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JonathanD1 (Oregon)
Posts: 5
Posted:
We are having a dispute amoungest the board on if we can count a non response vote as Yes, our HOA is in Oregon and it clearly states this in our by laws. Please advise
TimB4 (Tennessee)
Posts: 21,059
Posted:
Please cite that section of your bylaws.

Typically, a non-vote is simply that: a non vote. It isn't counted as a yea or a nay. It simply isn't counted.

A non-vote may have the same effect as a nay or a yea vote depending on how the proposal was written.

Example: 100 eligible votes, 51 needed to pass, 45 yea, 40 nay, 15 abstain (non-votes)

Propose to not hire a new management company and keep the old. Due to needing 51 votes to pass, proposal fails and a new management company will be hired.

Propose to fire the current MC company. Due to needing 51 votes to pass, proposal fails and the current MC will remain.

As I said, what I provided is typical. However, since you say that your Bylaws address the issue, please cite that section.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Also let us know if this issue is for a vote by the general membership or a vote by the Board.
JonathanD1 (Oregon)
Posts: 5
Posted:
Here is the verbage it is for general membership votes since we have a very low response rate

C. Amendment(s) to CC&Rs shall be approved by simple majority of eligible voting Members per Article VII.C. Failure to respond shall be deemed as a vote in favor.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Jonathan,

Is that language in the CC&Rs or another document?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Also,

Was your Association created prior to January 1, 2004 (I ask because it affects what State statutes are applicable)?

Is your Association a condominium Association?

How many lots (it affects what statutes apply)?

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By TimB4 on 12/02/2013 10:25 AM
Jonathan,

Is that language in the CC&Rs or another document?

If it is in another document, what is the language in the CC&Rs about amending the document?
JonathanD1 (Oregon)
Posts: 5
Posted:
Here are our CC&R's
Article II: Membership and Voting Rights

(a) Any owner of a property on the Stoddard plat of record shall become Members of the Association and ownership shall be the sole qualification for Membership.
(b) The voting rights of each member are defined in the bylaws.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Within the CC&Rs, there should be a section concerning amendments to the CC&Rs.

Is the language you cited earlier about amending the CC&Rs from the CC&Rs or from another governing document (bylaws, etc.)? If it was from another document, what is the language in the CC&Rs about amending the CC&Rs or is the CC&Rs silent (not mention anything) about amending the document?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JonathanD1 on 12/02/2013 10:12 AM
Here is the verbage it is for general membership votes since we have a very low response rate

C. Amendment(s) to CC&Rs shall be approved by simple majority of eligible voting Members per Article VII.C. Failure to respond shall be deemed as a vote in favor.

Jonathan,

This language in your bylaws but the subject is amending the CC&R's.

If your CC&R's has a procedure to amend them, then you must follow that. Your association, no matter how well intentioned, normally has no authority to introduce some other procedure or to otherwise change the recorded covenants. Most declarations require a certain percentage of owners and their eligibility to participate in the amendment process is not dependent upon being in good standing with the association. Additionally, amendments are most often made by having the owners sign the proposed amendment and then recording that document and not by voting.

"Failure to respond shall be deemed as a vote in favor" is a lawyer's dream come true. This rule invites every hungry lawyer in Oregon to litigate endlessly against your association. Not only is it extremely unusual, but the burden will now be on the association to prove that the "failure to respond" was not the result of inadequate or improper notice.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Larry,

I agree that the language sounds like it's from a document other than the CC&Rs. However, I don't know that for sure (hence my questions).

We also don't know, if it's not from the CC&Rs, if the CC&Rs are silent on amendments or if the language is conflicting with the CC&Rs. Additionally, in doing a little research on Oregon law, depending on the type of development, classification of the development (type I, II or III) or if the Association is a condominium or not, that passage may or may not be in conflict with existing State Statutes (hence my questions about the development).

