Why Dissolving Your HOA Probably Won't Work (And What to Do Instead)

When homeowners are fed up with a bad HOA, dissolution often sounds like the perfect solution. Just get rid of it entirely. But as this episode explains, the "nuclear option" comes with massive practical hurdles—and even if you succeed, you'd likely end up recreating an HOA anyway. Luke Carlson and co-host Marty are joined by Ryan Davies, partner at LS Carlson Law, to break down why HOA dissolution is rarely the answer and what homeowners can realistically do instead. What You'll Learn: Why cities, banks, and homeowners all have reasons to want HOAs to exist The three core functions every HOA performs—and why those duties don't vanish with dissolution Why CC&Rs often require unanimous consent to dissolve How lenders could treat dissolution as a loan default The insurance nightmare that follows when no entity covers common areas Why you'd essentially recreate an HOA even after dissolving one Practical alternatives: changing the board, amending documents, and when legal help makes sense Episode Segments: Introduction: The "Nuclear Option" Why HOAs Exist in the First Place What HOAs Are Required to Do Hurdle #1: CC&Rs and Unanimous Consent Hurdle #2: Lender Consent and Loan Default Risk Hurdle #3: Insurance Complications Hurdle #4: Common Areas Still Need Management The Irony: You'd Just Form Another HOA Better Alternatives: Changing the Humans When to Work with an Attorney Key Takeaways Bottom Line: Even if you dissolve the HOA, the shared property doesn't dissolve. Someone still has to maintain it, insure it, and pay for it. That requires collecting money and making decisions—which is an HOA. A smaller, quieter, less expensive HOA is realistic. No HOA at all with shared infrastructure is a fantasy. Connect with Us Web: https://lscarlsonlaw.com/hoa-disputes Reddit: https://reddit.com/r/badhoa YouTube: https://www.youtube.com/@lscarlsonlaw Social: Instagram: https://www.instagram.com/lscarlsonlaw/ Facebook: https://www.facebook.com/lscarlsonlaw/ LinkedIn: https://www.linkedin.com/company/lscarlsonlaw/ X: https://x.com/lscarlsonlaw Bad HOA Podcast: Spotify: https://open.spotify.com/show/0Fghhb6ZjG1GfG7F4PDcNA Apple Podcasts: https://podcasts.apple.com/us/podcast/bad-hoa/id1743840073 YouTube: https://youtube.com/playlist?list=PLe8IADUDqQ0jtUvHKS6447Xf1bphf03ZE&si=piqR0WTgJWxZWe7F Legal Disclaimer: The information in this video is provided for general informational purposes only and should not be considered legal advice. Viewing this video does not create an attorney-client relationship with LS Carlson Law or any of its attorneys. Laws and regulations can change, and how they apply to your situation may vary depending on the facts and jurisdiction. If you have specific questions about your rights or obligations under your HOA's governing documents, consult with a qualified attorney licensed in your state. LS Carlson Law practices in California and Florida and represents homeowners only.