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MikeG6 (Texas)
Posts: 11
Posted:
I live in Texas and our neighborhood was built in four different sections with each having its own HOA. About five years ago they decided to vote to merge Sections 1 and 4, and then later voted to merge Section 3 into the merged 1&4 HOA. Since then, our Board has established a dictatorship and while some of us are attempting to take it back through the upcoming election I am also looking to de-certify the original merger votes.

Here is my question. If they do not have meeting minutes or a Secretary Report to prove there was a quorum in place at the time and/or they are not able to show proof that a majority of the vote approved either of the mergers, can the vote be thrown out?

Thanks in advance for your feedback and opinion.

Mike Grant
[email protected]
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
I am no lawyer not even close to a lawyer, but I believe a vote can be considered invalid.
We had a case like that at our annual meeting. A vote was taken to "amend" our documents, but there was no letter sent informing the entire membership a vote would be taken to "amend" the documents. It was an invalid vote and did not stand.
We were petitioned later by the membership to have a special meeting for a revote on the subject. Proxie letters were mailed to the entire membership, a meeting was called, votes were taken and the outcome was quite different from the original vote.
RogerB (Colorado)
Posts: 5,067
Posted:
Mike, I don't understand what do you mean by the word merger.
Did each of the sections have originally have their own CC&Rs? Did they join together via annexation and file amended CC&Rs with the County? If so an amendment to the CC&Rs would be required to undo the annexation.

Or was there only one set of Covenants and by some legal agreement did each section chose to form its own HOA> If so, how were such items as collection of assessments,maintenance of common areas, and Covenant enforcement legally established?
MikeG6 (Texas)
Posts: 11
Posted:
Each of the sections had their won board, bylaws, CC&R's, etc... Initially Section 4 voted to merge with Section 1 and assumed the bylaws of Section 1. Then Section 3 voted to merge and accept the bylaws of Sections 1 & 4.

I am pretty confident that in both elections there was not a quorum present and even if there was I am even more confident that they don't have the documentation to support it. Since I am in Section 3 I am hoping I can hire an attorney to prove these beliefs true which would force us back to individual HOA's and give us freedom from the dictatorship in Section 1.
SusanW1 (Michigan)
Posts: 5,202
Posted:
What do the minutes where this vote took place say? The Yeas and Nays should have been counted and announced.

Five years is a long time for something to be changed. It could be very complicated to try to prove an illegal vote.

Why don't you just work to separate from the group NOW? The same people who got absorbed into the merger could petition to separate.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mike

Wheere is Setion 2 in all this?

Tnaks
MikeG6 (Texas)
Posts: 11
Posted:
I submitted an informal request to see the minutes from both meetings were votes took place and was told " I’m not about to go hutting through all the boxes just for your pleasure.". I have since submitted another informal request and if they do not willingly provide them, I will place a formal request in writing per the Bylaws to inspect the documents I am interested in.

This Board is notorious for not taking minutes and when they do they aren't very detailed.

I'm not familiar with the process for separating from the group. The other issue is with the new Bylaws that they are saying is attached to the merger and that they are ramming down our throat basically say we can come to the meetings but unless they tell us to talk we are to sit down, shut up and listen.

Here are the new bylaws... http://cktha.org/linked/bylaws%20jan%202012.pdf
MikeG6 (Texas)
Posts: 11
Posted:
Section 2 was never activated when they built those homes, so they have never actually had an HOA.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mike

Did you buy into Section 3 after they had agreed to merge with Section 1 and 4, which had already merged?

Thanks
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mike

Did you buy into Section 3 after they had agreed to merge with Section 1 and 4, which had already merged?

Thanks
MikeG6 (Texas)
Posts: 11
Posted:
No I was here when the merge occurred but didn't realize at the time that they were changing the bylaws on us. The reason I am just now reacting is because we, the board included, have all been living by the old bylaws until now. The board just brought the new ones to our attention and saying they were supposed to be filed when the election took place but the attorney that was handling them dropped the ball. They have recently filed them and put them into play and we aren't real happy about the content.
EllieD (Vermont)
Posts: 446
Posted:
Mike,

I have been trying to follow your posts. Apparently is no Section 2, and you are in Section 3.

