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KerryL1 (California)
Posts: 14,550
Posted:
We need 67% of all owners to approve our restated CC&Rs. Secret Ballots have been out for 5 weeks and we have 80 votes. Not all, we can assume, are "yes." We need about 143.

The main non-voters are absentee owners who have renters in their condo units. They are about 22-25% of our owners. We're doing well with Owner-residents. We're doing fairly well with owner part-time residents--maybe 15% now of our owners.

Here's what we've done: Worked on revisions for about 4 years over several directors. Too many stops & starts. HOA attorney advised all the way and met with us probably 10 times.

We held two Town Halls for Owner feedback, which our attorney attended. We took into account owners written feedback too.

We published an article in our monthly newsletter about the purpose of the restatement. Our president's messages for the past 2 months urges Owner to vote.

We started offering $100 raffle prizes.

We have convenient secured ballot boxes in our mailrooms and flyers posted in thm.

We have alternating elevator flyers to keep things fresh.

Every director + me-- a recently retired director -- are assigned Owners to personally contact, which all directors have said they've done.

I'm going to suggest we target our absentee owners who haven't voted with a 2nd mailing with the outer envelope USPS stamped that they must return.

Any other ideas??? : )

(In CA we can seek a judge's approval if we have a simple majority and show we've tried hard to get out the vote, but extra $$)
SheliaH (Indiana)
Posts: 6,964
Posted:
That's a lot already, and you're correct that a targeted campaign to the absentee owners might be best. Perhaps that letter could include the information about getting a judge's approval, which ends up costing everyone more money. that's not fair to the homeowners who did their due diligence and turned in their ballots.

I know this has been discussed elsewhere, but would it be possible to tell those owners that if you don't hear from them by X date, the board will assume their consent and not go to court. To strengthen your position, send the letters certified with a return receipt requested - this way, they can't say they didn't receive the letter (what they did with it is another story). Run this by the attorney before you do anything.

Or move to an online vote - I believe programs like Survey Monkey can track who responds, so if you try to vote more than once, it'll kick it out. For that, you'll have to make sure the email is sent to whatever the association has on file - maybe there's a way to keep track of the bouncebacks and you can resort to letters again.

If that doesn't work, go to the legal option. Tell homeowners (everyone) how much this will cost - some may know these absentee owners and apply pressure for them to get off their ass and vote. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MaxB4
Posts: 3,513
Posted:
To respond to a couple of Sheila's comments:

----I am not in favor of having a court reduce the passage to a majority as it doesn't change what is required in further amendments. Also, this is a restate, not an emergency. Also, attorneys tend to lie about the process, passed on three I observed.
----California doesn't allow online vote. It's a two envelope-secret ballot, paper system. I have checked a few online voting systems for HOA's and they are not secret. They will email a summary of how you voted, meaning someone has access to your vote.
----If there are 211 units, you need 144 yes votes. If 80 have already returned ballots, Kerry should know exactly how many were in each category. If 25% or 53 are absentee owners and none have voted, what chance do you think you'll get them now?

In 2010, we voted on and pass restated Bylaws for our community. We started the rewrite in Feb 2010 and passed and signed by the president on Aug 10, 2010. Our were more difficult as we had the board, PM and attorney against us, which were embroiled in a $250K lawsuit. We had 317 ballots go out and 239 were returned, with 237 votes in favor. We had 239 votes in 3 weeks.

We knew we had the required 162 votes to pass, prior to ballots being mailed out. We went door to door and actually collected the ballots, rather the inspectors did, walking side by side on many evening. We had a table setup during our luau. Nothing was left to chance. We ran it like a political campaign.
AdamL1 (UnitedStates)
Posts: 559
Posted:
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....
SheliaH (Indiana)
Posts: 6,964
Posted:
I looked at an article on the subject (https://www.davis-stirling.com/HOME/R/Reasons-to-Restate-HOA-CCRs#:~:text=A%20restatement%20revises%20and%2For,page%20of%20a%20restated%20document) and it would appear they are restating the documents. To make sure the thing stands up in court, it would make sense to get help from an attorney. Particularly when it comes to removing the legalese and converting it to plain English - there have been discussions on this website about the words "shall" vs. "may", so if you're going to use them, you need to make sure it's in the right context.

