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NpS (Pennsylvania)
Posts: 4,216
Posted:
Not sure if this was discussed before, but here's a hypothetical situation:

Let's say your HOA has 100 units and your docs require 67% to pass an amendment.
Let's say that you have 5 delinquent HOs who are ineligible to vote under your docs.
Clearly, the ineligibility is an impediment to getting the amendment passed.

When it comes time for the super-majority vote:

Do you allow the 5 delinquents to vote?

Or do you need to get your 67 votes from the remaining 95 eligible voters?

Sikubali jukumu. Read all posts at your own risk.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It depends on what context. Are you talking elections or document changes? One can be ineligible to cast a vote but still run for office. They just can not vote for themselves and who is going vote a person like that in? In context of documents, the vote may not be ineligible as it takes an owner vote does not say in good standing.

Former HOA President
RichardP13 (California)
Posts: 163
Posted:
If I were an attorney or judge, I would not allow a delinquent with voting rights properly suspended to vote for a director or any UNRECORDED legal document. If the document is recorded, such as the CCRs, then unfortunately, I believe they have the right, as a legal owner and somehow protecting, future owners of said property.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
ditto
KerryL1 (California)
Posts: 14,550
Posted:
We would not allow the violators (delig. or rules violators) to vote. The 67% or whatever, depending), according to out docs, is of eligible voters.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
for a covenant amendment the 67% is usually of the TOTAL membership

period

it matters not what 'you would allow'

it matters what the covenants actually SPECIFY

delinquencies only apply to corporate operation issues
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NpS on 02/05/2015 10:55 AM
Not sure if this was discussed before, but here's a hypothetical situation:

Let's say your HOA has 100 units and your docs require 67% to pass an amendment.

67% of what?

67% of the membership?
67% of available votes / voting power of the Association?
67% of available votes present at a meeting?
67% of votes cast?
67% of members present (different then votes present)?

KerryL1 (California)
Posts: 14,550
Posted:
I should have stated our situation more clearly, JohnB. Our governing docs do not allow delinquent owners or owners with active violations to vote no matter what the topic. They would be ineligible. In CA, Our Board would have to call them to hearing, etc. prior to terming them ineligible

In NpS's case and if her were here, he'd just need 67% of eligible voters, let's say 95. He would not need 67% of the total membership.

From what i've seen, the 67% is usually not of members present or of ballots cast, but of either all members or all eligible members (AKA "voting power").

We don't have eligibility requirements for someone to serve as director except ownership in our HOA, so such individuals could run to be directors even if they could not vote. But that was not the O.P's question.
LarryB13 (Arizona)
Posts: 4,099
Posted:
In my association owners whose ownership accounts for 2/3 or more of the total property may amend the CC&R's by executing and recording an "instrument" setting forth the terms of the amendment.

There is no provision for voting on anything and no provision for excluding an owner for any reason, including delinquent assessments.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By TimB4 on 02/05/2015 3:40 PM
Posted By NpS on 02/05/2015 10:55 AM
Not sure if this was discussed before, but here's a hypothetical situation:

Let's say your HOA has 100 units and your docs require 67% to pass an amendment.


67% of what?

67% of the membership?
67% of available votes / voting power of the Association?
67% of available votes present at a meeting?
67% of votes cast?
67% of members present (different then votes present)?



It's a hypothetical about an amendment - so we can assume that it involves a HO vote. Let's say the specific language is poorly worded and unclear beyond that.

Sikubali jukumu. Read all posts at your own risk.
KerryL1 (California)
Posts: 14,550
Posted:
Does PA corp. law offer any guidance, NpS?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KerryL1 on 02/05/2015 4:47 PM
Does PA corp. law offer any guidance, NpS?

Good point by Kerry

We (our lawyer actually) had to turn to SC Articles Of Incorporations for an answer/ruling on a Bylaw change we wanted the Declarant to make before turnover.

We wanted to change our Quorum from more then 50% to more then 20%. Our attorney said SC Articles of Incorporation said that in order to do so, more then 50% had to vote YES for the change. Not just vote, but vote YES in order to change such. We are working on that now.

Early on I often confused things like you need 50% of owners to vote and the majority of those voting win:

112 owners (our case), 56 must vote, 29 of those 56 voting YES win

Versus 50% of owners must vote in favor of:

112 owners, 57 of them must vote YES to win.

