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SandraH11 (California)
Posts: 8
Posted:
We have renters who are running for the our HOA Board positions.Are there any civil codes stating that a HOA Board member has to be an owner?
MarkM31 (Washington)
Posts: 351
Posted:
If you google "sterling davis+board members+elligibility", you may learn a lot.
MarkM31 (Washington)
Posts: 351
Posted:
Your governing docs will also spell out qualifications. What do they say?
DonA2 (Arizona)
Posts: 170
Posted:
Our governing docs say who is eligible to be on the Board. Check yours and see what they say.
RichardP13 (California)
Posts: 3,868
Posted:
Sandra

There is nothing in California Civil or Corporation Code that would disallow a renter from running for a Board position.

Where you would find the Director qualifications would be in your CCRs and Bylaws.
KerryL1 (California)
Posts: 14,550
Posted:
You also may find director qualifications in your HOA's Election Rules, which every CA HOA must have (eff. '06). My understanding is that any qualis in your Election Rules would not stand up in court (they need to be in your bylaws or other governing doc, e.g., Articles, CC&Rs). But they'd be a good place to start.

Imo and many others, renters should not be able to serve on HOA boards as they have no financial stake in those HOAs. But your bylaws may say otherwise.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By KerryL1 on 12/28/2015 11:00 AM
You also may find director qualifications in your HOA's Election Rules, which every CA HOA must have (eff. '06). My understanding is that any qualis in your Election Rules would not stand up in court (they need to be in your bylaws or other governing doc, e.g., Articles, CC&Rs). But they'd be a good place to start.

Imo and many others, renters should not be able to serve on HOA boards as they have no financial stake in those HOAs. But your bylaws may say otherwise.

Actually there is case law, Friars Village v. Hansing that would allow the Board to amend the Election Rules to add "reasonable qualifications". Most HOA's in California, because of their size and budget do not have "required" Election Rules.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Currently per our documents only owners are allowed to be Board Members. At our next annual meeting we will be attempting to amend many items in our documents. One item to be amended if passed will allow renters to make up a minority of the Board.

I am unfamiliar with CA law.
SandraH11 (California)
Posts: 8
Posted:
Our governing docs to not explicitly state that the Board members have to be owners. Isn't this implied because the HOA is for homeowners???
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By BonnieG1 on 12/28/2015 1:04 PM
Currently per our documents only owners are allowed to be Board Members. At our next annual meeting we will be attempting to amend many items in our documents. One item to be amended if passed will allow renters to make up a minority of the Board.

With or without a PoA from the unit owner? If without, then you risk becoming a lord of the fly's.

How would that minority thing be enforced? What would happen if there was a simultaneous resignation and/or recall of enough board members that this arbitrary minority amount was breached? Would the whole board at that point be in violation of the rules and a wholesale election of the entirety would be required?
GenoS (Florida)
Posts: 4,276
Posted:
Check your governing documents to see what the eligibility requirements are for directors. Together they sit on a Board of Directors but individually the proper term is "director".
SandraH11 (California)
Posts: 8
Posted:
I did check the Sterling Davis Act but didn't see specifics about owner qualifications for being a Board Member.
SandraH11 (California)
Posts: 8
Posted:
I did check the Sterling Davis Act but didn't see specifics about owner qualifications for being a Board Member.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By SandraH11 on 12/28/2015 1:35 PM
Our governing docs to not explicitly state that the Board members have to be owners. Isn't this implied because the HOA is for homeowners???

You probably need to read your docs further. Somewhere it is probably stated that board members must be members of the HOA. At that point what becomes important is membership in the HOA. If non owners are excluded from membership in the HOA, and Board membership is only given to HOA members (both of these are normal only after release by the declarant), then there is no need to further limit Board membership to owners because that already accomplished upstream.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By BonnieG1 on 12/28/2015 1:04 PM
Currently per our documents only owners are allowed to be Board Members. At our next annual meeting we will be attempting to amend many items in our documents. One item to be amended if passed will allow renters to make up a minority of the Board.

I am unfamiliar with CA law.

That sounds like a recipe for disaster. I'm with Richard on this. What happens if you've got 4 owners and 3 renters on the board and one of the owners resigns?
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By SandraH11 on 12/28/2015 1:39 PM
I did check the Sterling Davis Act but didn't see specifics about owner qualifications for being a Board Member.

Hence, it is not a matter of statute.

