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ShawnP (Virginia)
Posts: 4
Posted:
Hello all:

When our community voted in the current board members, the previous President did not make it onto the 5 person board (the Vice President stepped down). Then we were informed by our Management Company that one of the winners was disqualified for not paying dues. This would normally have been caught in advance, but we are in transition so the billing cycle fell two days before the election. The disqualified board member had owed over $900 in arrears but had avoided detection because she works for our attorney, who in turn ensures collection of past due accounts. Knowing that the by-laws state that one cannot be elected to the board if they owe more than two quarter payments; a couple of days before the election she paid only enough to put her under that amount, not realizing that the latest bill was due on the day before the election. She failed to pay that amount, and was disqualified.

In the immediate aftermath of the election, the board makeup was radically changed by adding two new members and losing two former members, including the President. So, the board was now made up of myself, two former board members who, because of their jobs, refused to volunteer for any position, and two newbies with no board or HOA experience. During conversations it was decided that I would volunteer for the position of President with the caveat that at the end of my one year term I would step down (my rule). I promised to train whoever was made Vice President to take over at the end of the year and insisted that the board be prepared for this to happen.

Well, when the member was disqualified, the former President was the next highest vote getter, thus rejoined the board. Conversations with him indicate that he plans to run against me for the position of President. I have not shared this with the other members of the board as Virginia Law forbids board communication outside of meetings (a topic for another day). We have all sat silent as the date Wed, April 9, 2014 is now upon us. It has occurred to me that an open vote could cause all sorts of contentious circumstances and hurt feelings. The board members who originally agreed to vote for me as President may, but probably won't vote for the Incumbent President (for the past 7 years). This is the first time since any current members of the board have been directors that anyone ran opposed. I was thinking that the solution would be a secret ballot, but I have no idea what one would even look like in this instance. I dearly wish someone had thought of this before now, but it is what it is. I shared with my wife that we may end up scribbling our votes on scraps of paper if I don't come up with something more professional.

The past few years have been very contentious with the President ruling with an iron fist. I have been told by other members that they were relieved he was not voted onto the board, then voila suddenly he is. In the intervening time our Attorney advised us that because of new Virginia laws we cannot meet to discuss anything without announcing it 10 days in advance, so everyone is afraid to talk until our scheduled meeting on Thursday, April 17, 2014. We recognize that we have the right to a closed meeting for election of officers, but we have been advised that we may not talk about anything else during that meeting. Thanks to the changes in Board makeup everyone fears doing or saying anything. But again, that's for another subject. Right now, I need input as to how we should handle the vote for officers. If anyone has a ballot sample, I would be really grateful. I have a miserable migraine today, and I just cannot seem to come up with anything.

I have served on a number of boards, including as the chairman of a large regional workshop board. To be totally honest, I only agreed to volunteer when it looked like the board wished to change the way things are done. Now, with the former President on the board I am quite certain that there will be a lot of tension caused by the board trying to move in a new direction. I really don't need the stress. Sigh. Sorry I ran on, but my mind is racing a hundred miles per hour and the pain is nearly unbearable. I desperately hope for something easy here, but will try to temper my expectations. I have read a number of threads, and only because I saw how helpful people are am I putting this out there.

Thank you in advance for your time and kind consideration.

Shawn
TimB4 (Tennessee)
Posts: 21,062
Posted:
Shawn,

I've attached a sanitized copy of our 2013 annual membership meeting ballot. Use it as a template and modify as needed.

As you know, VA ยง 55-510.1 allows you to discuss personnel issues in executive session. However, the vote or the results of the vote must take place in an open meeting. As you are aware, the same statute allows the use of secret ballots for Officers.

The Fairfax County Community Association Manual gives a good plain language explanation on how Associations should be ran within the Commonwealth. Chapter 2 has a good discussion about executive sessions that may be helpful.

Hope this helps,

Tim
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MelissaP1 (Alabama)
Posts: 13,836
Posted:
This person should not have been disqualified based on not paying dues. Ironically one can be elected if they have not paid dues. They just can NOT vote in the election. Which has to be in your rules dictating one loses their right to vote if behind in dues.

A bigger question is why is your MC telling you this? It is the boards job to know this and hold tgheir own elections. The MC is a paid contractor of the HOA and has no voting power. They are to do what the board and contract tells them to do.

Elections usually are that the general membership votes for the board members. The boaed then votes amongst themselves for the office positions. So you put your hat in for president and the 5 of you decide who gets what.

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By MelissaP1 on 04/09/2014 3:30 AM
This person should not have been disqualified based on not paying dues. Ironically one can be elected if they have not paid dues. They just can NOT vote in the election.

Well, that would depend on the Associations governing documents and qualifiers for serving as Director.

