily to manage the dissolution. Their final duties are critical.

1. Formally notify all creditors, service providers, and government entities of the impending dissolution.
2. Collect all outstanding homeowner dues and settle all HOA debts and lawsuits.
3. File final tax returns for the organization with the IRS and state.
4. Cancel the HOA’s insurance policies and business licenses.

Distribution of Assets and Responsibilities

This is where the practical changes for homeowners become real. Any money or property left after paying debts must be distributed.

• Cash reserves are typically divided among homeowners based on the percentage outlined in your covenants.
• Common area land, like a park or pool, may be deeded to the local municipality or divided into lots for adjacent homeowners.
• You individually become responsible for all maintenance and insurance on your own property and any newly acquired common areas. Your mortgage and property taxes will not be affected.

Finalizing the Dissolution

The last step is making it official with the state. Your attorney will prepare and file the “Articles of Dissolution” or a similar document with the Secretary of State. Once this filing is accepted, the HOA legally ceases to exist, and the covenants are permanently removed from the property titles. After dissolution, any remaining HOA assets—such as reserve funds or common facilities—are handled according to state law and the HOA’s governing documents. Typically, assets are distributed to the members or used to satisfy outstanding obligations, or transferred to a successor entity as specified in the dissolution plan. Keep a copy of this document for your records as proof.

Life After the HOA

Your neighborhood will operate differently. Use this table to understand the shift in responsibilities.

Responsibility	Before Dissolution (HOA Manages)	After Dissolution (Homeowner Manages)
Road Maintenance	Paid for by HOA dues	Homeowners may need to form a road association or deal with the city
Architectural Control	HOA approval required for changes	Only city/county codes apply
Dispute Resolution	Handled by the HOA board	Resolved directly between neighbors or through civil courts

Key Factors Influencing Your HOA Dissolution Vote

Getting the required vote percentage is rarely simple. Your community’s specific circumstances will dramatically shape the final number of votes you need to succeed. Think of it as a puzzle where several pieces must fit together perfectly.

Your Governing Documents Are the First Stop

Your Covenants, Conditions, and Restrictions (CC&Rs) hold the first and most critical clues. You must locate the amendment section, which typically outlines the procedure for major changes, including dissolution. This section is your primary rulebook.

• Look for phrases like “termination,” “dissolution,” or “winding up affairs.”
• The required percentage might be a supermajority, such as 67%, 75%, or even 80%.
• Some older documents might require a unanimous 100% vote from all homeowners.

State Statutes Can Overrule Your Documents

Even if your CC&Rs are silent, state law often provides a default process. Many states have specific HOA acts that include a statutory framework for voluntary dissolution. These laws act as a safety net.

• State law might mandate a lower percentage than your CC&Rs.
• In some cases, state law can override an unreasonably high requirement in your documents.
• You must comply with both your documents and state law, using whichever is more stringent.

Mortgage Lender Approval Can Be a Hurdle

Lenders have a vested interest in the stability of the community. If a significant number of homes have mortgages from the same lender, that institution may need to approve the dissolution. This is a frequently overlooked obstacle.

Lenders are concerned about protecting their collateral. A dissolved HOA could mean no one is maintaining common areas, which might lower property values. You may need to demonstrate a solid plan for handling common property after dissolution to get their buy-in. Specifically, name who will maintain and fund the common areas after dissolution, such as in the case of who maintains common areas post-dissolution. Outline the mechanism for funding and governance to ensure ongoing upkeep.

The Voting Method Impacts Turnout

How you collect votes is just as important as the vote count itself. A well-organized voting drive using multiple methods will capture more votes and increase your chances of meeting the threshold. Low turnout is the enemy of dissolution.

Voting Method	Key Advantage	Potential Challenge
In-Person Meeting	Allows for discussion and immediate questions.	Low attendance can sink the vote.
Mail-In Ballot	Gives homeowners time to consider the issue privately.	Ballots can get lost or ignored.
Electronic Voting	Maximizes convenience and potential participation.	May not be permitted by your governing documents.
Proxy Voting	Allows absent owners to assign their vote.	Collecting enough proxies requires significant legwork.

Carefully review these factors before you begin your campaign. A successful dissolution vote depends on a clear understanding of every legal and practical requirement from the very start. Misunderstanding one element can invalidate the entire process.

FAQs

Why is the vote percentage to dissolve an HOA often set so high?

The requirement is high because dissolution permanently removes covenants from every property deed. This legally binding action fundamentally alters ownership rights for every single homeowner, necessitating overwhelming community agreement.

Is it ever possible to dissolve an HOA with less than a 100% vote?

Yes, but this depends entirely on your state’s laws and your HOA’s specific governing documents. Some jurisdictions or covenants may permit dissolution with a supermajority, such as 80%, but a full 100% approval is the most common and secure legal standard. Different situations in HOAs require different levels of approval, which can be more than just a simple majority. Understanding when and why you need HOA approval is crucial before initiating any major decisions.

Where can I find the exact vote percentage required for my specific HOA?

You must first consult your HOA’s Covenants, Conditions, and Restrictions (CC&Rs) and Bylaws. The most stringent requirement found in your governing documents or your state’s nonprofit corporation act is the one you are legally obligated to meet.

What is the consequence of not achieving the required vote percentage?

Failing to secure the required votes means the dissolution effort cannot proceed legally. The HOA will continue to exist and operate, and all existing covenants, rules, and the obligation to pay dues will remain fully in effect.

Your Next Steps for HOA Dissolution

Confirm the exact vote percentage in your governing documents and state law, as dissolution usually demands a supermajority. Start conversations with your neighbors early to gather the support needed for a successful outcome.

Further Reading & Sources

• Dissolving a Homeowners’ or Community Association (HOA)
• Understanding The Process of Dissolving a Homeowners’ Association – Homeowners Protection Bureau, LLC
• Can homeowners get rid of their HOA?
• Is it complicated to dissolve an HOA consisting of 5 homeowners? – Quora