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DennisG7 (Georgia)
Posts: 155
Posted:
The last time we had a quorum at a HOA meeting was about 14 years ago (NOT KIDDING). Of 189 home owners we must have at least 48 people in order to make a motion or vote on anything. We normally have 8-12 people attend, even during elections.

In the fall of 2015 I participated in a Proxy drive which had 2-3 homeowners go door to door to get proxies filled out in order to present it for an annual election. We got enough proxies and voted out an old board that had been there for nearly 10 years.

Our current board has recently spent thousands pf dollars this year on a project that appears to be 3 times over the budgeted amount. Our reserve account has been depleted. Our pleas to address the costs have been ignored. We must install some new people to try and correct the problem. Without a quorum at the annual election meeting in December the incumbent BOD will continue.

We are looking at going door to door again to collect proxies, as we did a couple of years ago.

Our GA code discusses proxies but does not specify if the actual document must have originated fro the HOA or if we (HOA members) can make it's own proxy and then go door to door. Any thoughts on this would be helpful as we want to gather enough to insure we exceed the quorum requirements. We plan to use the same format that has been used in previous years to insure we are 'street legal".
DennisG
AugustinD
Posts: 5,144
Posted:
In the fall of 2015, did you use a proxy form that the HOA issued?

What day is the election?

I would first ask the present Board when the proxy forms will be available. Document your requests for this information. If needed, send a certified letter to show you made this request. Meanwhile, check what your HOA's governing documents say on the subject. Typically a Board has to give at least 30 days notice on matters like this. Only if the Board does not seem to be interested in issuing proxy forms would I take matters into my own hands.

DennisG7 (Georgia)
Posts: 155
Posted:
In late Nov. of 2015 we used a Proxy form sent out for the annual election by the HOA. (Note: Unless it is revoked or some other circumstance the proxy is valid for 11 months in GA.)

We are several months away from the HOA sending out Proxies. We conduct 4 meeting a year that includes all members. Last meeting had 9 people present, 4 of which were husband/wife so we had a total of 7 votes, far short of making motions or voting. We need 48 votes out of 189. Last "vote" was in Dec. 2015 and that was because we gathered proxies.

It's our thought that we can exercise the proxy for other motions and votes as well. I have lived here since 2002. After 2003 we usually have a dozen people at meetings. This means that the BOD decides on all expenses and budgets...every year. This is why we have this big financial mess. As usual very few people attend meetings and fewer look at our accounts. When I speak to homeowners they are surprised. I always tell them "don't take my word for it, go to the HOA website and look at the accounts, the financials, the reserves, etc" I also encourage them to come to the quarterly meetings. Normally I'm there with a couple of folks that always attend.

The HOA governing documents mention the use of Proxies but do not say the form must be prepared by the HOA.
DennisG
AugustinD
Posts: 5,144
Posted:
Hi Dennis, first, HOA governing documents usually allow voting by members (on myriad issues) only at the HOA's annual meeting. The law further requires that subjects on which members are to vote at the annual meeting must be put on the agenda, and the agenda must be distributed to all members well in advance of the meeting (typically at least 30 days). This ensures that all members have a chance to weigh in on issues. Proper "notice" of a meeting (including distributing the agenda in advance) is a big deal legally.

Second, for the annual meeting, one member serving as a proxy for several other members means the one member gets to vote on the myriad issues. Again this is as long as these issues were put on the agenda and "noticed" to all members properly.

Third, I think you are dealing with massive member apathy. It is so common nationwide. To me the apathy means that most members are fine with the status quo. The battle cannot be won, because the numbers for winning are not there. To me, for the most part, one should either accept the reality or move. On the other hand, you might be able to drum up interest. You did in 2015, after all, and it happens at many HOAs nationwide, via door-to-door campaigns, personal web sites discussing the issues, and so on.

Fourth, at this point, after three HOAs, my attitude is that, unless I want a significant volunteer job with much hostility attached to it, then I need to be happy with a lot of waste by an incompetent board of directors and possibly a manager who is self-promoting and playing favorites. I am presently on the board of my HOA. My 'personal accounting' leans towards accepting the power-hungry and incompetent types running such HOAs and not complaining. I believe that almost anyone who complains needs to be willing to step up and be on the board.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Dennis,

I expect you are referencing GA Code ยง 14-3-724 - Proxies.

Since the statute is unclear - I would suggest waiting until you recieve a proxy form with the annual meeting notice. Then make copies.

Another option, ask for a proxy form from the Association (no need to tell them that you are attempting a turnover. Simply state that it's for you.

