HOA Voting Rights of Member/Lot Owner of Record who owns more than one lot.

Started by MichaelO10 • 5 replies • 1185 views

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MichaelO10 (New York)
Posts: 3

Posted:

#611(e) of Not.for-profit law provides each member has one vote, except if a Corp. has an organization as a Member, the certificate of incorporation or bylaws may provide that such organization shall be entitled to votes substantially proportionate to its membership.

Is the certificate or by- laws that is referred to that of the NFP?

If Cert. says NFP formed to enforce Declaration etc. and Declaration says person as member is entitled to one vote for each lot he owns is that sufficient to meet exception indirectly?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Huh? Not sure what your asking. I translate that statement to mean that 1 vote per owner unless that owner is a corporation. That is in reference to LLC type of collaborations. Which works like 1 lot but multiple owners of that lot in business with each other. The LLC basically has to decide who get that vote for that 1 lot they all own.

I like to call the LLC like picking who is going to go prison for them all. Who holds the shortest straw in the end makes the decisions within.

It's kind of harder to deal with LLC's for HOA's overall. Can't really pin a LLC down due to the multiple owner issues. Makes it a bit harder for proper communication, liens, and who going to leave holding the bag.

Former HOA President

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By MichaelO10 on 07/25/2018 1:08 PM
#611(e) of Not.for-profit law provides each member has one vote, except if a Corp. has an organization as a Member, the certificate of incorporation or bylaws may provide that such organization shall be entitled to votes substantially proportionate to its membership.

Is the certificate or by- laws that is referred to that of the NFP? YES ... if you are referring to the Non-Profit Corporation for the HOA.

If Cert. says NFP formed to enforce Declaration etc. and Declaration says person as member is entitled to one vote for each lot he owns is that sufficient to meet exception indirectly?

Answered your one question above in bold. Here is the full text of the Statute you are referencing:

(e) In any case in which a member is entitled to vote, he shall have no more than, nor less than, one vote; except that if a corporation has an organization as a member, the certificate of incorporation or by-laws may provide that such organization shall be entitled to votes substantially proportionate to its membership.

My question would be what is the exact verbiage in your Certificate of Incorporation and Bylaws??? If your Incorporation document or bylaws do not address and your Declaration notes one vote for each lot ... then potentially the Declaration would rule on the issue.

MichaelO10 (New York)
Posts: 3

Posted:

The question is not how the vote of a LLC with multiple members is cast. The question is if a LLC owns a number of lots, say 5 lots, in a HOA subdivision where the owner of each lot has one vote does that LLC have one or five lots. Sec 611 of NYS Not For Profit Law (e) says one vote unless the certificate of that NFP Corp says otherwise then that Owner has proportionate vote equal to % of lots owned.
Is there a way to preserve the right to multiple votes if the certificate of the NFP Corp does not provide the exception.

PainintheA
Posts: 77

Posted:

There is 1 vote per lot owned.

There sometimes may be x vote per square foot owned.

Who or what the owner(s) is/are is no matter.

A 'given lot' may 'produce' more than 1 member but seldom more than 1 vote.

JaredC (Texas)
Posts: 264

Posted:

Bloody hell. I'm having a difficult time finding the actual website where the statute resides. Anyway there seems to be some disparity between your first and second posts. Regardless it would seem to me that any entity would be entitled to a single vote for every lot owned. So if an LLC owned 5 lots they would get 5 votes.

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