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RobertR1 (South Carolina)
Posts: 5,164
Posted:
Paul, I am saying there is a difference between a MEMBER and an OWNER. A member who is delinquent can be restricted from voting at membership meetings and use of common area facilities. But CC&RS require a percentage of ALL OWNERS to amend. So yes, it is because it is a major decision since the CC&Rs are part of the owners deed to their property. By comparison, the By-laws can sometimes be amended by as few as a majority of a quorum of MEMBERS present at a meeting.

This post conjures up all kinds of scenerios, especially in view of the increases in foreclosures seen across the nation.

Explain, please, if you will, some more about how votes are concidered. Our Board and most owners consider the vote in our condo to be one man/one vote and majority at an annual meeting can prevail and change the CC&R's by a motion to suspend the rules. I say we are not a majority vote society, we are an apportioned society, hence majority does not rule. I also believe proxie votes should only be counted for a specific vote, not a blanket permission for the holer to vote on all issues. Anyway, it would be appreciated if you could expand your post.
Thank you
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Owners are members. Homeowner's association means that owners have decided to govern their property together to the rules that they all agree to.
It is one vote per homeowner. A homeowner can lose their right to vote if they are NOT up to date on their dues/assessments. The general membership/owners vote amongst themselves volunteers willing to take a board position. The board responsiblities are to manage on a more daily basis the HOA's business and enforcing rules. Board members are owners too. The general membership still carries weight as they can vote out/for board members, vote for special assessments, and approving/disapproving restrictions. The board basically runs the meetings and manage everyone's money to what is viewed is needed to maintain the HOA.
It is true that a majority vote is needed to make changes or approvals. However, it is a case of "owner apathy" that makes a majority vote seem null and void. Homeowner's that don't participate or just send in dues allow the minority view of the board to come through. It's just the nature of the beast. How many people do you ever see show up to a meeting unless it's election time or something drastic has been voted in?
It's the people who show up and show interest that get things done in their HOA. It can right or wrong, but it's the people willing to do something and not just sit back complain or send in checks.

Former HOA President
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Melissa,
Should have specified that the explanation be for condominiums.
I think your explanation may be for HOA's.
RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By RobertR1 on 04/15/2007 10:10 AM
Explain, please, if you will, some more about how votes are concidered. Our Board and most owners consider the vote in our condo to be one man/one vote and majority at an annual meeting can prevail and change the CC&R's by a motion to suspend the rules. I say we are not a majority vote society, we are an apportioned society, hence majority does not rule. I also believe proxie votes should only be counted for a specific vote, not a blanket permission for the holer to vote on all issues. Anyway, it would be appreciated if you could expand your post. Thank you

Robert,
Suspending the rules only applies to the "rules of conduct for a meeting", such as Robert's Rules of Order. The CC&Rs can not be suspended by the Board nor the members. As I just posted on another thread I would not accept a proxy for an owner voting to amend the CC&Rs except when a person provided a notorized power of attorney. Proxies for other items would apply as per information on the proxy and restrictions in the By-laws and state statutes.
BradD2 (Florida)
Posts: 418
Posted:
I had another thought you might want to consider. If it requires 75% of all owners then the total number of owners can be greater than the number of lots. An owner is the name on the deed and you can have more than one per lot.

If you want your amendment to be ironclad and stand up in court you will need to make sure that you have addressed everything that someone might throw out as an argument for why what you did was invalid. Amendments typically cost thousands of dollars and so do taking things to court. If you loose because the amendment is ruled invalid, then you are back to where you were prior to the amendment and you have the legal fees of both sides to pay. If you are going to do it; you had better do it right.
BradD2 (Florida)
Posts: 418
Posted:
When we were trying to pass an ammendment to our Covenants, we posted it first in the newsletter and then went around and talked to people. Once we were comfortable with it, we went door to door to get signatures. If we had waited for people to mail in thier signature, it would never have happened.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
Brad, this method sounds like the right way to do it. It's a hands on experience with those voting for an amendment change, and no proxies are needed. Sounds on the up and up and legit to me.
RogerB (Colorado)
Posts: 5,067
Posted:
Good points Bard. We provide a ballot which requests all registered owners of a lot to sign and provide space on the Ballot for two signatures & dates. First we count mailed in ballots and then go door to door for signatures if needed for approval. In a previous post I suggested to Chuck to start going door to door 2 weeks before their deadline. Live and learn
RogerB (Colorado)
Posts: 5,067
Posted:
Please excuse my lousy tying Brad
RobertR1 (South Carolina)
Posts: 5,164
Posted:
I agree Paul, also Brad. But if it is a condo with 90 % non-residents it don't work that way. To re-do all our Documents we called a special meeting
sent proxies specific with reason the amend, got our apportioned majority and did the deed. If I had any part in doing them over, I would spent a lot more time in amending things that didn't seem important at the time, I would also strenghten those rules, or clauses that are currently being ignored by the Board and historically. I would give us a "B" maybe.
JM2 (Oregon)
Posts: 439
Posted:
Hi Brad:

It's one vote per lot/unit. Some deeds may have a husband or wife only listed on the deed (best to make sure the right person signs the proxy).

It's also wise to consider amending your documents so that only one owner of a lot can be on the board at any given time (no husband & wife teams on the board).

Melissa, I've seen documents where it's not required that board members be lot/unit owners.

In Oregon I've seen proxies that have three categories:
1) Proxy for quorum only - no voting power
2) Directed proxy - tells how to vote; directed to Board or individual
3) Proxy to either person or board to vote as they please.

