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JohnA10 (Illinois)
Posts: 8
Posted:
In 1985, When we purchased our home in Arizona, the CCR’s stated: “The Declaration may be amended by an instrument signed by not less than 75% of lot owners.”

In 2005, the Association rushed-through and adopted many significant – and poorly crafted - revisions to the CCR’s. They now state: “This Declaration may be amended at any time with the written approval, or the affirmative vote, or any combination thereof, of the owners of not less than 75% of the eligible votes. Upon receiving the written approval of the required percentage of Owners, the President shall record the amendment with the County Recorder.”

Elsewhere, the CCR’s state: “The Board shall suspend the voting rights of an Owner in the event the Owner is in arrears in the payment of assessments or fines.”

The Board is now proposing still more revisions to the CCR’s – including rental restrictions. They claim they can do this by secret ballot. They claim they can prohibit non-compliant members from “voting.” They claim they only need “votes” from 75% of the remaining, compliant, members to pass the amendment.

Can the Association legitimately adopt changes to the CCR’s with a secret ballot?

Can the Board legitimately prohibit non-compliant owners from “voting” on the changes to the CCR’s.

Can the Board legitimately discount non-compliant owners when calculating the 75% requirement?

Should they?

Any of your thoughts would be appreciated.

RogerB (Colorado)
Posts: 5,067
Posted:
Can the Association legitimately adopt changes to the CCR’s with a secret ballot?
A. They can but they may not. Anyone may challenge the vote so there shall not be a secret ballot.

Can the Board legitimately prohibit non-compliant owners from “voting” on the changes to the CCR’s.
A. No, not legitimately. All OWNERS shall vote of changes to CC&Rs. The voting rights of MEMBERS of the HOA may be suspended when they are not in good standing.

Can the Board legitimately discount non-compliant owners when calculating the 75% requirement?
A. They can but they may not. All owners shall be counted when calculating the % required to amend the Covenants.

Should they?
A. Absolutely not.

"In 2005, the Association rushed-through and adopted many significant – and poorly crafted - revisions to the CCR’s" IMO you are correct. It appears to me that a competent HOA attorney was not involved in crafting the amendments.

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