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PatrickK4 (Alabama)
Posts: 13
Posted:
Hi everyone. I hope this problem is not unique.

We have a community pool. I'd say about 50% of the residents use the pool on a regular basis. A resident that doesn't use the pool, attempted to push for a vote to "fill the pool in" since he doesn't use it. Selfish right? A few others joined in with him. A large number that opposed this outnumbered him at this annual meeting, so it never went for a vote.

Then, a number of residents that were in the arrears on assessments (we're in a transition period from developer to neighborhood) and without getting into too many details on their background, this same anti-pool resident also pushed for a vote, "let's vote to extinguish past due assessments". Someone else seconded (that was also past due). After much discussion from members that were current, the vote never occurred, thankfully.

How can we as a board prevent homeowners from trying to push for a vote for every controversial subject? It would be irresponsible for me to let that go through (like fill in the pool). No one on the board has the authority to extinguish debts. Allowing a vote to stick on the matter would be meaningless and probably grounds for litigation against our HOA.

Suggestions on how we can explain this to homeowners to prevent this from happening again?
SueW6 (Michigan)
Posts: 814
Posted:
At the ANNUAL MEETING of the homeowners, proper procedure must be followed to even accept a motion for a vote.

Yes, small motions can be made by residents at this meeting, but something that involved finances, buildings, etc. must have been placed on the agenda and have proper notification to other members way before the meeting.

All these procedures about members making motions at Annual Meetings should be in your bylaws. Ours said that motions must be presented to the board 45 days before the Annual Meeting so it can be vetted by the board (does it fit the mission? is it legal? is it fair?) and then posted in the agenda to be mailed to all members.

Sounds like your meeting got out of control. It's the job of the president to keep these meetings from getting hijacked by loudmouth people. Are you following Roberts Rules of Order at all meetings?
PatrickK4 (Alabama)
Posts: 13
Posted:
Yes it did get out of control. It was the first annual meeting that has ever been held by a green board, so even if we did attempt Robert's Rules, no one else would have known what those were. We're going to make a better effort to educate those in attendance how that works, perhaps with a 10 minute intro to Robert's Rules and hand out quick reference cards.

Since it was our first meeting, we knew it wasn't going to be executed like a well oiled machine. We discussed everything on our agenda as published. Voting on anything wasn't on the agenda - only an open discussion of issues presented to us by the residents.

I remember reading something about motions being presented to the board prior to the meeting...will need to get smart on that timeline.

So is there a way to shut down an attempt to file a motion (within Robert's rules) if no such item is on the agenda? Thanks for your advice.
SueW6 (Michigan)
Posts: 814
Posted:
Yes. The president simply says that this motion cannot considered due to it not going thru the proper noticing to all members that the motion is being made at that meeting - since it involved a major move (demolition, financial, and property values affected.)

The President can then suggest that a committee be formed to study this issue. A motion can be made to establish that committee. That homeowner can be on that committee for feasibility study of the proposal. (That usually shuts people up when they have to do some work and attend a meeting)

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Simply remind this person of a few facts... A HOA is ONLY funded by the members FOR the members... If the HOA forgives or does not collect money, then the HOA has no money...

The pool is for keeping the HOA ATTRACTIVE to potential buyers. It's NOT just for enjoyment of the membership. Your HOA is in the business of selling itself or keeping it ATTRACTIVE to potential buyers... It is NOT in the "Keeping up home VALUES". A pool is an item which is good "sales tool".

Finally, SUING YOUR HOA IS SUING YOURSELF AND YOUR NEIGHBORS!!! It's a hard fact for people to swallow. It in no way means one should never or does not have a case to sue. It just means there is a CONSEQUENCE to lawsuits that causes you to pay BOTH sides. Resolution to issue are provided WITHIN your documentation. It's best to handle thing internally and neighborly...

Your always going to have people like this. It makes the job "interesting". I had the same camp of people who wanted to bury the pool. However, once I pointed out the real value of a pool isn't necessarily it's use, they backed off.

If you want to sell your house at a good price, then you want to keep your HOA in the best condition as possible. That includes being orderly, financially responsible, and having amenities potential buyers want. Change the thought process and you change a mind...

