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SuzanneL (Florida)
Posts: 32
Posted:
I am looking for tips from HOAs that have already gone through the updating or revision process. We plan to use limited proxies. One third of the lots are owned my nonresidents with several in foreclosure. We have reduced the voting interests count by notifying the members who have lost their voting rights until they are current on their past dues.

The declarations don't require a members' meeting, but we need 75% approval. It will be difficult to get a 75% response because of apathy.. Postage for returning the limited proxies will be an issue for some members.

The bylaws require a members' meeting and 20% of a quorum. We can collect enough signatures going-door-to-door.

The articles of incorporation require a members' meeting and 75% approval which will also be difficult to get.

Several important items that are addressed:
Adding rental restrictions to the declaration. In past years these were adopted as rules, but since they aren't in the declarations the rental program essentially doesn't exist.
Requiring that directors also be members.
Eliminating proxy voting for electing directors by allowing mail-in ballots. We have had a lot of fraud in this area in past elections.
A general cleanup of language to update to current statutes and eliminate developer language.

We have a group of trouble-makers telling people to vote "no" for the revisions and that the changes are illegal.

We held an informational meeting which was well received, but poorly attended.

A members' meeting will be scheduled in September. We know we will have enough signatures for the bylaws to be approved. It will surprise me if 75% return the limited proxies. Since the proxies are good for 90 days we plan to solicit proxy returns and hold another members' meeting approximately 6 weeks after the first one. We can continue to schedule members' meetings until we get a 75% return or the 90 days expires.

What about the declarations since no meeting is required? We can collect them at the members meetings and also try to get sufficient returns until the 90 days expires. I hesitate to make them an official part of the members' meeting. We can just tell them to mail them, but I think it's appropriate to collect them at the members' meeting or door-to-door.

I would appreciate seeing language other HOAs used in the cover letter.

Suggestions? Comments?
PetunkaM (Florida)
Posts: 1,009
Posted:
‘We have reduced the voting interests count by notifying the members who have lost their voting rights until they are current on their past dues.‘ :

Answer: You can certainly do that but remember they must be delinquent for 90 over days and the Board has to approve taking their voting privileges at the dully called meeting.

‘Postage for returning the limited proxies will be an issue for some members.’

Answer: You mean some owners cannot afford a stamp? If so, mail out self-addressed stamped envelopes. It works.

‘The declarations don't require a members' meeting, but we need 75% approval...’

Question: Amending declaration does not require a members meeting? Are you 100% sure? It would be quite unusual.

‘The bylaws require a members' meeting and 20% of a quorum.’

Question: But you did not say how many votes you need to amend the By-laws? Only a majority of 20%? Again, that seems unusual.

'Adding rental restrictions to the declaration.'

Answer: Be cautious with this one. Even if you add rental restrictions it will not apply to existing owners unless they specifically vote for it. I would recommend you explain to all owners why you are doing it and the impact it will have on existing owners, if any.

'Requiring that directors also be members. '

Question: All directors? Sometimes, allowing at least one director to be a non-member gives the association more flexibility. How about officers?

'Eliminating proxy voting for electing directors by allowing mail-in ballots. We have had a lot of fraud in this area in past elections. '

Answer: Good idea.

'We have a group of trouble-makers telling people to vote "no" for the revisions and that the changes are illegal.'

Answer: You need to sell it. The membership should have a clear understanding why you are making these changes and how the owners will benefit. If people do not understand they will tend to vote for ‘no changes’. When it comes to amending docs I believe all ballots should be signed.

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