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CourtneyS2 (Texas)
Posts: 74
Posted:
According to this excerpt can someone tell me if the Board can make an ammendment change or does the communitty vote to pass this amendment? We are no longer under Class B Membership (Declarant)

These B- laws may be amended any time by the majority vote of the Board of Directors; provided, however, as long as there is a Class B Membership in the Association, any amendment of these By- laws must be approved by the Declarant.

In the cases of any conflict between the Articles of Incorporation and these By-Laws, the Articles shall control; and in the case of any conflict between the Declaration and these By-Laws, the Declaration shall control.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Do you mean remove the declarant? The board members can vote to remove an officer. Believe the general membership can remove a director.

It sounds like you need to update your documents altogether to remove all references to the declarant. That seems to be the biggest hurdle your facing right now.

Former HOA President
CourtneyS2 (Texas)
Posts: 74
Posted:
Hi Melissa,

No, the board was unsucessful with trying to remove me from the board at a meeting of the members election, Quroum was not meet.So the board underhandly had HOA Attorney to draft a document that would exclude me from the board. I had no knoledge of the Ammendment until the day the Board President signed it. During the middle of the following meeting of the directors the board removed me based on their new amendment.
We recently agreed to expanding the board to 5 members.The board also voted via email adding members to the board.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Did they ammend the by-laws or the CC&R's?

Former HOA President
AugustinD
Posts: 3,698
Posted:
Based on prior posts by the OP, this appears to be a non-condo HOA subject in particular to TPC 209.

Quote:
Posted By CourtneyS2 on 02/17/2022 3:02 PM
According to this excerpt can someone tell me if the Board can make an ammendment change
According to the Bylaw you quoted, yes, the Board can amend the Bylaws, with some important caveats.

Texas statute yada BO 22 (nonprofit corporation statute) allows a Board to amend the Bylaws, with some important caveats. No Texan should assume BO 22 controls until studying more.

I think your next question is: Can the Board amend the Bylaws to state that the Board has the authority to remove a director?

First, does your HOA's certificate of formation say anything about removal of directors? Does the certificate of formation say anything about amending the Bylaws? Please quote verbatim the relevant sections of the certificate of formation (a.k.a. Articles of Incorporation).

Second, BO 22 has the following intriguing section:
Sec. 22.211. REMOVAL OF DIRECTOR. (a) A director of a corporation may be removed from office under any procedure provided by the certificate of formation or bylaws of the corporation.

(b) In the absence of a provision for removal in the certificate of formation or bylaws, a director may be removed from office, with or without cause, by the persons entitled to elect, designate, or appoint the director. If the director was elected to office, removal requires an affirmative vote equal to the vote necessary to elect the director.


To me, the last sentence in this statute section raises questions about whether a board can lawfully amend the Bylaws to say the Board has the power to remove a director that the owners elected to office.

If a board majority could remove any director it wants and then appoint any director it wants, then this would at times defeat having elections by the membership all together.

I would hope a Texas Court would say a Board, that per the Bylaws has the power to amend the Bylaws, cannot remove a director via a board vote.

Let's see what others here at hoatalk say about this.
BillD16 (Texas)
Posts: 971
Posted:
A very quick read of my HOA’s Bylaws seems to indicate that modifying the Bylaws requires the approval of a majority of Members. I do not believe the scenario that Courtney describes could happen in my HOA. I guess it’s possible that their Bylaws allow some kind of self-destructive action - but it seems unlikely such a loophole would exist?

BillD

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
CourtneyS2 (Texas)
Posts: 74
Posted:
I was told by an HOA Attorney that I was illegally removed. Has anyone gone through the JP Court process to take action against the Association?
CathyA3 (Ohio)
Posts: 6,299
Posted:
General comments:

* Usually the only ones who can remove a director are the homeowners. In some states, other directors can remove another director who was appointed to fill a vacancy (as opposed to being elected by the membership) - in others all directors are treated the same regardless of how they came to be directors.

* You can't amend bylaws to make an illegal action legal. If your state laws say that directors must be removed by a vote of the membership, then your directors can amend the bylaws until the cows come home and it will not give them legal cover.

* I agree with Augustin's comment that an amendment like the one the directors are trying to make amounts to an end run around homeowner's right to elect the directors, since "the will of the people" could be overturned at any time.