I'm not a fan of going to court either, but if the goal is to ensure the documents address issues that weren't mentioned in the original, make it more in line with current state law and make it easier to read, it may be Kerry's association should emphasize that. When you have clarity, it can help prevent misunderstandings and even more lawsuits, and if the association makes it a habit to review the documents every 7-10 years to retweak as necessary, the process may be a little easier once you get past this.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By SheliaH on 03/24/2022 8:51 AM
To make sure the thing stands up in court, it would make sense to get help from an attorney. Particularly when it comes to removing the legalese and converting it to plain English

Getting an attorney who put the legalese in, to now have them remove it?
MarniD (Florida)
Posts: 39
Posted:
My goodness, everything you have done is amazing, KUDOS to you. In my community we have none of that, no one has a clue what is going on, they don't post minutes, they don't post agendas for meetings, they cut off mics during meetings via zoom and now they want to have a meeting without any pre discussion about what documents to amend, and since all this is going on, no once cares and will not attend. Wow We just got our ballots today and our meeting is in 3 day's .
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By AdamL1 on 03/24/2022 7:43 AM
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....

I have done a number of restatements in California. A law firm with purchase a boilerplate set of governing documents and then try to fine tune them to a specific community. If you have a "urban" community, it would not be uncommon for a number of "urban" high rises having similar CCRs.

I am curious if her association got the assessment formula and special benefit component done correctly before being sent out to homeowners.
AdamL1 (UnitedStates)
Posts: 559
Posted:
Quote:
Posted By MaxB4 on 03/24/2022 12:48 PM
Posted By AdamL1 on 03/24/2022 7:43 AM
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....


I have done a number of restatements in California. A law firm with purchase a boilerplate set of governing documents and then try to fine tune them to a specific community. If you have a "urban" community, it would not be uncommon for a number of "urban" high rises having similar CCRs.

I am curious if her association got the assessment formula and special benefit component done correctly before being sent out to homeowners.

curious how much that cost you?
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AdamL1 on 03/24/2022 7:43 AM
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....
Why not?

I think this is about semantics.

In my opinion regardless of whether it's a restatement or an amendment an attorney should be involved.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By MaxB4 on 03/24/2022 11:36 AM
Posted By SheliaH on 03/24/2022 8:51 AM
To make sure the thing stands up in court, it would make sense to get help from an attorney. Particularly when it comes to removing the legalese and converting it to plain English


Getting an attorney who put the legalese in, to now have them remove it?



Yup - although it wouldn't be the developer's attorney, who either put it in or used a boilerplate set of Bylaws and CCRs like so many do (written by some other attorney somewhere). This is a big part of legal training, especially for paralegals because they often have to clean up the slop the attorney dished out.

Writing legal documents in plain English IS a thing - it's part of the reason many of your insurance policies and credit card agreements (which hardly anyone reads) are written the way they are. Consider that years and years ago, the average reading level for an adult finishing high school was 12th grade. Then it dropped to 8th grade and today I think it's running at the 6th-grade level. There are even federal guidelines for writing its gobbydygook in plain Englishj - check out this link:

https://www.archives.gov/federal-register/write/legal-docs/clear-writing.html

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By SheliaH on 03/24/2022 2:19 PM

Writing legal documents in plain English IS a thing - it's part of the reason many of your insurance policies and credit card agreements (which hardly anyone reads) are written the way they are. Consider that years and years ago, the average reading level for an adult finishing high school was 12th grade. Then it dropped to 8th grade and today I think it's running at the 6th-grade level. There are even federal guidelines for writing its gobbydygook in plain Englishj - check out this link:

https://www.archives.gov/federal-register/write/legal-docs/clear-writing.html
-- The law has its own language like any profession/trade has its own language.

-- An attorney writing to satisfy laypeople's reading skills is likely omitting the dotting of i's and the crossing of t's and so is not protecting her or his clients. What attorney would want to hold her- or himself out to a malpractice claim?
AugustinD
Posts: 3,698
Posted:
KerryL1, how many pages of reading did the COA send to owners? If you all spent four years on this, I can imagine the number of changes is substantial.

To state what may be obvious:
Seventy or more pages written, of necessity, in legalese may be a large part of the problem.

I realize the board really wants the changes. Also the changes are undoubtedly in the best interests of the COA.

