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RuthL2 (California)
Posts: 2
Posted:
Our CC&R's were revised in 2003 and the attachment that sets the allocation of assessments was left out. For 25 years the % of allocation per unit was not published until this year when a new management company took over.
The allocation in use now is a % contrived from the 1st year of operation,1982 budget which is based on some expenses divided equal and some based on % of interest(such as reserves-back then there was only 4 items in the reserve fund)In other words they forever changed the % of interest from that budget and used that % only for each year thereafter.While this blended method of allocation was in the original CC&R's, the revised do not mention it,only referring to an attachment which in the original documents listed the deeded percentages of interest.
We just tried to ammend the CC&R's and a minority vote blocked it.We had 62% but we needed 75%.The ammendment failed because owners were threatened by the homeowner who is underpaying $4K a year that if it passed she would sue the HOA and rake us over the coals.We want to petition the court to reform our CC&R's based on a majority, but less then a super majority.There's a good chance she wil try to stop this.Does anyone have any success stories or advice on this situation? Any help would be much appreciated as this Board is trying to right a wrong that has been going on for 25 years.Thanks.
RogerB (Colorado)
Posts: 5,067
Posted:
Ruth, I have not direct experience but have information on this. In Colorado, state statute sets the percentage at 67% or lower if in your Covenants. So look to see if your state have passed a statute which overrides your Covenants. Then I would review the procedures used to get 62% to see if it is probable to get the required percentage by using a more effective means of getting all owners to vote for it. Such as providing a letter explaining the pros and cons, and a mailin ballot with a self addressed stamped envelop; followed up by going door to door if necessary.

In Colorado I know you can petition the Court when the required percentage is not achieved. A high percentage of the ballots in favor plus a strong argument will help get Court approval.
HaroldS (Arizona)
Posts: 906
Posted:
Roger, are you saying that Colorado has established a minimum vote of 67% to change CC&Rs "notwithstanding" what your documents require, and that if you don't even achieve that percent, you can go to court and the court could override that requirement? What is the purpose of that statue then? Just go to court if you don't get what you want. Sounds like more full employment opportunities for lawyers. Harold
RogerB (Colorado)
Posts: 5,067
Posted:
No Harold, the statute has a MAXIMUM of 67% and less when stated in the Covenants. Just because you go to Court doesn't mean the judge will rule in your favor. As I said, there has to be strong support and a very good reason.

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