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Started by LynnW2 • 3 replies • 1217 views

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LynnW2 (Nevada)
Posts: 1

Posted:

I am a board member of an HOA in Nevada Our CC&R states that board members must be owners. However, a board member was elected and has served as a board member for over one year. The board member in question made sure prior to appointment that the board was aware her name was not on the deed. Also, a husband and wife have served as board members when only one home was owned. A homeowner has questioned the legality of the non-owner serving as a board member. My question is that since precedence has been set can a variance by the board to continue the board member for the remainder of the term and can non-board members continue to serve? The board member in question is living in the unit and her brother owns the home via a family trust.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Typically, the Board does not have the authority to waive anything in the CC&Rs, Articles of Incorporation or the Bylaws. They may be able to waive things that are in Resolutions. This is because Resolutions are adopted by the Board and the other documents are adopted by the membership.

That said, you need to remember that the Board is only made up of the elected or appointed Directors. Directors and Officers are two different jobs (even if they are held by the same person). Typically, qualifiers exist for Directors and only a few of the Officers (for example: the President must be a member of the Board). Both attend Board meetings but it's a meeting of the Board of "Directors".

Since your governing documents specify that Directors must be members and, I expect, that members are defined by who's name is on the deed, that individual may not serve without the Association being in violation of it's own governing documents.

However, IF your governing documents allow, the Board could appoint the individual to an Officer position that doesn't require membership status. This way, the individual can still attend the meetings, assist the Board and provide input. The only thing this person would not be able to do is vote on any issue before the Board.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Lynn

Typically when a unit is owned by more then one person (family trust, real estate investment trust, etc), the entity can dictate one person as the voting member. In most cases this voting member can also run for the BOD.

Husband and wife as joint owners has always been a topic of discussion. I say only one can be designated the voting member, thus only that one can be elected to the BOD.

Of course some docs are different, so many times the answers are in your docs. As an example, some say only a resident owner can be on the BOD. Thus in the case of a trust, if the designated voting member was not a resident they could not be on the BOD.

Hope this helps.

PeterD3 (Florida)
Posts: 708

Posted:

As a point of discussion I agree and disagree....

As far as voting: one per lot, parcel, untit, etc. No question (except for declarants).

As far a BOD eligibility: if controlling docs ONLY say that a Director must be a member, then any or all named members are eligible.
If the voting members, with proper disclosure, vote into office two or more members from a single unit, then so be it.

The members have spoken.

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