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KellyC6 (Virginia)
Posts: 37
Posted:
Robert's Rules of Order Newly Revised in Brief states the following regarding a Member's Right to Vote: "Any member whose right to vote has not been suspended as the result of a formal disciplinary process has the right to vote, even if his or her dues have not been paid."

Robert's Rules of Order Newly Revised (10th Edition) states under Section 45. Voting Procedure, Rights and Obligations in Voting, Voting Rights of a Member in Arrears: "A member of a society who is in arrears in payment of his dues, but who has not been formally dropped from the membership rolls and is not under a disciplinary suspension, retains the full rights of a voting member and is legally entitled to vote except as the bylaws may otherwise provide."

Can anyone clarify for me if these passages are referring only to Board members who are voting in/at a board meeting? Or am I correct that it is referring to all members of the Association (i.e., all homeowners)?

We have a situation where a previous homeowner did not pay dues for nearly two years. A lien was recorded and perfected, but the property was foreclosed and sold at auction on the courthouse steps. When the new owners went to settlement, they were not required to pay the back dues associated with the lien by the settlement attorney. The Board may proceed with litigation to collect on the lien, but that has not been decided yet. All this aside, the new owners have never been late in paying their assessment obligations since buying the foreclosed property.

However, there are some folks who are saying the new owners should not be allowed to vote on member referendums and/or in annual elections due to the outstanding lien.

Our Bylaws state, "The Board shall also have the power to suspend the voting rights for the nonpayment of assessments... which are more than sixty (60) days past due... after notice and an opportunity for a hearing have been provided to the Owner pursuant to state law."

Therefore, this seems clear that if the Board chooses to exercise the power to suspend a member's voting rights, it must first provide the member with notice of intent to suspend and conduct a hearing.

So would I be correct in asserting that -- until such time as a formal process is employed by the Board which results in actual suspension of voting rights -- the new owners are allowed to vote?
BrianB (California)
Posts: 2,820
Posted:
First, RRO are fairly low in the order of things, and fall below your own by-laws in order of importance.

That said, follow your by-laws. they seem to include the requirements on how to suspend a member's voting privileges, so follow them, suspend, and be done.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
The lien is NOT on the new owners. Once that property went into the hands of the new owners that lien is finished on that property. So the HOA can NOT make the new owner responsible for paying the past owner's debts. This is a clean slate. The lien money was most likely lost during the foreclosure process. The banks typically get paid FIRST before any money is given to any other debtors. So if there was no money leftover after the bank got their money, then your lien is a wash. It's just the nature of the game.

These new owners have to be treated like new owners and not owners of old debts. Sorry but you can't force them to pay anything they don't owe. The best that happened is you got rid of some people who weren't paying and weren't going to pay. Basically, stopping the bleeding. The only remedy if any would be with the bank who did the foreclosure. They would have had to recognize the lien when they foreclosed.

Former HOA President
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Kelly,

I'm not a lawyer, but it would appear to me that the association no longer has a lien on the property. It sounds to me like that was most likely extinguished at the foreclosure settlement. If the holder of the priority lien foreclosed, I don't believe they are obligated to pay lower priority liens. I think it unlikely the new owners would have been able to get a mortgage if the title was not clear, that is, if there were any outstanding remaining liens, including the association's (nor would their attorney have advised them to purchase it). I also do not believe you can require one person to pay another person's debts. (What would you think if a bill collector said you were responsible for paying your brother's bills, simply because you were related?)

On whose advice is the board considering litigation to collect on the (possibly non-existent) lien? Is this on the advice of the association's attorney?

My guess is that the association is just out that money. Unless the association's attorney has advised you that you can file a claim against the new owners for the prior unpaid assessments due from the previous owner, my opinion is that you start over with the new owners as if no prior lien ever existed. If they are/have been in good standing since they've owned the property, they are entitled to all the privileges of being a member in good standing in the association.
BrianB (California)
Posts: 2,820
Posted:
ooops, i didn't catch the part about the new owners...

I was more focused on the RRO and by law portion.

So, follow your by-laws, as advised, but Melissa is right, unless the NEW owners are late in assessments, you have no legal reason to put them into the process to remove voting rights.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Kelly,

Since your Association must use RRO, they would apply to both Board members and general members of the Association.

Now, RRO is specifying that you will need to go through a formal hearing process whenever someone is behind in assessments in order to suspend voting rights. Since your governing documents specify that you must follow Roberts Rules, you might want to check with an attorney to see how the voting rights can be suspended without the hearing. Of course, if your governing documents specify that voting rights are automatically suspended, then the governing docs would control over Roberts Rules

However, as others have pointed out, once a home is sold, the new owners are only responsible for Assessments from the date of ownership forward. They legally can not be responsible for any debts owed by the previous owner (which includes assessments). If the Association was unable to collect the past assessments prior to the sale of the home they should check with the Associations attorney to see if they can try and collect the fees from the previous owner via other methods or, depending on the amount, if they should just count it as a loss.

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