It is unlikely to be so in any case because of the problems it would cause for declarants and commercial and investment owners who chose to protect themselves by incorporation.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By GenoS on 12/28/2015 1:42 PM
Posted By BonnieG1 on 12/28/2015 1:04 PM
Currently per our documents only owners are allowed to be Board Members. At our next annual meeting we will be attempting to amend many items in our documents. One item to be amended if passed will allow renters to make up a minority of the Board.

I am unfamiliar with CA law.

That sounds like a recipe for disaster. I'm with Richard on this. What happens if you've got 4 owners and 3 renters on the board and one of the owners resigns?

Hey, wrong name!

Ha ha ha
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By MarkM31 on 12/28/2015 1:42 PM
Posted By SandraH11 on 12/28/2015 1:39 PM
I did check the Sterling Davis Act but didn't see specifics about owner qualifications for being a Board Member.


Hence, it is not a matter of statute.

It is unlikely to be so in any case because of the problems it would cause for declarants and commercial and investment owners who chose to protect themselves by incorporation.

I want to add that only allowing "owners" to be members of a HOA or Board could also convieably exclude those who have put their property in trusts. Since it is likely that those who have done so are older and wealthier than the "average" to limit membership away from corps and trusts is likely to cause legal difficulties, because corps and trustors likely know their lawyer on a first name basis.
GenoS (Florida)
Posts: 4,276
Posted:
Followup to my previous post, I meant to say I'm with MarkM31, not Richard. Sorry for the mixup.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By GenoS on 12/28/2015 1:59 PM
Followup to my previous post, I meant to say I'm with MarkM31, not Richard. Sorry for the mixup.

I'm recovering well.
KerryL1 (California)
Posts: 14,550
Posted:
The correct legislation is Davis-Stirling. A fine website that interprets the Davis-Stirling legislation is davis-stirling.com. Visit its Main Index and scroll down to Elections to learn a lot!

But you're right, there is no law that directors must be Owners. Have your read your bylaws yet, Sandra?

Our bylaws don't say directors must be Ownrs either because our bylaws have never been revised. So when HOAs are new, the board consists of the develop (declarant) and their staffers, etc., whip aren't all Owners. I really, the HOA ganges the bylaws once the Owners are in control. But our HOA didn't do that. So we have Ownership as a requirement in our Election Rules as well as must not be a convicted felon. If you have a management company (MC), they can tell you how to set up Election Rules with, as Richard points out can be valid if "reasonable."

Meantime, your renters could be legitimate candidates. If that's the case, I'd campaign against home as they have NO stake in your HOA! Btw, what size is your HOA? How big is the Board?

With Mark, Bonnie, I would never approve renters on your corporation's Board of Directors. Does your HOA attorney advise this?? If you have a hard time finding candidates, perhaps you can lower the # required on your Board. Is it now 5? Can you you get along with 3 considering you have a PM?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By SandraH11 on 12/28/2015 10:08 AM
We have renters who are running for the our HOA Board positions.Are there any civil codes stating that a HOA Board member has to be an owner?

As others have said, qualifiers (which is what your asking about) would be defined in your governing documents.

The only time I've seen any State statute address who may run for the Board of an HOA/COA was in FL that specified all members (which did not eliminate non-members, simply emphasized that you couldn't keep a member from running).

I once started looking at adding qualifiers to our Association. The main one being that only members may serve (member being defined as the name on the deed). In soliciting signatures I met many individuals who were married but, due to various reasons, only had one name on the deed. Had such a qualifier been adopted, we would have eliminated many individuals who could run for the board.

One way to counter someone who is running is to gather support for another candidate (perhaps yourself).
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By TimB4 on 12/28/2015 3:08 PM

I once started looking at adding qualifiers to our Association. The main one being that only members may serve (member being defined as the name on the deed). In soliciting signatures I met many individuals who were married but, due to various reasons, only had one name on the deed. Had such a qualifier been adopted, we would have eliminated many individuals who could run for the board.

We've had that restriction since the beginning, i.e. name on the deed as recorded with the county. It does cut down on the number of people eligible to serve when, in the case of couples, for whatever reason the deed isn't in both names. It can cut participation in the community even further if, as it is here, the bylaws say that only members may serve as committee chairs.
GeorgeR8 (Arizona)
Posts: 182
Posted:
Quote:
Posted By GenoS on 12/28/2015 4:10 PM
Posted By TimB4 on 12/28/2015 3:08 PM

I once started looking at adding qualifiers to our Association. The main one being that only members may serve (member being defined as the name on the deed). In soliciting signatures I met many individuals who were married but, due to various reasons, only had one name on the deed. Had such a qualifier been adopted, we would have eliminated many individuals who could run for the board.


