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SheilaW5 (Maryland)
Posts: 3
Posted:
My HOA Board is trying to increase the assessment more than the 5% allowed w/o a vote of homeowners. The by-laws require 2/3's approval for such a change. We only have 32 units but have received only 3 votes/proxies! What happens if not enough people vote, either way? Do non-votes mean No? Yes? We're in Maryland, if that matters. Thanks in advance for your help.
CjC
Posts: 210
Posted:
I think you need to look to your documents to find your answer. Ours says if you don't get a quarom (which it sounds like you didn't) then we have another meting in a month and quarom requirements go down by 50% over and over.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SheilaW5 on 03/14/2018 12:34 PM
Do non-votes mean No?


Correct. I would want to double check your HOA's governing documents, but right now, it appears to me that your HOA will require 22 affirmative votes to increase the annual assessment more than 5%.
SueW6 (Michigan)
Posts: 814
Posted:
Also check to see if a duly-called meeting has to be held on this vote, or this can be done by mail.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Shelia

You need 2/3rd of 32 (22) voting YES. Does not matter how many NO votes. If not 32 YES, it dies. Was a time limit put on voting?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By SueW6 on 03/16/2018 2:50 PM
Also check to see if a duly-called meeting has to be held on this vote, or this can be done by mail.


I assume they are doing it via a mail-in ballot/proxy. We are going to be doing an amendment change and that is how we will be doing it. We are setting a 60 day time frame for the proxy to be returned.

Our lawyer is putting the package together so we know it will be legal.

RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By JohnC46 on 03/16/2018 5:42 PM
Shelia

You need 2/3rd of 32 (22) voting YES. Does not matter how many NO votes. If not 32 YES, it dies. Was a time limit put on voting?

It could also be 2/3 of a quorum which MIGHT be 12?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By RichardP13 on 03/17/2018 8:12 AM
Posted By JohnC46 on 03/16/2018 5:42 PM
Shelia

You need 2/3rd of 32 (22) voting YES. Does not matter how many NO votes. If not 32 YES, it dies. Was a time limit put on voting?


It could also be 2/3 of a quorum which MIGHT be 12?

Could be, but I have never seen Covenant nor Bylaw changes via a majority of a Quorum. Those I have seen and been part of (with the exception of the Declarant doing so) had to be done by a majority (from 51 to 75%) of all owners.

Anything is possible I guess.

SheliaH (Indiana)
Posts: 6,964
Posted:
Could it be you aren't getting the votes either way because people haven't been educated on the reasons why you have to go over 5%? Some people may not care and won't vote regardless of what you do, but others may be fixated on the 6%, 7% or however much the board wants to up the assessment and will say no, not realizing they may be shooting themselves in the foot.

So you might want to start with reviewing what the homeowners have been told and then encourage them to attend a meeting and vote. How much time did you give people to vote - perhaps you need to extend the voting period for another month or two.

In my community, not voting at all was the equivalent of casting a "no" vote, so if you don't get enough, the board will have to decide what to do if the community still needs the money. They may have to settle for increasing the assessment to the 5% max every year for the next two or three years and then see what happens. If people yell (and they will), that's whey they need to do the educating they should have been doing all along - the buildings are old, the reserves are underfunded, too many delinquencies or whatever has brought you to this point has to be addressed and tough decisions have to be made. Maybe the homeowners will have to vote to make certain services homeowner responsibility.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By SheliaH on 03/17/2018 7:26 PM
Could it be you aren't getting the votes either way because people haven't been educated on the reasons why you have to go over 5%? Some people may not care and won't vote regardless of what you do, but others may be fixated on the 6%, 7% or however much the board wants to up the assessment and will say no, not realizing they may be shooting themselves in the foot.

So you might want to start with reviewing what the homeowners have been told and then encourage them to attend a meeting and vote. How much time did you give people to vote - perhaps you need to extend the voting period for another month or two.

In my community, not voting at all was the equivalent of casting a "no" vote, so if you don't get enough, the board will have to decide what to do if the community still needs the money. They may have to settle for increasing the assessment to the 5% max every year for the next two or three years and then see what happens. If people yell (and they will), that's whey they need to do the educating they should have been doing all along - the buildings are old, the reserves are underfunded, too many delinquencies or whatever has brought you to this point has to be addressed and tough decisions have to be made. Maybe the homeowners will have to vote to make certain services homeowner responsibility.

Good suggestions, especially the 5% a year if the vote fails.
SheilaW4 (Maryland)
Posts: 1
Posted:
Thanks for all of your helpful and knowledgeable responses. The By-Laws say the following: "... the maximum annual assessment may be increased above 5% by a vote of 2/3's of each Class of Members who are voting in person or by proxy, at a meeting duly called for this purpose." That's it. Nothing about a quorum or non-votes. We only have one Class of Members, i.e. owners of each townhouse w/ each unit allowed 1 vote (32 in total). Because we get very few attending meetings, an explanation of the need to increase assessment and a proxy form were included w/ the most recent assessment invoice and a deadline was specified.
They still have a week and my fingers are crossed.
Thanks again.

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