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LynneV1 (South Carolina)
Posts: 211
Posted:
We recently had an election and since 30 of the 230 community members are in arrears, the 230 h/o count was reduced by 30 to 200 so the 51%quorum hit 102......Is that correct and why are we not entitled as an association to know which ballots were eliminated? Are the ballots/votes a secret?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Lynne,

Typically, the members who are in arrears are protected by privacy laws. Therefore, the Association may tell you the number of lots not current in their payments but not who.

Some State laws require that a membership list of those eligible to vote be made available to any member who asks. Having this list and using a simple process of elimination can identify who is or isn't current on assessments. To find out if this is the law in your State check your States HOA and corporate laws.

The process of determining a quorum will depend on the language in your governing documents. I've seen them say a quorum consists of:

x% of the membership
x% of the members entitled to vote
x% of class A and x% of class B members

Sometimes, it will depend on the issue itself. IMO, a quorum for a general meeting is 10% of the members entitle to vote. If we are voting on an increase in Assessments or a Spacial Assessment, the quorum jumps to 60% of those entitled to cast but - if a quorum isn't reached at that meeting - if you follow the notice requirements and hold another meeting within 60 days then the quorum is halved.

Therefore, you will need to read your governing documents to answer your question on quorums.

As for seeing the ballots, typically anyone within the Association may request to view the records of the membership. This would include the ballots. This way you can verify the count. A secret ballot just means that the ballot was cast without a name or lot number on it. Sometimes your State laws will assist you here as well. Check your States corporate law as well as any HOA/Condo laws.

Hope this helps,

Tim
LawrenceC1 (Georgia)
Posts: 480
Posted:
Tim,

I am Treasurer of my HOA and was planning to let all members know at our annual meeting exactly who was and was not current on their dues. I was thinking that the books have to be made available to any member who requests a look, and so member status is something that all members are entitled to know. What are the privacy laws that you refer to that would prevent me from doing this?

Thanks,
L
TimB4 (Tennessee)
Posts: 21,059
Posted:
Lawrence,

It would vary by State. Typically, an Association may keep from disclosing lawyer client information. There are typically other limitations as well. I suspect that this would be within your States corporate law and/or HOA laws perhaps sections of other GA laws would also apply.

A member of the Board should also keep in mind that a members right to inspect is not the same thing as a member exercising that right to inspect. The Association does not have to volunteer information that may be of questionable nature and possibly used improperly. As a matter of fact Georgia Code - Corporations and Partnerships - Title 14, Section 14-3-1602, specifically says that the member may inspect the records providing [emphasis added]:

A member may inspect and copy the records identified in subsection (c) of this Code section only if:

(b) A member is entitled to inspect and copy, at a reasonable time and location specified by the corporation, any of the records of the corporation described in subsection (a) of this Code section if the member gives the corporation written notice or a written demand at least five business days before the date on which the member wishes to inspect and copy.

(c) A member is entitled to inspect and copy, at a reasonable time and reasonable location specified by the corporation, any of the following records of the corporation if the member meets the requirements of subsection (d) of this Code section and gives the corporation written notice at least five business days before the date on which the member wishes to inspect and copy:

d) A member may inspect and copy the records identified in subsection (c) of this Code section only if:

(1) The membeŕs demand is made in good faith and for a proper purpose that is reasonably relevant to the membeŕs legitimate interest as a member;

(2) The member describes with reasonable particularity the purpose and the records the member desires to inspect;

(3) The records are directly connected with this purpose; and

(4) The records are to be used only for the stated purpose

If you read through the codes, you will see that they point to other sections of law as well. I did not take the time to fully investigate this.

I personally, see zero issue reporting at the annual meeting that there are 10 lots who are behind in paying assessments. I do believe that there are issues if you report the names or the numbers of the lots. Just do a search on this forum about releasing names of delinquent members and you will see that this issue tends to be discussed every year.

Not knowing GA law, I can not provide you specifics for GA.

As I said, each State is different. In Virginia, the laws are very specific about what you may not release to other members: § 55-510. Access to association records Once you click the link scroll down to "C. Books and records kept by or on behalf of an association may be withheld from inspection and copying to the extent that they concern:" if you are interested.

Tim

LawrenceC1 (Georgia)
Posts: 480
Posted:
So if I am understanding all that you say, there is no specific law regarding what an HOA may or may not divulge to its members.

