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How do we reinstate our HOA corporation after the state dissolved it?

By OurHOA · General information · Revised

How an HOA board reinstates a corporation the state dissolved or forfeited over missed reports, with Texas, Florida and Colorado steps, fees and a sample motion.

Part of the HOA board handbook: running the board.

The short answer

In most states you file the reports you missed, name a current registered agent, pay the back fees plus a reinstatement fee, and the state restores the corporation. Texas, Florida and Colorado all treat a completed reinstatement as if the corporation never stopped existing, so the covenants, the bank account and the contracts the association signed are not lost. What you lose is time. While the state record shows the association as dissolved, forfeited or delinquent, it cannot bring a collection lawsuit in any of those states, and every week a delinquent account sits, it gets harder to collect. So treat this as a same-month job. Rules vary by state and by the association's own articles and bylaws, and this guide is general education, not legal advice. If the lapse is years old, or the board signed contracts or filed lawsuits during it, bring in the association's attorney.

First, find out exactly what the state record says

Search the association's legal name on the Secretary of State's business search (Sunbiz in Florida, SOSDirect in Texas, the Colorado business database). Print or save the record. Write down four things: the status word the state uses, the date the status changed, the reason if the record gives one, and the registered agent and address on file. The words matter because each one has a different fix. Texas uses "right to conduct affairs forfeited" first and "forfeited" once the corporation is terminated. Florida says "inactive" with "administratively dissolved" as the reason. Colorado says "noncompliant" and then "delinquent," and after 400 days it adds the word "delinquent" and the date to the entity's name on the state record. Nearly every lapse traces to one of two causes: nobody filed the periodic report, or the registered agent moved, resigned or died and nobody named a new one. The state's notices went to that stale address, which is why the board never saw them. Our guides on checking whether an HOA is in good standing with the state and on the HOA annual corporate report explain the filings themselves.

What the lapse blocks while it lasts

The biggest cost is collections. In Texas, Business Organizations Code section 22.362 says a nonprofit that has forfeited its right to conduct affairs may not maintain a suit in a Texas court, though the forfeiture does not void its contracts and it can still defend itself if sued. Florida section 617.1421 says an administratively dissolved corporation continues to exist but may conduct only the affairs needed to wind up, and section 617.1622 bars a corporation that has not filed its annual report from maintaining an action until the report is filed and the fees are paid. Colorado section 7-90-903 bars a delinquent entity from suing to collect its debts until it cures. Colorado adds a second, separate registration. Section 38-33.3-401 requires every association to register each year with the Division of Real Estate, and while that registration is lapsed the association's right to enforce an assessment lien or use its other enforcement tools is suspended. Filing that registration restores those rights without penalty. So a Colorado board may have two problems to fix, not one. Pause any new referral to the collection attorney until the state record is clean.

Texas: forfeiture, termination and Form 802

Texas nonprofit corporations do not file every year. Under sections 22.357 through 22.359, the Secretary of State can ask for a periodic report no more than once every four years, and the report is due 30 days after the notice is mailed. Miss it and the corporation forfeits its right to conduct affairs. The Secretary of State then mails a notice of forfeiture, and section 22.363 gives the corporation 120 days from that mailing to revive by filing the report with the revival fee. The Form 802 instructions set that fee at the $5 filing fee plus $1 a month, with a $5 minimum and $25 maximum. After 120 days the state can terminate the corporation under section 22.364. Reinstating after termination takes the same Form 802, a $25 filing fee and payment of any fees and taxes owed, under section 22.365, and section 11.255 treats a reinstated nonprofit as having existed without interruption. An officer signs the report. If the state gave the association's name to another entity in the meantime, section 22.365(c) requires a name change. One more check: the Secretary of State wants a tax clearance letter from the Comptroller unless the corporation is tax exempt. Tax Code section 171.082 exempts a homeowners' association from franchise tax when owners other than the developer control at least 51 percent of the votes, but the Comptroller grants that exemption only on application, using Form AP-206. If yours was never filed, file it now.