And so the consolidated CC&R’s recently amended and recorded are for sections 1, 3 and 4.

The pdf that you provided a link to, is the Bylaws - Is that Document that you are thinking was not properly voted for? What about the consolidated CC&R’s – any problem with that document or vote?

I just scanned the Board Meeting section of the Bylaws that you reference and I did not see anything particularly unusual. What specifically are you objecting to? How were the “old” Bylaws different?

Also just quickly scanning, it appears that your bylaws can be amended by vote of the Board or by 67% of members (although the 67% does not seem particularly clear). Since it can be “either or” – do you know “who” supposedly voted to amend?

And just a comment - in Texas apparently Bylaws still have to be recorded - interesting because in many states this is no longer necessary.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Mike - you have learned that there is no such thing as a "merge" - in reality, one entity gets absorbed into the other.

So it seems you feel that one of the sections is playing like the Master and all others are subordinates.

Each section should have equal representation on the board.

You are all now supposed to be one happy family.

So what is the REAL issue, here?
MikeG6 (Texas)
Posts: 11
Posted:
The issue is that the new bylaws are significantly different than the ones we were originally under prior to the merger. If we were going to be asked to changed the bylaws which we were going to be governed under after the merger, the new bylaws should have been made available for us to review prior to the election. I as well as several others, would not have approved the merger if I had seen the new bylaws.

Myself as well as four other people I trust are running for the board in the upcoming election. However, the new bylaws reduce the number of board members from seven to five making it very difficult to get a majority of seats on the board. Being on the board and not having a voting majority of the seats would keep us exactly where we are, powerless. So I am looking to have the results of the vote tossed out on the basis that there is no documentation of a quorum, a vote count, or evidence that the members voting were made aware of the change in bylaws.

The whole vote and bylaw issue is simply the straw that broke the camel's back. This board has been a huge detriment to our neighborhood. While most members in other HOA's complain that there board is to strict, ours is the total opposite. Our property values have tanked the last five years above and beyond what those in surrounding communities have. They are not proactive in any type of enforcement and if a complaint is filed they may or may not respond to it. They pick and choose what CC&R's they will enforce and they pick and choose what members to enforce them on.

When seats have become vacant on the board, generally because people get frustrated and resign, instead of holding an election the President hand picks replacements and assigns them a title. We finally convinced him that this was in conflict with the bylaws and got approval to hold an election. Per the bylaws we got an Election Committee formed and the Committee was in the process of identifying and vetting the candidates when the board took the list of candidates and decided to bypass the Committee and type and distribute the ballots themselves. This probably doesn't sound like such a big deal but the ballot included one person's name that cannot be identified as a homeowner or resident, one name was misspelled, and one of the current board members that is running for re-election told the Secretary to be sure and put her name at the top of the ballot. Then they decided to mail 1/3 of the ballots and the remaining 2/3 were hand delivered, door to door, and if the person wasn't home it was left stuffed in the door jam. Not to mention that the board member running for re-election was one of the people hand delivering ballots. As if this wasn't bad enough, this same person went around and taped blank ballots to each of the community mail boxes.

This is just the big stuff, trust me I have a lot more, but I think it would display why we need to either gain a majority of seats on the board or have the original vote thrown out.
SusanW1 (Michigan)
Posts: 5,202
Posted:
All members must be treated the same, so if some were mailed their ballot, then ALL must be mailed. (I wonder why a particular 1/3 were chosen for the mailing)

It sounds like there is much confusion on this board.

I still think you should assume that the merge was legal - and now should work to "un-merge" yourself from this Master group.

It's done all the time. It's just harder to undo this entanglement. You will first have to fire up the original homeowners as to the NEED to do this, then petition the board with their signatures.

You are going to need a lawyer versed in this to guide you along the way.

You will have your reasons all lined up, I'm sure, for the request. Like Tim Gunn says, "Make it work."

EllieD (Vermont)
Posts: 446
Posted:
MikeG6,

You wrote “the ballot included one person's name that cannot be identified as a homeowner or resident”. However, the Bylaws that you posted states that: “A director need not be a member of the Association”.

Also those Bylaws state that “Directors shall serve two-year, staggered terms”. How many positions are being voted?

