Why Can’t an HOA be an Unincorporated Town?

June 3, 2004

An interesting article came up the other day showing an HOA, a private nonprofit corporation, advertising as an unincorporated town.

Just what, legally, is an unincorporated town as compared to an incorporated town?  What legal standing does it have?  Can an HOA simply declare itself as an unincorporated town? What rules  does an unincorporated town follow, in the sense of being answerable to the county or state government?  These are important questions relating to an HOA acting like a government or being a de facto government, as the advertising implies.

My initial research starts with the laws of Nevada, where I easily found a concise body of laws regulating unincorporated towns (Arizona statutes don't seem to address this topic in an easy manner). So, what are a few things contained in the Nevada statutes?

Chapter 629, Unincorporated Towns, NRS 629.0 -629.652.

Not regulated?  Well here are some of the major "articles" --

Town Board form of Government --  elections, petitions to form, etc
Citizen Advisory Council -- created by board of county supervisors
Officers and Employees
Finances, Taxes
Ordinances, Town Code, Suits
Public Health and Morals

Now,
1) why couldn't this model be used for HOAs?
2) why didn't the towns, cities and counties (state law in general) mandate this form of government of HOAs, even within incorporated boundaries?

Citizens Against Private Government HOAs, Inc

602-228-2891 / 602-996-3007

pvtgov@cs.com http://pvtgov.org