Former HOA President
AugustinD
Posts: 5,144
Posted:
I echo what SueW6 said. These folks trying to spontaneously change the nature of the HOA, and in a radical way, need to read the governing documents. They need to contemplate why proper notice must be given for such a vote. The main reason is that the governing documents are effectively a contract between members and the corporation. The terms of a contract necessarily must not be easy to change. If the terms could be changed easily, chaos would rule.

These votes Patrick describes are at best "advisory" votes to the Board and are not legally binding.
KerryL1 (California)
Posts: 14,550
Posted:
More important that the Owners reading your governing documents, Patrick, is that your learn them.

For instance, our CC&Rs (declaration, covenants) say that one duty of the board is to collect assessments to be used in certain kinds of ways, i.e, buy insurance, maintain common areas (such as pools), etc.

That same document says how to change your CC&Rs. Probably requires a large % of Owners, perhaps 67%. Your bylaws should say proper procedures for conducting elections. In the dues case, your bylaws probably say that those who want to waive the dues via a change to your CC&Rs need to gather signatures on a petition, etc., first. Then a proper election would need to be held to change your CC&Rs. They may not just yak about it.

If your bylaws don't say much about the topic of petitions & elections, you may have to turn to AL corporations codes assuming you're incorporated (most HOAs are).

Sue's idea of suggesting those who want to fill the pool to form a committee is a good one. Make sure your Board writes a charter that exactly describes what the Board wants them; n do not let them run all over the countryside getting contractors to come out & look at your pool, for instance. On 2nd thought, to this right would take too much of the Board's time and I'm guessing your have more important things to attend to.

Your Board can make rules about meeting conduct. But I assume your members or annual meeting is, well, only annual. Your bylaws may require robot's rules for members meetings, ours do, but honestly, members just need to motion & 2nd the election procedures, e.g., approve the minutes from the previous annual meeting. There's no need for a 10-minutes talk.

The other meetings you have probably are meetings of the Board. It's possible that your bylaws and/or AL law doesn't even require that they be open to Owners. But they might be, as in many states, it is a BOARD meeting, not a members (Owners) meeting. Owners can be invited to observe, but they have no voice or vote. Like CA & others, your bylaws or AL laws might require an open forum period when owners can ask questions, etc.

But the board sets the agenda. As others have suggested, if the board wants to, it can permit agenda items from Owners, but, yes, you definitely want those several days in advance of the meeting to see if you need to do any research. If the item is ridiculous (some are), you can still place it on your agenda and then the Board can simply vote to take no action on it.

Curious: How many homes? How many directors? Property mgr.?
SheliaH (Indiana)
Posts: 6,964
Posted:
You said the meeting did get out of order, so next time, use Robert's Rules of Order, as others have suggested. Announce the rules for good behavior at the start - no need to go in depth, but simply say things like (1) this is a business meeting and we must follow the agenda to get through everything, so if it's not on the agenda, it won't be discussed (2) raise your hand if you have something to say - the president will recognize you. A time limit may be enacted so everyone has a chance to speak (and you will be timed) (3) issues like closing the pool or not are too involved to address in the annual meeting and that's not really the place for it. Instead, send your suggestions to the board, so it may consider chartering an advisory committee to study the issue in detail, and then present options, which would then be forwarded to the homeowners for debate. Want to volunteer - raise your hand. The board will charter the committee and go on from there.

Regarding the forgiveness of past due accounts, the annual meeting would be a good place for the treasurer to remind everyone of the importance of paying them and what they pay for. Explain that when some people don't pay everyone else has to pay more to indirectly cover the shortfall, which isn't fair and besides everyone has a legal obligation to pay them, so there won't be any forgiveness and the documents don't authorize the board to do this anyway.

By the way, do your documents allow delinquent homeowners to vote? If not, you may want to remind people of this too (although most documents prohibit delinquent homeowners from voting in board elections, but they can vote on amending the Bylaws or CCRs)


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Pat

Your owners have to be made aware that your association is not run by "arbitrary" motions/voting from the floor. It is run by the BOD.

One tactic might be a "nice" letter from the BOD explaining how the association operates and how meetings are conducted.