We've had that restriction since the beginning, i.e. name on the deed as recorded with the county. It does cut down on the number of people eligible to serve when, in the case of couples, for whatever reason the deed isn't in both names. It can cut participation in the community even further if, as it is here, the bylaws say that only members may serve as committee chairs.

We have the same. If not an owner they are not members. If not members they cannot run. We don't allow renters so that never comes into play. Our not named on the deed spouses never come to meetings. If they did I wouldn't recognize them unless the named on deed person said it was ok and by doing so they would forfeit their right to speak. It is very specific. The owner OR their representative. Not both.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By GenoS on 12/28/2015 4:10 PM

We've had that restriction since the beginning, i.e. name on the deed as recorded with the county. It does cut down on the number of people eligible to serve when, in the case of couples, for whatever reason the deed isn't in both names. It can cut participation in the community even further if, as it is here, the bylaws say that only members may serve as committee chairs.

Is this homes or condos? So neither a trustee nor tustor can serve? Harsh.
SandraH11 (California)
Posts: 8
Posted:
Hi KerryL1, thanks for the legislation name correction. I did review it and didn't see anything that gives me the answer to my question. However, I did get my hands on a copy of our bylaws and it does say Board Directors do not have to be association members. These bylaws were filed in 1980..time for an update. Thank you everyone for your input.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By GeorgeR8 on 12/28/2015 5:25 PM
Our not named on the deed spouses never come to meetings. If they did I wouldn't recognize them unless the named on deed person said it was ok and by doing so they would forfeit their right to speak. It is very specific. The owner OR their representative. Not both.

How does it work if both spouses are on the deed? 2x the time to talk or do they have to split it?

Sikubali jukumu. Read all posts at your own risk.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
After reading these post, I just realized something. About 4 years ago we had a President whose name was not on the deed. Only his wife's name was on the deed. I found this out when I was preparing for an annual meeting after he resigned as President. Per our documents he wasn't even qualified to even be a Board Member.

He was the President who resigned because he was upset a board member was asking questions about a bookkeeper he wanted to hire.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By MarkM31 on 12/28/2015 6:59 PM
Is this homes or condos? So neither a trustee nor tustor can serve? Harsh.

They're single family homes, Mark. We have a fair number of homes deeded to trusts, mainly revocable trusts set up by seniors who want to avoid probate (I guess) when they shuffle off this mortal coil. Very often the name of the trust has the name of the person(s) in it, e.g. "The John Doe Revocable Trust" which was set up by John Doe who is the actual owner and occupant of the home. You raise an interesting point that I had not considered. If the deed to a home is in the name of a trust, wouldn't the trustee be eligible to serve where the bylaws restrict membership to owners? That person would be the sole individual in control of the trust while they're still alive. Would not the trust's representative - the owner him or herself - be acceptable as the "owner" for purposes of satisfying the "deeded name" restrictions in the bylaws? I'll admit my understanding of trusts is more than a little rusty.

In other words, if a trust is the owner of record then wouldn't the lone individual empowered to speak for the trust be, for all practical purposes, an individual owner as far as the corporate bylaws are concerned?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GenoS on 12/28/2015 7:37 PM

You raise an interesting point that I had not considered. If the deed to a home is in the name of a trust, wouldn't the trustee be eligible to serve where the bylaws restrict membership to owners?

That is how I understand it.

Additionally, if the home is held by a corporation, whomever the corporation names as the contact (as long as they were part of the corporation) could also serve.
TimB4 (Tennessee)
Posts: 21,059
Posted:
oops. Messed up that quotation.
Sorry
BillK15 (Washington)
Posts: 14
Posted:
Check your documents. Our HOA does not require the BOD member to be a resident, or even a resident of the State.
MarkM31 (Washington)
Posts: 351
Posted:
I guess I'm not following you Tim and Geno. Are you saying that a spouse can't be a member of the board (or even a member of the Association) because their name doesn't appear on the deed, but a trustee or a corporate representative can? Their names don't appear on the deed either, and in the case a corporation, they can send a person who's name appears nowhere in the corporate documents.