Tim

DennisG7 (Georgia)
Posts: 155
Posted:
LOL. Our CCR and By Laws were written in 2000 by the developer. They are lean and obviously were written in favor of the developer at that time. There is NOTHING in them that discusses an Agenda and topics for discussion at meetings. I have for years suggested that we update our CCR and By Laws. Lots of things to be be amended, deleted and added. I've even provided the HOA BOD a list of some topics and possible wording for amendments. To date, 17 years later, we have not added a single word to either document.

As to the proxy. It is sent out about 2-3 weeks before the annual election in mid December. The language in it states that unless revoked, or attendance by the homeowner, sale of the property or death, that the proxies are good for a period of 11 months. I found wording like that in the GA Code so I guess that's why it's written like that.

Our HOA BOD does not follow the By Laws and do not run meetings per Roberts Rules (which our By Laws refer to in several places) I even purchased Roberts Rules for all new BOD members when they took over. The point is that they pretty much do exactly what they want. I or others can raise issues at a meeting but we don't have enough peoplein attendance to make a motion much less vote on anything because we are not even close to a quorum.

I have been asked to serve on the HOA BOD several times. I have avoided it for 2 reasons. First I'm nearing 72 years and 95% of our HOA are 30-40 year olds. I've done HOA's, PTA's etc from the 1960's on.
(I have volunteered for a number of one time projects for the HOA. Some took a week others took several months. Always turn in a written report and sometimes brief them is asked)

The other reason is that I'm a retired military pilot and I can be somewhat abrasive to many young people. I don't like people wasting time and money. Seeing us nearly deplete our Reserve Account over the past 12 months is shocking. What astounds me even more is that from what I see only 4-5 people are aware of it. So I'm trying to recruit people that will actually do something. I have tossed my hat in the ring this AM although reluctantly. I'm hopeful that a few others will take up the challenge. I've preferred dealing with small projects over the past years.

In my opinion we have a big legal case against not only the contractor of this messed up project but also the BOD for knowingly allowed this to happen. They were told by several HOA members a year ago that this guy wasn't licensed and never obtained a building permit. They did nothing. Perhaps I just need to go fishing ;-)
Thanks for your comments.
DennisG
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By DennisG7 on 09/28/2017 9:10 AM
LOL. Our CCR and By Laws were written in 2000 by the developer. They are lean and obviously were written in favor of the developer at that time. There is NOTHING in them that discusses an Agenda and topics for discussion at meetings.

Dennis, agenda, topics and "legal notice" are covered under Robert's Rules, statutes for nonprofits and HOAs, and case law.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Not to play lawyer but as I understand it:

1. You can make your own Proxy. You do not have to use the BOD's Proxy.

2. The latest dated Proxy is the one that counts. As an example. You could have used the BOD's Proxy and voted YES to something on 09/01/17. Then submitted another Proxy on 09/10/17 saying NO and the proxy of 09/10/17 is the one that counts.

Many BOD's use subterfuge concerning Proxies so people vote the way they want them to.

I would caution the OP that a Proxy cannot be used to open up voting nor discussion on something not on the agenda. They are not meant to make a meeting into a free for all.

DennisG7 (Georgia)
Posts: 155
Posted:
You are correct. Roberts Rules does a great job explaining how to conduct meetings, agendas, etc. It is not used by the HOA BOD. No reading of previous minutes, no approval, no discussion per agenda items, no motions, no treasurer reports, none of that is done. The last BOD minutes posted for the 1 August BOD meeting appears to be a defense statement saying that they will provide records and remain transparent?? I think they sense they are getting heat from me and a few others. That meeting was nearly 2 months ago. NOTHING has happened. No documents, no accounts, no explanation of how expense have nearly tripled on one project and depleted our reserve fund. Member meetings? The member meeting for July was changed to August, then moved to Sep, then moved to Oct 17 and today it has been moved to Oct 23. Does anyone see a pattern?

Unless we are able to get a quorum to vote them out they will remain there unless they resign. Knowing that our December election will probably be attended by about 12 people. We are going to need proxies to make a change. We need at least 48 voters for a quorum.

As a HOA member emailed me earlier today " The reason you're doing this is because you are an old school parent." I had to laugh.
DennisG
AugustinD
Posts: 5,144
Posted:
For what it is worth, if the board is denying members correctly submitted requests for HOA documents, then this may be your strongest legal argument. Failing to properly notice meetings (including providing agendas in advance) is next in line.

