Changing Bylaws

Started by ConchoP • 6 replies • 950 views

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ConchoP (Texas)
Posts: 208

Posted:

We have been advised to change from an unincorporated to a incorporated Nonprofit association.

The bylaws state: Amendment. These bylaws may be amended at any time by the vote of 70% of the allowed votes to be cast in the HOA.

The developer get 3 votes per lot and homeowners get 1 vote per lot.

Example Developer owns 85 lot = 255 votes, homeowners get 250 votes

70% = 235 votes (85+250)*70%

Is this math correct?

TimB4 (Tennessee)
Posts: 21,059

Posted:

NO.

The wording was number of votes entitled to be cast.
That number would be 505 homeowner votes + developer votes 250+(3*85)

70% of 505 = 354 (353.5 rounded up)

Therefore, if the developer is against it, it will never happen.
If the developer is for it, you still need 49 owners to agree.

ConchoP (Texas)
Posts: 208

Posted:

I'm sorry I don't understand the math...please expand...

We have 250 homes/homeowners each getting one vote per lot, how is that 505? We have about 9 homeowners that own 2 lots so that number would be 259 roughly

And developer has 85 lot/homes and he get 3 votes per lot = 255 votes for 85 lots

TimB4 (Tennessee)
Posts: 21,059

Posted:

Perhaps I didn't understand how the homes were divided up.

Let me try it a different way.

250 lots Total
85 lots owned by developer
165 lots owned by homeowners (i.e. not developer owned)
Each homeowner gets 1 vote per lot
Developer gets 3 votes per lot

Total possible votes = # homeowner lots times 1 vote per lot plus # developer lots times 3 votes per lot
Total possible votes = (165 * 1) + (85 * 3)
Total possible votes = 165 + 255
Total possible votes = 420

70% of 420 = 294

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Concho

Is the incorporated or unincorporated even part of the Bylaws?

PitA
Posts: 1,416

Posted:

If they incorporate the bylaws then need to be compliant with SC Corporate Law.

If they incorporate as a not-for-profit the bylaws would need to comply with that specific aspect of the corporate law.

They should not have bylaws at all until they actually incorporate.

bylaws do NOT equate to covenants

ConchoP (Texas)
Posts: 208

Posted:

The bylaws are drawn up in 2014 by the developer as a Texas unincorporated non-profit. Because of a lawsuit that the developer is currently under
we were advised to get with him to discuss changing to a incorporated non-profit.

Thanks TIMB4 - your last post helps me alot..

Total Lots - 344 (259 homeowners including multi lots that some owners have; and 85 developer lots)
Each homeowner gets 1 vote per lot
Developer gets 3 votes per lot

Total possible votes = # homeowner lots times 1 vote per lot plus # developer lots times 3 votes per lot
Total possible votes = (259 * 1) + (85 * 3)
Total possible votes = 259 + 255
Total possible votes = 514

70% of 514 = 360 (rounding up)

Yikes 105 homeowner votes!!! That is going to be hard!!! No unless the developer has added more lots that I'm unaware of, but I don't think he has.

Can this vote be taken online in Texas?

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