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MichelleA6 (Texas)
Posts: 4
Posted:
Is it legal in the Texas hoa laws to grant a non board members board voting rights? And what is the agency that moderates Hoa's? What are a homeowner's steps of actions in dealing with a board that is breaking state laws and is hostile toward anyone who questions or disagrees? Some of current board members are behaving as dictators and out voting well serving board members. Please advise me of legalities or options.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Michelle ... welcome to the forum.

If you need legal advise then you need to contact an attorney ... we are not attorneys and can only offer advice based on our experiences.

The individuals elected to a Board of Directors by the membership at a properly called Meeting of the Membership are the individuals who are allowed to vote at Board of Director meetings. When membership meetings are held and items which require membership votes then potentially a member can designate a proxy to vote on their behalf and that individual could be a friend or relative who does not reside in the HOA.
MichelleA6 (Texas)
Posts: 4
Posted:
Thank you for your direction. I understand this is not legal advice. I understand about proxy votes also. The issue specifically is a volunteer asked the board for rights to vote as a board member. It was granted and this volunteer has been voting as a board member and been acting as a board member at every meeting ever since. It's in the meeting minutes and clear that this individual is a volunteer and has never been voted in as a member. I have printed out every meeting minute record. I did not think this was an option.

Is there an agency I can report their actions to if I find they are in violation of the law?

Thank you for your input
JanetB2 (Colorado)
Posts: 4,219
Posted:
No ... a volunteer cannot vote as a Board Member. Again, the Board of Directors are elected by the Membership to represent their "property rights" with regards to the HOA. The Board has the ultimate LEGAL responsibility for the HOA and if they allow a non elected volunteer to vote they can potentially put themselves and the HOA at risk. The Board has a "fiduciary" responsibility and to allow anyone to vote and possibly supersede the elected board desires and responsibility is reprehensible in my personal opinion.

Most states do not have agencies and not sure about TX. In most cases if the Board cannot be made to see reason then the alternative is a Court of Law. However, it should be a last resort if possible.
KerryL1 (California)
Posts: 14,550
Posted:
I'm with Janet. Are you sure, Michelle, this person wasn't appointed/elected by the Board to fill a vacancy on the Board? How many directors s re you supposed to have?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Michelle,

If there was a vacancy on the Board, that is to say your documents allowed for 5 board members and only 4 seats were filled, then the Board may appoint someone who volunteers to fill that vacant position. Is this what happened?

There is no agency that overseas HOAs or COAs.

HOA/COA statutes are considered civil laws. Civil laws are enforced by the parties involved wither by discussion or through the courts.

A few questions:

How many Board members (including the volunteer you discuss) are serving?
How many Board members are allowed to serve per your governing documents?
Is your Association under control of the membership or the Builder?
MichelleA6 (Texas)
Posts: 4
Posted:
In Texas there is a min of 3 max 5 required to form hoa board. I was told by previous president that this member is solely a committee head. I have reviewed the meeting minutes and have not found this person to be nominated or elected. The minutes which they gave voting rights to this volunteer read approximately.... Since this person has been a volunteer,this person is requesting to Be able to vote towards decisions and discussions. Response in minutes - This volunteer is a board member. All board members can vote towards decisions and discussions.

That was the discussion. There's no record that this person was voted on. It was discussed and decided by the board but there's no record it was voted on. There were 4 board members at this point so if this member became a board member it would be within the amount allowed by law.
My concern is this person is the spouse of another board member. And currently there are "4 board members" which includes this volunteer. the current president is not exercising his vote because there are an even number on votes. This leaves the married members and their close friend (who is the last vote). So since only 3 are voting ... the married couple have say no matter the issue.

Any thoughts on this is appreciated.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Thanks Tim ... I was tired and forgot to ask if potentially a BOD member had been replaced ...

Michelle ... If you had a BOD member resign then the BOD can vote among themselves to replace that individual until your next Membership Meeting.
JanetB2 (Colorado)
Posts: 4,219
Posted:
What do your governing documents state with regards to BOD members? You might also check your State Statutes. Some HOA documents do not allow more than one individual from the same unit to serve on the BOD for the reason you stated, because it gives control to one unit regarding decisions. Also, you might ask since it is not an even number on the BOD if you could be elected to fill the 5th slot.
SheliaH (Indiana)
Posts: 6,964
Posted:
I think you already know the answer to a lot of this, but in case you need to hear it out loud:

It sounds like you’ve already checked your documents and know the number of votes per unit and how board members are appointed or elected. There may also be language on co-owners serving as board members – typically there’s only one vote per unit, so it wouldn’t be appropriate for a married couple (or any two or more co-owners) to serve on the board at the same time, so you wouldn’t need specific language banning this.

