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TracyeH (North Carolina)
Posts: 58
Posted:
We have a five member board, only two are home owners, 2 are live in's with a home owner and one is a renter. IS that even legal? It doesn't make sense to me.
TracyeH (North Carolina)
Posts: 58
Posted:
I think I've found my answer. Anyone can serve on the board of directors, they don't have to be property owners, or live in the same state. BUT...they have no voting rights if they are not owners. So if our board votes only myself and the treasurer can vote. Now I need to find out if a Member(Home Owner) can transfer their voting rights to a tenant by proxy. If that Member right can be transferred. Anyone know?
TracyeH (North Carolina)
Posts: 58
Posted:
Ah ha!

http://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_47F.html

ยง 47F-3-110. Voting; proxies.
(a) If only one of the multiple owners of a lot is present at a meeting of the association, the owner who is present is entitled to cast all the votes allocated to that lot. If more than one of the multiple owners are present, the votes allocated to that lot may be cast only in accordance with the agreement of a majority in interest of the multiple owners, unless the declaration or bylaws expressly provide otherwise. Majority agreement is conclusively presumed if any one of the multiple owners casts the votes allocated to that lot without protest being made promptly to the person presiding over the meeting by any of the other owners of the lot.
(b) Votes allocated to a lot may be cast pursuant to a proxy duly executed by a lot owner. If a lot is owned by more than one person, each owner of the lot may vote or register protest to the casting of votes by the other owners of the lot through a duly executed proxy. A lot owner may not revoke a proxy given pursuant to this section except by actual notice of revocation to the person presiding over a meeting of the association. A proxy is void if it is not dated. A proxy terminates 11 months after its date, unless it specifies a shorter term.
(c) If the declaration requires that votes on specified matters affecting the planned community be cast by lessees rather than lot owners of leased lots, (i) the provisions of subsections (a) and (b) of this section apply to lessees as if they were lot owners; (ii) lot owners who have leased their lots to other persons may not cast votes on those specified matters; and (iii) lessees are entitled to notice of meetings, access to records, and other rights respecting those matters as if they were lot owners. Lot owners shall also be given notice, in the manner provided in G.S. 47F-3-108, of all meetings at which lessees may be entitled to vote.
(d) No votes allocated to a lot owned by the association may be cast.
(e) The declaration may provide that on specified issues only a defined subgroup of lot owners may vote provided:
(1) The issue being voted is of special interest solely to the members of the subgroup; and
(2) All except de minimis cost that will be incurred based on the vote taken will be assessed solely against those lot owners entitled to vote.
(f) For purposes of subdivision (e)(1) above, an issue to be voted on is not a special interest solely to a subgroup if it substantially affects the overall appearance of the planned community or substantially affects living conditions of lot owners not included in the voting subgroup. (1998-199, s. 1.)
TimB4 (Tennessee)
Posts: 21,059
Posted:
Tracy,

You are confusing membership votes with Board votes.

Only members are permitted to cast votes at a general membership meeting.
Only Directors (properly elected or appointed) may cast votes at Board meetings.

Therefore, those individuals may cast a vote as a Director at a board meeting.

However, they may not cast a vote at a general membership meeting unless they are appointed as the proxy representative.

TimB4 (Tennessee)
Posts: 21,059
Posted:
By the way, the issue isn't that non-members are serving on your Board.
The issue is that members, apparently, are not stepping up and be willing to serve.
TracyeH (North Carolina)
Posts: 58
Posted:
Even if they are not property owners, or even live here, or in another state.
TracyeH (North Carolina)
Posts: 58
Posted:
Where is this listed? There's nothing like this in our by laws or covenants.
TimB4 (Tennessee)
Posts: 21,059
Posted:
The lack have having qualifiers (i.e. only members may serve as Directors) means that anyone may serve (even if they don't own or live there).

Most governing documents do not have qualifiers to serve on the Board. This is because initially the developer may have a group of attorneys or investors that serve as the Board and the Association (once turned over to the membership) never amends them to create qualifiers.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By TracyeH on 07/01/2017 11:45 PM
We have a five member board, only two are home owners, 2 are live in's with a home owner and one is a renter. IS that even legal? It doesn't make sense to me.

NOPE ... Does not usually make sense. However, will depend on your CCR's, Bylaws, and State Laws. In my HOA's have lived under the Owner (individual listed under the County Records as an Owner of the property is the only individual who can vote and hold a BOD position). Essentially live-in's with an owner and renters were not allowed to vote or run for office. Essentially you need to have a financial stake (as an owner) in the property in order to represent the HOA. Sometimes this can still be an issue especially in Condos where you have owners who primarily rent wanting to reduce costs or not wanting to spend money vs owners who live on property and expecting their homes to be well maintained. However, that is the Owner's fault in not potentially electing officials to represent their views or not participating in governing their HOA. When apathy becomes an issue you potentially get what your deserve.

