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VickiC1 (Texas)
Posts: 36
Posted:
My HOA bylaws which were supposedly approved in fall of 2008 when the developer transfered control to homeowners contain the following sections/provisions--
1--the Directors can make any changes to the HOA bylaws by vote of 7 directors without notification to the HOA in general of what changes are proposed and without approval of quorum of HOA at large...
(and they have done it at least 3 times)

2--there is no provision for removal of a director (for cause or no cause) by action of the HOA at large--only by action of the Board of Directors

3--the only way to compel the Board to have a meeting to address concerns of the HOA at large is by getting a 2/3 majority petition of the HOA vs the more customary 20 or 25%...

I know that the state legislature has voted changes to HOA rules which our HOA board is supposed to be implimenting...they have had discussion with attorney about it and mentioned that in their minutes posted on the HOA website...
but no specifics

At the Board meeting on Sunday which was open to the HOA members but almost none took time to attend since the Cowboys were playing...anyone could address the Board at the end for 3 minutes--

I asked them to consider revising that section of the bylaws immediately--to put balance back into the bylaws and make HOA body approval mandatory vs the Board's approval only...

some Board members obviously did not even know what I was refering to--
I had to read the section of the bylaws...

One of the Board members asked me if I had been damaged by that provision in the past...
Obviously he has no desire to see it revert to a balance of powers between the HOA at large and the Board...

I want to know if TX corporate law makes any of those three statues illegal...

I think the only facets of the bylaws they are intending to change are those that the state's new laws require...like opening Board meetings to HOA members...

so I need some ammunition to make them understand why they are obligated to change those as well -- I don't know if the attorney they are using even read the current bylaws and looks at statues that new law will not directly effect...

what is the point of open meetings if the Board can make any changes to bylaws (within state laws) w/o getting approval of HOA at large...
My ONLY power as homeowner under these current bylaws is to vote for board of directors once a year...
SusanW1 (Michigan)
Posts: 5,202
Posted:
Those bylaws you sited are developer's bylaws, not suited to an HOA. They are deliberatly slanted to a developer's board.

Why they were allowed to remain after the turnover is beyone me.

Did a lawyer or committee look over everything BEFORE the new bylaws were assumed for the HOA?

Your only recourse is to fire up your fellow homeowners and get amendments to the bylaws passed. Your state law will tell you how since you have no provision in your own bylaws.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Vicki,

Since most Associations are incorporated as non-profit corporations, I will base this response with the expectation that this is the same for your Association. You will need to verify.

Texas nonprofit corporation act is covered under title 2, chapter 22 of the State Statutes. Removal of a Director is covered under Subchapter E, Section 22.211.

TX Statutes defer to the Bylaws. If the Bylaws were silent, then they specify that removal would be by the membership. Therefore, in your situation - the Bylaws are the controlling document.

I know it's not what you wanted to hear but that is the way the statute reads:

Sec. 22.211. REMOVAL OF DIRECTOR. (a) A director of a corporation may be removed from office under any procedure provided by the certificate of formation or bylaws of the corporation.

(b) In the absence of a provision for removal in the certificate of formation or bylaws, a director may be removed from office, with or without cause, by the persons entitled to elect, designate, or appoint the director. If the director was elected to office, removal requires an affirmative vote equal to the vote necessary to elect the director.
VickiC1 (Texas)
Posts: 36
Posted:
Thanks Tim--
basically you mean even if I/others think that rule is unfair to the HOA as a whole--because the bylaws do address removal of directors we don't have any options but to change the bylaws to get better policy...
SusanW1 (Michigan)
Posts: 5,202
Posted:
WHO votes the board in?

That group has the power to vote the board out.

(you say only the board has the power to remove itself - that's crazy)

As I said before, those bylaws are for the benefit of a DEVELOPER, not an HOA.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By VickiC1 on 10/07/2011 8:12 AM
Thanks Tim--
basically you mean even if I/others think that rule is unfair to the HOA as a whole--because the bylaws do address removal of directors we don't have any options but to change the bylaws to get better policy...

That is the way I am interpreting that statute.

The other option is to write your representative in the State legislature and explain the issue. Explain that even though HOA's are technically business entities, they are a little bit different and that you believe there should be a law that allows the membership vote out a member of the board irregardless of what the Bylaws say. You might even point out that many other States provide for this in their HOA laws as it helps to protect the members.

Tim
VickiC1 (Texas)
Posts: 36
Posted:
Susan--
I am telling you again--
these bylaws are NOT the developer's bylaws--
those were much more fair/balanced--I would accept them in a heartbeat...
the current bylaws were instituted when our neighborhood went from developer's control to homeowner control and 7 people in the neighborhood met with the attorney the developer used to make the transfer...
THEY presented these bylaws (supposedly) to the HOA and had a vote at a meeting and the bylaws were accepted...
we have seen no written proof of that except statement from former Board president that it occurred...
the bylaws themselves were never filed with the county clerk as they were supposed to be under TX corporate law and no one has seen a copy that was signed by the original 7 directors...