Good luck getting the quorum. It can be done.
DennisG7 (Georgia)
Posts: 155
Posted:
Very good points. The proxy will allow us to have enough for casting votes in the December election. Only one time since I've built here, in 2002, has there ever been a presentation of proxies at a member meeting. That was the Dec. 2015 election. As I recall there were 11 voters present not counting the 3 BOD members. So we were far short of the ability to vote (needed 48). Prior to the meeting the Secretary received 55 duly signed proxies for homeowners not attending. After verification the votes were cast for new HOA BOD members. Two new members and one current member were elected. The proxies were not used for any other reason.

It is my understanding (I'm not an attorney) that if an issue is presented to the membership that requires a vote that the proxies can be used at that time. Also in GA the proxies are valid for a period of 11 months which suggests that they could be used to vote on Agenda items presented at another meeting. The revocation procedures for the proxy is printed on the form.

If I'm off base please correct me. Without the use of a proxy we will NEVER have enough people to vote on anything. I suggested a few years ago we consider lowering the number of people to make a quorum. There was no action on that suggestion either.

Our CCR and By Laws do contain a few requirements that call for 50% and 75% total "approval" votes for some actions. Most people have never looked at the documents and probably aren't aware of it.

As I recall we had enough people at meeting in 2001 and 2002 to call for actual votes. In 2003 we dropped below the required number to even conduct official meetings. Many times the member meeting minutes starts with a sentence stating we had no quorum to conduct the meeting. It ends up being a chat session.
DennisG
DennisG7 (Georgia)
Posts: 155
Posted:
Thanks for the input. I just feel better if we follow the rules. Especially when it comes to construction projects. Now I pushing them to show me the documents.

A new certified letter was sent to the registered agent citing the GA state codes and identifying 23 specific items I was looking to review and copy (I'll pay for that). I do not believe most of these documents exist. If that is the case I expect them to say so.

My end game as I said a couple weeks ago when I first posted on this:

1. Require the HOA BOD to file a law suit against the "Contractor" for fraud, breach of contract, and what ever else is legit.

in order to do that the HOA MUST have a contract signed between the contractor and the HOA. I DO NOT THINK THEY EVER SIGNED ONE. if not;

2. File a Derivative Action Suit against the BOD. (Make good on our loss) If they don't respond we have the grounds for a law suit against them.

That is what I am looking for, either #1 or #2. We are out about $30K. We are a small HOA!

It's not like the BOD did not know this problem before. I sat in on a meeting with them in early July 2016 when members told them that the contractor was not licensed as a contractor, had it's corporate registration pulled, had no county business lic and had no city business lic. They had not filed for a building permit and had never had any phase on construction inspected. This happened while the "contractor" was till on site and then billed us another $7,000. And we paid it!!!

So asking to see the documents gets it started, one way or another. Thus far they have refused to show us anything. This is our first Certified Mailing to them.
DennisG

JohnB83 (South Carolina)
Posts: 124
Posted:
Fourth, at this point, after three HOAs, my attitude is that, unless I want a significant volunteer job with much hostility attached to it, then I need to be happy with a lot of waste by an incompetent board of directors and possibly a manager who is self-promoting and playing favorites.


Sad but True
GenoS (Florida)
Posts: 4,276
Posted:
As a point of reference, in Florida there are certain items that must appear on a proxy (name, date, signature, lot number, address, etc. and it is THOSE THINGS which make it a "valid" proxy. In Florida, you can use your own proxy form. There's nothing that says you MUST use the one provided by your association's board. Proxies are a very simple concept. Unfortunately they are a source of confusion for many.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
My concern is Dennis is looking for a way to use Proxies to open the meeting for a free on his quest to hang the BOD for decisions versus to establish a Quorum and have enough votes to replace them if voting is scheduled. I think he has a hidden agenda, but I could be wrong.
DennisG7 (Georgia)
Posts: 155
Posted:
John. There is nothing hidden except the BOD not providing the documents surrounding the spending of about 3 times the original cost projected a pavilion. My questions about a proxy relate to insuring that we legally and professionally conduct ourselves as an HOA.

At this point, proxies are the only way we can garner enough votes to do ANYTHING. As I've said before the member attendance is usually 8-12 people per meeting. That is far lees then a quorum. Members have not voted on anything since around 2003. Why? Lack of a quorum.

The use of a proxy allows us to make motions and vote at quarterly meetings. Kind of like the absentee ballot. No hidden agenda. Most of our hardworking members in the community are focused on work and family matters. As one family at the end of my cul de sac put it a few months back. "We just want to pay our dues and be left alone." That pretty much says it all for about 98% of the 189 property owners. Apathy!

DennisG
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By DennisG7 on 09/29/2017 4:22 AM
John. There is nothing hidden except the BOD not providing the documents surrounding the spending of about 3 times the original cost projected a pavilion. My questions about a proxy relate to insuring that we legally and professionally conduct ourselves as an HOA.