I also see that the privacy laws that do exist all clearly specify that liability only attaches for a *public* disclosure of private facts. With the *public* nature of the disclosure being key. Public meaning "public at large".

Members of an HOA have a legitimate right to know who has and has not been paying their fair share of assessments.

Publishing a list of delinquent homeowners only to the members of an HOA is then (1) not public, and (2) revealing information that is of legitimate concern to the party being informed.

As I see it, there is therefore no legal claim of liability for "publication of private facts" when an HOA publishes a list of delinquent homeowners to its members. This activity is entirely protected, and can be done with complete impunity.

A Board of Directors may choose not to antagonize delinquent homeowners by making their neighbors aware of their situation. A BOD may also decide that public humiliation is not kind. However, there is no *legal* prohibition against this practice.

GlenL (Ohio)
Posts: 5,491
Posted:
Lawrence, you also need to see if enforcement actions between the HOA and homeowners are private either under your CC&R's or State law. Our documents for instance allow anyone to examine their own account with the COA but not their neighbor's account. If you have something similar then IMO the information should not be released. You also need to decide where the threshold for releasing the information is, one day late, ten, thirty. In the beginning our COA used to publish the names in the news letter. Later Boards have taken the stand that while the membership has the right to know how much is in arrears they don't need to know the names. We tell the homeowners that demand the information to visit the County Court web site, there they can see who the COA has filed a lien against which happens at the 90 day mark and is then public record.

Studies show that 5 out of 4 people have problems with fractions
LynneV1 (South Carolina)
Posts: 211
Posted:
The problem is I am trying to gather a majority of votes to remove the board. Now let us say I am told that 12 of my ballots are eliminated because they are in arrears. Now I am short 2 votes. How can I verify the veracity of their statement. Do I have time after tht specail meeting where we counted the ballots
to get two or three more votes?
Lynne V

GlenL (Ohio)
Posts: 5,491
Posted:
Lynne are members in arrears not allowed to vote? I ask because not every CC&R or State law allows members in arrears to be denied a vote.

Studies show that 5 out of 4 people have problems with fractions
EllieD (Vermont)
Posts: 446
Posted:
LynnV1,

“GlenL” brings up an important point to consider: do your “Documents”, “Bylaws”, have a provision that allows members in arrears to be denied a vote?

For example, typical paragraphs in your Bylaws might read in part:

The Executive Board shall have the right to impose the Sanction of limiting or prohibiting voting by the Member for the period during which any Assessment owed by the Member remains unpaid and delinquent. . . .

any Sanction shall be imposed by the Executive Board only after a meeting of the Executive Board at which a quorum is present, duly called and held for such purpose. . .

The Member shall be entitled to appear at such meeting and present his or her case as to why Sanctions should not be imposed.

The decision as to whether to impose Sanctions shall be made by a majority of the Directors present at such meeting . . .

No Sanction shall be effective unless written notice has been given to the Member of the Sanction, the reason(s) therefore and the length thereof, and five days have elapsed since the date upon which such action was taken.

-------------------------------------------

If your documents read something like the above, then there should be a written record of “who” is not allowed to vote, which you could ask for.

But, if your “Documents” do not have a clause like that – then you need to ask, and find out, where the authority comes from to disallow the ballots of those in arrears.

---------------------------------------------

Of general interest, the latest 2008 version of the UCIOA reads: (which is different from the 1994 Version)

(19) may suspend any right or privilege of a unit owner that fails to pay an assessment, but may not:

(A) deny a unit owner or other occupant access to the owner’s unit;

(B) suspend a unit owner’s right to vote;

(C) prevent a unit owner from seeking election as a director or officer of the association; or

(D) withhold services provided to a unit or a unit owner by the association if the effect of withholding the service would be to endanger the health, safety, or property of any person.

And the 2008 UCIOA contains the comment:

13. The 2008 amendments to Section 3-102 (a)(19) of the Act allow the executive board to “suspend and right or privilege of a unit owner that fails to pay an assessment”; this is similar to statutes in other States; compare, e.g., North Carolina § 47F-3-102 (11). However, unlike other States, Section 3-102 (a)(19) specifically precludes suspending the right to vote or the right to run for an association office if a unit owner has not paid her assessments.