I would say that the individual should have been given the opportunity to become current prior to being disqualified.
RichardP13 (California)
Posts: 1,767
Posted:
Quote:
Posted By MelissaP1 on 04/09/2014 3:30 AM
This person should not have been disqualified based on not paying dues. Ironically one can be elected if they have not paid dues. They just can NOT vote in the election. Which has to be in your rules dictating one loses their right to vote if behind in dues.

A bigger question is why is your MC telling you this? It is the boards job to know this and hold tgheir own elections. The MC is a paid contractor of the HOA and has no voting power. They are to do what the board and contract tells them to do.

Elections usually are that the general membership votes for the board members. The boaed then votes amongst themselves for the office positions. So you put your hat in for president and the 5 of you decide who gets what.

The qualifications for becoming and remaining a director are stated in the Bylaws and they may include language that a nominee MUST be current in their assessment, not more than 30 or 60 days in arrears or similar language.

In California, management companies, if the association's election rules allow, may run the elections. One of the items to consider is having a record date for when members are eligible to vote, when accounts have to brought current. If voting rights are suspended, the owner MUST be brought to hearing.

Not sure what, if any, election procedures Virginia has.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Perhaps I'm too late.

Ar you sure, Shawn, that the next best vote getter gets a place on the Board despite losing?? Your attorney should know based on your bylaws.

We have had competition for president several times. The PM simply hands out blank pieces of paper, we each write a name and the PM tallys & announces the new president's name.

You each might give a brief speech about why you should be president. I'm confused about the two dates you mention.

Melissa's two top paragraphs are wrong, as is often the case. Her 3rd one is correct (in most cases).
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Shawn

Typically Bylaws say the BOD can appoint someone to fill a BOD vacancy.

I have never seen a set of Bylaws that said the next highest vote getter must be appointed. That said, I could see a case made that the next highest vote getter is elected if someone that finished higher was not eligible to run. I have seen this when one withdrew prior to the election and there was no time to change the ballot. I have also seen this done when after the election someone decided not to take their seat.

One BOD I was on did have a "BOD Procedure" that in the case of a BOD vacancy, the next highest vote getter would be asked if they would care to fill the position. If the declined then the BOD could pick any member. BOD Procedures were made by and could be changed by the BOD.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Yes, with JohnC46, Shawn, it's very possible that the ex-prez shouldn't even be on the new board. Your Board may not simply make up a "next best vote getter" bylaw. Do check your bylaws about vacancies. if silent and you're incorporated, check VA corporations codes.

ShawnP (Virginia)
Posts: 4
Posted:
Thank you for all of your helpful posts. As for the election, it turned out to be much ado about nothing. The former President (8 years) has served on the board for a total of 12. I was under the impression he was going to run against me, and personally I didn't really mind, but I knew it would cause some problems for other members of the board. Fortunately, when the question was made about who wished to be excluded from consideration for an elected position he raised his hand. In fact, of the 5 members, three raised their hands. That left us with who would be stuck in which position. The other person is new to the board, and I had talked to him after the general election and we had already decided we would run as President and Vice President, with the understanding that I wish to only serve one 1 year term, and would train him to take my place at the end of that term. So, we passed around the amended ballots despite the fact we both ran unopposed. Silly, but given the history of the board some wanted it to be that way regardless. I sure hope we can continue to run that smoothly in the future... who am I kidding, it's an HOA. There will always be some kind of drama. We still have to address the CICB complaints of the person that was disqualified. For those who asked, I know our governing documents inside and out, so I can assure you that it is clearly stated in our By-Laws that you cannot run for the board if you are more than two quarters in arrears. The disqualified member owed over $900 three days before the election. Our dues are just under $150 per quarter, so do the math. She had not paid due in a year and a half, which possibly not coincidentally is almost as long she had been on the board. She paid just enough to get under the $300 limit, but forgot that the latest quarter's dues were due the day before the election. What blows my mind is that not only was she behind by $900+ but she was in court (she works for our Attorney)filing liens against people who owed less than half what she owed. Morally and ethically bankrupt is the only phrase that comes to mind. We are fortunate that our by-laws are specific about elections and requiring all candidates owe no more than two quarters in arrears. If I had written them, I would not allow any leeway. I have lived in this community for 22 years and have never been late on a payment of my HOA dues.

Well, thanks again for all of the input. I am really glad I found this community. I have the feeling I am going to benefit, and hopefully have an impact with my experience on numerous boards.

Shawn
CarolR11 (Colorado)
Posts: 2,563
Posted:
Best to you & your new Boarg.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Glad it worked out.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Best to you and your new Board too(!)

I for one would love to have you continue participating in this community. Many posters do not know their own governing documents so forgive me for asking about some details of your bylaws. Your experience o a lot of boards will help here too.
ShawnP (Virginia)
Posts: 4
Posted:
Thank you for the positive comments. I will do my best to always give as much as I get. Carol, were there any specific questions you had?

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