Major difference (29 of 112 versus 57 of 112) based on a "simple" word or two in your docs.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By KerryL1 on 02/05/2015 4:47 PM
Does PA corp. law offer any guidance, NpS?


Here is the relevant portion of the PA code =

§ 5219. Amendment of declaration.

(a) Number of votes required.--

(1) The declaration, including the plats and plans, may be amended only by vote or agreement of unit owners of units to which at least:

(i) 67% of votes in the association are allocated; or

(ii) a larger percentage of the votes in the association as specified in the declaration; or

(iii) a smaller percentage of the votes in the association as specified in the declaration if all units are restricted exclusively to nonresidential use.

---------------------

But my question was more general - I was interested in how it might work in other states.

Even so, I can see where the phrase "are allocated" could be interpreted different ways.
Maybe it means that votes can be allocated according to a typical 1 vote per unit standard.
Or maybe the phrase "are allocated" could be interpreted to mean eligible voters only.
What do you think?

Sikubali jukumu. Read all posts at your own risk.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 02/05/2015 6:00 PM

Even so, I can see where the phrase "are allocated" could be interpreted different ways.
Maybe it means that votes can be allocated according to a typical 1 vote per unit standard.
Or maybe the phrase "are allocated" could be interpreted to mean eligible voters only.
What do you think?

In most associations, votes are allocated with one vote per lot or per unit. In some condos, votes are allocated by the percentage of square footage each owner owns. In my rural association, we have one vote per acre. How votes "are allocated" among owners should be addressed in the declaration.

Nothing in the quoted Pennsylvania statute would indicate any intent to alter the percentages based on membership status in the association or to defer to the quorum that the association may use for other purposes. There is no mention at all of an association in the passage cited.

JeffT2 (Iowa)
Posts: 880
Posted:
§ 5208. Allocation of votes and common expense liabilities
(A) GENERAL RULE.-- The declaration shall allocate a fraction or percentage of the common expenses of the
association and a portion of the votes in the association to each unit and state the formulas used to establish those
allocations.....
JohnB26 (South Carolina)
Posts: 1,001
Posted:
there are TWO types of voting:

Covenant issues (amendment to actual covenant)

Corporate issues: (amendment to bylaws, directors, budget, etc.)

How to amend the Covenants will be found IN THE COVENANT ITSELF and is a distinct and separate matter from any corporate issues.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JohnB26 on 02/06/2015 7:09 AM
there are TWO types of voting:

Covenant issues (amendment to actual covenant)

Corporate issues: (amendment to bylaws, directors, budget, etc.)

How to amend the Covenants will be found IN THE COVENANT ITSELF and is a distinct and separate matter from any corporate issues.


Well said!
JanetB2 (Colorado)
Posts: 4,219
Posted:
I think if you attach anything different that affects a persons property title and do not allow them an opportunity to vote one way or another is potentially asking for trouble. CCR's are attached to property titles and certain changes can affect the value and marketability of the property. When it comes to CCR's every owner should have a vote and should not be denied. If denied ... The question then is are you taking away their potential "Constitutional Right" to protect their property?
JohnB26 (South Carolina)
Posts: 1,001
Posted:
what you 'think' is of no concern

what the law and the covenants state IS

covenant changes require a flat super-majority of the membership - period

corporate issues are covered by applicable state law and the bylaws

no 'thinking' involved, merely reading comprehension
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JohnB26 on 02/07/2015 7:49 AM
no 'thinking' involved, merely reading comprehension

Unfortunately, not a skill that's easy to find sometimes.

Sikubali jukumu. Read all posts at your own risk.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
.... because it involves actual thinking .... ?!
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By JohnB26 on 02/07/2015 7:49 AM
what you 'think' is of no concern

what the law and the covenants state IS

covenant changes require a flat super-majority of the membership - period

corporate issues are covered by applicable state law and the bylaws

no 'thinking' involved, merely reading comprehension

Sorry thinking is definately required for a hypothetical situation as there are no documents for you to read John . How much reading comprehension did it take to understand OP is discussing hypothetical thoughts not actual situation.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
hypothetically:

? do you actually exist ?

? or are you merely a figment of my thoughts ?

let us debate for the next few millennia

or not
SheliaH (Indiana)
Posts: 6,964
Posted:
Well 67 is 67% of 100, so assuming it's one vote per unit, I would think it wouldn't matter about the 5 who can't vote because you have another 95 who can. You just have to get 67 of the 95 to vote in favor.