You say there’s no record of a vote for this person – if this person is the head of a committee, did the president tell you what committee that is? Who else serves on the committee and when was it established? When have they had meetings and what the hell are they supposed to do? Just because you’re a committee chair that doesn’t make you a board member. Committees typically research specific issues and make recommendation to board to vote on, although a few might be empowered by the board to do something, such as initial reviews of exterior change requests.

If there’s nothing to this effect in board meeting minutes, you’ve pointed this out to the board, but they’re ignoring you and/or are downright hostile to your question, perhaps you should rally your neighbors and vote these people out in the next election. Considering there appears to be someone making board decisions without being a bonafide elected member of the board could be an example of extreme behavior and that’s where you might need to call a special homeowners meeting to recall them.

Yes, that will require some work on your part and you may even need to consider running for a spot on the board yourself. So go out and start talking to your neighbors to see how they feel. If they’re as upset as you, all of you can be the start of turning things around.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DouglasK1 (Florida)
Posts: 2,046
Posted:
Michelle,

Realistically, it seems your best option is to try to get new board members elected. This is typically easiest done via the annual elections, but can also be done by a recall vote, the method for that would be in your governing docs or state law.

If most owners are happy with the current board, then you are very possibly stuck with it.

If you do decide to work towards a new board (either running yourself or recruiting like-minded people), you should plan on doing more than just getting nominated to show up on the ballot. This could include going door to door to talk to people (campaigning) and possibly collecting proxies.

Escaped former treasurer and director of a self managed association.
MichelleA6 (Texas)
Posts: 4
Posted:
This person was voted in as ARC head. What is the process of calling a special homeowners meeting? I have spoken to many homeowners about this and they are troubled by multiple members of same house voting on the board. There is also a Texas law effective 9/1/15 which there has to be at least 72 hour notice and letters sent to all homeowners before "special 14" issues can even be DISCUSSED. One of these is filling a vacancy on a board. Texas Senate bill 1168.

I do believe they are in violation on multiple issues and have become pretentious and unapproachable. I want to protect my community and make sure the board is operating within the parameters of the Texas law.

At this point the developer is no longer involved and we don't have a management company. Is it advisable to have a management company given they are supposed to be very versed with HOA operating laws? I also believe it will be easier to obtain and maintain BODs if a large amount of the workload is given to a management company.

Thank you again for all advice and information.

Link regarding "special 14" law -
http://www.pfcona.org/documents/2015MeetingRequirements_Niemann&Heyer_finalJuly.pdf
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By MichelleA6 on 02/20/2017 8:52 AM

The minutes which they gave voting rights to this volunteer read approximately.... Since this person has been a volunteer,this person is requesting to Be able to vote towards decisions and discussions. Response in minutes - This volunteer is a board member. All board members can vote towards decisions and discussions.

Officers and committee chairs typically attend Board meetings to provide input and reports.
Everyone who attends board meetings are not members of the Board.
Only Directors are members of the Board and only Directors are authorized to Vote.

Now, can Directors seek input from others? Absolutely! and they should.

RichardP13 (California)
Posts: 3,868
Posted:
MichelleA6

This person could very well be a Board member. While not right, I have seen individuals appointed by the existing Board in closed session with no notice to the owners. It is, IMO, WRONG, but it is done. Second, unless your governing clearly state that there can be no more than one Director per household, it probably is allowed. That means on a Board of 3-5, that one household wield 40-67% power. No thank you.

If, what they are doing concerns you, find like minded owners and change the makeup of the Board.
KerryL1 (California)
Posts: 14,550
Posted:
What do your Bylaws (or other docs) say about how the Board should appoint/elect directors to fill vacancies?

And, if Richard's right, and the Board DID appoint this person to the board, but it's not in your regular meeting minutes, then, the board really is sleazy. With Sheila & Richard you need to find ways to unify owners so a new Boar can be voted in either vial recall or at the next annual election.

