What to do when HOA Board fails to hold Annual Meeting and New Elections

Hi,

Our HOA (Los Angeles, CA) should've hold annual meeting and new elections back in October 10. In early September there was a notice (hand written) asking for candidates and volunteers by September 17. Now, meeting was never held. So I would like to know what are the procedures to arrange and hold new meeting and elections?

In our CC&R it clearly states following:

"...Subsequent regular annual meetings of the members shall be held within thirty (30) days of the same day of the same month of each year thereafter, at the hour of seven o'clock p.m. If the day for the annual meeting of the members is a legal holiday, the meeting will be held at the same hour on the first day following, which is not a legal holiday (excluding a Saturday and Sunday)."

Thanks

Hi,

Thank you for your promt reply.

There were for sure candidates. And then how would they know if there is a quorum or not, unless the meeting happens? On another note, CC&R requires to hold the meeting, so doesn't that mean that if there was not meeting and elections there is no board and board should keep trying untill the new board is elected? The reason I am asking is because (homeowners) need to know what steps should we take to arrange new meeting?

Thanks

You are correct. The meeting should've been held. The first step is for you to attend the next board meeting and ask them when they are planning on having the next annual meeting / elections.

That should give you an indication of what's going on.

HayK,

I do not have access right now to the California HOA laws otherwise known as the Davis/Sterling Act. That will tell you what your rights are as for annual/election meetings. These are not Board meetings. The Board becomes members just like the rest of you but many association hold these annual meetings with the Board or at least a Board member leading them. Check the laws first. I am sure that some of our older posters here know those laws and will jump in.

Donna,

I did go through Davis/Sterling and it seems that we should file a petition in superior court to have the court order a meeting, which seems to be too complicated?

"Failure to Hold Meeting. If the board fails or refuses to hold an annual membership meeting within 60 days after the date designated in the governing documents or within 15 months of the association's last regular meeting, any member can file a petition in superior court to have the court order a meeting. Corp. Code §7510(c); Samii v La Villa Grande. Until such time as a new election is held, the existing board remains in power until successors have been elected and qualified. Corp. Code §7220(b)."

http://www.davis-stirling.com/AnnualElectionsRequired/tabid/2028/Default.aspx#axzz1iLPfLO7t

Thanks

Hi Carol,

The HOA is 48 Townhouses total (I think this get classified as condos in CC&R). There are 8 buildings, each building has from 5 to 8 townhouses next to each other (attached). We don't have a property manager, at least not to my or anyone else's knowledge. In CC&R it state that there should Board should consist of 3 members. Though current board was running for past 9 month with only 2, because one resigned and they didn't hold elections to replace that person.

Thanks

Carol,

In regards to remaining 2 board members, only one (treasurer) lives on premises, other one (president) technically lives on premises too, but is rarely here (sometimes once a week, sometimes once every other month). Sending certified letters to HOA P.O. box doesn't help, they simply ignore them (had several returned, because they weren't claimed).

Now, they did started meeting process back in September asking for candiadates and volunteers, but meeting never happened, and no one was able to talk to president (he is the only one making descissions). I personally called and left him a voicemail 2-3 weeks ago and didn't get a call back. Prior to meeting president did manually (by hand) distribute photocopy of previous year budget (it still says 2010-2011) and no other required documents. In fact we were trying to get our financials for over a year now with no luck. I know we can sue the board, but we will basically be suing ourselve. So we can say that they didn't mail or distribute in any other way required documents.

While reading Davis/Sterling I found only two options: one ask judjge to force elections (doesn't make much sense, because there are not penaltieis or criminal charges if they fail again?), other to petition board and hold elections ourselve.

But there might be another way, considering that there was no annual election and there were so many violations?

Thanks

Hayk,

Are there others in the community that are untested in making changes? The reason I ask is that if there are you can simply get enough signatures to request a meeting and possibly recall your existing board members. Read your CC&Rs as they may contain exactly the procedure required to call all owners meeting without your board.

Not having a management company may save you few bucks a month but leaves you exposed to board members that simply don't know what they are doing. Often it's malicious, but simply luck of knowledge.

By the way when one board member resigned, you most likely, didn't need to have elections right away. Remaining board members could appoint someone to serve until the next elections.

Jeff,

We should be able to get 3 signatures to recall the board. It's just a longer process. We should wait for 20 days to let them fail, then another 30 days for the meeting. But we will get going ASAP to get this whole chaose resolved. In regards to 3rd board member I know in fact that no one was appointed and board was running with only two people.

Thanks

Good morning Susan,

Well, and yes and no. Yes we've talked to her, but not that she is not friendly, she is simply saying that she has nothing to do with anything and makes no descissions of any kind and that president is the only one who decides what to do and when. When asked why they were running w/o 3rd member for so long, first they sad there is no body who wants to, but when I said that I will be willing to be on the board for example, they said that we will make changes during our annual meeting.

First we were very patient, because we knew that annual meeting will be held soon and we will elect new board, but as you can see from this discussion it didn't happen. So now we need to understand what are the steps (if any other than petitioning board with 5%) necessary to get our HOA back on track. Then we will audit everything to make sure that there were no frauds of any kind.

Thanks