Annual Meetings, Quorum, and other good stuff

Started by WendyW • 5 replies • 1445 views

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WendyW (Georgia)
Posts: 13

Posted:

1.5 Year old HOA
20 Unit Townhome Community
Georgia

This will be my first Annual meeting as HOA President. Needless to say I am extremely nervous and trying not to show fear.

We are not holding an election because this BOA took office in December (long story I will spare you), so we are having this Annual Meeting now simply because our Laws say we must have one.

We will cover "State of the Community", "Financial Report", and "Presentaiton of the new Budget" (which the previous Board of 6 months never did). And no, our budget does not need to be approved by homeowners.

The only item on the agenda to vote on is whether to limit the amount of renters to 10%.

First Question: If we do not make quorum, can we still hold the meeting, but not put forth the voting issue? Or is the entire meeting void?

Second Question: Out of 20 homes, only 11 are eligable to vote because the rest are delinquent in assessment dues. Our Laws require 2/3rds to make quorum... is that 2/3rds of 20? Or 2/3rds of 11? (those that actually have a vote).

And last: We will be announcing that we are raising the dues in September, we pay monthly dues of $130 which we need to raise to $170. .... any advice on how to deliver this? Really just looking for moral support on this one...

Is it normal to feel like you are being lead to your execution?

Thanks everyone!

W

Jadedone4 (Virginia)
Posts: 495

Posted:

Good Luck on your first meeting....

If you need to raise dues/assessments, I would present the current budget, the new budget, and explain the "delta" between the two; how the $40 increase factors into that (over what period of time); what is being funded (increase was result of... lack of reserves, new roof on clubhouse, new pavment/roadwork, etc); what the current board has been able to do (i.e. researched how to get the best/most efficient use of current budget funds, how the new budget/assessment would allow... ). Be straight forward with the owners, most will understand, might not like it cutting into their Starbuck's cash, but would understand....

Check your gov doc's - there should (at least in ours) clause/sentence that states the quorum amount, and then quantifies it by "of members ENTITLED to cast votes..." which means if you are not current in your dues/assessments then you cannot vote. If the population of those who are "entitled" to vote is smaller than the full population, the required quorum is for that number (those who are entitled, or 2/3's of the entitled and paying members of the membership). From my read this does NOT perclude a member who is not current in assessments from attending, or submitting a non-voting proxy (for the purpose of quorum).

As I am a newbie President myself, I would appreciate if any of the wiser (notice that I did not older) experts here would correct me if I am wrong with the above information... still "wax on, wax off" but learning...

WendyW (Georgia)
Posts: 13

Posted:

Thanks for the reply. Reguarding the quorum, that is how I interpreted our Laws as well, only 2/3rds of entitled voters, but just wanted to put it out there to everyone to be sure.

The reason for the assessment increase is simple, the previous board had no budget for a reserve fund or maintenance (gutter cleaning and such). And at $130 we are really living month to month. So I can't see any rational person looking at our budget and getting upset about the increase... but when dealing with the general public, I come to expect the worst.

W

Jadedone4 (Virginia)
Posts: 495

Posted:

(joke coming...)

Ah, Wendy, aren't the posters on this board the "general public..." - we aren't the worst are we..? smile

YES, make sure that you have the information available as to WHY the increase in necessary - while it might be a bitter pill to swallow, it is still for the better. One lesson that I learned recently... try your best not to "bash" the old board (no budget, etc), when you bring this up - they may have created the mess, but you want to "shine" the light on what you have been able to "turnaround" with the tools you inherited - the old board are still your neighbors.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It may NOT be legal to limit renters. I suggest reading OTHER posts on this subject. Renting deals with the banks/mortgage companies NOT an association of homeowners. So you may definetely NOT want to open up that can of worms your first meeting.
You should find out the order or what to cover in your documentation. The board may want to have the latest and greatest copies available. Many homeowner's never get a copy. It's always good to have atleast one board member with their own copy to overview if questions. NEVER EVER GIVE AN ANSWER UNTIL YOU HAVE CONFIRMED AND BACK IT UP IN WRITING!!! You will NEVER belief the things your tongue can you tangled in if you give a verbal answer that isn't right in a HOA.
With all honesty, I wouldn't concern myself with the quorum stuff as much. HOA's normally have barely ANY participation from the homeowners. If you get people to show up at the meeting that are owners, be happy with them and work the issues from there. If ya make a "bad" decision... the NEXT board meeting the original non-interested parties will show up and discuss it. I PROMISE!!!
Make sure you read your documents backwards and forwards. Highlight and tag. Treat the CC&R's like their the "bible" of the HOA. People can understand black and white but not personal opinions/translations.
You should do well. Be human and if you have fear, you should!

Good luck!

Former HOA President

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By WendyW on 05/03/2007 2:31 PM

First Question: If we do not make quorum, can we still hold the meeting, but not put forth the voting issue? Or is the entire meeting void?

Second Question: Out of 20 homes, only 11 are eligable to vote because the rest are delinquent in assessment dues. Our Laws require 2/3rds to make quorum... is that 2/3rds of 20? Or 2/3rds of 11? (those that actually have a vote).

And last: We will be announcing that we are raising the dues in September, we pay monthly dues of $130 which we need to raise to $170. .... any advice on how to deliver this? Really just looking for moral support on this one..

1) No, you must have a quorum to open the meeting. The only thing you can do without a quorum is set a date for a future meeting.

2) If it says 2/3 of the eligble voters you need 8; if it says 2/3 of the members you need 15. Note: consider amending the By-laws to 40% or less of the eligible members.

3) Submit your budget with the $170 assessment and explain each line item. Be prepared with good arguments because increasing the assessment is something which many members often oppose.

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