Votes Allowed per Unit

Started by BH5 • 8 replies • 800 views

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BH5 (Virginia)
Posts: 84

Posted:

We have only single family homes. Relative low percentage are rentals and there are no empty lots (all lots have a dwelling)

1. Question: How many votes are allowed for Trustees per member (single family home) given this wording in our By-laws:

Class A: Class A Members shall be all those Owners as defined herein with the exception of Class C (Note: this was the developer 25 years ago). Class A Members shall be entitled to one vote for each Lot owned.

Class B: Class B Members shall be all Occupants of the Living Units. Class B Members shall have one vote for the Living Unit they occupy.

Voting rights of Members shall be as follows:

... (b) Class A and Class B Members shall vote as a single class to approve amendments to the Articles of Incorporation and the Bylaws; and to elect Trustees.

2. Question: Is there any chance that the "owner" could be the mortgage company given this wording.

"Ownership of such lot and occupancy of such Living Unit shall be the sole qualifications for membership. A Mortgagee in possession of a Lot shall be entitled to exercise the Owner's rights with regard thereto.

BenA2 (Texas)
Posts: 1,273

Posted:

It sounds like class A refers to lots without homes and would be obsolete if you no longer have empty lots. Class B is all members of the home but they only have one vote per home. This is very common. A couple owning a home together are both full members but usually they only get one vote for the home or lot.

A "mortgagee in possession of a lot" would be the mortgage company that HAS POSSESSION (probably because of a foreclosure). I may have a mortgage through a bank but they do not own or possess my home as long as I make my payments. So, if someone is evicted because of foreclosure, the mortgage company would have possession and would be able to vote in their place.

BH5 (Virginia)
Posts: 84

Posted:

BenA2,

Thank you. We never had lots in this development. All were built on before the developer interest ended.
Do you think renters are covered in these Bylaws?
Do most single family home communities allow renters to vote for Trustees?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Renters are NOT owners. Thus they are not even part of the HOA. Unless the HOA CC&R's say that non-members can be on the board, then they play no part in the HOA.

BTW: Usually when the developer leaves the development the voting structure changes. The Class system is set up originally to give the Developer the higher # of votes/majority. After they leave, your HOA needs to re-write their documents to take out the Voting class and references to the Developer. Which in some cases it is overlooked about being an owner to be a member. That is still a reference to the developer. That was a way for the Developer to use their people to be on the board on their behalf. that is something to look into changing as well.

Former HOA President

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By BH5 on 04/25/2020 5:18 AM
BenA2,

Thank you. We never had lots in this development. All were built on before the developer interest ended.
Do you think renters are covered in these Bylaws?
Do most single family home communities allow renters to vote for Trustees?

In most associations after developer control it is a straight one vote per lot, exercised by the owner(s). The class B clause in your bylaws is extremely unusual, but would appear to allow any occupant to vote. "Class B Members shall have one vote for the Living Unit they occupy" seems somewhat ambiguous whether each occupant gets a vote or if they cast one vote between them. If each gets a vote, it does not appear limited to adults, children could vote too, but hopefully not pets.

I would get an attorney's opinion on this, and ideally work to remove the class B provision entirely from the bylaws.

Escaped former treasurer and director of a self managed association.

BenA2 (Texas)
Posts: 1,273

Posted:

Quote:

It would depend on your governing documents but generally the documents only apply to owners. So, renters can't vote and if there is a violation of the rules by a renter, only the owner can be held accountable.

BH5 (Virginia)
Posts: 84

Posted:

Thank you. I think that's the root of the issue. We are not going around and around on what this mean.

BH5 (Virginia)
Posts: 84

Posted:

Thank you. I also wonder what owners have put in their renter's leases. Surely no owner would want a renter voting on matters that could raise their dues or affect property values

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The leases are no concern of the HOA's. However, I do recommend that owners should put in them the tenant follows the HOA's rules. This allows them to be able to evict a bad tenant whom may break the rules. The HOA is going to fine the owner for the violation NOT the tenant.

You do understand the relationship between renters/owners/HOA? Renters are NOT member of the HOA. So they would have no vested interested in what the HOA does. It is the owners who are members. They are the ones the HOA deals with directly and holds feet to the ground for violations.

Former HOA President

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