💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

MarkC17 (Florida)
Posts: 6
Posted:
Our Florida HOA bylaws and covenants may be amended at a HOA meeting by a simple majority as long as lot owners are properly notified and there is a quorum in person or by proxy at the meeting. A quorum equals 30% of the owners participating in person or by proxy.

In 2009 an amendment was passed that basically said before a management company could be hired 50% of all homeowners had to vote yes to hire them. It is a bit uncommon to do it this way but I think it is legal and binding since it was approved in accordance with our specified procedures for amendments.
However some are now thinking that since the covenants and bylaws only require a majority of a 30% quorum then we can't have a rule like this which requires 50% of all lot owners to approve taking an action.

Any insights from the members of this forum would be appreciated. A lawyers insight or case reference would be doubly appreciated.

I will mention too that since the inception of this HOA some 20 years ago, there has been a specification in the covenants that says to terminate the association requires 50% of the lot owner to vote to terminate. That rule seems to imply the 50% rule we passed in 2009 is ok but I am eager to hear form you all. We did get legal help "attorney opinion" from one attorney that said we could have the 50% requirement and another one said we couldn't.
I'm hope someone has some light to shed on this.

Thanks a lot.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Mark,

I'm not an attorney. I do not work in the legal profession. For legal advice you will need to consult a local attorney.

I will say that my Association has higher voting requirements for some things than quorum requirements. Therefore, I don't think that it would be uncommon to have such a think. Here is what our Association requires:

Issue - Quorum - Needed to pass

Elect Directors - 10% of membership - 5 candidates receiving the most votes cast are elected
Amend Declaration - 10% of membership - 2/3 of membership
Amend Articles of Inc. - 10% of membership - 51 % of votes entitled to be cast
Amend Bylaws - 10% of membership - 51% of members present in person/proxy
Special Assessment - 60% of votes entitled to be cast - 2/3 of votes cast
Increase of > 5% for annual assessment - 60% of votes entitled to be cast - 2/3 of votes cast
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mark

I am not nor do I play a lawyer.

I find it strange that to implement something that says 50% must participate being implemented by only 30%. It sounds protectionist but as it can be undone with 30% it is not even that protectionist.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Actually, the problem I see with that rule is that, as apathy sets in, who is going to do the work if an MC quits and they can't get enough votes to approve hiring a new one?

Depending on the language of the rule, I wonder if the Board could simply hire a property manager (vs. a management company) without the need for membership approval?
CarolR11 (Colorado)
Posts: 2,563
Posted:
I'm not an attorney either or involved in that profession.

But I think that Tim's right--percentages for different kinds of action can vary. So, long, that is that the action doesn't oppose your state's, etc., laws.

Not your topic, but my opinion is that 50% approval to hire a MC is not reasonable at all. My understanding is that "reasonableness" can be used in court as a criteria for HOA covenants, etc. If your must dismiss an MC, usually requires 30 day notice minimum, it'll take a fair amount of work & expense to get 50% of owners & proxies to agree on a new firm. And would they be part of the interview process? How many would show up? Just my two cents.
MatthewW4 (Arizona)
Posts: 500
Posted:
Mark:

I saw no mention of a board of directors. Do you have one and, if so, what do they do because it sounds like you have an overabundance of democracy. (I am not opposed to democracy but it is unrealistic to expect large numbers of owners to take an interest in the day-to-day operation of the association.) Yes, it is all nice and fuzzy-warm that the owners decide who will be the management company but who said they even care? If the owners are going to make these decisions why would you need a board of directors?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By MatthewW4 on 07/13/2013 4:20 PM
Mark:

I saw no mention of a board of directors. Do you have one and, if so, what do they do because it sounds like you have an overabundance of democracy. (I am not opposed to democracy but it is unrealistic to expect large numbers of owners to take an interest in the day-to-day operation of the association.) Yes, it is all nice and fuzzy-warm that the owners decide who will be the management company but who said they even care? If the owners are going to make these decisions why would you need a board of directors?


Good post. Let us throw every decision up to a town meeting.......LOL
MatthewW4 (Arizona)
Posts: 500
Posted:
A better way to handle association decisions is to allow the board to act as it sees fit subject to the an override vote of the owners. This lets the board do what it is supposed to do but places the ultimate control in the hands of the owners.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MatthewW4 on 07/14/2013 9:12 AM
A better way to handle association decisions is to allow the board to act as it sees fit subject to the an override vote of the owners. This lets the board do what it is supposed to do but places the ultimate control in the hands of the owners.

Matthew,

Although that would be practical for some things, like newly adopted rules, I don't think it would be practical in things like awarding contracts.
MatthewW4 (Arizona)
Posts: 500
Posted:
Quote:
Posted By TimB4 on 07/14/2013 3:40 PM

Matthew,

Although that would be practical for some things, like newly adopted rules, I don't think it would be practical in things like awarding contracts.

If the owners wish to override a decision to enter into a contract, I see no reason to prevent that from happening if the owners understand the consequences of terminating a contract. That sounds a bit smarter than preventing the association from entering into a contract (in this case for a management company) until an unrealistically high number of owners vote in favor of doing so. The operation of the association should always be controlled by the board of directors but subject to the will of the owners.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MatthewW4 on 07/14/2013 5:03 PM

If the owners wish to override a decision to enter into a contract, I see no reason to prevent that from happening if the owners understand the consequences of terminating a contract.

I agree with you there.
It's those consequences that I believe make it unpractical for overturning an awarded contract.

Quote:
Posted By MatthewW4 on 07/14/2013 5:03 PM

That sounds a bit smarter than preventing the association from entering into a contract (in this case for a management company) until an unrealistically high number of owners vote in favor of doing so.

I agree with you that the awarding of contracts should be a decision of the Board and not the membership.

I was not a party to the circumstances that caused that vote to happen. The members may have gone through hell with their previous MC and voted on a method to prevent that from happening in the future. Had Mark been asking if such a proposal was a good proposal, I would have said no. However, that wasn't Marks question. He was only providing that information as background for the question (which I answered previously).
MarkC17 (Florida)
Posts: 6
Posted:
Thanks to all. I appreciate the various viewpoints.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here