In any case, if Sandra's association wants to restate their documents, they may wish to clarify the ability of trustee's or those they elect (such as the trustor), corporations and PoAs to serve on the board and appear at association meetings.
KerryL1 (California)
Posts: 14,550
Posted:
Ours, too, Bill, don't require directors be residents of our HOA. Pretty common, it seems. We had one owner who lives across the street in another HOA be director --he was OK. We had another who lived 1-1/2 hour away and was the worst director we've had in 9 years. New owner who knew nothing and didn't want to learn.

We have a lot of ownership by Ms. X, Trustee & if spouse wanted to be on Board it's OK with us. Some HOAs have a lot of trouble finding enough to serve, though we haven't lately.
MarkM31 (Washington)
Posts: 351
Posted:
Membership in our association is open to owners and their representatives. All association members belong to the board, but officers are confined to owners. We tried to fight it because of vague wording, but didn't get anywhere.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MarkM31 on 12/29/2015 7:29 AM
I guess I'm not following you Tim and Geno. Are you saying that a spouse can't be a member of the board (or even a member of the Association) because their name doesn't appear on the deed, but a trustee or a corporate representative can? Their names don't appear on the deed either, and in the case a corporation, they can send a person who's name appears nowhere in the corporate documents.

In any case, if Sandra's association wants to restate their documents, they may wish to clarify the ability of trustee's or those they elect (such as the trustor), corporations and PoAs to serve on the board and appear at association meetings.

It's all on how your Association defines who a member is.
Typically, it's the name on the deed.

If the deed is held in a trust or by a corporation, then the trustee or the designated contact for the corporation would be considered the owner.
RichardP13 (California)
Posts: 3,868
Posted:
Our Bylaws were restated in 2010 and the specific language was inserted in the qualification section for directors. When the grant deeds were sent to the association after a transfer of ownership, none ever referenced a corporation or trust, UNLESS it was purchased by an investment company after a foreclosure for rental purposes.Many time a lender may not allow a trust in a refinance transaction, so they may need to remove the trust, refinance, and then re-instate or re-record the trust. Not always, but sometimes. As a management company, we are only going to see the first transaction.

"or if a Residential Unit is owned by a trust or a corporation, is a trustee
of such trust or an officer and/or shareholder of such corporation, and if
another co-trustee of the same trust or officer or shareholder of such
corporation".

As far as who was identified as an owner/member, it was only those individuals on the grant deed. If a spouse was not listed, they, like a renter, had no financial obligation to the association. They could, although, make fine committee persons.Some people will accept a quitclaim as proof of ownership afterward, but I am not a fan of that specific document.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Our docs say a Member of the BOD must be an owner and not delinquent in their dues.

The owner does not have to be a resident. We have never had a non-resident Member of the BOD.

The owner(s) is whose name is on the deed. If more than one name on the deed, they must designates one of them as the voting member. Quite common with a husband and wife. In one HOA they both showed (they were in a middle of a divorce) and neither would designate the other so we allowed neither to vote.

In the case of a corporation/trust owning the home, they must designate who their voting (thus could run for the BOD) member is. We have never had this situation.
SheliaH (Indiana)
Posts: 6,964
Posted:
We have the same rules as John's community - to be on the board, you have to be a homeowner in good standing (not delinquent). Technically, you have to be a member in order to attend board meetings, although our board has generally allowed it - if n issue requires that the owner address it with the board or property manager, the renter is told this. After that, the issue will either resolve itself accordingly or the renter (or owner) will let the matter drop.

Personally, I think allowing renters to serve on a homeowner association board is a bad idea. I don't have an issue with them helping out on some committees, such as a social committee or helping with preparing a newsletter, but they aren't homeowners and therefore, don't have a vested interest in the community. Sure, some are concerned about a crazy neighbor or trash and should make their concerns known through the homeowner/landlord, but even if you have a great renter, he/she can always move out for whatever reason. And if they serve on the board and do things like vote against a reserve study and then leave, the homeowners are left with the effects of a horrible decision. It's bad enough homeowners are short sighted, but at least they have more to lose because they own the home and have more money invested in it (at least that's how it works most of the time!)


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
SandraH11 (California)
Posts: 8
Posted:
Unfortunately, our Bylaws filed in 1980 when the complex was first built states that you do not have to be a owner to be on the Board. We have to take steps to update the Bylaws to change this. This will challenging if we try to do this with 2 possible non owners sitting on the Board.
KerryL1 (California)
Posts: 14,550
Posted:
Again, Sandra, you and others may want to campaign against these renters.

