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SueW6 (Michigan)
Posts: 814
Posted:
Visiting my friend in FL and attended her annual meeting with her. There was not a meeting - for the 4th year in a row - since a quorum was not established, either by in-person or by proxy. Needless to say, the residents were very upset. Election still took place. So I ask:

The threshold for the quorum is 51%. Isn't that high? They way they are going they will never be able to have their annual meeting.

The property manager handled the election. All sealed ballots had to be presented in a sealed envelope, with the return address completely filled out up in the corner. Those envelopes that even had missing zip code or state were deemed invalid. One of the board member's envelope was deemed invalid because she didn't write her unit number on the outside - even though she was sitting there at the meeting! She was not allowed to get the envelope back and correct it.

How can we get a copy of their bylaws? They are in Broward County.

SheliaH (Indiana)
Posts: 6,964
Posted:
Your friend should have received a copy of the bylaws and CCRs when she bought the house, so she might want to pull out the documents she got at closing and look through that. If she didn’t get anything or can’t find them, check with the county recorder to get a copy. Unfortunately, this isn’t the first time I’ve heard people not getting the governing documents (they’re also stunned to find they brought a house in a HOA!) Since there is a property manager, it may be faster to contact them and request a copy – there may be a charge for it (pay it anyway).

When you get the bylaws check what it says about annual meeting quorums vs. those required to amend the documents – I wouldn’t be surprised if the annual meeting quorum is much smaller (it’s 10% in mine). A 51% threshold for amending documents, on the other hand, is quite reasonable (better than my community’s 75%). I suspect someone’s gotten the quorums royally mixed up.

You usually have to have an annual meeting quorum to have a board election, so if you get them, the people currently serving would stay on until they’re voted back in – or out.

As for the property manager, why is he or she running the election? In my community, proxies are sent to the manager for convenience, but they aren’t opened until the meeting date at the building and then other homeowners volunteer to count them in front of everyone. They also sign in the homeowners who attend and check that against the owner’s roster, which notes if someone’s current with assessments, so if you don’t have a star by your name, you can’t vote or run for a spot on the board.

Tell your friend to get together with other like-minded homeowners – if this has been going on for 4 years and they’re really upset, it’s past time for them to get up and rally together to fix it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ArtL1 (Florida)
Posts: 140
Posted:
It's kind of a PITA to use, but depending on how the original documents for the HOA were filed with the county, you may be able to find their bylaws searching https://officialrecords.broward.org/oncoreV2/search.aspx?q=detail

You can also try http://search.sunbiz.org/

51% is very high for quorum...we can't even make quorum with our 30% rule. Some HOA's have a lower quorum requirement for the election of directors...and it sounds like your friend's HOA is one of these...but the bylaws would spell it all out...or tell you if the current directors or PM are FoS and just making things up.
KerryL1 (California)
Posts: 14,550
Posted:
With Sheila, I also suspect that someone's confused. Our required quorum is 25%. If it's the PM who's infused, your friend's HOA needs a new one.

We also must put our name, complete HOA address and signature on an outer envelope. Our inspectors have never allowed re-dos and every year we have a handful-3-4--who just can't get it right.

I don't know if Bylaws must be recorded in FL; they aren't here. But, as suggested, surely she can get them from the PM or a neighbor.
ArtL1 (Florida)
Posts: 140
Posted:
AFAIK, they don't have to be in FL. From what I've seen in dealing with my own HOA and researching others, some HOA's file the CC&R, Articles of Incorporation, and Bylaws all together as one package. Some don't file the Bylaws at all.
CarolF (Florida)
Posts: 435
Posted:
You didn't state whether this is a condominium association, or a home owners association
of individual homes. You mentioned a "unit number" so I'm guessing it could be a condo.
The FL statutes regarding annual meetings are different for each - in 718 for condos and 720 for home owners associations.
GenoS (Florida)
Posts: 4,276
Posted:
Florida permits elections for condo boards even when the annual meeting quorum isn't met (as long as 20% of voting interests cast ballots - don't quote me, check FS 718 to be sure). HOAs in Florida can't do that; that's what leads me to believe it has to be a condo association.
GwenG (Florida)
Posts: 669
Posted:
(@ Geno: I checked you!)