KerryL1 (California)
Posts: 14,550
Posted:
Tim's explanation is a good one, Tracye: May not make sense for even strangers to serve, but if your documents don't say otherwise, renters, lovers, strangers, can serve on your Board.

There may be a US state that requires only Owners (HOA Members) to serve on HOA Boards, but I haven't heard of such a state....
NigelB (Texas)
Posts: 254
Posted:
Quote:
Posted By KerryL1 on 07/05/2017 12:45 PM
Tim's explanation is a good one, Tracye: May not make sense for even strangers to serve, but if your documents don't say otherwise, renters, lovers, strangers, can serve on your Board.

There may be a US state that requires only Owners (HOA Members) to serve on HOA Boards, but I haven't heard of such a state....

As was previously indicated, most original governing documents do not require that a board member be a property owner, for the obvious reason that the HOA is created by the developer who maintains control until such time as specified in the governing docs, when control passes to the membership.

Once control is passed to the membership, it is probably a good idea to amend the governing documents (usually the Bylaws) to provide for membership control over director positions and require that only a member (property owner listed on the deed) can serve as a director of the association. To my mind, it is unwise to allow someone who has no property interest in the association to be able to make decisions that affect the property owners.

The only restrictions to director positions in the State of Texas is as follows: Notwithstanding any other provision of this chapter, a property owners' association's bylaws may require one or more board members to reside in the subdivision subject to the dedicatory instruments but may not require all board members to reside in that subdivision. (Sec 209 Texas Property Code)
TinaO2 (Colorado)
Posts: 1
Posted:
New questions on this topic -
Our Colorado HOA By-laws state:

"The affairs of this association shall be managed by a board of no less than 5 Directors. Directors must maintain good standing throughout their term"
and...
"All members in good standing are eligible for election to the Board of Directors."

Both statements seem to me to require ownership in the community to serve as a director/officer.

So what happens when a director/officer sells his property during his term? Is he immediately removed from the Board? If so, when a successor is decided upon, is he/she assigned only to that departing officer's function (ie: secretary, treasurer, member at large, etc.?) or can the remaining Board members reshuffle the officers functions at that time?

I appreciate your help on this matter. Thank you!
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By TinaO2 on 07/21/2017 4:41 PM
New questions on this topic -
Our Colorado HOA By-laws state:

So what happens when a director/officer sells his property during his term? Is he immediately removed from the Board? If so, when a successor is decided upon, is he/she assigned only to that departing officer's function (ie: secretary, treasurer, member at large, etc.?) or can the remaining Board members reshuffle the officers functions at that time?

It would seem that owners who sell their property are no longer eligible to be on the board.

Keep in mind that officers and directors are two distinctly different roles, some association governing docs don't even require offices to be directors. The board can elect new officers at any time, subject to any board meeting notification requirements in your governing docs and state law.

Escaped former treasurer and director of a self managed association.
RichardP13 (California)
Posts: 3,868
Posted:
Once you sell your home, you cease to be an Member and only Members may serve as Directors. Once a new Director is selected, They should go through the officer selection. Maybe nothing changes, but it is the right procedure.

JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By TinaO2 on 07/21/2017 4:41 PM
New questions on this topic -
Our Colorado HOA By-laws state:

"The affairs of this association shall be managed by a board of no less than 5 Directors. Directors must maintain good standing throughout their term"
and...
"All members in good standing are eligible for election to the Board of Directors."

Both statements seem to me to require ownership in the community to serve as a director/officer.

So what happens when a director/officer sells his property during his term? Is he immediately removed from the Board? If so, when a successor is decided upon, is he/she assigned only to that departing officer's function (ie: secretary, treasurer, member at large, etc.?) or can the remaining Board members reshuffle the officers functions at that time?

I appreciate your help on this matter. Thank you!

Hi Tina ... In the future you potentially should start a new thread with your question because you are from a different State and laws can vary in different states.

When anyone sells they are no longer a member and no longer a Director. Therefore, yes they are immediately removed. In my last HOA I politely declined when everyone wanted me to run for the BOD because I knew I had a contract on my home to sell. I felt the HOA needed to have a good start from our developer without any near future complications, such as replacing me on the BOD.

The current BOD just needs to "appoint" a new member to the BOD to fill the remaining term of the prior Director OR until the next annual election. The BOD then among themselves can fill, shuffle, or elect the Officer positions as they deem appropriate.

At your next annual election the Members then elect any BOD members who have expired terms (if have staggered terms) and the temporary BOD position filled by the current BOD.

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