Or, are you going about setting up a “new” Board of five “at the next annual meeting following the adoption of these bylaws”?

As Susan wrote – “it sounds like there is much confusion”.

You wrote that you are questioning the vote of your Section 3.

Since your Consolidated Declaration was approved by at least a 2/3 vote of owners of each section, and attested to by the then President - in September 2011 – not that long ago - it seems that, “that President” should be able to show you a tally that the required number of votes were obtained for your Section.

Have you specifically asked for that vote count information?

Curious – does Sections 1, 3, and 4 each have about the same number of homeowner members?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Mike:

With something this large being done there definitely should be records and proof. Also, did you check and see if there were any documents filed with the local County Records? Generally they will have a website and you can search by your association name to find out if documents have been filed since the date of the mergers.

Texas statutes are not fun and difficult to help an individual as they will reference the statute only applies if you are in a County of X population or City of Y population. Do your documents mention any certain statute sections which apply? I did find this statement in one of the sections but again you will need to look at the beginning and see if it would apply:

http://www.statutes.legis.state.tx.us/Docs/PR/htm/PR.210.htm#210.007

CHAPTER 210. EXTENSION OR MODIFICATION OF RESIDENTIAL RESTRICTIVE COVENANTS

Sec. 210.007. SUBDIVISION CONSISTING OF MULTIPLE SECTIONS. If a subdivision consisting of multiple sections, each with its own restrictions, is represented by a single property owners' association, a proposal or specific provision of a proposal is adopted if owners of at least 66 percent of the total number of properties in the subdivision vote in favor of the proposal or provision.

Now this section mentions primarily the restrictions and you have become concerned about the Bylaws. My question is do you know whether or not in Texas or per the governing documents the members must vote for changes to the Bylaws or can it be done via the board?

Another item to keep in mind and be sure to ask an attorney is whether there is any statute of limitations. Make sure if you need to take any actions for instance before one year period has ended since the merger. If you do not watch out for a statute of limitation your homeowners could end up stuck whether they want out or not.
MikeG6 (Texas)
Posts: 11
Posted:
The bylaws we were operating under at the time did not have that stipulation that a director need not be a member. (another issue I have with the new bylaws).

Because all of the current directors, with the exception of the current president who is resigning, were appointed to the board by the president and not actually voted in per the bylaws all seats are open.

I have specifically asked for the meeting minutes from the vote as well as documentation of the vote results. I was told he was not going to dig through the records for my pleasure. I have since submitted a second informal request for those records. If he denies me again I will file a formal request for a review of the records per Article X of the bylaws.

Yes, all three sections are within a handful of having the same number of homes.

And yes, there is much confusion. ;O)
MikeG6 (Texas)
Posts: 11
Posted:
Quote:
Posted By JanetB2 on 02/17/2012 10:07 AM
Hi Mike:

Now this section mentions primarily the restrictions and you have become concerned about the Bylaws. My question is do you know whether or not in Texas or per the governing documents the members must vote for changes to the Bylaws or can it be done via the board?

Another item to keep in mind and be sure to ask an attorney is whether there is any statute of limitations. Make sure if you need to take any actions for instance before one year period has ended since the merger. If you do not watch out for a statute of limitation your homeowners could end up stuck whether they want out or not.

The bylaws say that the bylaws can be changed by the board and/or a 67% vote of the membership.

Time to start shopping for an attorney I suppose.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Is that the new Bylaws or your old Bylaws? Either way should never have used "and/or" and should have been definative.
EllieD (Vermont)
Posts: 446
Posted:
MikeG6,

What about the Attorney’s Office that apparently drafted your Consolidated CC&Rs and then had them recorded - would they have a record of the 2/3 votes needed by section number? Or have you already checked with them.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Why are you asking the president for these minutes. (That's like asking the pastor about paperwork for the church0

The SECRETARY is responsible for all meeting records. The vote talley should be in those minutes.

As a member you are entitled to see them. (They should all be in one binder, anyway. I don't see what the problem is)

MikeG6 (Texas)
Posts: 11
Posted:
At this time there is no secretary. She resigned once she saw the chaos and handed everything over to the president.

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