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I have a question about the Planned Community Act involving subdivisions and voting by members to change Covenants and ByLaws. Looking for a licensed property manager to answers a question, or someone well versed in that PCA law.
A Board of Directors in a local HOA community in our town wants to eliminate proxy and absentee voting and re-write the Covenants/ByLaws of the docs. About one third of the homes are second homes, and the owners live elsewhere for half the year and are never here for the annual meeting. Thank you.
I recommend that you obtain a copy of the HOA rules/covenants and read them. Those documents will define what the requirements are to make changes to those documents. There is no one answer fits all as each community has it's own rules. You really need somebody familiar with your state's regulations. I wish you best of success. Nobody here can offer a definitive opinion without reading those rules/covenants.
I recommend that you obtain a copy of the HOA rules/covenants and read them. Those documents will define what the requirements are to make changes to those documents. There is no one answer fits all as each community has it's own rules. You really need somebody familiar with your state's regulations. I wish you best of success. Nobody here can offer a definitive opinion without reading those rules/covenants.
Definitely, this answer trumps. My observation after reading these docs on a fairly regular basis is it takes at minimum 75% affirmative to pass, and many requiring 100% affirmative when there is a change to the by-laws and voting rights. The BOD would do well to remember, those second home owners pay taxes and dues like everyone else. Trying to cut them out by proxies appears stinky. What would be real ironic is if the BOD got this passed by using proxies and absentee ballots. Sound like phone calls need to go out to every homeowner.
Problem is I am on the Document Review Committee consisting of 6 residents, three of whom are on the Board of Directors; and two of them are wives of the board members ! Only 2 of us are not Board members.
Nevertheless, I am very familiar with all of the documents and have all updated copies etc. We know that an attorney must be consulted and advise this Board and the Committee. They also want to send out "proposed" changes to every voting resident for their comments and edification. 240 residents. It sounds to me like a can of worms.
The Chairman of the committee "hired" the lawyer in town who did his closing. Not someone savvy in HOA law.
Bottom line, this could be another HOA nightmare and it might be a good idea to wish them well and get off this committee. There is more; the subdivision had a professional reserve study done to the tune of $3500. Result: we are in financial trouble.
A Reserve Study is not a 3 or 4 page document. I've seen studies as long as 80 pages and have taken as long as 3 months to complete. Think monster tax audit meets killer project home inspection. Depending on the size of the ownership and amenities, $3500 could be a bargain. If a reserve study hasn't been done in the past 5 years, $3500 could be a bargain. Apathetic homeowners are more damaging than delinquent homeowners. Each state has their own requirements regarding the frequency.
From a legal website:
Quote:
What is a reserve study and a reserve funding plan?
A reserve study is a careful analysis of the future repair and replacement needs of a homeowners association based on the condition of the elements of the property it maintains, a projection of the remaining useful life of these elements and future cost to repair or replace them, and the amount of money the association has in its reserve fund. A reserve funding plan is an agenda regarding collecting money from the owners through regular and/or special assessments to fund the reserve needs of the association. California requires each HOA to undertake a new reserve study, and make a new reserve funding plan, at least once every three years, unless the current replacement value of the major components the HOA maintains is less than half of the gross budget of the association. The reserve study must include a diligent visual inspection of the accessible portions of the common areas.
As the HOA document go-to person in my HOA, I am familiarizing with the state requirements. When I mentioned "reserve study" the rest of the BOD turned green. In two weeks I am attending an HOA symposium to get updated on Virginia requirements our local county goverment is hosting. I am looking forward to finding out more.
Does anyone know if an HOA can change their documents to eliminate proxies and absentee ballots for voting issues? Seems to me that would be taking the homeowner's right to vote away. We have several in our subdivision that own a home, which are second homes. The Board is trying to get away with eliminating those rights. Sounds like that would have a negative effect on a quorum.
In my experience, homeowners with outstanding debts to an HOA lose their voting rights. As mentioned earlier, such things are specified in the community covenants/rules.
In my experience, homeowners with outstanding debts to an HOA lose their voting rights. As mentioned earlier, such things are specified in the community covenants/rules.
Yes, I am aware of the debtors loss of privileges in the docs; that is not the issue at all. No one is in arrears. My question is about residents losing their rights of proxy and absentee voting -- in this case simply on the whim of a control freak Pres. and his puppets on the board.
I'll have to go through the NC Non Profit Corp. Articles of Incorporation ... only about 80 pages. (cough, cough).
Yes, I am aware of the debtors loss of privileges in the docs; that is not the issue at all. No one is in arrears. My question is about residents losing their rights of proxy and absentee voting -- in this case simply on the whim of a control freak Pres. and his puppets on the board.
I'll have to go through the NC Non Profit Corp. Articles of Incorporation ... only about 80 pages. (cough, cough).
I guess then it all comes down to state real estate laws that would be the final answer. I don't think that the owner's right to vote/proxy could be infringed as you described. Would need legal advice to say with any certainty. Sorry if I misunderstood.
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