So I'm pretty sure they were out of line. The problem becomes: what are you going to do about it? Is it worth it to you to invest the time and money to fight this? If you are "reinstated" (I put this in quotes because I believe their action was not valid) do you believe that you will be able to be an effective director?

The sad thing is that if you're the odd man out in a group, it doesn't really matter if you're the lone voice of reason surrounded by nincompoops or if you're a troublemaker undermining an otherwise functional group - you're still not going to be effective since the others outvote you.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By CourtneyS2 on 02/17/2022 9:21 PM
I was told by an HOA Attorney that I was illegally removed. Has anyone gone through the JP Court process to take action against the Association?
Texas Property Code Chapter 209's new section on filing HOA lawsuits in Texas Justice Courts (normally, a small claims court):

Sec. 209.017. JUSTICE COURT JURISDICTION. An owner of property in a subdivision may bring an action for a violation of this chapter against the property owners' association of the subdivision in the justice court of a precinct in which all or part of the subdivision is located.

Within TPC 209, I cannot find what I think is solid support for the argument that a violation of Chapter 209 occurred. Worse, the OP is up against a Board that may very well fight to the bitter end to keep her off the Board.

I would like a court to clarify whether a Texas Board with the power to amend the Bylaws can lawfully amend the Bylaws to say the Board has the power to remove a director.

Hypothetically, the OP's attorney's argument could be that Texas statute section BO 22.211(b)'s last sentence controls (see above).

If I was the paid prostitute-attorney for the HOA here, I would rebut this with, "First, that's the second sentence of a two-sentence sub-section that addresses instances where the Bylaws are silent about removal of a director. The Bylaws here are not silent about the removal of a director. Second, the second sentence is all about setting the amount of owners required to remove a director. The second sentence is not a declaration that a director can be removed only by an owers' vote."

Then the two sides and judge wrangle about whether what the OP's Board is doing is (as CathyA3 put it) an unlawful end run around justice, equity and so on.

Unfortunately nationwide once in awhile this forum has heard of bylaws that allow the board to amend the bylaws.

I think the only way the OP might prevail is with an attorney. Then one has to consider: Do the covenants or statutes say the OP would have to pay the HOA's attorney fees if the OP loses in court?

If the OP did prevail and got back on the Board, then CathyA3's questions, about whether the OP could be at all effective, arise.

For the OP, the cheapest path to a victory here might be to rally the owners to elect a new board that feel as the OP does about things.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
If this week me I would just leave the board and wait till next election cycle. That time others may re elect a different board members. Plus give me a chance to prove got what it takes.

Plus you do not have much advantages of being a board member if your votes would just be overridden. You still hold your member vote. Which speaks volumes if you get enough volume to speak.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Courtney

How did you get on the BOD?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Courtney said:

These B- laws may be amended any time by the majority vote of the Board of Directors; provided, however, as long as there is a Class B Membership in the Association, any amendment of these By- laws must be approved by the Declarant.

Based on this, I suppose the BOD could amend any existing Bylaws on how to remove a Member of the BOD to:

and can be removed by a Majority vote of the BOD.

Personally, I am leery of a BOD that can amend Bylaws.
CourtneyS2 (Texas)
Posts: 74
Posted:
I was voted on by members.
KerryL1 (California)
Posts: 14,550
Posted:
Been away for a few days and am randomly catching up. So, Sorry if I missed this, Courtney; if not, please cite the exact language of the Bylaw amendment.

Since the Board may amend the Bylaws, and you were a board member, how could this amendment be valid without your vote? Was this action to amend the Bylaws done by email? What are the criteria for board decisions by email per your bylaws or Texas statutes? Often, the decision about an action must be unanimous. But it wasn't since you didn't vote. Generally, the decision also has to be recorded in a subsequent meeting's minutes. Was it?

I also assume an amendment to the Bylaws must have the Peter signature. In CA, the secretary of the board signs Bylaw amendments. Who is supposed to sign in Texas?

No matter what, with Cathy & Augustin, if the board majority really wants you off, if you're a member, I don't know how you'll accomplish much. Melissa's advice to wait for the next election, gather supporters and others to run for the Board and really work hard to get them/you elected might be a good if difficult and arduous path,
CourtneyS2 (Texas)
Posts: 74
Posted:
Hi Kerry,

I spoke with an HOA Attorney he stated the language states that the bylaws can be amended by the board, that is still under Class B membership, and the declarant has to approve. We're no longer under class b membership.