GlenL (Ohio)
Posts: 5,491
Posted:
(19) may suspend any right or privilege of a unit owner that fails to pay an assessment, but may not:

(A) deny a unit owner or other occupant access to the owner’s unit;

(B) suspend a unit owner’s right to vote;

(C) prevent a unit owner from seeking election as a director or officer of the association; or

(D) withhold services provided to a unit or a unit owner by the association if the effect of withholding the service would be to endanger the health, safety, or property of any person.

************************************************************************************

God forbid there be any actual consequences for their actions; it might hurt their self-esteem.

Studies show that 5 out of 4 people have problems with fractions
LynneV1 (South Carolina)
Posts: 211
Posted:
We have had trouble getting a quorum in the past and our by-laws state any one in arrears is considered not in good standing and cannot vote.
So with say 230 h/o, less 30 in arrears, we only need 102 for a quorum.(instead of 117)

My mgmt copmany will not even give us a list of homeowners names and addresses. The Directors on the board told them not to give us any info - which conflicts with the by-laws.
I have done county tax searches for local homeowner addresses. Then I was accused of violating privacy and soliciting rules by the Board.

My question is, "If a former board member,property mgmt agent , or a homeowner with a copy of such list gave it to me, are they or am I in trouble for having such disclosure?
LynneV1 (South Carolina)
Posts: 211
Posted:
Glen - How can any one deny you access to your home(unit) because you are behind on a debt? Even your mortgage company would have to do a full legal foreclosure and serve you eviction papers before they could lock you out. And that is because they own your house.
GlenL (Ohio)
Posts: 5,491
Posted:
Lynne, I was referring to B, C & D. Most of the time you don't really have to worry about the deadbeats voting, most wouldn't even if they could but why would any rational person want someone who can't or won't pay their fair share be allowed to be a trustee is beyond me. And I am incensed that a municipality can turn off the water to a home that is not paying their water bill but it is somehow wrong for a HOA to do it.

Studies show that 5 out of 4 people have problems with fractions
NameW (Virginia)
Posts: 74
Posted:
All HOA members have this problem when gathering petitions or trying to get enough of a quorum for a special meeting (remember an attendance and who voted list in addition to the quorum is required for any special meeting called without Board approval, else you can't prove the vote was valid for the reason you mention). Your real problem is that while this is a problem for you as a single shareholder, it is not a problem for the Board of Directors or the HOA itself. They will both continue quite nicely if your petition never gets the required # of valid signatures.

As a general rule of thumb, HOA Board members have to be careful whenever disclosing information someone may object to the releasing of. They are elected people and the possible repercussions of a release is always dancing around in the back of their minds. Likewise, if you have er, lets call them loudmouths in your community they will complain loudly about almost everything. Heaven forbid you as a Board member disclose to the public that the pompous loudmouth is a dead beat. You would definitely hear about it. It is only in the funny papers that they slink off embarrassed. More likely you would hear accusations that this is a lie, the Board is embezzling our money, sign this petition to remove so and so from the Board, underground newsletters designed to look like the real one but full of fake info, you have slandered and libeled me, yada, yada, yada, etc. Heck they may even sue. In some states it is easier for an indigent to file a lawsuit than it is for someone with a job. About 40% of the time if they are behind on their assessments, they are also often behind on their mortgage too. A person in such a position loses very little by launching an expensive lawsuit (and as zero hour approaches) will only settle if the HOA wipes out the debt and issues a retraction and a compensation check. He/she is broke so there is little point in the HOA counter suing.

Additionally, sometimes the deadbeat isn't really a deadbeat, just someone nice who is having a hard time financially. Why should a Board member intentionally embarrass that person by calling attention to what may be the single rough spot in their life? Sometimes they default for awhile, but next month they get the new job and they bring everything up to date and never bobble again.

The response of my HOA in our annual report is X # of units are in arrears. If questioned, we may provide the tax map # of the lots in arrears. Let whichever person is inquiring go to the courthouse and look that up. Likewise, our docs provide for commencement of collection actions within 30 days of default. If asked who we sued last year, assuming someone is too lazy to log on to the Internet and look on the courts website, then we would simply release the names of the suits, and let them research the court records to figure out which one was a warrant of debt and which one had a yard with grass too tall or their flagpole was too high.

