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PennieW (North Carolina)
Posts: 8
Posted:
Our HOA bylaws state that amending the bylaws requires an affirmative vote of the BOD before putting the amendment to the members. Doesn't this mean that the members themselves CAN NEVER amend their bylaws unless the board goes along with the change? Our bylaws are, in this way, more restrictive than the laws governing non-profit corporations. It is my understanding that the more restrictive bylaws will rule. Thoughts?

Also, our state's Planned Communities Act says that the BOD only has to allow members to attend a portion of a board meeting, every so often. At our annual meeting an attempt to move a motion to require the board to have open meetings except in specified situations (legal, personnel, Open Meetings Act language), and to make the minutes reflect BOD votes, was ruled out of order. Our board does not allow members to be present for anything beyond committee reports (adhering to state law), and the minutes often do not reflect how individual members have voted on motions. The Board's attorney (we all know the Board's attorney is NOT the association's attorney, right?) was present and admitted that state law is only a floor, a minimum of what is required, and yet, he upheld the ruling of the Chair, that the motion was out of order that attempted to expand on the minimum. It appears to me that their thinking was that the motion was in the nature of an amendment to the bylaws. I believe this is in error. Nothing in our bylaws speaks to the conduct of a BOD meeting; by state law, meetings are to be conducted using Robert's Rules. Thoughts?

I realize there is an interesting discussion on this forum regarding the propriety of allowing any motion of substance at an annual meeting. Our bylaws only require notice of the annual meeting and indeed the agenda is not sent prior, but handed out at the meeting. New Business is a part of the agenda. Further, our bylaws state that when a quorum is present (20% of the membership in our case), a majority shall decide any question brought before the meeting. While the Board is charged with establishing "the order of business", I say having New Business on the agenda of an annual meeting means a member can move a motion -- it's new business. Initially, the board and its attorney tried to say "allowing motions" was not on the agenda, and so out of order. Have you ever seen "allow motions" on an agenda?

TimB4 (Tennessee)
Posts: 21,059
Posted:
Pennie,

Are you in a condominium or single family home HOA?
I ask because bylaws mean different things.

Without reading your Bylaws, I can't be certain. However, it's typical that the membership may call a special meeting of the general membership for a specific purpose. This would be the avenue the membership would use to amend the Bylaws.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By PennieW on 12/03/2016 8:44 PM

While the Board is charged with establishing "the order of business", I say having New Business on the agenda of an annual meeting means a member can move a motion -- it's new business. Initially, the board and its attorney tried to say "allowing motions" was not on the agenda, and so out of order. Have you ever seen "allow motions" on an agenda?


The membership may not raise any motion that requires a membership vote to approve (like amending the governing documents). This is due to the notice requirements. If you think about it, that is fair. You wouldn't want a few who attended the meeting to amend the Bylaws without you knowing that such a vote was taking place.

The membership may make advisory motions or motions for the Board to propose an amendment next year concerning xyz.

Question: Who controls the Association (the members or the Builder)?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By TimB4 on 12/04/2016 4:52 AM
Posted By PennieW on 12/03/2016 8:44 PM

While the Board is charged with establishing "the order of business", I say having New Business on the agenda of an annual meeting means a member can move a motion -- it's new business. Initially, the board and its attorney tried to say "allowing motions" was not on the agenda, and so out of order. Have you ever seen "allow motions" on an agenda?



The membership may not raise any motion that requires a membership vote to approve (like amending the governing documents). This is due to the notice requirements. If you think about it, that is fair. You wouldn't want a few who attended the meeting to amend the Bylaws without you knowing that such a vote was taking place.

The membership may make advisory motions or motions for the Board to propose an amendment next year concerning xyz.

Question: Who controls the Association (the members or the Builder)?

Tim is spot on about notification. Also with a 20% Quorum requirement this would mean that 20% could change Bylaws and maybe as few as only 50% of the 20%.

The OP has not thought this through.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The board and the general members both have to work to make the rule changes. The members have the right to vote to make changes. Board members are also "general members" too. They count as part of the majority vote of the membership to get the vote requirement of the entire HOA. However, in the end after the changes are agreed to and written, the board has to vote to pay for it. The board has to agree to use funds to hire the lawyer and pay the fees necessary to make those changes legal. General membership doesn't have that voting/control over the budget.

The board is elected from the general membership by the general membership to represent them on daily HOA business. You basically agree to vote for someone on the board to do the work of the HOA so you don't have to. The board is to then respect that and do what the majority of the membership wants them to do. In this case, it's to make changes to the rules. Making changes to the rules can entail some legal, filing, and distribution costs. A thing that has to come out of the HOA budget.

Board members do not get "double voting" rights. They have the same voting rights as the general membership. It's just they also are able to vote as a board representing the entire HOA. A right that you as general memberships gave them.

Former HOA President
PennieW (North Carolina)
Posts: 8
Posted:
I agree, as it comes to amending bylaws or in any way affecting a member's rights. Notice is important. But an administrative/procedural motion, ie closed meetings in only certain situations like other quasi-governmental bodies, and declaring the actual individual board member's vote on a motion in the minutes, should not have to become a bylaw change, imo. It should be on the order of a policy/rule. Think about the unfairness of expecting people to vote for a board, when they have no idea, nor any way of knowing, how an individual member voted on issues of importance in the past?
PennieW (North Carolina)
Posts: 8
Posted:

The membership may not raise any motion that requires a membership vote to approve (like amending the governing documents). This is due to the notice requirements. If you think about it, that is fair. You wouldn't want a few who attended the meeting to amend the Bylaws without you knowing that such a vote was taking place.

