HOA advocacy- off site

I am curious to know whether there are any federal or state laws that might prohibit an HOA from taking a position on a proposed development that I believe needs city council approval. I live in Texas and am on the board of an HOA. I think our non-profit status has 528(c) status.

The legal issue notwithstanding, I am conflicted about whether an HOA should take a hard position on an external zoning matter because it could set a precedent, whereby residents might ask us to take positions on similar matters in the future. After all, we're not an advocacy organization.

Any insights into the matter based on previous experience or knowledge about the law on such matters would be much appreciated.

Thanks,

Chris

The HOA Corporation should MYOB.

The HOA Members are individually free to act as they see fit.

DOH

Recently, a pipeline company requested a pumping station zoning variance a few miles from us in the next township. Flyers began circulating in opposition.

A member of our board contacted our township manager to find out if our township was taking a position. At first no. Later, meetings were held in the neighboring township. We publicized the meeting and some of our residents and board members went.

After a while, our township came out in opposition to the variance. A local congressman did too.

Our board wa willing to go only so far as to make inquiries and to inform our community.

Chris, the Articles of Incorporation of one of the associations we manage (in Texas)states:

" . . . the Corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the primary purposes of the Corporation, or that are inconsistent with its qualification as a homeowners association . . ."

You may find similar language in your Governing Documents. I understand how you are conflicted.

As the PM, we have been asked by property owners what the position of their association is on matter X, Y, or Z. Our response has always been the association has no position and cannot take a position for the due to the language quoted above. We have provided similar advice to boards of directors when asked. We advise the associations not be involved in anything which does not further the purposes of the association. That does not preclude an association from encouraging participation in activities such as National Night Out or an electronics recycling event through the Social Committee.

When serving on the board where we previously lived, a property owner asked if their child could address the board to obtain association monetary support for a worthwhile activity the child was involved in. The board agreed the association could not provide monetary support as doing so did not further the primary purposes of the association; further it was not appropriate to spend property owner funds in that way. The board could and did verbally encourage the child and suggested the child talk with the neighbors (which is legal in the association).

Bottom line, my advice is the association should not take a position or become involved.

Your CC&R's should state the purpose of the association. I doubt that lobbying for or against any issue is one of the stated purposes.

My own association had a similar issue with a cement plant that would have been within eyesight of some of our parcels. One of the most vocal opponents was a past president of our association; she solved her problem by selling her property to the cement company. Now the cement company is a member of our association! Fortunately, our board took no position on this issue.

My suggestion would be to advise those who are concerned about the new development to attend any and all hearings and voice their opposition there. Remember, your members ought to be registered voters but the association cannot vote.

Bottom line the HOA should NOT be involved but as individuals and concerned citizens you can be. It is not fair for the HOA to represent the community as a "whole" if not everyone is in agreement on the issue. This is an individual issue once it's not an HOA matter.

We had a situation where a landowner did not like the city we lived in. We happen to be in one of those areas that one side is one city and the other side is the other. Plus there are some areas still considered "County". It's all very complicated as my neighbor is in the county, I am in the city, and once I turn left out of my neighborhood I am in another city limit.

The landowner "Donated" their land to the other city as long as our city did not have it. It was 20 acres. It left that property to have anything developed on it. Which did not sit well with many of us. A few of us did protest but not as a HOA. I just informed those at the meeting who asked what was going on.

It turns out a mall development ended up making high-end apartment complex on the property. The rest had some expensive houses put on it. Which made us lucky as it raised our home values. However, it could have been ugly if instead another gas station or used car lot went in.

There aren't any federal or state laws that I'm aware of, but I remember once or twice our former president (three presidents ago) would attend meetings of our neighborhood association (the Association is also a member) and speak up if there was a proposal to bring something harmful in the community. It didn't raise a stink because he would discuss his attendance during Board meetings and so it would become part of the minutes, and also because many homeowners would later say "I'm glad he went because I don't want X" in this neighborhood.

Today, the Board members don't attend as much because no one has the time. However, we still have the membership and homeowners are notified of the neighborhood association meetings and its website (where the agenda is published), so they can go themselves if there's an item they're curious about. If that's the case, the homeowner will usually let the board know and if it appears a battle is on the horizon, something might go in the newsletter encouraging people to speak up one way or another.

Chris

Allow me to make myself clear. I say the HOA takes no stance what so ever on anything if it is does not have a direct influence on the HOA. If members want to personally take a stance, so be it but they do not represent the HOA in any way, shape, nor form nor should the HOA represent them in any way, shape, nor form.

MYOB.

Chris

You say:

One of the board members argues that the development could lower property values, which would materially affect the interests of residents of our HOA.

If it can be determined the one BOD Member is correct (might be tough to do), then I say the BOD would be within its "rights" to object.

Thus the question is are they correct?

The majority of board members have voted aye on to send the letter opposing the proposed PUD zoning change and development. The board chair is going to send the letter. Looks like I'll need to roll with this one.

Keep in mind, the person developing their own land usually always gets their way. No amount of complaining from neighbors has any impact on if it is built or not. The issue is, its not your land. Typically I find that complaining neighbors only seem to slow something down, until its researches.... not stop it.

So keep in mind, any resources you spend on fighting this development, its likely still going to happen in some form or another.