HOMEOWNERS’ ASSOCIATIONS AND THE INTERNAL REVENUE SERVICE
In order to be classified as a non-profit, the IRS website states:
- A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development may be exempt as a social welfare organization if it is operated for the benefit of all the residents of the community.
- The HOA must supply evidence that areas (such as roadways and park land that the HOA owns and maintains) are open to the general public and not just its own members.
- At least 90% of the association expenses for the tax year must consist of expenses to acquire, build, manage, maintain or care for its property.
In a nutshell: Your subdivision does not own any common property so the HOA in your subdivision cannot be a non-profit. (*Mr. Henshaw deeded the two lots in Burning Tree South, that were common property, to the Master Association in 1977, before the homes were built.) There are also some in Burning Tree East but they also belong to Burning Tree Master Association.
You will note that your covenants state, in regards to your HOA Burning Tree Area _ Homeowners Association, that assessments are for the actual cost of maintenance, repair and upkeep of the common areas of the Association. (Nothing else. Read the next paragraph and you will see why this is important.)
FACT: Your covenants state: If the parties hereto or any of them or their heirs or assigns, shall violate or attempt to violate any of the covenants herein, it shall be lawful for any other person or person owning any real property situated in said development or subdivision to prosecute any proceedings at law or in equity against the person or persons violation or attempting to violate any such covenants and either prevent him or them from so doing or secure damages or other dues for such violations.
WHEN THE BTMA ASSESSED YOU THEY HAD NO LEGAL RIGHT TO DO SO.
alongthebeatenroad 
Cloud a title in Burnig Tree South with a lien, expect a Slander of Title suit.
July 14, 2012 at 12:02 am
Oklahoma Statues state: E. All documents accepted for filing, shall be deemed to comply with the requirements and impart constructive notice of the contents of such document to third parties unless a person claiming adversely to any such document files an affidavit setting forth the basis of such claim in the office of the county clerk of the county where the property is located within six (6) months from the effective date of this act.
The way my attorney explained it is that BT South filed a petition in June 2011.
Burning Tree Master Association board of directors never should have assessed homeowners in Burning Tree South (especially this year) nor should they be threatening homeowners with liens since they have no authority as Burning Tree South is out of their jurisdiction. The attorney also stated that any assessments made must be done by Burning Tree Souths HOA ( BT Area #4).
However, Burning Tree South covenants state that assessments can only be used for the actual cost of maintenance, repair and upkeep of the facilities and grounds owned by the aforementioned Burning Tree South HOA (BT Area #4). We all know that there are no facilities and no grounds owned by Burning Tree South or BT Area #4.
Should Burning Tree Master Association board of directors put a “cloud on the title” by putting on a lien without the authority to do so (in violation of the covenants–the legal contract– they will have set the stage for the Burning Tree South homeowners to seek relief under a “Slander of Title”.
Homeowners can and will use the piece in the Burning Tree South covenants (our legal and binding contract) that states that if anyone shall violate or attempt to violate any of the covenants, it shall be lawful for any person owning any real property in the subdivision to prosecute and either prevent them from so doing or secure damages for such violations. (My attorney advised that clouding a title is very serious business.)