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LynnD1 (California)
Posts: 4
Posted:
Our HOA manager missed multiple deadlines with distributing ballots and other documents which resulted in our HOA not being in compliance with our bylaws and our election having to be delayed by two months. We have a posse of homeowners that are so unhappy with the HOA management company about many issues and consequently the Board, I'm wondering what might happen if someone in the membership realizes that we are out of compliance with bylaws. What should we do as a board?
KerryL1 (California)
Posts: 14,550
Posted:
When was your election supposed to have been held. Are you talking about the new election legislation in CA? Are you in compliance now? Is your board aware of this legislation? Are your Owners aware of it? If they are, I suppose they could take some kind of court action, but probably would not.

Is your board showing Owners that you're working on this problem?

What size is your HOA?

Can you get your HOA attorney to help you get up to date with everything?? It sounds like your PM is useless. Why hasn't your board fired her? Or tired to get her in line?
MarkW18
Posts: 1,290
Posted:
I am wondering why someone thinks the manager in question is a female. There is nothing in their post that would suggest it. Just a 50/50 guest?

FYI, the HOA manager or management company can't run your election any longer, per new legislation taking effect in 2020.

Unless the Board found an outside inspector of election, then you will need to try and hire one of the couple companies that specializes in this. Sorry, but they are pretty much booked for the year. My daughter is running into the same issues although she added election services to her menu, just can't do the ones she is under management contract for.

It is a mess. Below is a summary of the new bill:

SB 323. Elections & Director Qualifications. (Chaptered) A variation of this bill was vetoed last year by Governor Brown. This bill requires extensive changes to election rules dealing with mandatory and permissive candidate qualifications, a longer election cycle, nomination procedures, who mase serve as inspectors of election, verification of voter and candidate information, the inclusion of email addresses in the membership list, and the inspection and retention of election materials.

Must adopt new election rules;
Create candidate registration list and voter list and allow member verification at least 30 days before ballots are distributed;
Send nomination procedures at least 30 days before nomination deadline;
Candidates must be members. OPTIONAL: (i) current assessments, (ii) no co-owners, (iii) member >1 year, (iv) criminal conviction prevents fidelity bond;
Cannot suspend voting rights;
Must allow someone with a general power of attorney to vote for a member;
May not amend election rules less than 90 days before an election;
Must use independent inspectors of election; and
Email addresses now part of membership list.

The bill makes members' email addresses part of the membership list available to all members. It requires elections to be held at minimum every four years. It provides that when a court finds that election procedures were not adopted or adhered to, it shall void the election results unless the association established that its noncompliance did not affect the election results. It allows a member to be awarded attorneys' fees for consulting an attorney for small claims court.

Here is the new timeline for elections. It now starts at a minimum of 105 days, you can't amend or create election rules (which are a must)less than 90 days.

IF, you start now, you might be able to get an election in this year, IF you're lucky. I am not kidding.
LynnD1 (California)
Posts: 4
Posted:
First, ballots were supposed to be distributed in February, but the manager forgot to send out the call for candidates, so the ballots will be sent in the next week. We are supposed to install new members at our March meeting per bylaws, but that won't happen because the deadline to submit ballots will be delayed till April. So, if no more delays, the new board won't be installed at our May meeting (3rd week) but it should have been accomplished at the March meeting This is all spelled out in our bylaws. The manager is using the excuse that implementing the new California election rules was complicated and delayed her completing tasks.
As to firing the manager, that's where I think we are headed, but the election could unseat 3 of our current board members (7 member board) and replace them with 3 individuals who have no experience but are constant complainers at every board meeting for the last year. My main concern at the moment is violation of Bylaws and knowing they have been violated, but no action by the board.
LynnD1 (California)
Posts: 4
Posted:
Here's what the manager (it is a female, BTW) missed doing:
Must adopt new election rules;
Create candidate registration list and voter list and allow member verification at least 30 days before ballots are distributed;
Send nomination procedures at least 30 days before nomination deadline;

It has been downhill since then. We do have an outside inspector, but the tasks and documents that needed to be prepared for submission to the inspection is where the delay occurred.
MarkW18
Posts: 1,290
Posted:
This may come off strong, but:

1) Adopting new election rules is the Board's and attorney's responsibility. If you had some, they must be amended to conform to the new rules.

I will tell you the delay is a minimum of 6-7 months, because of the election rules. First you have to either create new or fix old, then they have to be sent out for a 30 days review. Then you have to send out the election rules with nomination forms. Then you have to send pre-election accuracy form.

Based on what I calculated for my daughter, an association of 100 can look for election expenses of $1500-$2000 for this year.
MarkW18
Posts: 1,290
Posted:
I spoke to a friend I worked with. The company they worked for now has three managers and 45 properties, or 15 properties for each manager. The owner of the company is a attorney, but been in court for the last three months. He also was supposed to have election rules ready by October for the Boards to start to address. Not one is done.

Also remember the bill was only signed on October 12, 2019 to take effect in less than 90 days. What other tasks were managers handling at that same time? BUDGETS and ANNUAL PACKAGES.

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