In our association, delinquent homeowners can't serve on the board or vote in Board elections, but they can vote for changes to our bylaws or CCRS (currently we need 75% for the CCR revision and 10% for the bylaws). As you might guess, getting 75% to vote for anything can be a problem (that's why we haven't been able to get our CCRs updated and it took almost 2 years to get the 75% to vote to close our pool for good).

If your documents aren't clear, you may have to work with an attorney to clean up the language and then have the homeowners vote on that. Maybe you can start with clarifying whether delinquent homeowners can vote or not and reducing the percentage for approval to 51%. As I said in a recent thread on a similar topic, reducing the percentage shouldn't take away anyone's right to vote, but if they feel strongly one way or another, they need to get off their ass and vote!

I can live with delinquent homeowners voting for issues other than serving on the board or voting for people who do, but if I had my way, delinquent homeowners wouldn't vote on any association issue because money is always going to be involved in a direct or indirect way (and if they're not paying their fair share, why should they have a say on anything?), but when I was treasurer of my HOA, I found virtually all of them aren't involved in Association business anyway, so we really didn't have to worry about them...

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By NpS on 02/05/2015 6:00 PM
Posted By KerryL1 on 02/05/2015 4:47 PM
Does PA corp. law offer any guidance, NpS?


Here is the relevant portion of the PA code =
§ 5219. Amendment of declaration.
(a) Number of votes required.--
(1) The declaration, including the plats and plans, may be amended only by vote or agreement of unit owners of units to which at least:
(i) 67% of votes in the association are allocated; or
... ; or
(iii) a smaller percentage of the votes in the association as specified in the declaration if all units are restricted exclusively to nonresidential use.


Thanks everyone for helping me clarify my thinking. Conversation as always has been informative.

I have decided that the next time we make an amendment to our CC&Rs for any reason, we might as well change our voting requirement to read "67% of all eligible voters." The deadbeats never vote anyway - I don't see why we should be doubly penalized for their double failure to contribute/participate.

Sikubali jukumu. Read all posts at your own risk.
JanetB2 (Colorado)
Posts: 4,219
Posted:
NpS:

Food for thought ... Keep in mind the PA State Statute says percent of votes "allotted" and does not reference anything about eligibility. I would contend to deny anyone the opportunity to vote yea or nay "if they choose to participate" could open a door for potential lawsuit. To me it is not worth opening that door and the potential expense it could involve. Most dead beats do not participate or vote anyway so why not just follow the state law to be safe.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JanetB2 on 02/07/2015 9:41 PM
NpS:

Food for thought ... Keep in mind the PA State Statute says percent of votes "allotted" and does not reference anything about eligibility. I would contend to deny anyone the opportunity to vote yea or nay "if they choose to participate" could open a door for potential lawsuit. To me it is not worth opening that door and the potential expense it could involve. Most dead beats do not participate or vote anyway so why not just follow the state law to be safe.


I was relying on section (iii) which reads "a smaller percentage of the votes in the association as specified in the declaration if all units are restricted exclusively to nonresidential use." Since we are not mixed use, we can have a number that is smaller than 67% of the entire community.

I would not change 67% as a number - because I think it should be difficult to amend the CC&Rs. But if we came hard times and delinquencies rose, I would not want the deadbeats to make passage impossible.

Sikubali jukumu. Read all posts at your own risk.
JanetB2 (Colorado)
Posts: 4,219
Posted:
I agree it should be difficult to amend CCR's. No matter which section whether you utilize the state percentage of 67% or smaller in the governing docs you still have the issue of it would be pursuant to "votes allotted" in the association. The CCR would only be able to have a lower percentage under section (iii).
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NpS on 02/05/2015 4:26 PM
Posted By TimB4 on 02/05/2015 3:40 PM
Posted By NpS on 02/05/2015 10:55 AM
Not sure if this was discussed before, but here's a hypothetical situation:

Let's say your HOA has 100 units and your docs require 67% to pass an amendment.


67% of what?



It's a hypothetical about an amendment - so we can assume that it involves a HO vote. Let's say the specific language is poorly worded and unclear beyond that.

I'd rather spend my time and energy dealing with actual issues rather than hypothetical issues.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By TimB4 on 02/07/2015 10:56 PM
Posted By NpS on 02/05/2015 4:26 PM
Posted By TimB4 on 02/05/2015 3:40 PM
Posted By NpS on 02/05/2015 10:55 AM
Not sure if this was discussed before, but here's a hypothetical situation:

Let's say your HOA has 100 units and your docs require 67% to pass an amendment.