The membership may make advisory motions or motions for the Board to propose an amendment next year concerning xyz.

Question: Who controls the Association (the members or the Builder)?

I responded to most of your comment on another post, but just so I am clear on what you are saying -- you adhere to the belief that the membership has no power to direct the behavior of the board except by amending the by laws, or ousting them? As to who controls the Association? Members or developer? I'm assuming you are wondering if the community has been turned over? Yes, it has, with the exception of certain physical attributes, roads, gate house.
PennieW (North Carolina)
Posts: 8
Posted:
see my response to Tim -- I agree if we are talking about changing bylaws. Perhaps a reread of my original post is in order. I do not believe the motion that was ruled out of order was changing bylaws -- I believe it was procedural/administrative, in the nature of a rule change or policy change. I could be in error in my thinking but to me, bylaws are in the nature of statutes which carry out a constitution (CCR's), as in public governance, they are under/subservient to a constitution, and under the statutes, are the regulations. Perhaps because my background is government, I see analogies which make me loathe to desire to change a bylaw for every administrative matter.

The first paragraph of my original post reveals our bylaw that says before a bylaw can be sent out to the membership, it must first have an affirmative vote of the BOD. How then can a bylaw ever be changed by the membership if the BOD does not want it? This is a catch 22, imo. You can call a special meeting, give notice, blah blah -- but how do you ever get around a bylaw that says: " These bylaws may be amended at a duly called meeting of the members FOLLOWING AN AFFIRMATIVE VOTE ON THE AMENDMENT BY A MAJORITY OF THE BOD."
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Pennie

I commend you for posting and learning.

Most docs are written that the builder/developer/declarant generally controls the association up to a defined point like 90% of homes sold, etc. Like it or not, that is the way 99.99% of HOA's are done. Many experienced HOA buyers will not buy into an HOA while under Declarant control. I have bought in while under Declarant control but near the end of the control

Most BOD's do allow an owner's comment period, before of after the meeting, but do not allow owner's comments during a BOD Meeting. Imagine the fiasco of allowing anybody to speak at any time.

You sound like a first time HOA buyer and into one under Declarant control. Am I correct?

SueW6 (Michigan)
Posts: 814
Posted:
In my former HOA, any proposed bylaw change had to be "vetted" by the Board for its legality, conflict with other bylaws, feasibility and economic impact. THEN it is sent on for vote at an annual meeting.

you say the Board had to "Approve" the proposed new bylaw. Are you sure that's what you meant?

KerryL1 (California)
Posts: 14,550
Posted:
You know, Pennie? It's possible that NC statutes that apply to your type of HOA might override your own bylaws re: needing board approval before proposed bylaws revisions can go to the membership. Check NC corporations code, too, if your HOA is incorporated (most are). You say that your bylaws are more restrictive than state law. But the latter prevails UNLESS, of course, the wording his such that it says: unless your bylaws state otherwise...

Some states, btw, are "open meeting" states where board meetings must be open to Owners with a few exceptions related to privacy. CA & VA are open meeting states; SC is not. What is the law in NC? You say meetings must be partially open, but is it possible to give us the actual wording?
PennieW (North Carolina)
Posts: 8
Posted:
You are correct -- they are written by the developer. We are no long under declarant control, not since 2010-11. I have owned two condos, both in Illinois and NC. I believe there is a separate condo act in NC -- separate from the NC Planned Communities Act (our community predates the act so only certain provisions apply to us). This is my first time in a planned single family home community, however.

Allowing comment at a BOD meeting is not the question or concern.
PennieW (North Carolina)
Posts: 8
Posted:
The not-for-profit act applies to us, but frankly, the applicable section on amending by laws is one of the worst drafted pieces of legislation I have ever read. (I used to have a little involvement in drafting legislation, so I know confused when I see it). I have also read a CA association attorney opinion that says the general rule is that the most restrictive language will prevail -- that has always been my thinking, too, but in this case, I wouldn't bet my life on it. The thinking would be that the statute supplies a floor, but if people want to bind themselves to something more restrictive, so be it. Would that NC was as progressive as CA and VA!

Here's the language of The Planned Communities Act, Ch47F, article 3, section 108. At regular intervals, the executive board (that means the BOD, not an executive session or committee) shall provide lot owners an opportunity to attend a PORTION of an executive board meeting and to speak ... about their issues and concerns. emphasis, and()mine

Did I use the word "partial"? I think I used "periodic," ie, at regular intervals. Can't scroll back and look while replying.

So you see, the BOD does not have to allow even a portion of a meeting to be attended every time the board meets.

Another riddle -- the not-for-profit act allows 10% of the membership to call a special meeting -- our by laws requires 33%. Which rules?
PennieW (North Carolina)
Posts: 8
Posted:
Sorry everyone, just getting used to this board. Guess I need to use people's names so you can tell which post I am replying to.

Sue -- the exact wording is bylaws may be amended by the membership "following an affirmative vote on the amendment by a majority of the Board of Directors."
KerryL1 (California)
Posts: 14,550
Posted:
Unless the NFP Act defers to an organization's governing docs, it supersedes your bylaws.

Our docs only require a petition signed by 5% of Owners and I've seen similar low % in previous threads. 33%, in fact, seems inordinately high just to call a special meeting of the membership.
PennieW (North Carolina)
Posts: 8
Posted:
thanks Kerry

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