Here is a link to the Oregon laws from Oregonlaws.org

Here is a link to the Oregon laws from oregonlegislature.gov

Apparently, they only revise the statutes or codify the laws every few years (as the last one available is from 2011). However, the legislature website also provides laws adopted in 2012 & 2013.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Johnathan,

I may have found a copy of your CC&Rs. If you can verify that it is your CC&Rs, then the document is very clear about amendments.

Does Article III, item a of your CC&Rs say:

a) No building site on said property shall be used for any purpose other than residential
purposes unless otherwise shown on the official recorded plat, except Tract E of said plat, which is reserved for park purposes.
TimB4 (Tennessee)
Posts: 21,059
Posted:
For further verification, was Article III, item e of your CC&Rs updated on May 5, 1994?

JonathanD1 (Oregon)
Posts: 5
Posted:
Those are out old CC&R's we are re-doing them
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JonathanD1 on 12/02/2013 11:26 AM
Those are out old CC&R's we are re-doing them

Are they currently in effect? They aren't old unless they have been amended and recorded.

If they are, then you will need 75% of the members to agree to change them.

This is from Article X:

All of the conditions, restrictions and charges set forth in this Declaration are imposed
upon said property for the direct benefit thereof and of the owners thereof as a part of the
general plan of development, improvement, building, occupation and maintenance hereby adopted therefore by Declaration; and such conditions, restrictions and charges shall run
with the land and shall continue and be in full force and effect until extinguished, or
modified as herein provided. Except as provided in ARTICLE IX (b) the conditions,
restrictions and charges set forth in this declaration may be changed by a written
agreement executed by the then record owners of seventy-five per cent or more in area of
said property then subject to the Declaration exclusive of streets, parks and open spaces, said agreement to be placed of record in the Office of the County Recorder for
Washington County, Oregon. The conditions, restrictions and charges, and any of them,
may be changed, modified or extinguished at any time by an instrument executed by the
Association acting by its President and Secretary under authority of a Resolution to that
effect adopted by a majority of seventy-five per cent or more of the votes cast in favor of
such resolution at a meeting of the members of the Association called for that purpose
upon such notice to said members as may be prescribed by the By-Laws of the
Association.

Additionally, Oregon statutes use that same 75% requirement.

Therefore, from this additional information, I conclude the following:

1) The section you cited only requiring a majority of eligible votes is in conflict with the CC&Rs and likely in conflict with existing Oregon statutes. When there is a conflict, the higher precedent document (in this case the CC&Rs or the State Statutes) must be complied with.

2) Stating that a non response is considered a yea vote is, in my layman's opinion, asking for legal action to be brought against the Association. The CC&Rs are plainly written that a written agreement of 75% of members is needed. A non-response is, by definition, a non-response. Therefore, it can't be considered a signature to the agreement.

I STRONGLY encourage your Association to consult with legal counsel concerning that citation you provided. The question to be asked of the attorney is, "Is this citation in conflict with the existing CC&Rs or applicable State Statutes?"
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By TimB4 on 12/02/2013 11:41 AM

Except as provided in ARTICLE IX (b)

Note: Article IX (b) talks about assessments which requires 3/5 of the membership vote.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Johnathon

Your BOD is trying to circumvent the way it is. I assume the reason they are trying is apathy as in they cannot get anyone to participate. I assume they think they are being altruistic when in reality, they are actually trying to steal the rights of people out from under them.

Their kind of help we do not need.

JonathanD1 (Oregon)
Posts: 5
Posted:
Thank you all for your reply, I was actually looking for legal feedback not peoples feelings regarding the situation but thanks anyway
GlenL (Ohio)
Posts: 5,491
Posted:
Jonathan if you want legal advice, consult an attorney not an internet forum. The consensus so far which I agree with is that this idea will not fly and opens the HOA to endless expensive litigation. Amending document is hard, it is supposed to be to keep out frivolous changes. Since not all amendments need be authored by the Board, be careful when you try to doctor the votes, it can come back to bite you on the ass.

Homeowner A gathers the requisite signatures to call a Special Meeting to amend the Covenants to require all HOA business to be conducted in Klingon. Members present at the meeting vote the proposed amendment down. But by using the section you cited, the majority of homeowners who didn't vote, approved it. The Board now needs to learn to speak Klingon.


