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PatriciaB11 (Arizona)
Posts: 2
Posted:
First - I apologize in advance if this has been discussed elsewhere, I could not get a good search (from this site or google) to work.

Our HOA annual meeting is coming up in a few months. There has been a problem with reaching a quorum the past few years, and thus no action could be taken on the agenda items (beyond electing board members). This year the board has mailed/emailed out ballots for the meeting. I understand that Arizona state statute allows these ballots to count towards reaching a quorum. I have 2-ish questions about this process:

1. They have mailed/emailed the ballots every month (and say they will continue to do so until the meeting). They send one titled 'Ballot 2016', plus other explanatory documents, plus the board member election ballot. My question is, are there specific legal requirements for the actual ballot (that the homeowner is expected to mark and return)? The wording on these is very terse and they refer to the 'explanatory' documents for additional information (for example, one ballot item says 'Outbuildings YES NO'). I feel like the ballot to be returned should state exactly verbatim what we are voting on, but don't want to bring this up if there's no legal basis for my feeling.

2. Is there any legal guidance on delivery of the ballots to the meeting - i.e., can a homeowner print and mark their ballot and give it to a neighbor to take to the meeting? (or board members go from house to house to 'collect' the ballots before the meeting) Related to this question, how do we insure that each vote only counts once and that the vote was from the actual homeowner? (there are some contentious issues at this meeting, and a number of homeowners are fearful that some ballot manipulation will take place since we are using emailed/mailed ballots)

Sorry to be so wordy, and thank you in advance for any guidance y'all can provide!
TimB4 (Tennessee)
Posts: 21,059
Posted:
Patricia,

AZ statutes, specifically 33-1812 (from the planned community act), addresses absentee ballots.

The only way to ensure that there was only one vote per lot would be to observe the process.

The best voting by mail process I have seen is the two envelope system.
Envelope 1 contains the completed ballot.
Envelope 1 is sealed and placed inside envelope 2 which contains the owners information.
Envelope 2 is used to identify the Lot for quorum purposes
If a quorum is present. Envelope 2 is opened and envelope 1 (still sealed) is placed into the ballot box (to be opened when the votes are counted).

I am not clear on the procedures your Association is using. Therefore, I can't tell if it is in compliance with your governing documents or the statute.
Like you, I do not like that official ballots are being sent out multiple times.

Unless the process is challenged (likely through the courts if the Board is not reasonable) what your Board is currently doing will likely stand (regardless if it is correct or not).
LarryB13 (Arizona)
Posts: 4,099
Posted:
Patricia,

Arizona ballot HOA requirements are found in ARS 33-1812. It states:
33-1812. Proxies; absentee ballots; definition

A. Notwithstanding any provision in the community documents, after termination of the period of declarant control, votes allocated to a unit may not be cast pursuant to a proxy. The association shall provide for votes to be cast in person and by absentee ballot and, in addition, the association may provide for voting by some other form of delivery, including the use of e-mail and fax delivery. Notwithstanding section 10-3708 or the provisions of the community documents, any action taken at an annual, regular or special meeting of the members shall comply with all of the following if absentee ballots or ballots provided by some other form of delivery are used:
1. The ballot shall set forth each proposed action.
2. The ballot shall provide an opportunity to vote for or against each proposed action.
3. The ballot is valid for only one specified election or meeting of the members and expires automatically after the completion of the election or meeting.
4. The ballot specifies the time and date by which the ballot must be delivered to the board of directors in order to be counted, which shall be at least seven days after the date that the board delivers the unvoted ballot to the member.
5. The ballot does not authorize another person to cast votes on behalf of the member.

B. Votes cast by absentee ballot or other form of delivery, including the use of e-mail and fax delivery, are valid for the purpose of establishing a quorum.

C. Notwithstanding subsection A of this section, an association for a timeshare plan as defined in section 32-2197 may permit votes by a proxy that is duly executed by a unit owner.

D. For the purposes of this section, "period of declarant control" means the time during which the declarant or persons designated by the declarant may elect or appoint the members of the board of directors pursuant to the community documents or by virtue of superior voting power.

======

The ballots you described seem fall short of the requirements. The corrections needed are self-explanatory.

I know of no law that prevents a person from collecting and delivering ballots but I do not like the idea. It would be best if absentee ballots were mailed directly to the election committee and not opened until the time to count arrives.

