ARGHHHH Apathy!

Started by TimB4 • 12 replies • 1703 views

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TimB4 (Tennessee)
Posts: 21,061

Posted:

Our Association finally completed a complete reserve study that indicated a need to increase our annual assessments by 24% The Board proposed this to the membership for a vote at our annual meeting.

Well, we had our annual meeting last night and due to membership apathy we did not meet our quorum to vote on raising annual assessments to an amount that would fully fund the reserves (23 lots short). I did ask the membership to record their vote so the Board could get an idea of where the issue stands. Wish I hadn't done that. Had all 23 lots shown, or sent a proxy, and chose to vote against it, there would have been enough votes in favor to adopt the increase.

Therefore, membership apathy alone, will cause the requirement of yet another meeting to try and get it passed. Until then, we are required to disclose that the reserves are not fully funded (that will help house sales - he typed sarcastically).

We, sent a directed proxy form along with an addressed stamped envelope to return the proxy form to the board. We posted it on our website along with a proxy form. We delivered notices once a week. We delivered a reminder the day of the meeting (with a proxy form). Other then knocking on each door personally with proxy in hand - I'm at a loss of what else can be done.

It's just so darn frustrating. Almost makes me wish I didn't run for the Board again.

Thanks for letting me vent.

Tim

GlenL (Ohio)
Posts: 5,491

Posted:

Vent away. I take it you require a H/O vote to raise assessments that much. Ohio has a law for condo's that:

5311.081 Powers and duties of board of directors.

(A) Unless otherwise provided in the declaration or bylaws, the unit owners association, through the board of directors, shall do both of the following:

(1) Adopt and amend budgets for revenues, expenditures, and reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, provided that the amount set aside annually for reserves shall not be less than ten per cent of the budget for that year unless the reserve requirement is waived annually by the unit owners exercising not less than a majority of the voting power of the unit owners association;

(2) Collect assessments for common expenses from unit owners.

Does VA have anything similar?

Studies show that 5 out of 4 people have problems with fractions

MaryA1 (Arizona)
Posts: 388

Posted:

Tim,

Do your gov docs require that the members vote to increase the assessments no matter what the % is or just if the increase if over a certain %? If the latter, then I suggest the board raise the dues the % they are allowed to w/o a member vote. Then next year raise them again until the 24% increase is reached. There usually is more than way to skin a cat! Several years our assessments were raised for the sole purpose to increase the reserve funding.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Thanks Glen and Mary.

VA law requires that the board "Make any adjustments the board of directors deems necessary to maintain reserves, as appropriate".

Our governing documents only allow the BOD to raise assessments by 5% per year without the need for membership vote. Special assessments are not an option to fund the reserve as they may only be for specific items and costs incurred in the year of the special assessment. Additionally, any special assessment requires the approval of the membership.

Therefore, legally, the board is covered because we took steps to address the issue. We are now required to provide "A general statement describing the procedures used for the estimation and accumulation of cash reserves pursuant to this section and the extent to which the association is funding its reserve obligations consistent with the study currently in effect".

Being reelected to the Board, I know that the Board will revisit the issue again and try to get the membership to respond.

Tim

DonnaS (Tennessee)
Posts: 5,671

Posted:

Tim,

Once those proxies are out, see if you can round up a few door to door vote picker uppers.

I have to tell you, I spent enought time going door to door in Florida, brow beating folks into sighning the dang proxies, that I should have been an Avon lady as well.

Money says that many do not even read the ballot, put in in their inbox and never see it again. This is apathy at it's best. Or as Mary said, raise it the maximum every year but at 24%, that is kind of a long time to be under funded and it will probably increase before you collect the original amount.

DavidW5 (North Carolina)
Posts: 565

Posted:

Tim,

I suggest you announce to the community that the requirement to increase funding of the reserves will be offset by comparable reductions in all the other categories of the budget e.g. reduced clubhouse hours, reduced # of trash pick-ups, etc., etc. I bet you will get a massive turnout to the next meeting.

SusanW1 (Michigan)
Posts: 5,202

Posted:

24% is quite hefty raise.
Wonder if it wasn't an organized movement to prevent the vote from being taken?

TimB4 (Tennessee)
Posts: 21,061

Posted:

doubt it was a political move as I asked the members to register the vote so the board could see if there was an issue. only 5 votes against indicates that the membership understood the issue and those concerned supported the increase by an overwhelming majority. I think it's just apathy.

RichardP13 (California)
Posts: 1,767

Posted:

Tim

I believe that you knowing how the membership voted (even if it failed to gather the required votes) allows you to assess whether to move forward or not. When I had the Bylaws changed in August to eliminate quorum for all member meetings the main purpose was to allow the opening and counting of ballots. Even if we didn't get the required percentage of the membership to either vote or vote in the affirmative, we could see which direction they were leaning so we had a better grasp if we moved forward. So of what a prosecutor would do in polling a jury, do I continue trying the case or give up.

TimB4 (Tennessee)
Posts: 21,061

Posted:

I concur with you Richard.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Sorry Tim - the board should not have touched the ballots outside of the duly called meeting election.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Sorry - was this going to be a live vote and you did an informal poll as to how the members would have voted? I am confused as to what you meant by 'record of votes". No ballots or proxies should have been opened in a non-meeting setting.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Susen,

This was in conjunction of our annual meeting and the motion was on the ballot (along with election of directors, etc.). We had enough of a quorum to have a vote for the election of directors. We did not have a quorum to hold a vote on the motion to raise assessments. Since the question had been on the directed proxy form and was on the ballot anyway - I figured it wouldn't hurt to ask members to register how they would have voted. Basically making that portion of the ballot similar to a poll. Everyone chose to place a mark in that section of the ballot and the resulting count was 50 supported it 5 opposed it.

Needed 13 to satisfy a quorum to hold the annual meeting.
Needed 78 to satisfy a quorum to vote on increasing annual assessments
(hey I didn't write the governing documents I just have to abide by them)

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