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KellyP6 (Florida)
Posts: 20
Posted:
Our current BOD has elected to resign with no reason given. I suspect for upcoming financial decisions. My question is this. At this time, they have the majority vote. They being the builder of the undeveloped lots that outnumber current owners. How does one ask for their proxy for voting not just for quorum? What would you say to pursuade them to give their proxy to you?? Is it even possible? Is this just up to actual home owner votes? We've never even met quorum in a meeting when a vote wasn't required. However, the managing company will have their proxy for quorum. Any advice?? Thanks in advance..
KellyP6 (Florida)
Posts: 20
Posted:
This is in Texas by the way.....
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Are you still developer controlled and owned? Then can't do much but see if you can get on the board. Homeowner's votes don't come into play till the HOA is turned over to the owners. Sounds like maybe the developer is getting ready to take that step soon if the board is turning over.

Former HOA President
KellyP6 (Florida)
Posts: 20
Posted:
The current BOD has elected to resign.. I'm assuming for financial reasons that they don't want to be responsible for and has elected to turn it over to home owners with a little less than 500 lots still to be developed,
KellyP6 (Florida)
Posts: 20
Posted:
The board has resigned leaving it to a vote of the homeowners to coat a new board. My question is how to get their class b proxies to also vote. If they only give their proxy to make quorum, that still seems to leaves them in control with their class B status..
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I believe the 2 class system goes away as soon as the developer turns over the HOA to the owners directly. Which means after the transition, your going to have to change your CC&R's/Articles of Incorporation. All references to the developer and two class voting system is to be removed. This is also a good time to make any rule changes as well. It does cost money to do this and majority vote of the membership. Which the process is all described in your CC&R's, Articles of Incorporation, and By-laws.

Former HOA President
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By MelissaP1 on 05/11/2016 10:16 AM
I believe the 2 class system goes away as soon as the developer turns over the HOA to the owners directly. Which means after the transition, your going to have to change your CC&R's/Articles of Incorporation. All references to the developer and two class voting system is to be removed. This is also a good time to make any rule changes as well. It does cost money to do this and majority vote of the membership. Which the process is all described in your CC&R's, Articles of Incorporation, and By-laws.

Really? Do you know this from personal experience. Because, if that's true, there are a whole lotta HOA's out of compliance.
KellyP6 (Florida)
Posts: 20
Posted:
I guess my question is this: the builder right now holds class b for the 400+ lots still to be developed.. They will give the management company their proxy to make quorum.. I want their proxy to vote. How do I do this?
NpS (Pennsylvania)
Posts: 4,216
Posted:
1. Can the person with class B stock appoint his own people to the board? How many?

2. How many board seats in total can you have in your assoc?

Sikubali jukumu. Read all posts at your own risk.
KellyP6 (Florida)
Posts: 20
Posted:
Quote:
Posted By NpS on 05/11/2016 12:48 PM
1. Can the person with class B stock appoint his own people to the board? How many?

2. How many board seats in total can you have in your assoc?

1. I thought so and suggested such. Just as it was about to be appointed, more interest was generated according to the management company and it will go to a vote. Problem is, this was spoken about in a confidential committee and two or three member breached the confidentiality. IF either of these members run for the board, what can be done if anything???

2. It says no less than 3 and no more than 5..

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By KellyP6 on 05/10/2016 5:12 PM
Our current BOD has elected to resign with no reason given.


That happened with my association, too. We have a development that consists of large (36 acres and larger) undeveloped lots. Under the terms of the CC&R's it was not clear exactly when the developer had to turn the association over to the owners but at one point they had sold most of the lots and the board members, all appointed by the developer, resigned. After the property owners took over, the developer periodically added more lots to the development. To this day, I believe the developers have a substantial number of unsold lots.

This does not really answer your questions but it does demonstrate that yours is not the only development where the declarant-appointed board resigned as a means of transferring control to the homeowners.

BTW, to the best of my knowledge there were never any annual meetings or elections for anything during the six years the developer ran the association. Since then they have never participated in any elections or cast any ballots.

One angle you might look into is whether any deeds have been recorded on any of the unsold lots. Developers often do not own the land they sell; they operate under a trust agreement with the actual property owner and deeds do not get issued until a lot is sold. If those 500 lots have not been sold and do not have deeds recorded then I would not include them in any computations for either a quorum or a majority. Treat those lots as if they do not exist until a deed is recorded.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Kelly

Where did this BOD that resigned come from? Meaning how did they get to be the BOD? It sounds like you are under developer control thus any BOD is basically a figurehead usually appointed by and serves at the will of the developer, which is quite common until control passes to owers.
KellyP6 (Florida)
Posts: 20
Posted:
Quote:
Posted By JohnC46 on 05/11/2016 4:52 PM
Kelly

Where did this BOD that resigned come from? Meaning how did they get to be the BOD? It sounds like you are under developer control thus any BOD is basically a figurehead usually appointed by and serves at the will of the developer, which is quite common until control passes to owers.

From what I can find, two of the board members represent the builder that will be building on the empty lots and the third has ties with a development company. This is from a taxable entity search I did.. I'm assuming that they were appointed by the developer who is on the board.. They are passing it to the owners before the 400 lots left get developed.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Kelly

It's unclear to me what you are trying to accomplish.

The board members are resigning ... but the developer can replace them with whoever he wants.

You ask about getting class B proxies ... but I can't think of any reason why the developer would give them to you.

And even if you could get those proxies and vote in a board of your choosing ... the developer still has enough votes to remove your chosen board.

Or am I missing something?

Sikubali jukumu. Read all posts at your own risk.
KellyP6 (Florida)
Posts: 20
Posted:
Quote:
Posted By NpS on 05/12/2016 8:10 AM
Kelly

It's unclear to me what you are trying to accomplish.

The board members are resigning ... but the developer can replace them with whoever he wants.

You ask about getting class B proxies ... but I can't think of any reason why the developer would give them to you.

And even if you could get those proxies and vote in a board of your choosing ... the developer still has enough votes to remove your chosen board.

Or am I missing something?

I was under the same impression and suggested as much. They are choosing to turn it over to the homeowners for a vote. I find this suspicious as there are 266 homes owned and 450+ still to be developed.. Seems that even though the developer is giving the board to us, they will still be in control as the majority vote. Am I understanding that correctly? I guess I'm confused as to why they aren't just appointing homeowners to the board. There are three that are ready for the job. A few others that I don't think realize the legal ramifications that could come from their actions or non actions... I really need advice. I wanted their voting proxy for those undeveloped lots to help facilitate who gets on the board. The management company won't even tell me who the board members are...
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By KellyP6 on 05/12/2016 8:32 AM
I wanted their voting proxy for those undeveloped lots to help facilitate who gets on the board. The management company won't even tell me who the board members are...

Since they can replace whoever the homeowners elect, they're really in the catbird seat.

They don't have to vote, and they can reject whoever you vote in anytime they want.


Sikubali jukumu. Read all posts at your own risk.

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