Btw, you cited TX law, but what do your own governing docs say about how many directors there should be. This might be in your Bylaws.
KerryL1 (California)
Posts: 14,550
Posted:
Not that size really matters, but what size is your HOA? Often a PM can be a big help and should some sort of certification.

But it could cost your HOA a lot depending on how much you want the person to do, e.g., how many hours a week to work just for your HOA,a nd other factors.
NigelB (Texas)
Posts: 254
Posted:
Quote:
Posted By MichelleA6 on 02/20/2017 8:52 AM
In Texas there is a min of 3 max 5 required to form hoa board. I was told by previous president that this member is solely a committee head. I have reviewed the meeting minutes and have not found this person to be nominated or elected. The minutes which they gave voting rights to this volunteer read approximately.... Since this person has been a volunteer,this person is requesting to Be able to vote towards decisions and discussions. Response in minutes - This volunteer is a board member. All board members can vote towards decisions and discussions.

That was the discussion. There's no record that this person was voted on. It was discussed and decided by the board but there's no record it was voted on. There were 4 board members at this point so if this member became a board member it would be within the amount allowed by law.
My concern is this person is the spouse of another board member. And currently there are "4 board members" which includes this volunteer. the current president is not exercising his vote because there are an even number on votes. This leaves the married members and their close friend (who is the last vote). So since only 3 are voting ... the married couple have say no matter the issue.

Any thoughts on this is appreciated.

There is nothing in Texas law that specifies how many board members should be on an HOA board. That is the prerogative of the entity that set up the Association and the number of board members would be specified in the Bylaws of the Association

The membership elects the Directors and the Directors appoint committee members. Those committee members will have voting rights but only can vote on matters before the committee or in exercising their voting rights as members. Committee members cannot vote in matters before the board (unless they are also board members).

A board may appoint an individual to fill a vacancy, but a board cannot appoint an individual to fill a vacancy that was not previously held by an elected board member - in other words if your governing documents specify that the board may consist of 3 to 5 board members, and only three members are elected to those positions, then the elected board cannot fill the 2 vacant positions by appointment.

While there is no government agency in the State of Texas that has jurisdiction over HOA's. The Attorney Generals office has oversight over the legislation enacted by the Texas Legislature. The principle legislation regarding HOA's and how they operate is contained in Chapter 209 of the Texas Property Act, more commonly known as the Texas Residential Property Owners Protection Act.

As you have noted, the Act requires 72 hr advance notification to the membership prior to a board meeting - that notification can be satisfied electronically if the board or the management company has a website.

My opinion is that a member of a committee cannot be granted the right to vote in matters before the board unless that committee member is also a board member.

Your least expensive method to remedy any violations is to point this out to the board, and if they decline to operate in conformance with the law, use the provisions contained in your governing documents to replace the board.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By MichelleA6 on 02/20/2017 9:51 AM
What is the process of calling a special homeowners meeting?

You need to look at your documents especially the By-Laws and see what they may state for special meetings. If your HOA is registered as a Non-Profit Corporation then you need to review those State Statutes:

http://www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm

Those statutes will make references such as:

Sec. 22.155. SPECIAL MEETINGS OF MEMBERS. A special meeting of the members of a corporation may be called by:
(1) the president;
(2) the board of directors;
(3) members having not less than one-tenth of the votes entitled to be cast at the meeting; or
(4) other officers or persons as provided by the certificate of formation or bylaws of the corporation.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Sec. 22.156. NOTICE OF MEETING. (a) A corporation other than a church shall provide written notice of the place, date, and time of a meeting of the members of the corporation and, if the meeting is a special meeting, the purpose or purposes for which the meeting is called. The notice shall be delivered to each member entitled to vote at the meeting not later than the 10th day and not earlier than the 60th day before the date of the meeting. Notice may be delivered personally or in accordance with Section 6.051(b).
(b) Notice of a meeting of the members of a corporation that is a church is sufficient if given by oral announcement at a regularly scheduled worship service before the meeting or as otherwise provided by the certificate of formation or bylaws of the corporation.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Sec. 22.208. TERM OF OFFICE. (a) Unless the director resigns or is removed, a director on the initial board of directors of a corporation holds office until the first annual election of directors or for the period specified in the certificate of formation or bylaws of the corporation. Directors other than the initial directors are elected, appointed, or designated for the terms provided by the certificate of formation or bylaws.

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