Attempt to educate them before alienating them.
JerryD5 (Colorado)
Posts: 218
Posted:
Do you not have a rule in your CC&Rs or bylaws that state homeowners not in good standing (ie late or overdue with dues) can not participate in a meeting? Fortunately, we have a low overdue/late rate in our HOA (3-4 homes in a 63-home association). IF those 3 or 4 homeowners came to the annual meeting, they would not have been allowed to participate.
SueW6 (Michigan)
Posts: 814
Posted:
Owners not in "good standing" can be prevented from voting IF that is stated in the bylaws, but I don't think you can legally prevent a homeowner from attending the meeting.

JerryD5 (Colorado)
Posts: 218
Posted:
Quote:
Posted By SueW6 on 11/19/2016 2:05 PM
Owners not in "good standing" can be prevented from voting IF that is stated in the bylaws, but I don't think you can legally prevent a homeowner from attending the meeting.


In our HOA, they are allowed to attend but are not allowed to participate in elections, making motions (though we have never had a homeowner bring up one), etc. After the formal part of our annual meeting and officially adjourned, we do have a general discussion period which they can bring up a topic.
PatrickK4 (Alabama)
Posts: 13
Posted:
Thanks for the feedback. Like I said, we're new at this. This is the first ever meeting in 10 years of existence - the HOA was in operation long before my arrival. Sounds like we need to make a CCR update a priority since there is nothing in the bylaws, CCR or AOI about presenting motions, agendas or anything of the sort. It's also written from the perspective of making the declarant's life easier and he is now just a lot owner and no longer a declarant.
KerryL1 (California)
Posts: 14,550
Posted:
How to conduct meetings is not generally found in HOA's governing documents. Your bylaws, however, should say what types of meetings there are, Board meetings vs. owner (members) meetings, for instance. (Please review my above)

In other words, motions, seconds, debate, vote is found in Robert's Rules of Order. But there are many, many easier publications to read about this topic. Se what you can find at the CAI website that might be free.

CA has way more laws about HOAs than AL, but go to a attorney-compiled website called davis-stirling.com and scroll the Main Index to Agendas & click on it to see a sample. There is a a lot of interest at that site. But if any laws are cited they might only apply to CA

If you have a property mgr (PM) that person should be able to help you with the proper conduct of meetings. HOAs often have HOA attorneys and they usually know a fair amount about conducting meetings.

It sounds like your entire Board needs someone to get you started with the basics.

MaureenM1 (PA)
Posts: 344
Posted:
Our Board has our Board Attorney attend the Annual Meeting. I find that the homeowners don't read or understandthe governing documents and will "try" to make motions to change the CCR's at the Annual Meeting. They are reminded by our attorney the percentage of vote and procedure, etc. It only happened once,years ago and never again. We continue to have our attorney at the meeting. It is worth the cost.

KerryL1 (California)
Posts: 14,550
Posted:
Maureen makes a good point. Ours attends every annual meeting and one additional meeting --both are included in his $500 annual retainer.

Still cry ious Patrick: How many homes? How many on your Board? Prop. mgr.?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Patrick,

When someone pushes for a vote at our meetings, we simply state that such a vote requires (by statute) proper notice to the membership otherwise the vote wouldn't stand a legal challenge. This tends to quiet the individual down.

CyrstalB (Maryland)
Posts: 457
Posted:
Why is an owners suggestion to fill in a pool "selfish"? Passing judgements such as this is a slippery slope to your entire tenure as a board member being pure hell.

You will do yourself and your board and your HOA a huge favor by understanding that every single person in that HOA has a right to say or speak what they want their HOA to do. and just because you don't agree does not make them selfish.

As a board member it is your DUTY to hear out every single resident's suggestions and do so with respect, no matter how outlandish.

Your first meeting was held without the board being properly trained and it spiraled out of control because you passed judgements on an owner. That is all it takes to wake up the giant FU that lives within us all. And yes that works both ways.
PatrickK4 (Alabama)
Posts: 13
Posted:
We currently have 62 roofs and approximately 20 unimproved lots. Our board consists of 4 homeowners, myself included. I'm also the president, another board member is our treasurer. Someone recently volunteered to be secretary (outside of the board) which will be a huge help. We don't have a property manager. We have an attorney, he was not invited to the meeting.