Studies show that 5 out of 4 people have problems with fractions
TimB4 (Tennessee)
Posts: 21,059
Posted:
Jonathan,

I'm not an attorney. All we can do is offer our opinions based on personal experiences, the information contained in your posting, any training we may have had and any research we may have done. In reality, this is all an attorney is providing you.

I believe if you do the research you will come to the same conclusions those who have responded have, that non-votes are simply that, a non vote and are not counted as a yea or a nay.

Here is some of my research:

Per Oregon § 94.590 (a) The declaration may be amended only with the approval of owners representing at least 75 percent of the total votes in the planned community or any larger percentage specified in the declaration.

Per Roberts Rules of Order FAQs [emphasis added], "The phrase “abstention votes” is an oxymoron, an abstention being a refusal to vote. To abstain means to refrain from voting, and, as a consequence, there can be no such thing as an “abstention vote.”

In the usual situation, where either a majority vote or a two-thirds vote is required, abstentions have absolutely no effect on the outcome of the vote since what is required is either a majority or two thirds of the votes cast. On the other hand, if the vote required is a majority or two thirds of the members present, or a majority or two thirds of the entire membership, an abstention will have the same effect as a “no” vote. Even in such a case, however, an abstention is not a vote and is not counted as a vote"

Per NJ Appellate Court abstentions do not count as a “yes” or “no” vote.

As Glen said, if you want legal opinions you need to contact a local attorney. I would suggest one versed in Corporate or HOA law.

AnnH5 (Florida)
Posts: 304
Posted:
In our documents, the homeowners must come to a quorum first. It will never matter how many yea and nay votes are cast if there is no quorum. If a homeowner doesn't vote then it doesn't count toward anything. If a quorum isn't established, whatever was being voted on isn't passed one way or another. Our Association can continue it for 90 more days while attempting to collect more ballots but after that, the issue dies and the process has to start again.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Ann,

You have raised an interesting point: If there is not a quorum, there can be no vote.

Under this BOD's policy, when you count those who actually voted plus those who are deemed to have voted "yes" because they did not vote at all, you should have 100% of the eligible vote. So they will always have a quorum.

EllieD (Vermont)
Posts: 446
Posted:
Jonathan,

A low response rate is typical for many Associations. I am not an attorney, but I believe that Tim and Glen and others are giving you good advice.

You cannot force someone to vote.

To abstain means to, not vote at all. Or to put it the other way – to not vote, means to abstain and so, not vote either yes or no.

You may need to go door to door, as is often done when written agreement of 75% of the members is needed, such as to amend recorded Declarations and CC&Rs.

From what you wrote apparently the Board Members are discussing how “non-votes” (those members who abstain) might affect the outcome of a member vote. A member vote on what? Is your question related to a Proxy vote? Are you perhaps discussing the possible effect on a vote when Proxies are not returned?

How do you solicit votes? Would you be willing to clarify, and/or explain further?
CarolR11 (Colorado)
Posts: 2,563
Posted:
I'd like more clarification too. Can members of OR HOAs vote by mail? If so, providing SASEs with the ballots will help and is worth the expense. If they can vote by mail, we provide a box to check that says something like "For purposes of achieving a quorum only."

Or must they attend meetings in person? At a meeting where physical presence is required, even when directors or HOA members abstain, their presence counts towards a quorum.

To amend certain elements of our Cali HOA CC&Rs, first mortgage holders must be sent ballots. If they do not reply within 30 days they "shall be deemed to consent to such a request"; the non-reply is considered a yes vote. Also in CA, but I don't know about other states, if the HOA has worked hard to get the required % of owners and cannot, the HOA can go to court and seek permission to amend the CC&Rs or bylaws.

What size is your HOA, Jonathan? If most owners live on the premises, going door to door can work well.

With others, get an attorney to look your proposed amendments!
RichardP13 (California)
Posts: 1,767
Posted:
If you read Robert's Rule of Order, a non-vote works the same as someone abstaining, which according to Robert's is essentially a "no", or works against you.