The MC which is owned by the declarant resigned due to issue with another member. That member wanted the MC gone as well. Resignation was accepted. The owner (Declarant) of the MC have been having private meetings with the other two members. The MC told the board if they have me removed from the board the will stay.

The board was unsucessful in trying to remove me from the board at a meeting of the members.Quroum was not established. A homeowner also the close friend of one of the board members stood at this meeting and said that my name wasn't on the deed I should'nt be on the board. I am a homeowner.

Currently our bylaws indicate you don't have to even live in the community to be on the board. So, the board has now created an amendment that states " Members of the board must be record title owners to a fee simple fee within Cambridge Fall. Any director or candidate for director shall be required to show proof of home ownership within Cambridge Falls upon demand of the board." My personal account was discussed during a open meeting of the directors with homeowners present. I was told I was removed and could not be on the board during the middle of a meeting.

This amendment change was drafted by the HOA Attorney based on notes taken by the MC at an unoffical meeting. I had no previous knowledge of this amendment change before it was drafted.
CourtneyS2 (Texas)
Posts: 74
Posted:
Quote:
Posted By CourtneyS2 on 02/19/2022 10:45 AM
Hi Kerry,

I spoke with an HOA Attorney he stated the language states that the bylaws can be amended by the board, that is still under Class B membership, and the declarant has to approve. We're no longer under class b membership.

The MC which is owned by the declarant resigned due to issue with another member. That member wanted the MC gone as well. Resignation was accepted. The owner (Declarant) of the MC have been having private meetings with the other two members. The MC told the board if they have me removed from the board the will stay.

The board was unsucessful in trying to remove me from the board at a meeting of the members.Quroum was not established. A homeowner also the close friend of one of the board members stood at this meeting and said that my name wasn't on the deed I should'nt be on the board. I am a homeowner.

Currently our bylaws indicate you don't have to even live in the community to be on the board. So, the board has now created an amendment that states " Members of the board must be record title owners to a fee simple fee within "community" Any director or candidate for director shall be required to show proof of home ownership within "community" upon demand of the board." My personal account was discussed during a open meeting of the directors with homeowners present. I was told I was removed and could not be on the board during the middle of a meeting.

This amendment change was drafted by the HOA Attorney based on notes taken by the MC at an unoffical meeting. I had no previous knowledge of this amendment change before it was drafted.

KerryL1 (California)
Posts: 14,550
Posted:
Will you please try to answer the rest of my questions, Courtney?
CourtneyS2 (Texas)
Posts: 74
Posted:
The two of 3 directors told the MC either email,in person, or phone to have the Attorney to draft this amendment. I wasn't included in these discussions.

I did'nt see the amenment or hear of if until a meeting of the directors. It was then handed to all of us (directors). The other 2 directors said they approved without even looking at the legal document.I said I don't approve. The MC told the President to sign after they said they approved.

There wasn nothing recorded in previous meeting minutes in regards to proposing this amendment. Please let me know if I left out anything.

**Sec. 209.002. DEFINITIONS. In this chapter:

(1) "Assessment" means a regular assessment, special assessment, or other amount a property owner is required to pay a property owners' association under the dedicatory instrument or by law.

(2) "Board" means the governing body of a property owners' association.

(3) "Declaration" means an instrument filed in the real property records of a county that includes restrictive covenants governing a residential subdivision.

(4) "Dedicatory instrument" means each governing instrument covering the establishment, maintenance, and operation of a residential subdivision. The term includes restrictions or similar instruments subjecting property to restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association, to properly adopted rules and regulations of the property owners' association, and to all lawful amendments to the covenants, bylaws, rules, or regulations.

**Sec. 209.0041. ADOPTION OR AMENDMENT OF CERTAIN DEDICATORY INSTRUMENTS.

(a) Repealed by Acts 2015, 84th Leg., R.S., Ch. 1183 , Sec. 24, eff. September 1, 2015.

(b) This section applies to a residential subdivision in which property owners are subject to mandatory membership in a property owners' association.

(c) This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.

(d) This section does not apply to the amendment of a declaration during a development period.