The quorum requirement is the # of members who must be present in person or by proxy in order to transact business. The quorum difference between Condo and HOA is quite significant:

CONDOS
718.2(b) Quorum; voting requirements; proxies.—
1. Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members is a majority of the voting interests.

HOMEOWNERS
720.306 Meetings of members; voting and election procedures; amendments.—
(1) QUORUM; AMENDMENTS.—
(a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests.

There is no condo or HOA quorum exception for election of boards. A quorum is required to conduct any business period.

I agree with other posters that a 50+% quorum is quite high but that is the default for condos in Florida if the Bylaws are silent (and I have never heard of a Bylaw that does not specify a quorum.) The statutes for both Condos and HOA FIRST defer to the governing documents and, if they are silent or out of statutory restrictive guidelines, then the statute rules.

It seems unreasonable (and possibly unlawful) to discard ballots if there is sufficient information with the submission to identify sufficiency of the voting interest. Forgetting to put a unit # on the outside of an envelope should not invalidate an otherwise valid ballot with identifying proxy information inside the envelope(s). If that is what the Bylaws require, I would amend those Bylaws yesterday. If this cannot be found in the Bylaws, I would ask the Management Company to cite the authority for such a requirement.

The Bylaws are REQUIRED to be recorded with the Declaration (CCR's) for Condos. This is not the case with HOA; however, nearly all Associations record their Bylaws in the public records which are free to access in most county government websites.
CarolF (Florida)
Posts: 435
Posted:
Gwen - you didn't read far enough to understand the election process in a condominium. while it takes place along with the annual meeting, it is not actually part of the annual meeting.

" Elections shall be decided by a plurality of ballots cast. There is no quorum requirement; however, at least 20 percent of the eligible voters must cast a ballot in order to have a valid election. A unit owner may not permit any other person to vote his or her ballot, and any ballots improperly cast are invalid. A unit owner who violates this provision may be fined by the association in accordance with s. 718.303. A unit owner who needs assistance in casting the ballot for the reasons stated in s. 101.051 may obtain such assistance. The regular election must occur on the date of the annual meeting. Notwithstanding this sub-subparagraph, an election is not required unless more candidates file notices of intent to run or are nominated than board vacancies exist."
GwenG (Florida)
Posts: 669
Posted:
I see this under 718.112 2(d)(4(a)

"...Elections shall be decided by a plurality of ballots cast. There is no quorum requirement; however, at least 20 percent of the eligible voters must cast a ballot in order to have a valid election..."

IMO, this does not qualify the meeting quorum requirement; it clarifies the % of votes required to decide an election. Here is the example I would use to illustrate how I think this might work:

100 condo voting interests
By statute 50% + 1 for a meeting quorum to transact business=51 units by proxy or in person
# of ballots to have a valid election = 20
# of voters who cast filled out a proxy (to fulfill the meeting quorum) and a ballot vote (to fulfill the election quorum): 51
# of voters who cast invalid votes: 6
# of valid votes: 45
The meeting quorum was met with 51 people executing proxys and/or casting votes

# of candidates running for 1 position = 3
(Def Plurality: the number of votes cast for a candidate who receives more than any other but does not receive an absolute majority.)

Candidate A gets 14 votes
Candidate B gets 13 votes
Candidate C gets 18 votes
TOTAL votes= 45

Candidate C wins even though C did not get a majority; Candidate C got more than any other--a plurality.

Let's say that of those 51 voting interests, only 12 people actually filled out a ballot and the other 39 just showed up for the meeting for coffee and donuts. Whoops! No election possible! Even with a meeting quorum.

The tipoff to this somewhat confusing language is that it is a sub-sub paragraph and must be read in context of the election--not the general quorum requirements for a meeting to transact business.

So, a condo can have a properly-quorumed meeting but if enough parcels do not submit a ballot and vote for a candidate, there cannot be a valid election. Does anyone else read it like this ie as an elucidation of validating an election versus quoruming a membership meeting for the conduct of business of the Association? (I am the first to admit that I do not work with condo law and am less familiar with it than HOA law.)
JeffT2 (Iowa)
Posts: 880
Posted:
Gwen,

In some other states the nonprofit acts says:

“...any action which may be taken at any annual, regular, or special meeting of members may be taken without a meeting if the corporation delivers a written ballot to every member entitled to vote on the matter...”