At this point, proxies are the only way we can garner enough votes to do ANYTHING. As I've said before the member attendance is usually 8-12 people per meeting. That is far lees then a quorum. Members have not voted on anything since around 2003. Why? Lack of a quorum.

The use of a proxy allows us to make motions and vote at quarterly meetings. Kind of like the absentee ballot. No hidden agenda. Most of our hardworking members in the community are focused on work and family matters. As one family at the end of my cul de sac put it a few months back. "We just want to pay our dues and be left alone." That pretty much says it all for about 98% of the 189 property owners. Apathy!

DennisG

If that's the attitude of most of the homeowners, it won't matter which proxy you use. The homeowner apathy is the bigger problem and unless that's addressed, there won't be any substantial changes.

You may need to concentrate on educating people about the issues and why there's more at stake than just "paying assessments and going about their business" - in fact, that's how your association landed in this mess. If you can show how this pavilion business is ultimately costing them money, that may prompt them to get off their ass, go to the meetings and demand change, starting with dumping this board.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DennisG7 (Georgia)
Posts: 155
Posted:
Thanks. You are so right. We have slowly slipped into a state that most of our homeowners just want to use the pool, the playground and the tennis courts and be left alone.

I've recently thought about putting the house up for sale and going someplace with no HOA! I'm old and don't use any of the facilitates at all. My youngest daughter used to use them but she's off to a University and I never hear from her, unless she needs $$$. (Just kidding)

Apathy is the key word. A couple months ago another one of neighbors sent out a "wake up people" post on Nextdoor that lit people up for a day but then the monitor removed it and posted that it did not present a good, positive attitude and some people were "uncomfortable" after they read it.

He threw his hands up and called it censorship. I thought his post was spot on.

Appreciate your comments. I am hopeful we will replace the entire BOD in Dec. I have resisted running for reasons I've stated before. Last night another neighbor contacted me and asked I toss my hat in the ring.
Perhaps it's time to lead by example.
DennisG
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By DennisG7 on 09/29/2017 7:18 AM
Thanks. You are so right. We have slowly slipped into a state that most of our homeowners just want to use the pool, the playground and the tennis courts and be left alone.

I've recently thought about putting the house up for sale and going someplace with no HOA! I'm old and don't use any of the facilitates at all. My youngest daughter used to use them but she's off to a University and I never hear from her, unless she needs $$$. (Just kidding)

Apathy is the key word. A couple months ago another one of neighbors sent out a "wake up people" post on Nextdoor that lit people up for a day but then the monitor removed it and posted that it did not present a good, positive attitude and some people were "uncomfortable" after they read it.

He threw his hands up and called it censorship. I thought his post was spot on.

Appreciate your comments. I am hopeful we will replace the entire BOD in Dec. I have resisted running for reasons I've stated before. Last night another neighbor contacted me and asked I toss my hat in the ring.
Perhaps it's time to lead by example.
DennisG

Yes, I think you should run - I know there's a lot of work ahead of you and there's no guarantee it will work out, but you've taken the time to find out what your options are, and that's why I think you're EXACTLY what your community needs. I also understand your thinking to hell with it and selling the house. However, this issue will remain and could affect your ability to sell because no one with any sense wants to jump into BS. So, consider this a long winding way of protecting your interests (because that's exactly what you're doing).

Having said that, you're going to need help, so you might want to start with the neighbor who contacted you about running and the other person who wrote the NexDoor commentary.

(Of course, people were "uncomfortable" when they read it - speaking truth to power is SUPPOSED to make you squirm. You will either think about the situation, get off your ass and do something about it - or just continue to hope and pray the whole thing goes away. But just because you choose to deny a problem doesn't mean it doesn't exist or isn't getting worse).

Anyway, talk to them about your thoughts on running for the board and ASK them to help you, perhaps seeing if other people would like to run and you'll have a complete slate of candidates for people to vote for. Three people may turn into 10, 30 or more. It won't happen overnight and the current board will push back (expect nastiness along the way), but if you stick with it, you can get it done. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DanM12 (Georgia)
Posts: 25
Posted:
Hey Dennis

Going through a similar experience. Wondering how this all turned out?
GeorgeS21 (Florida)
Posts: 3,808
Posted:
2 1/2 years?
SheliaH (Indiana)
Posts: 6,964
Posted:
This conversation is two years old so you may want to start a new conversation with your questions. A lot can happen in 2 years, so even if this was updated, it still may not apply to your situation.

That said I think it's easier for the association to issue an official proxy that's been run by the association attorney so it'll stand up in court if challenged.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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