In my association we do not have secret ballots. We each own varying amounts of rural ranch land. Our CC&R's provides that we each have one vote per acre. That means the election committee must be able to identify who cast the vote and just how many votes he may cast. This system has been in place for close to 20 years and I have yet to see the sun rise in any direction except east. I see no reason why adults should be afraid to have their votes identified. Voting when ballots cannot be verified is inviting fraud. Put their names on their ballots.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 03/09/2016 7:27 PM

I see no reason why adults should be afraid to have their votes identified. Voting when ballots cannot be verified is inviting fraud. Put their names on their ballots.

Larry,

Although I agree with you, often ballots are cast at annual meetings.
Associations will often place questions for amending documents on the same ballot used for electing directors.

Many States have statutes (typically within the corporate code) that require secret ballots for Directors.

If Associations want to place names on ballots (which can be good documentation when amending governing documents), they may have to hold two elections. One for electing directors (utilizing secret ballots) and one for amending governing docs. They can be done at the same meeting. It just requires a little planning and forward thinking by the Board.
PatriciaB11 (Arizona)
Posts: 2
Posted:
Thank you all for your replies. We have a vested interest in the outcome of this year's meeting and voting, because one of the ballot items is directed at us. Our current CC&R's also votes based on amount of land owned (1 vote per 9 acre lot). The original parcels were 36 acres, sub dividable into 9 acres. We still own 45 acres, and thus have 5 votes. Only 2 other owners have multiple votes (2 votes each), everyone else has 9 acres and 1 vote. Those with 1 vote have been crying foul that anyone else has more votes than they do.

Last year, they tried to modify the CC&R's to assign 1 vote per family, but could not make a quorum because we didn't attend (and they did not mail out absentee ballots). This year, they are pushing very hard to get absentee ballots turned in so they can make the quorum without us, and remove our votes. I believe we have been good property owners here - pitching in with road maintenance, attending volunteer days, and being patient (9 years!) on getting our end of the road graded and re-graveled (we live at the very end of the main road into the neighborhood). We have abided by the letter and spirit of every CC&R, even when it was inconvenient, and watched while others did not and just had waivers granted after the fact by the board.

I hope to stop this year's vote by bringing up (a few days before the scheduled annual meeting) that these ballots do not meet the standard required by Arizona statutes (there will not be a quorum without counting absentee ballots). Perhaps that makes me a $itch, but we're pretty tired of obeying the rules and watching so many around us get away with constantly breaking them.

Thanks again for your input
LindaM26 (Arizona)
Posts: 2
Posted:
We have never had a quorum. We have never been allowed to vote at meetings except for election of officers of the board even tho our CC&r's or Bylaws state we can vote at meetings (plural) . Our officers of the board seem to mixup the term "association" which is described as all property owners with the term officers or directors of the board. Now they say if they have a quorum of the officers, they can do what they want. There is no description or terms in our covenants about a quorum of the officers of the association.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By PatriciaB11 on 04/05/2016 10:50 AM
Our current CC&R's also votes based on amount of land owned (1 vote per 9 acre lot). The original parcels were 36 acres, sub dividable into 9 acres. We still own 45 acres, and thus have 5 votes. Only 2 other owners have multiple votes (2 votes each), everyone else has 9 acres and 1 vote. Those with 1 vote have been crying foul that anyone else has more votes than they do.

Do you pay 5x what a 9 acre lot owner pays? Or do you pay the same as everyone else?

Sikubali jukumu. Read all posts at your own risk.
CarolP16 (Arizona)
Posts: 7
Posted:
Patricia
You did not indicate the date of quorum meeting ...nor whether you are a Planned Community or Condomimum. Larry on 03/10 provided in this forum the AZ revised statute for Planned Communities. You need to go to AZ statue for Condomimums if that applies. In additon,the ballot process was amended effective for after August of 2016. Requirements are impacted by whether or not your Declarations,By-Laws, or Rules and Regulation specif that ballots will be secret. Your board can easily provide methodology in Rules and Regulations by motions at a regular meeting.

You need to read the state requirements before preparing to send out ballots each year as these are frequently changing. Go to http://www.azleg.gov/ArizonaRevisedStatutes.asp?Title=33

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