(d-1) This section does not apply to an amendment of a declaration if the amendment would affect a portion of a subdivision that is zoned for or that contains, or previously contained as specifically allowed under the declaration, a commercial structure, an industrial structure, an apartment complex, or a condominium as defined by Section 81.002 or 82.003. For purposes of this subsection, "apartment complex" means two or more dwellings in one or more buildings that are owned by the same owner, located on the same lot or tract, and managed by the same owner, agent, or management company.

(e) This section applies to a dedicatory instrument regardless of the date on which the dedicatory instrument was created.

(f) This section supersedes any contrary requirement in a dedicatory instrument.

(g) To the extent of any conflict with another provision of this title, this section prevails.

(h) Except as provided by Subsection (h-1) or (h-2), a declaration may be amended only by a vote of 67 percent of the total votes allocated to property owners entitled to vote on the amendment of the declaration, in addition to any governmental approval required by law.

(h-1) If the declaration contains a lower percentage than prescribed by Subsection (h), the percentage in the declaration controls.

(h-2) If the declaration is silent as to voting rights for an amendment, the declaration may be amended by a vote of owners owning 67 percent of the lots subject to the declaration.

(i) A bylaw may not be amended to conflict with the declaration.

Added by Acts 2011, 82nd Leg., R.S., Ch. 1217 (S.B. 472), Sec. 2, eff. September 1, 2011.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 6, eff. September 1, 2015.

Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 24, eff. September 1, 2015.

Acts 2021, 87th Leg., R.S., Ch. 666 (H.B. 1659), Sec. 1, eff. June 15, 2021.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Are you still under Declarant control? Was a bit unclear about that. Said Class B voting is gone but not sure what that means exactly. Do the owners own the HOA or not?

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
Your writing about Class B membership since the declarant is no longer in the picture IS interesting in that it could be interpreted that the Board cannot make amendments to the Bylaws once the declarant is out of the picture.

What do your Bylaws themselves say about amending them? Exact quote, please.

Who signed the original Bylaws? Who SHOULD sign off on the amendment if it's not voidable?

The board did not vote to remove you. That wasn't the motion. So your original question was confusing.

A majority of the board voted to amend the Bylaws to state: "Members of the board must be record title owners to a fee simple fee within Cambridge Fall. Any director or candidate for director shall be required to show proof of home ownership within Cambridge Falls upon demand of the board." This is a very typical bylaw. But:

1. Was this proposed Bylaws amendment written on the agenda for the Board meeting in question?
A. If not, the board's decision isn't valid. I believe Texas requires that any items the board votes on must be on the agenda that's posted x days before the board meeting.

2. if NOT on the agenda, how did board members know to vote on it? Was it some sort of a handout AT the meeting?
A. If only a handout, I don't think it's a valid meeting agenda action item in Texas. But many other know more about that than I.

3. The board voted on 2 additional board members via email? I don't think that's legal in Texas either?? And...do you Bylaws permit 5 directors/

I suppose you could attend the next board meeting and plop down at the meeting table. You could announce that the Bylaws amendment isn't valid. But then what? An argument? A fight?

Perhaps if you have a written opinion by the HOA attorney you referred to, you could present it to the Board?

I've never seen on this forum anyone going to court on this type of illegal decisions by a board, Courtney. Again, with Melissa AND Augie, too. Gather a coalition to vote out these bozos.
CourtneyS2 (Texas)
Posts: 74
Posted:
I want to thank every single one of you for your response and advice. I really appreciate it.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By CourtneyS2 on 02/19/2022 10:45 AM
... snip ...

Currently our bylaws indicate you don't have to even live in the community to be on the board. So, the board has now created an amendment that states " Members of the board must be record title owners to a fee simple fee within Cambridge Fall. Any director or candidate for director shall be required to show proof of home ownership within Cambridge Falls upon demand of the board." My personal account was discussed during a open meeting of the directors with homeowners present. I was told I was removed and could not be on the board during the middle of a meeting.
... snip...

The part in bold caught my eye. Requiring directors to live in community would likely prevent investor/owners from serving on the board, which may be unlawfully discriminatory and may lead to legal action. Homeowners can decide on their own that residency is an important qualification for a director and vote accordingly, but that's different from saying a certain group of owners may not be on the board.

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