Florida: reinstatement on Sunbiz

Florida nonprofits file an annual report between January 1 and May 1 under section 617.1622. Under section 617.1420, the Department of State can start dissolution if the report and fee are not in by 5 p.m. Eastern on the third Friday in September, or if the corporation has had no registered agent for 30 days. The department sends notice, by email if it has one on file, and the corporation has 60 days to fix the problem before it is dissolved. Section 617.1422 lets a dissolved corporation apply for reinstatement at any time, using the state's reinstatement form or a current annual report signed by the registered agent and an officer or director, with all fees owed. The Division of Corporations lists the nonprofit reinstatement fee as $175 plus $61.25 for each report year missed, so a corporation that owes three report years pays $358.75. Once the reinstatement takes effect, section 617.1422 says it relates back to the date of dissolution and the corporation carries on as if the dissolution never happened. Expect a short delay if the association has been dissolved for more than a calendar year, because the state checks whether the name is still available first. Section 617.1421 also protects directors and officers from personal liability for debts the corporation took on after dissolution, unless they actually knew about the dissolution when they acted. Once the board knows, that protection is gone, which is one more reason to file the same week.

Colorado: curing a delinquency

Colorado does not dissolve a nonprofit for a missed report. It declares it delinquent, and under section 7-90-903 the corporation keeps existing. The periodic report is due each year by the end of the second month after the anniversary month of incorporation. Miss that and the record shows noncompliant. The Secretary of State then allows a late report, with a penalty, for two more months, and a corporation that misses that window too becomes delinquent under section 7-90-902. The fix under section 7-90-904 is a statement curing delinquency that lists the principal office address and the registered agent, signed by an individual under penalty of perjury. If the corporation has been delinquent five years or longer, the signer also files an affidavit of authority and a copy of a government photo ID. The Secretary of State's fee schedule lists the statement curing delinquency at $100 online. Then check the Division of Real Estate registration. It must use the association's name exactly as the Secretary of State shows it, and a lapsed registration keeps the lien suspension in place even after the corporate record is clean.

The board motion and a four-week plan

Treat the filing as a board decision and minute it, so no one later questions who had authority to sign. A motion the board can adapt: "I move that the board authorize the treasurer to file the reinstatement or cure documents with the Secretary of State, appoint [name or company] as registered agent at [in-state street address], pay the state fees of up to $[amount] from the operating account, and report back when the state record shows the association active and in good standing." Check the articles and bylaws before the vote. Colorado section 7-90-1002 can require a member vote to reinstate a corporation that was actually dissolved, as opposed to delinquent, and some governing documents add their own rules. Week one: pull the state record, confirm the cause, adopt the motion. Week two: file online, pay, and save the receipt. Week three: download the new certificate of status or good standing and send copies to the bank, the insurance agent, the collection attorney and, in Colorado, the Division of Real Estate registration file. Week four: tell owners in the next newsletter in two plain sentences, restart any paused collections, and put next year's report date on the board calendar.

Mistakes that bring the problem back

Using a director's home address as the registered office, then losing it when that director moves. Pick a stable address, or pay a registered agent service, and update the state within the 30 days Florida allows. Leaving the state's email notices going to a former treasurer's personal inbox. Set up a board email address that survives turnover and put it on every state record. Forming a new corporation instead of reinstating the old one. A new corporation is a new legal person, not the one named in the recorded declaration, and the IRS says a corporation with a new charter from the Secretary of State needs a new employer ID number. Reinstating is cheaper and keeps the chain intact. Assuming the Colorado corporate cure also fixes the Division of Real Estate registration, or that the Texas franchise tax exemption is automatic. Both are separate filings. Finally, add the annual report to the treasurer's written calendar and the new-director orientation packet, so the next board does not rediscover it through a returned court filing.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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