You'll probably have to talk to a lawyer. I'm guessing since the HOA has been disbanded, is not meeting, is not collecting dues or enforcing rules, that it doesn't exist.
However, that probably won't be able to stop it from being reistablished after going through whatever legal hoops are necessary in your area.
Ideally, an HOA should be for the betterment of the community as a whole, but it sounds like this guy is trying to establish one for all the wrong reasons and for his own benefit.
Personally, I'd definitely try to fight it.
On a positive note, from what I've read, a newly established HOA generally can't enforce their rules upon an existing owner if they don't sign a contract for it. Again, rules/laws may vary.