BUT they are not the developer's bylaws...
and I agree that it is a stupid, goes against logic, provision--but the 7 people who created them WANTED to have all the control in their hands vs balanced with the HOA at large...and that used that statue as well as several others to warp the bylaws into giving them that control...
MelissaP1 (Alabama)
Posts: 13,836
Posted:
By-laws aren't typically required to be filed. They are more easily changed by meeting notes, memos, and BOD votes. It is the CC&R's that are the legally binding contract. They are pretty much the outline of the HOA and how it is to run. The by-laws just fill in the daily operational facts.

It sounds like a review of the Convenants and Restrictions need a review. Most likely they haven't changed during the turnover from the developer. You would know when you read them and there are references to the builder/developer still in them. It will probably still have a 2 system voting structure in it as well. The required vote is pretty high to make and adopt the changes to the CC&R's. Ours was 90% of the general membership, while the By-laws/Articles of Incorporation is around 75%. Something that may consider changing when modifying the documents.

It's a time consuming process and not that cheap. Took us about 3 years and over $2K in legal fees. We just made 7 simple changes in ours such as removing the references to the Developer/builder and a change to our water/street system. We also lowered the number of required board members as there was no way we could get 9 people on the board. It lowered to 5 to cover mostly the board positions.

Sounds like time for a committee to review some changes. I would also advice making any technological changes as well. Allow some "Green Energy" resources and better satellite allowances etc...Use a lawyer to help redline and make sure the changes you want are legal. After all the signatures are gathered and signed, then you have to pay a court filing fee. The By-laws can be included to be on file, but not required.....

Former HOA President
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By MelissaP1 on 10/08/2011 6:09 AM
By-laws aren't typically required to be filed. They are more easily changed by meeting notes, memos, and BOD votes. It is the CC&R's that are the legally binding contract. They are pretty much the outline of the HOA and how it is to run. The by-laws just fill in the daily operational facts.

It sounds like a review of the Convenants and Restrictions need a review. Most likely they haven't changed during the turnover from the developer. You would know when you read them and there are references to the builder/developer still in them. It will probably still have a 2 system voting structure in it as well. The required vote is pretty high to make and adopt the changes to the CC&R's. Ours was 90% of the general membership, while the By-laws/Articles of Incorporation is around 75%. Something that may consider changing when modifying the documents.

It's a time consuming process and not that cheap. Took us about 3 years and over $2K in legal fees. We just made 7 simple changes in ours such as removing the references to the Developer/builder and a change to our water/street system. We also lowered the number of required board members as there was no way we could get 9 people on the board. It lowered to 5 to cover mostly the board positions.

Sounds like time for a committee to review some changes. I would also advice making any technological changes as well. Allow some "Green Energy" resources and better satellite allowances etc...Use a lawyer to help redline and make sure the changes you want are legal. After all the signatures are gathered and signed, then you have to pay a court filing fee. The By-laws can be included to be on file, but not required.....

This is a classic example of state by state, association by association. Some states your bylaws are filed, others are not. It depends on how the bylaws were written, ours are not as restrictive to change as our covenants but do require a vote of the members at a meeting called for that purpose.
SteveG4 (Texas)
Posts: 6
Posted:
Vicki,
what constitutes "notice" for a meeting of your BOD for bylaw changes? the bylaws of my HOA stipulate mail, phone, or personal notice. notice for special meetings must be 10 or more days, and any proposed changes must be specified. if there is a requirement, and it was not met, all changes are null.

regular meetings are required on a monthly basis.

your best bet is to get elected to the BOD along with a few others that are receptive to changing the bylaws to be more user-friendly.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By SteveG4 on 10/15/2011 10:37 PM

notice for special meetings must be 10 or more days, and any proposed changes must be specified. if there is a requirement, and it was not met, all changes are null.

This is certainly a true statement. In reality, it would require someone to challenge the changes and, more often than not, a court ruling on the challenge to have them nullified.
VickiC1 (Texas)
Posts: 36
Posted:
TX has passed new legislation that takes effect by Jan 2012 regarding many matters that effect HOA government--one of them is the notice rule for meetings...before our HOA Board was never required to tell the HOA if there was special meeting...and there was not the 10 days notice for the annual meeting--
it could start from the time the notice went in the mail and require just 48 hrs notice...so that if meeting was Monday and letter was mailed AFTER pickup on Saturday--that would count as "notification"...

yes--you can see there were deliberate attempts to skew the requirements the Board operated under to "legally" provide as little advance notice as possible...

and there "legality" of how the current bylaws were adopted in 2008 are contested---many owners who were in residence before the transition don't believe there was adequate notice of the change in bylaws or the meeting where they were supposedly adopted...
but no one is apparently willing to go so far as a legal challenge...
they are hoping (I guess) that this new board will take steps to implement more balanced bylaws and restore part of balance of power to HOA general body...
I don't think that will really happen though...My husband says as long as they don't mess with us directly...he will pay his dues and let them run their sham government...but if they do start to oppress us, then he will get attorney involved...because then there is legitimate reason...

he and I don't always see eye-to-eye about issues...

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