If you have 100 eligible members to vote and you need 51% or 51 affirmative "yes" votes to amend or change the Bylaws, just because they don't vote, it doesn't change the calculations. It might as well be a no vote, because what you need is 51 yes votes. If 50 people don't vote and the other 50 people vote yes, then the amendment doesn't pass.

If at a Board meeting, you have 5 Directors, but only four show for a meeting. You have a vote and 2 vote yes, one votes no and the other abstains, the motion fails as your need a majority of the Board present, which would be 3. On the other hand, if you had a motion come up that one of the four might have a conflict of interest, then you could temporary adjourn, come back as a board of three, then all that would be needed is a majority of three, or two yes votes.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By RichardP13 on 12/03/2013 9:01 PM
If you read Robert's Rule of Order, a non-vote works the same as someone abstaining, which according to Robert's is essentially a "no", or works against you.

If you have 100 eligible members to vote and you need 51% or 51 affirmative "yes" votes to amend or change the Bylaws, just because they don't vote, it doesn't change the calculations. It might as well be a no vote, because what you need is 51 yes votes. If 50 people don't vote and the other 50 people vote yes, then the amendment doesn't pass.

If at a Board meeting, you have 5 Directors, but only four show for a meeting. You have a vote and 2 vote yes, one votes no and the other abstains, the motion fails as your need a majority of the Board present, which would be 3. On the other hand, if you had a motion come up that one of the four might have a conflict of interest, then you could temporary adjourn, come back as a board of three, then all that would be needed is a majority of three, or two yes votes.

This is not exactly correct.

Voting is covered in Chapter XIII, Roberts Rules, 11th ed. The opening paragraph on page 400 states:

"As stated on page 4, the basic requirement for approval or action by a deliberative assembly, except where a rule provides otherwise, is a majority vote. The word majority means "more than half", and when the term majority vote is used without qualification - as in the case of the basic requirement - it means more than half of the votes cast by persons entitled to vote, excluding blanks or abstentions, at a regular or properly called meeting."

Note that the above paragraph states that the basic requirement is a majority of the votes cast, not a majority of the members present. Robert's then goes on to give numerical examples of this requirement. Further, on pages 402 and 403, Robert's discusses and explains modifications to the basic requirement and the specific conditions under which an abstention has the same effect as a "no" vote, again with numerical examples covering the most common modifications.

Simply put, unless there is some rule or bylaw provision that specifically states that the requirement is a majority of the members present, or a majority of the total membership then the basic requirement applies and abstentions have no meaning and only a majority of the votes cast is what is required.

Thus, the statement that abstentions always count as a "no" vote in the general case is incorrect. Only under specific conditions is this a true statement.
RichardP13 (California)
Posts: 1,767
Posted:
Bruce

All 100 Unit Members are in good standing and attend a meeting to vote. 50 raise their hand and vote "yea", 40 raise their hand and vote "nay, while the other 10 are looking out the window. Does the motion pass?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say 100 are in good standing and eligible to vote. 90 voted. 50 voted YES so that is 55% of those that voted. You needed 51% for whatever to pass. I say it passed.

Who cares what the other 10 eligible voters did (or where they were) other then the fact that they did not vote.

RichardP13 (California)
Posts: 1,767
Posted:
John

I like you reasoning. I have 317 units in good standing. 159 units sent a ballot in. 69 were only for quorum purposes. The other 90 voted, 82 yes and 8 no. Do the CCRs get amended?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Richard,

Since CC&Rs typically require x% of the membership vs. votes cast or members in attendance, I would say that the CC&Rs do not get amended. Of course, as always, it depends on the language used in the governing documents.
RichardP13 (California)
Posts: 1,767
Posted:
That was the point I was trying to make. Just because a person chooses not to vote, they are still part of the equation.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By RichardP13 on 12/04/2013 2:00 PM
That was the point I was trying to make. Just because a person chooses not to vote, they are still part of the equation.

