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TimB8 (California)
Posts: 2
Posted:
Hello All,

My HOA just applied an increase in dues and I have a few questions. During the last HOA meeting they conducted a “secret ballot” voting system and apparently 75% of the homeowners agreed to an additional increase of $185 making the total HOA dues $480 per month. My concern, or what I’m not understanding; they sent us a receipt book that contains the additional check for $185 (not a complete payment check for $480) we are to write 2 checks every month, and send them in two separate envelopes to the same address?

Personally, if this needed to be applied that’s fine but I don’t feel like everyone is on the same page here. I believe some are paying this and some are not. I guess my question is; is this information public record? Can I request the banking information from our homeowner’s assoc. requesting proof?

Tim
GlenL (Ohio)
Posts: 5,491
Posted:
Tim they held a "Secret Ballot" because that is what is required by CA law. As to why they sent two books I have no idea unless the additional $185. is for a special assessment but that is just speculation on my part. You could try writing the Board or calling the MC to find out. I would think you could just write one check for the total amount and include both coupons in the envelope. As to your suspicion that not everyone is paying, I suspect you're right. Not because everyone wasn't assessed the same but because every association has a percentage of freeloaders who either can't or won't pay their fair share.

Studies show that 5 out of 4 people have problems with fractions
JonD1
Posts: 2,350
Posted:
Tim:

Maybe the explanation might be they had the coupon books printed out for the original amount not knowing if the increase would pass and then added the $185 amount when the vote came in.

Rather than having all new coupon books printed up they sent out two totaling the new amount.

As suggested I would call the MC if you have one and ask. There might be a simple answer.

As to who might not be paying what do you base that on? And do you think the Board has given approval to some paying less that others?

If some owner is not paying that is one thing to suspect the Board has OK'd some people get off paying less than others quite a different accusation.

If an owner doesn't pay their share they should go into collections. Everyone else should pay the share they are required under the documents of your property.
TimB8 (California)
Posts: 2
Posted:
Thanks for the replys guys. I love this quote:

A 'secret ballot" election is the perfect set-up for those who want to rig an election. When elections are conducted by secret ballot, there exists no hard evidence of how people voted. "Voters hand over to election officials a pile of anonymous ballots. For those with the appropriate incentive, substituting ballots is duck soup."

And to get a reply from the HOA involved, I need to write a letter to a PO Box...This is going to be fun!

Thanks again!
DavidA7 (California)
Posts: 179
Posted:
TimB8

An increase of 60%? What was the reason behind such a large increase? Make sure it is a dues increase versus a special assessment. 75% approved such a massive increase, that is VERY RARE occurrance.

Also are your dues charged in equal amount to each unit or on a sliding scale based on unit size etc... The method of assessment is spelled out in your CC&R's. Our require us to follow guidelines based on if there is a 20% difference in square footage between the largest and smallest unit which we have.

Per the Davis Sterling Act:

20% Limitation on Dues

Notwithstanding more restrictive limitations placed on the board by the governing documents, the board of directors may increase regular assessments (dues) by up to 20% of the association's preceding fiscal year without membership approval. Civil Code §1366(b). To do so, the board must publish a budget in compliance with Civil Code §1365. Failure to do so means that any increase in the dues requires membership approval. Civil Code §1366(a).

Membership Approval. Regular assessments over 20% require the approval of a majority of a quorum of owners. Civil Code §1366(b). The statute defines "quorum" to mean more than 50% of the owners of an association. The governing documents of an association cannot increase or decrease the approval requirements for membership approval. Any such changes are voided by Civil Code §1366(b). Voting is done by secret ballot.

SECRET BALLOTS

Tim there are specific guidelines for Secret Ballots that are indicated below to prevent fraud. Were you present during the opening of the letters/ballots? Who conducted the process? Was there any cross-checks to make sure that each opened ballot was valid? ie see below

Secret Ballots

As provided for in Civil Code §1363.03(b), notwithstanding any other law or provision of the governing documents, the following matters must be voted by secret ballot:
•special assessments over 5% (see exceptions) or regular assessments over 20%

•election and removal of directors

•amendments to the governing documents (see exception)

•grant of exclusive use of common area property (see exceptions)

No Identifiers on Ballots. To preserve confidentiality, voters may not be identified by name, address, or lot, parcel, or unit number on ballots. The ballot itself is not signed by the voter, but is inserted into an envelope that is sealed. Civil Code §1363.03(e). If the owner inadvertently signs the ballot, it does not invalidate the ballot.

Signed Outer Envelope. This envelope is inserted into a second envelope that is sealed. The upper left hand corner of the second envelope must contain the voter's name, address, and lot, parcel or unit number that entitles him/her to vote. The envelope must also be signed by the voter. Civil Code §1363.03(e)(1). The statute states that owners "shall sign" his/her name. Accordingly, a typed name by itself is not sufficient. Typed names can be fraudulently applied to the envelope by anyone. A handwritten signature is distinctive and difficult to forge. In addition, signatures should be in ink so they cannot be erased. The signature must that of the owner of the property, i.e., the member, not non-member spouses.

Addressed to Inspector. The second envelope is addressed to the Inspector of Elections, who will open and tallying the votes at the appointed time. See sample ballot and envelopes.

Unsigned Envelopes. Failing to sign the outer envelope voids the ballot.

HOPE THIS HELPS
DavidA7 (California)
Posts: 179
Posted:
Forgot to ask was an independent Inspector of Elections used in the process? This is a requirement of the Davis Sterling law. If not you could probably get the vote invalidated if a Board Member was the one who opened the ballots. In that case I would seek legal council.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Also, TimB, you write as if the ballots were handed out at the meeting instead of being mailed to members--is that true?

Glen & DavidA know what they're talking about. By law, there must be the secret ballot system in CA. The one or three inspectors of election, who are appointed by the board, open the double envelopes, after verifying that the voters are qualified. Any Assoc. members may observe the counting of the ballots.

A great source for elections and other HOA topics is davis-sterling.com

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