67% of what?


It's a hypothetical about an amendment - so we can assume that it involves a HO vote. Let's say the specific language is poorly worded and unclear beyond that.


I'd rather spend my time and energy dealing with actual issues rather than hypothetical issues.


While it started as hypothetical question, it evolved into a practical solution. As I stated in my last post, the next time we amend our CC&Rs for some other reason, I will propose that we tack on an amendment that sets the bar at 67% of our non-delinquents. I think that's the fairest solution for all concerned.

Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posted:
NP,

Typical language for amending CC&Rs, which is why I asked 67% of what, says 67% of the membership. They don't say % of members eligible to vote or % of votes cast at a meeting.

If the language is 67% of the membership then everyone gets a vote. If you chose to suspend the voting privileges for delinquent members then it's possible that you will end up defeating your own amendment because you still need 67% of the membership to approve the change.

State law may prevent you from amending approval section to 67% of eligible voters. Even if it doesn't, such an amendment can open the door for a rouge board. For example:

100 lots. 90 eligible to vote. The Board wants to change the CC&Rs to something that is highly contested. The Board can get 50 lots to go along with them. Well 50 out of 90 is only 55% of the vote. One board member gets the idea of fining those individuals who are not on board with the plan. If they refuse to pay the fine, they can't vote because their account would be delinquent. So they fine all 40 members who are against the issue. If only 15% of them refuse to pay - the Board has it's 67% to adopt the amendment.

CC&Rs, i.e. the contract, is supposed to be hard to change. This is why they typically require 67% of the membership.
JeffT2 (Iowa)
Posts: 880
Posted:
Np,

Am I missing something? Section (iii) says you can have a smaller percentage if all of your units are nonresidential, as in shops, factories, warehouses.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JeffT2 on 02/08/2015 9:47 AM
Np,

Am I missing something? Section (iii) says you can have a smaller percentage if all of your units are nonresidential, as in shops, factories, warehouses.


Wow Jeff. Thx. Seems like I read what I wanted to see. Back to the drawing board.

Sikubali jukumu. Read all posts at your own risk.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By TimB4 on 02/08/2015 8:38 AM
100 lots. 90 eligible to vote. The Board wants to change the CC&Rs to something that is highly contested. The Board can get 50 lots to go along with them. Well 50 out of 90 is only 55% of the vote. One board member gets the idea of fining those individuals who are not on board with the plan. If they refuse to pay the fine, they can't vote because their account would be delinquent. So they fine all 40 members who are against the issue. If only 15% of them refuse to pay - the Board has it's 67% to adopt the amendment.


Did anyone ever tell you that you have a diabolical mind Tim?

Anyway, after Jeff set me straight, I am abandoning any thought of making changes. Thx for your comments.

Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NpS on 02/08/2015 10:28 AM
Posted By TimB4 on 02/08/2015 8:38 AM
100 lots. 90 eligible to vote. The Board wants to change the CC&Rs to something that is highly contested. The Board can get 50 lots to go along with them. Well 50 out of 90 is only 55% of the vote. One board member gets the idea of fining those individuals who are not on board with the plan. If they refuse to pay the fine, they can't vote because their account would be delinquent. So they fine all 40 members who are against the issue. If only 15% of them refuse to pay - the Board has it's 67% to adopt the amendment.


Did anyone ever tell you that you have a diabolical mind Tim?

As I've often said, you need to look at issues from all perspectives.
This includes the perspective of how could someone take advantage of the issue.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By TimB4 on 02/08/2015 12:34 PM

This includes the perspective of how could someone take advantage of the issue.

Having typed this, I'm reminded of an incident that helps illustrate how the language used is important and, if it's too generalized, it can be taken advantage of.

Many years back, there was an issue in the Navy that made the news. To be honest, I don't remember what the issue was but it was a large enough of an issue that everyone in the Nave was discussing it. Word came from above that Naval personnel should leave the issue at the door when they are at work.

Well we had an old salt of a Chief who immediately called an all enlisted meeting. Told everyone present that word from above is that we leave the issue at the door. He then promptly walked over to the door, shut it, turn to the crew and calmly stated "They never said which side of the door, now is the time to discuss it."

So, be careful in the language you choose when proposing amendments to any of your governing documents. Expect loopholes to be taken advantage of and try to identify them prior to having the amendment adopted.

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