If you are referring to Tim's comment regarding a vote requiring a certain percentage of the entire membership, then I agree. However, your earlier post implies that this is ALWAYS the case. It is not. The case in question is a special case. It depends on the wording in your documents. People should not be led to believe that this is the "normal" or "default" case with regard to a vote. The default case is what I posted, which is a direct quotation from Robert's Rules.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By TimB4 on 12/04/2013 1:55 PM
Richard,

Since CC&Rs typically require x% of the membership vs. votes cast or members in attendance, I would say that the CC&Rs do not get amended. Of course, as always, it depends on the language used in the governing documents.

Richard

I agree with Tim's answer. It is often a question of what do your docs say.

There is one school of thought that says well if we have properly notified everyone of our 300 owners and only 30 show up. Are those not the 30 who care and they (10% of the owners) should be able to decide? Is that not the same as saying fuc$ the other 270 as we 30 think "they do not care" or "we 30 know better"?

In a recent city election on a amendment to the city form of government, only 18% of registered voters showed up to vote. 55% of the 18% said NO. The amendment failed. This says 9.9% of registered voters (55% of the 18%) killed the amendment. This was/is the correct procedure as it is how our municipal election laws read.

Somewhat like the Chicken and Egg argument. We need 75% to say yes to change our docs to only needing 10% but we cannot get 75% to vote.....LOL

Splitting hairs over 20.99 or 20.01 means 22 is not the real issue. The real issue is owner control even if they do not vote.

RichardP13 (California)
Posts: 1,767
Posted:
John

Most HOAs are supposed to follow some sort of parliamentary procedure, but that pretty much is for making a motion, seconding one and voting. But almost all governing docs I see were originally written to keep the developer in power. They didn't want a small number of homeowners shaking up their world. Once they left, the governing documents in probably 90% of the cases were never amended.

That's why, for the past four years I have been a big supporter of eliminating quorum for member meetings, especially elections. Quorum tends to keep the wrong people in power longer than they should. With no quorum, whether if you want a board seat or trying to hold onto on, you have to do some campaigning. But making changing to the governing documents has to have a higher threshold. My opinion is a minimum of 51% to change both the Bylaws and CCRs and 33% to recall someone.

As most people know, in California, voting for elections, recall, special assessments, increases in monthly assessments (over a certain percentage) are conducted by secret ballot. At a member meeting, small items on the agenda not requiring a secret ballot can be voted on by the members present. Not on the agenda, then a quorum of 33% must be present, in person or by proxy (Corporation Code).

I have managed over 30 properties and with my own, never voted on anything outside of a secret ballot issue in the last 4 years.
EricH8 (Virginia)
Posts: 116
Posted:
Quote:
Posted By CarolR11 on 12/03/2013 7:10 PM
Can members of OR HOAs vote by mail?

Or must they attend meetings in person?

Oregon Chapter 94 — Real Property Development
94.647 Use of written ballot for approving or rejecting matters subject to meeting of association members; procedures; exceptions. (1) Unless prohibited or limited by the declaration or bylaws, any action that may be taken at any annual, regular or special meeting of the homeowners association may be taken without a meeting if the association delivers a written ballot to every association member that is entitled to vote on the matter. Action by written ballot may not substitute for the following meetings:
(a) A turnover meeting required under ORS 94.616.
(b) An annual meeting of an association if more than a majority of the lots are the principal residences of the occupants.
(c) A meeting of the association if the agenda includes a proposal to remove a director from the board of directors.
(d) A special meeting of the association called at the request of owners under ORS 94.650 (2).


The rule about not conducting annual homeowner meetings by written ballot is often disregarded by the majority board so that they may get their voting recommendations out and ask the homeowners to mail in their ballots before anyone else can respond with alternative voting recommendations. It is debatable whether a meeting is by written ballot or not when the homeowners are advised to mail in their ballots (and a majority do) but they can also bring their ballots to the meeting. I feel that the majority board has an unfair advantage when mail-in ballots are used. The votes are counted at the meeting but most of the votes were cast without the influence of the meeting.

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