Let's tsp back for a sec: How many are on your board? How many slots are up for (re)election? How many candidates?

How many in your HOA?

If there aren't enough owner-candidates to fill the slots, you're probably going to have to put up with these renters. Are you on the board, Sandra?
GenoS (Florida)
Posts: 4,276
Posted:
Lots of food for thought here. Richard makes a good point about financial responsibility. The easiest thing for the court system (anywhere) to understand is what's filed as an official record. Thus it makes sense that an association would go to that same source for their documented definition of who's a member (owner) and who's not, i.e. the name on the recorded deed.
SandraH11 (California)
Posts: 8
Posted:
Hi KerryL1,
There are 5 board positions. All 5 are open for the election. There are 7 candidates running, 2 of them are renters.

No I am not on the board. It's too late for me to run as the election date is scheduled for January 27th.
SandraH11 (California)
Posts: 8
Posted:
Hi KerryL1 I missed answering your other question about how many HOAs. We have 45 units.
PitA
Posts: 1,416
Posted:
assuming your HOA is incorporated (most are):

since any directors are corporate directors

qualifications for directors will be found in the corporate by-laws

'generally' the by-laws would state something similar to: a director must be a member of the association, in good standing ....

how to amend same will be found there also

MEMBERS of the HOA must be owners by definition

definition of a member will be found in the Covenants and Restrictions (filed with or referenced by the actual owners' deeds)

the HOA is incorporated to remove personal liability and replace same with a 'corporate shield'

ps. sounds like the OP is clueless and needs legal advice
KerryL1 (California)
Posts: 14,550
Posted:
So, Sandra, are some of the 5 owners running for reelection? Or is everyone new?

It's unusual to have all five seats up for election. What do your bylaws say about how many should be elected at each election or about "Staggered" terms, or how long each term should be. Two years is typical, but I've seen one year & three years form posters at this site.

I guess not, but do you by chance have a property mgr. who can help you figure things out?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Sandra,

You can always ask the question Are all candidates members of the Association? or Are any candidates renters?

This will at least bring the issue to light and the members can make an informed decision.
JonD1
Posts: 2,350
Posted:
Thankfully this issue is not a problem here.

Only owners are allowed to seek election to the board. Renters would not be permitted to attend out meetings no less now run for a board position.
I would like to read the actual wording of the OP's documents. Does it in fact say candidates need not be owners or does it simply not state candidates must be owners?

As members of a corporation owners would have certain rights one being seeking board positions. As renters, residents would NOT be permitted to vote for the board but now are able to seek a board position? Sounds nuts to me.

Renters, have no financial stake in the property. Renters reside on the property at the pleasure of the unit owner. How would those owning property now be willing to allow those who can't vote, don't pay dues, to decide how the property is managed and how the dues PAID BY THE OWNERS, is spent?

IF we were faced with a similar situation as the OP I would do everything in my power not only to prevent them from running but see to it they were unsuccessful.

Just don't understand how someone who can't vote in an election can still run for an office they don't have the right to vote for.

IF the owners in this community sit back and allow this to take place they will only have themselves to blame.

Bizarro world if you ask me....
KerryL1 (California)
Posts: 14,550
Posted:
Don't hold back, Jon!

But it's an important point that directors have access to materials, e.g., payment plans, that other owners do not have. Brrrrrr....
RichardP13 (California)
Posts: 3,868
Posted:
Attached is Section 7.02-Election of the Board of Director. This is an association I managed some years ago. It was a condo conversion from 1980. The president actually lived in the apartment complex next door and had NO financial interest in the property. He couldn't vote as a member, but ran the place like a dictator.

7.02 Election of Board of Directors.
The initial Board of Directors shall be replaced, and the members of the Association shall elect a Board of Directors, at the first annual meeting of the Association. As provided in Section 6.06, every Owner entitled to vote at any election for Directors of the Association may cumulate his votes and give one
candidate a number of votes equal to the number of Directors to be elected multiplied by the number of votes to which each Owner is entitled; except that in all elections in which the Declarant is entitled to vote, and in which the Owner other than the Declarant does not have a sufficient percentage of the voting
power of the Association to elect at least one (1) Director through the cumulating of all of their votes, there shall be designated one (/) directorship for which the Declarant shall be ineligible to vote. Said Board shall consist of three (3) Directors, each of whom shall serve concurrent terms until the next succeeding annual meeting of the Members of the Association or until his successor has been elected. Directors need not be Members of the Association nor reside in the Project.

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