J. Patrick Moore, CMCA
BradD2 (Florida)
Posts: 418
Posted:
You may think it is one vote one lot, but you have to be very careful. Our By-Laws say one vote one lot in the section for member's meetings only. There is a completely seperate section that deals with amendments and it says 67% of the owners. I am just suggesting you be careful and make sure that you have the correct percentage however it is counted.
JosephW (Michigan)
Posts: 882
Posted:
Check both your documents and state law for the definition of "owner". Very often it will mean one individual regardless of how many names are on the deed. In that case you will need a "designated voter" form indicating who has the actual voting privilege for that home/unit. I've almost never seen documents that allow for multiple votes per unit.

Joe

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BradD2 (Florida)
Posts: 418
Posted:
That may be, but do you want to be taken court because some lawyer thinks he has found a loophole? What if a judge who is not particularly familiar with HOA laws rules in his favor?

I am just suggesting that you get everyone of the people on the deed to sign and try to have both the number of signatures and lot owners exceed the required level so that this arguement can not be used against you.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To all,
Maybe it would be a good idea to start a new subject to avoid confusion.
It seems to me that what we are talking about, in part, is:
How much should the BOD involve the Association in Property Documents.
Certainly for a Condominium, I believe the BOD is responsibility to the Real Property and all that pertains. Our documents explicity explains that. Our Board refuses to accept that mandate and we suffer untold problems because they want to make Ownership a Democratic Function with majority rule. Example: We just held our annual meeting and maybe there was fifty in attendence. The president ask the attendees if they wanted to do specific repair work (50K) or add to reserve fund and do another special assessment in adition to the current one. Then he asked for a show of hands and declared the majority wanted to do the repairs and not add to Reserve, in fact the plan is to take money from the Reserve account. There is so much wrong with this I don't know where to begin. There were multiple owners there(more than one owner of a unit), there was husband and wives present, and for all I know there could have been some guy that just happened to walk by and thought he would drop in. Our presidents view is that the Board should not get involved in items such as what the deed says, who owns what, what and who the mortgagor or mortgagee is and what kind of mortgage they have, and whether there are mortgage riders or restrictions involved. They also give information out to lenders about the association over the phone. This is all wrong in my view but in my opinion our documents assign resposibility of the Board and the owners to the REAL PROPERTY, and anything else is of lower rank.
DonN (Michigan)
Posts: 357
Posted:
A new post with an appropriate title of "What is the difference between Owner and Member?" might be helpful. Roger has good answers, but the title doesn't work.

There is a difference between owner and member who are often the same person or party. Owner applies to owner of property. The CC&Rs are a contract among the owners of property within a common interest development (CID). The CC&Rs are controlled by property law.

The CC&Rs usually specify an association of owners as a nonprofit or other legal entity, in which each owner of property in the CID is a member of the association of owners, or property owners association (POA). The POA is governed by nonprofit corporation law or other applicable law to the type of legal entity being created. Under the nonprofit or equivalent law, the association must file articles of incorporation and issue bylaws for the POA. Typically, the POA is given the responsibility and authority to administer the CC&Rs. The board of directors is part of the POA elected by the members of the POA.

Perhaps simplistically, when the CC&Rs control, owner applies. When the POA applies, member applies.

BradD2 (Florida)
Posts: 418
Posted:
You are going to have the check your documents. For mine there is a slight distinction but the Owner is the one on the deed while a member is an Owner that is not just carrying out their duty. The only thing I can think that means is that the bank isn't a member. We have never made a distinct as we expect them to pay the dues until they sell it.

Our association became self managed recently and we are in the process of drawing up policies and rules/regulations for everything. As the President I am drafting the first few versions which are then discussed by the board and revised. Both Florida law and our governing documents are very clear to say "Owner" and under the definition of Owner for both specify the name on the deed. As such the Owner is the one listed in all correspondence from the Association, is able to sit on the appeals board and can vote at Member meetings. There is nothing that would prevent anyone else in the household from running for the Board of Directors, volunteering in the neighborhood or sitting on another sub-committee but since the rules specify "Owner" we are careful to note the difference.

I don't want a court or arbiter ruling to not be in our favor because we didn't note that distinct. You have to read and then reread your governing documents and state statutes to see what it really says. When you begin to set up policies or make community wide decisions you can’t assume you know what it is in the governing documents; you have to make certain that you are complying.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Brad,
Consider this. How I interpret our State Statutes about Condos;

Owners are those appointed to act for members of a unit.
"Majority Vote" is 51% of precentage vote of all owners. CC&R's designate Majority vote needed to amend specific clauses. Total % vote is 100%.
All other owners are members. Can vote at meeting on snything that does not violate the CC$R's. Amendments to CC&R's; only Owners can vote.

I am a little unhappy with the term "Majority vote". But in the end it makes no difference what you call it. It is still the percentage vote of total.
Easy to get hung up on words and need to pick out meaning from CC&R's. The above was actually covered to three different clause and definitions. Be sure to use your documents definitions.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Brad,
Also your documents as you describe the difference between member and owner could well mean: Owner appointed by members of single unit to hold vote (duty) and other owners are members are just that (Members that have assigned their share of single vote that each unit holds.)
BradD2 (Florida)
Posts: 418
Posted:
No, there is no mention of appointing. That is part of the fun of providing advise is that unless there is a state or federal law that says otherwise the governing documents are the basis for everything. What is typically done doesn't really matter. Since everyone's documents are different, interpretation of their documents is very important.

I just want people to be aware that the definition in a specific document is the definition only for that document. The definition of member and owner is slightly different between some our documents.
GloriaM (North Carolina)
Posts: 829
Posted:
JosephW is correct in my 25 years of managing I have never seen documents that allow multiple votes. The norm is one vote per household, no split votes.

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