Since this was the first meeting, ever, in 10yrs...the residents finally felt like they had a place to voice their concerns. I understand that in a typical meeting, this wouldn't happen like it did on our first one. I felt that it was important-this time only, to let everyone get it all out. We've been extremely transparent with everything to the furthest extent possible. The vast majority of the neighborhood is ecstatic we've made so much headway in 6 months. There are a handful of owners that make it difficult for us and unfortunately, we've exhausted all of our authorities as board members and the courts will make the ultimate decision so we can move from there. Sure, we could have done some things differently which may have had some situations turn out better. Live and learn. You all are a great resource.
SueW6 (Michigan)
Posts: 814
Posted:
Hopefully, you will provide residents to have input at regular Board meetings. A portion at the very beginning of the meeting for "resident's input" will allow people to vent, ask questions, make suggestions, BEFORE the actual business portion of the meeting begins, at which time the Chair must recognize all speakers and limit the input from the audience.

The Annual Meeting is not a time for "venting" - geez, you would be there all day.

The Annual Meeting is a chance for the Board president to report to the residents about what the Board has dealt with the past year and what the upcoming programs/challenges are; Treasurer's report; Committee report; motions; elections.

SueW6 (Michigan)
Posts: 814
Posted:
Crystal

The OP stated that a MOTION was attempted to made about the pool being filled in. No one passed judgment about the subject of the motion - only that it could not be made since ALL the residents were not notified that there would be a vote taken. So the motion was not accepted.

Hopefully, the Chair suggested a committee to study the issue.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By PatrickK4 on 11/20/2016 1:55 AM
Thanks for the feedback. Like I said, we're new at this. This is the first ever meeting in 10 years of existence - the HOA was in operation long before my arrival. Sounds like we need to make a CCR update a priority since there is nothing in the bylaws, CCR or AOI about presenting motions, agendas or anything of the sort. It's also written from the perspective of making the declarant's life easier and he is now just a lot owner and no longer a declarant.

Remember that changes in Covenants and/or Bylaws will take a majority of owners voting to do so thus not an easy task. You also do not want to clutter the docs with useless things and/or things readily available from other sources such as how to conduct a meeting, proper minutes, etc.

Rules and Regulations can be drawn up and implemented by a BOD alone. They can also be modified/cancelled by the BOD alone. R&R's cannot override Covenants nor Bylaws, but they can be very helpful in setting proper procedures. Many R&R's call for an open Question and Answer Session before a BOD Meeting. This shows that the BOD is open to learning what people want. Questions and comments can be limited to say 3 minutes per. Also Q&A's do not have to be answered on the spot. One common answer is the comment has been noted and will be further reviewed by the BOD. If owners do not like the R&R's they can work to change the BOD members and have the new BOD rescind them.

Let people have a say at BOD Meetings but this does not mean they run the HOA. The HOA is run by the BOD, not by motions from the floor and this is one area you have to make people understand proper procedure.

Roberts Rules of Order are fine, though there are others that are a lot simpler, but the BOD controls the association, not some set of business meeting rules.

CyrstalB (Maryland)
Posts: 457
Posted:
Quote:
Posted By SueW6 on 11/21/2016 8:31 AM
Crystal

The OP stated that a MOTION was attempted to made about the pool being filled in. No one passed judgment about the subject of the motion - only that it could not be made since ALL the residents were not notified that there would be a vote taken. So the motion was not accepted.

Hopefully, the Chair suggested a committee to study the issue.

This is what the OP stated, "A resident that doesn't use the pool, attempted to push for a vote to "fill the pool in" since he doesn't use it. Selfish right?" That is a judgement.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JerryD5 on 11/19/2016 1:57 PM
Do you not have a rule in your CC&Rs or bylaws that state homeowners not in good standing (ie late or overdue with dues) can not participate in a meeting? Fortunately, we have a low overdue/late rate in our HOA (3-4 homes in a 63-home association). IF those 3 or 4 homeowners came to the annual meeting, they would not have been allowed to participate.

I've never heard of such a restriction.

A restriction on being able to vote or not, yes.
A restriction on being able to even attend the meeting or not, no.

Could you please provide the language of your restriction?

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