Board Candidate Home Sale & Annual Election

I am a member in a small community in California, 18 units. We have a very hard time getting homeowners to run for the Board, we have a 3 person Board. For this year's election we have one open seat & one candidate. We updated our election rules per the new law that went into effect this year. We have our election scheduled for end of October and have followed all the CA HOA notification requirements.

The one candidate self-nominated by the deadline in August, we sent out the required communication with the list of candidates in August, and we sent out the ballots in September. This week, the candidate put their home up for sale & was very lucky to get an accepted offer within days of it being listed. We are less than 10 days from the scheduled election.

Question, what now happens to our election? The candidate will still be a homeowner on the date of the election, and is the only person running so it is very likely they will be elected. Is the best path to proceed and hold the election, form the new board & then have the person resign once the sale is finalized? Our Bylaws allow the Board to appoint a new Director in the case of a vacancy at a "duly held meeting of the Board".

Any input is appreciated.

ADD ON

If amount of people running are the same amount (or less) as open seats (in your case one for one), there is no need for an election. They are seated.

I don't know California rules - or what your Bylaws say.

But - if you can seat the candidate as a board member, then they move, the Board should be able to appoint a replacement - probably the easiest, and potentially more strategic move?

Check your bylaws to make sure that there is a requirement that Board members must be an owner.

I would be surprised if there are any HOA CC&rs or Bylaws that permit non-recorded owners to be HOA Board members

Yes, however Declarants ability to run for Boards and other powers usually have an expiration date written into CC&Rs, Bylaws.

My current HOA has no requirement for board members to be owners, or for officers, except the president to be on the board.

Yes, MarkM, I think I wrote effective 1/20. The new Election Rule requirement here are really stupid and caused us (well me) al lot of extra work this year. Such changes often require changes to the bylaws.

NpB

A real world example of why a member of the Board chose not to resign until the sale of the property closed--with the complete approval of those active in the Association with whom she consulted:

The President and her husband, 25+ year owners, have been looking to find another home for some time as theirs is no longer adequate due to family size, age of children, family activities, number of vehicles, etc.

They became aware of a property on the market nearby (less than 2 miles as the crow flies, across the golf course), different sub-association, same Master Association, which came on the market. Their offer was accepted.

We have great difficulty finding even three volunteers for the Board most years. Another Board member resigned in August as they relocated to Australia. A self-nominated candidate, a prior Board member from the '90s, was appointed to fill the vacancy until the next annual meeting in the spring.

The President consulted with several of us (I am the immediate Past president) regarding resigning immediately. We asked she not do so as she is the only Director on the Board with any modern day experience.

Our advice was based on the fact her term will expire when the annual meeting takes place, or the property sells, whichever takes place first. There are no pending issues, only one remaining board meeting prior to the annual meeting. She, and those of us she consulted, including the other members of the board, do not wish to contend with the necessity of finding, interviewing, and appointing someone to fill a vacancy for only a few months prior to the annual meeting. Neither of the two remaining Board members have any interest in the presidency, hence her remaining in place makes the most sense. Were she not the President, the director seat would simply be left open.

We have no issues or concerns regarding her continued attention to the Association in the interim, she has been instrumental over the years in organizing social activities, events, committees, etc.

Had there been many months to a year or more remaining of her term, those she consulted would have advised differently. In this case, it makes no good sense for her to resign until it is necessary.

Correct. No law requires resignation. Staying on is purely selfish and agenda driven in my opinion, especially at the stage when house is under contract.

And, another odd conclusion from npb.

Alabama's nonprofit corporation statute authorizes the two directors to appoint a third director; then the three directors appoint a fourth; and so on until the seats are filled.

Our documents in themselves did not cover this situation. So we had to go by the normal election process. Plus did not have anyone wanting to volunteer at the time as well.

Okay you go find a neighbor willing to do it... That is right my people who were new board later were crooked people was protecting HOA from. The others sold and left. Had no one wanting the job including myself. Even I moved...

Projection, I think.