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BarbaraS (New Mexico)
Posts: 49
Posted:
All of you have been so helpful in the past. Here is our present problem. Our BOD is in the process of amending/revising outdated 20-year-old covenants which require 75% approval for changes. We have mailed drafts and solicited input from all owners with only 30% return. (This is par for the course.) The BOD will mail out a second request for input. Are we in our rights to state " Please reply by (date). With no response the BOD will act as your proxy in regard to amending/changing the existing covenants." Or do we have to get signed proxies from these owners? Does anyone have a proxy statement format? What if the proxie statements are not returned either?
BrianB (California)
Posts: 2,820
Posted:
as i understand it, you cannot utilize the proxy system as you have described. a proxy must be signed by the owner and given to another in their stead, not taken.

You should also check your state laws. Proxies are illegal in Arizona, for example.
RogerB (Colorado)
Posts: 5,067
Posted:
Barbara, To amaned Covenants I strongly recommend using OWNER SIGNED AND DATED ballots and would never use proxies. For those ballots are not returned go door to door.
RogerB (Colorado)
Posts: 5,067
Posted:
amaned ? correction: amend
BarbaraS (New Mexico)
Posts: 49
Posted:
Thanks for the input. Signed proxies can be obtained by mail?(Door-to-door would be difficult as we have so many absent owner) Rather than assigning proxy to one person, may the owner assign their votes "by majority vote of the BOD"? I would think owners would also have the option of non involvement/participation if they wanted to relinquish this power??? As far as I can determine, NM has no objection to proxies.
RogerB (Colorado)
Posts: 5,067
Posted:
Barbara, if they are willing to sign a proxy they should be willing to vote by ballot. I don't think a proxy should be used when voting to amend the Declaration. Has your Board asked for an opinion from an experienced HOA attorney?
BarbaraS (New Mexico)
Posts: 49
Posted:
Roger, thanks. We are not actually asking for a vote at this time. We have sent out proposed revisions of the covenants, asking for input. There are about 25 covenants that need to be brought up to date. We thought to get input, compile the new covenants and then submit them for a approval. The majority of the owners are either absentee landlords or just don't want to be involved and will not take the time to even read the proposals, much less give suggestions. There should be a way for the BOD to get some work done.
BrianB (California)
Posts: 2,820
Posted:
a proxy that allows the owner to give his vote to the board is legal. I just don't think a proxie that assumes if an owner doesn't return it, the vote goes to the board is legal. A proxy should require an active involvement of the owner, at least to the point of signing it and giving it to someone...
BarbaraS (New Mexico)
Posts: 49
Posted:
Thanks Brian. I agree that "if it isn't in writing, it doesn't exist", but how to get it when you have no reply is the dilemma. It is not fair to those owners, in the minority, who are actively involved and want to do what is needed.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
You might think of how you can use e-mail. Seems to me a ballot e-mailed and answered would serve as a vote to amend covenants. We amended ours by committee, submitted the changes at a special meeting, held before annual meeting. We were fortunate to have required votes needed. We also had a quorum for both meetings. E-mail is going to be routine for HOA's so might as well get your e-mail list together. You will be surprised at trhe good things you can use it for. Makes those little Board and council differences easier to resolve, use to file occupancy (lease) requirement to office and supplies a record. Eliminates for large part this old, "he said" then "I said" confusion. A great communication tool for bitching, applaulding, report discrepancies, ask specific people questions, converse with management, inquiring about progress with a specific project.
Remember, don't say anything you don't want to have to stand behind.
HaroldS (Arizona)
Posts: 906
Posted:
Your 75% approval requirement to change your documents was put there for a purpose: To prevent your board from declaring all non-votes will be voted by the board. We've discussed non-votes here before and a non-vote has to be counted as a "NO" vote. I agree with Roger: Proxy voting should not be used when changing the CC&Rs. Period. Harold
LanceT (Alabama)
Posts: 121
Posted:
In order to make ammendments/changes to your documentation you may be required to have a SPECIAL MEETING for that purpose ONLY. Your HOA needs to setup a specific date and time to meet to discuss the proposed changes. It may NOT be done at a regular board meeting. (Check your documents). The VOTE may be taken at the special meeting if need be.
However, you can STILL have mailing or door to door voting IF you get 2 signatures. ONE is for agreeing to NOT having the "special meeting" to vote, and the SECOND is for the changes. This makes it MUCH easier to gather votes.
One must agree to give up the right to a special meeting in order to cast their vote on an individual basis. That way the HOA legally can still get their vote WITHOUT making ALL residents attend a meeting and account for the out of town owners who can't make it. Renters can NOT vote for the owners.
You may find out who the true owner's are by using the county tax assessor's office. If you know the lot number, a board member/President may be able to request the name of the owner. Mind you it may not be accurate to the day, but it's going to be close. The address listed most likely will still be the HOA address even if they live out of town. However, it will let you know if you could be dealing with a renter and NOT the owner. That's VERY important since Renters can't vote.
It took us close to 2 years to change our documentation. Go through the documentation with a fine tooth comb if possible. Make sure things such as: address, developer references,Voting rights, satellite dish rules, or any other conditions/new laws are changed at this point as well. An attorney may be handy to have on hand for the changes but not necessary. Also will add to the costs of the changes. Expect filing fees at the courthouse and factor in distribution costs. In the end, we spent about $1,500 - $2,000 on the project. (We got lucky with a secretary with access to making "free" copies at her work). Good luck! It can be done! I'd also consider reviewing or changing the rules about every 5 years or so to keep up to date.

Recovering Ex-President of a HOA
RogerB (Colorado)
Posts: 5,067
Posted:
Posted By LanceT on 02/06/2007 11:59 PM
In order to make ammendments/changes to your documentation you may be required to have a SPECIAL MEETING for that purpose ONLY. ....

However, you can STILL have mailing or door to door voting IF you get 2 signatures. ONE is for agreeing to NOT having the "special meeting" to vote, and the SECOND is for the changes. This makes it MUCH easier to gather votes.
One must agree to give up the right to a special meeting in order to cast their vote on an individual basis. That way the HOA legally can still get their vote WITHOUT making ALL residents attend a meeting and account for the out of town owners who can't make it. (/quote]
Interesting, I have never seen a Declaration which required a special members meeting to amend the Declaration. I strongly recommend signed ballot voting to amend the Declaration. My experience is you will never get 75% to come to a meeting much less get the required approval. I recommend when amending your Declaration that the requirement to "approve at a special members meeting" be deleted and the percentage approval required be reduced from 75% to a maximum of 67%.

BarbaraS (New Mexico)
Posts: 49
Posted:
Thanks to all. Our covenants are VERY loose - only stating that they may be revised with 75% approval - nothing about special meetings - even the board membership is flexible and can "meet by phone". Emails would be wonderful but only one other owner that I know of besides myself has one. I feel the owners in residence,13 out of 22, (most are "golden" seniors/widows) appreciate the volunteer board and for the most part would like the board to "do what you think best". We all get along wonderfully and help eah other. Even so, I feel it must be done legally - and be enforceable. (I can't see some vindictive type in the future knocking on doors to see how many cats are in residence ) I have been in touch with NM Attorney Generals office and the university legal librarian - they are all very "loose" about HOA's - guess it is a rather new thing here in NM.

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