It looks like FL condo law is similar in concept. I think the 20% is to validate the election by ballot, not the meeting quorum. In SueW's OP, it says “...a quorum was not established...Election still took place.”
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By GwenG on 03/10/2017 1:29 PM
There is no condo or HOA quorum exception for election of boards. A quorum is required to conduct any business period.

For a FS 718 Condo Association, no qorum is required to hold an election. The election must be held in conjunction with the annual meeting. If there's no quorum for holding the annual meeting then the election still happens. If 20% of elgible voters cast ballots then the election results are valid, quite outside and apart from any quorum that may or may not have been achieved.

As for electing board members, the quorum requirement has no bearing, Frankel says. Florida law provides that a membership vote is valid when 20 percent of eligible voters cast a ballot.
NormanD (Florida)
Posts: 2
Posted:

HOMEOWNERS
720.306 Meetings of members; voting and election procedures; amendments.—
(1) QUORUM; AMENDMENTS.—
(a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests.

There is no condo or HOA quorum exception for election of boards. A quorum is required to conduct any business period.

I agree with other posters that a 50+% quorum is quite high but that is the default for condos in Florida if the Bylaws are silent (and I have never heard of a Bylaw that does not specify a quorum.) The statutes for both Condos and HOA FIRST defer to the governing documents and, if they are silent or out of statutory restrictive guidelines, then the statute rules.


I think I would disagree about the statute deferring to the bylaws if the bylaws require a higher percentage. The statute seems very clear that it only defers to the bylaws if they are lower.

Am I missing something here? We have this exact situation for an upcoming meeting in Florida.
GenoS (Florida)
Posts: 4,276
Posted:
NormanD, I agree with your understanding of the statute. By statute, FS 720.306(1)(a), 30% of the total voting interests constitute a quorum at members meetings UNLESS the bylaws specify a lower percentage.
GwenG (Florida)
Posts: 669
Posted:
Yes, Florida says 30% UNLESS the Bylaws specify less. This is to relieve Associations from onerous quorum requirements written by Developers. In my HOA case, it was 50% and there are directors who still think it is 50%. Fortunately, it is not an issue because our HOA typically has 70% voting.

So, what I "get" from others' input is that the meeting quorum is unrelated to the election quorum? So, a Condo Association could hold an official business meeting with only ..say ..21% of owners and/or proxies and elect directors as long as 20% of those voting interests cast a ballot?
NormanD (Florida)
Posts: 2
Posted:
So, what I "get" from others' input is that the meeting quorum is unrelated to the election quorum? So, a Condo Association could hold an official business meeting with only ..say ..21% of owners and/or proxies and elect directors as long as 20% of those voting interests cast a ballot?


The way I read that is there is different requirements for either an election or an annual meeting. In some cases you could have an election without having a meeting quorum.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By GwenG on 03/13/2017 10:18 AM
So, what I "get" from others' input is that the meeting quorum is unrelated to the election quorum? So, a Condo Association could hold an official business meeting with only ..say ..21% of owners and/or proxies and elect directors as long as 20% of those voting interests cast a ballot?

If 20% of the voting interests cast ballots then the election is valid; there is no "quorum" per se associated with an election since the word "quorum" pertains to meetings. An association still needs to achieve a quorum (whatever the number is) to hold the annual business meeting. The statute says the election is a separate thing completely from the annual meeting (and whether or not a quorum is achieved for that meeting).

The statute (FS 718) was changed to address the fact that all too often a quorum was unobtainable at a condo's annual meeting. Elections used to take place AT the meeting (they still do in FS 720 homeowners associations) and with no quorum there was routinely no election. Directors would retain their seats indefinitely and nobody else ever had a shot at replacing them. So the legislature made the decision to separate the requirements for holding the annual meeting (quorum) from the requirements for holding the annual election (20% of voting interests).

If a condo association of 100 members had an annual meeting quorum requirement of 30%, for example, and only 25 were present (in person or by proxy) for the annual meeting, then the annual meeting could not be held. But if each of those 25 members also submitted valid ballots then the election could procede despite the fact that the annual meeting could not.
GwenG (Florida)
Posts: 669
Posted:
Thank you Geno. That was a very clear explanation. Apparently, there are many things in condo law that are enhanced over the decrepit HOA laws. Really appreciate the distinctions and rationale.

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