On the other hand, we have been around so long hardly anyone except Board members attends Board meetings, so bad habits creep in and sometimes the lines between Executive Session and Open Meeting get ignored (easy to do if only Board members are present) so that a deadbeat may occasionally be named when the Treasurer provides their monthly financial report to the Board or when some Board member talks about their meeting last week with the HOA attorney handling the collections. Although they know better, the bad habits have become so ingrained that sometimes names slip out in open session even when a member is actually present with an architectural request or something similar. Rumors then spread.

Further we take the attitude that while any member is entitled to a list of names showing who else owns what, that person's actual resident mailing address or unlisted home telephone # is not something (in VA) we are required to release. Of course this is wasted effort as all of the info is usually freely available for the asking at the County Tax Assessors office. And more than once frustrated people have gotten it there rather than from us. That's fine. We protected their privacy, it is the County that didn't.

LynneV1 (South Carolina)
Posts: 211
Posted:
So if I got a copy of a list of the 'out of state' homeowner names and addresses, and then mailed them letters or ballots for a vote; would I be in any trouble for violating thier privacy ?
LawrenceC1 (Georgia)
Posts: 480
Posted:
Lynne,

No. There is no privacy issue involved here at all. The legal standard for an actionable privacy violation is an act that falls into 1 of 4 categories:

1. Intrusion upon a person's solitude or seclusion
2. Public disclosure of private facts (e.g., unreasonable publicity given to someone's private life)
3. False-light publicity (e.g., publicity that places someone in a false light before the public)
4. Appropriation of someone's name or likeness

Only number 2 is even close, and a public disclosure requires a public-wide disclosure, and not a disclosure within the membership of an HOA.

-L
LawrenceC1 (Georgia)
Posts: 480
Posted:
NameW,

So you would temper the legitimate activity of the Board to appease someone who might object to the action? In my experience as a Board member almost everything that we do has the potential to upset someone. The Board must always act in the best interest of a community despite alienating some of the members.

The possibility of being voted out of office is no threat to me. There is no way you could even get me to run for another term. I think that may be true of many Board members.

Everyone in a homeowners' association should understand that the books are available for anyone to view (in most states and in most communities), and that if someone falls behind in their payments it is likely that their neighbors will know about it. A Board may choose to encourage compliance by publishing a list of delinquent members, or they may decide to try a kinder, gentler approach. In either case, privacy laws do not prohibit the release of information that is limited to members of a common interest association.
LynneV1 (South Carolina)
Posts: 211
Posted:
Lawrence C1 said "In either case, privacy laws do not prohibit the release of information that is limited to members of a common interest association. "

That was what I thought I had heard in the past. But, I wanted to hear it again. Also getting the management company to give me any info has been very difficult. I recently (this week) again asked for the names of the H/owners so when we have our special meeting and count votes, I can verify the actual H/O voted and not a tenant. I was told on a bulletin board blog "NO"! Not an e-mail to me or a phone call.

In Fact this is what was posted
" Personal Information -
The following statement was posted in the last two months, but, since repeated requests have been made for homeowners' personal information, we want to put out a reminder to everyone. Neither Board members nor any management company or its agents give out any personal information about any homeowner for personal use (including but not limited to names, addresses, phone numbers, residents in arrears, collections, liens, or foreclosures). That has always been the policy and there can be no exceptions. Board members may have this information only for the purpose of conducting a decision-making process in the community. Thank you"

My request was not for my Personal use but an HOA special Meeting. But I
am spitting into the wind!

I also, really wanted to reply and thank you for all of your input and helpful advice!
LV
LawrenceC1 (Georgia)
Posts: 480
Posted:
The key phrase that the board and MC are hiding behind is "for personal use". If you tell them the list is for an official purpose, such as communicating before a meeting, then it is likely they will have to provide the information to you.

In Georgia the law says, (§ 14-3-720):

After fixing a record date for a meeting, a corporation shall prepare an alphabetical list of the names of all its members who are entitled to notice of the meeting. The list must show the address of and number of votes each member is entitled to vote at the meeting.

The list of members must be available for inspection by any member for the purpose of communication with other members concerning the meeting.


There may be a similar law in SC.

JameyL (Virginia)
Posts: 2
Posted:
You could also request a list of all members from the HOA which they have to give to you and request which members are in good Standing which they are in most cases suppose to give to you depending on state law.
JameyL (Virginia)
Posts: 2
Posted:
I forgot to say in doing this you will find out who is in good standing and know the names of who is not in good standing

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