ErinA1 (Illinois)
Posts: 43
Posts: 43
Posted:
Wanted to ask this very knowledgeable group, why is there a certain % such as 51% required to change declarations and I get this may be a very stupid question? I'm in Illinois if that matters.
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Amend declarations.
Started by ErinA1 • 11 replies • 958 views
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JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Quote:
Posted By ErinA1 on 09/26/2017 8:32 PM
Wanted to ask this very knowledgeable group, why is there a certain % such as 51% required to change declarations and I get this may be a very stupid question? I'm in Illinois if that matters.
Wanted to ask this very knowledgeable group, why is there a certain % such as 51% required to change declarations and I get this may be a very stupid question? I'm in Illinois if that matters.
Because you cannot change a Contract (a.k.a. CCR's) without the vast majority of owners who have them attached to their property titles. If you do not receive required percentage of owners to all agree as per their Contract and State Laws, then it could be considered Real Estate Fraud. LOL ... NO question is ever stupid.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Typically to change a Declaration/Covenant it will take 66% (2/3rds) agreeing and in some cases the amount that needs to agree could be higher. I have seen as high as 100% depending on the change.
Typically Bylaws can be changed with as few as 51%.
Typically Bylaws can be changed with as few as 51%.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
One reason it takes at minimum a simple majority is that all Owners buy into that contract. Its features should not be changed easily.
CjC
Posts: 210
Posts: 210
Posted:
Maryland law just changed the threshold to 60%. Effective Oct 1st 2017
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By CjC on 09/27/2017 11:31 AM
Maryland law just changed the threshold to 60%. Effective Oct 1st 2017
Maryland law just changed the threshold to 60%. Effective Oct 1st 2017
For Covenants or Bylaws or both?
ErinA1 (Illinois)
Posts: 43
Posts: 43
Posted:
Our declarations require 51% to amend and more than likely we won't get that so a homeowner suggested trying to get that % lowered which I'm not sure would happen if we can barely get the required # for elections ;) so just wondering if it's even legal to adjust that #
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Erin
Yes it would be legal if specific number of owners all agree. The question is how many will it take to change it? Also why would you want a minority controlling the majority?
Yes it would be legal if specific number of owners all agree. The question is how many will it take to change it? Also why would you want a minority controlling the majority?
DouglasM6 (Arizona)
Posts: 724
Posts: 724
Posted:
Quote:
Posted By ErinA1 on 09/27/2017 12:47 PM
Our declarations require 51% to amend and more than likely we won't get that so a homeowner suggested trying to get that % lowered which I'm not sure would happen if we can barely get the required # for elections ;) so just wondering if it's even legal to adjust that #
Our declarations require 51% to amend and more than likely we won't get that so a homeowner suggested trying to get that % lowered which I'm not sure would happen if we can barely get the required # for elections ;) so just wondering if it's even legal to adjust that #
You can't lower that % without first getting the required % to make the change. It's not just a rule, it's in the covenants. When the right issue is at hand, you can get the participation needed to make changes. But everyone agreed to the rules when they purchased, so expecting them to agree to change it for a few is futile.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Douglas is right, Erin. The only way to lower the % is for 51% of Owners to vote to do so.
IN CA, HOAs can go to court to seek a % lower than required by their CC&Rs--typical is 2/3rds. But, even then, the judge won't hear the case unless at least a simple majority has approved the change.
IN CA, HOAs can go to court to seek a % lower than required by their CC&Rs--typical is 2/3rds. But, even then, the judge won't hear the case unless at least a simple majority has approved the change.
JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Quote:
Posted By ErinA1 on 09/27/2017 12:47 PM
Our declarations require 51% to amend and more than likely we won't get that so a homeowner suggested trying to get that % lowered which I'm not sure would happen if we can barely get the required # for elections ;) so just wondering if it's even legal to adjust that #
Our declarations require 51% to amend and more than likely we won't get that so a homeowner suggested trying to get that % lowered which I'm not sure would happen if we can barely get the required # for elections ;) so just wondering if it's even legal to adjust that #
Keep in mind the CCR's were agreed to by everyone when you purchased ... if you did not like them then you should not have purchased ... and are supposed to be very difficult to change without a vast majority of owners to agree. This is because they are attached to your Property Titles and can affect the value and marketability of each owner's property. I personally in all my years have never encountered an HOA that required less than 51% to amend. Furthermore, it would be a bloody cold day down below before I would EVER purchase a home in an HOA with a lower than 51% requirement (I actually prefer 67% or higher). With a lower percentage you can have a small handful of owners run amok. If the amendment is not agreed to by more than half of the owners, it has no business being passed.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
In my HOA the threshold for homeowners to approve an amendment is a majority of owners present at a meeting where there is a quorum. Under the right circumstances 16 owners could conceivably approve an amendment. Out of 100 total with a 30% quorum requirement. It's funny because they used to have a really hard time getting homeowner approval when the threshold was 66%. When the amendments were proposed to lower it to a simple majority of those present at a meeting, homeowner voter turnout to approve those changes was astronomical.
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