Maybe increase the size of the raffle prizes, and have several such prizes. My back-of-the-envelope cost-benefit analysis of such an approach says the expense of the prizes may be worth the benefit.

Anyone saying, "But Augie, raffle prizes are not a Declaration-authorized expense... " I'd say use a rationalization for this expense, resting on the well-being of the COA, and how the COA attorney says these changes are important because of xyz.

I assume the raffle will only occur if quorum is met.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By AdamL1 on 03/24/2022 2:11 PM
Posted By MaxB4 on 03/24/2022 12:48 PM
Posted By AdamL1 on 03/24/2022 7:43 AM
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....


I have done a number of restatements in California. A law firm with purchase a boilerplate set of governing documents and then try to fine tune them to a specific community. If you have a "urban" community, it would not be uncommon for a number of "urban" high rises having similar CCRs.

I am curious if her association got the assessment formula and special benefit component done correctly before being sent out to homeowners.


curious how much that cost you?

Didn't cost me a dime. Worked at a law firm who owned a management company. He charged a minimum of $5000.00 for a set of CCRs and Bylaws. Nice to see he has been disbarred and filed for bankruptcy.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By SheliaH on 03/24/2022 2:19 PM
Posted By MaxB4 on 03/24/2022 11:36 AM
Posted By SheliaH on 03/24/2022 8:51 AM
To make sure the thing stands up in court, it would make sense to get help from an attorney. Particularly when it comes to removing the legalese and converting it to plain English


Getting an attorney who put the legalese in, to now have them remove it?



Yup - although it wouldn't be the developer's attorney, who either put it in or used a boilerplate set of Bylaws and CCRs like so many do (written by some other attorney somewhere). This is a big part of legal training, especially for paralegals because they often have to clean up the slop the attorney dished out.

Writing legal documents in plain English IS a thing - it's part of the reason many of your insurance policies and credit card agreements (which hardly anyone reads) are written the way they are. Consider that years and years ago, the average reading level for an adult finishing high school was 12th grade. Then it dropped to 8th grade and today I think it's running at the 6th-grade level. There are even federal guidelines for writing its gobbydygook in plain Englishj - check out this link:

https://www.archives.gov/federal-register/write/legal-docs/clear-writing.html

At least now, attorneys have at least a 10th grade reading level. Still 4 levels up from us common folks.
SheliaH (Indiana)
Posts: 6,964
Posted:
And that's why so many people are as stupid as sheep. Like my mother always said - the easiest way to keep some people ignorant is to simply write down the information and hand it to them because they'll never read it! And yet they can remember EVERYTHING some fool posts on Instagram.....

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AdamL1 on 03/24/2022 7:43 AM
for clarification, are you Restating or Amending?

You mentioned working with a lawyer and drafting many changes. That's not a restatement....

I want this question answered also.
KerryL1 (California)
Posts: 14,550
Posted:

Thanks to those who emphasized a target bailout to absentee owners and upping raffle prizes. I appreciate it. Anyone one else have ideas??

Shelia wrote re: getting approval from a judge IF we have a simple majority of yeses: "...if the goal is to ensure the documents address issues that weren't mentioned in the original, make it more in line with current state law and make it easier to read, it may be [we] should emphasize that. When you have clarity, it can help prevent misunderstandings and even more lawsuits..." Yes, we don't want to throw away the $5,000 we've already paid out GC + extras re: mailers & postage we can spend quite a lot more. (There's never been a lawsuit in our 22 years. There was one ADR a few years a go that was amicably settled by a mediator.)

So, per Shelia: "...a targeted campaign to the absentee owners might be best. Perhaps that letter could include...getting a judge's approval, which ends up costing everyone more money." Good advice and strategy! I think we'll move to it once we get close to having 50%+ of ballots. A simple majority will approve our Bylaws and there's nothing in their restatement that conflicts with our original CC&Rs. (We're aware not all secret ballots will vote yes.)

I learned in a course that a higher response rate is yielded when respondents have stamped envelopes. Even more true today when folks don't use stamps as much. Some absentee owners have voted. Many live far away, have someone managing their condo rental. But there are also some who plan to retire here and two who did live here whom I'll personally contact, though they've already been contacted.

To Augustin's points: Yes, a redlined version is on our protected website and shows all of the changes various boards have made over 4 years to the CC&RS. It's 110 pages. Our ca. 2000 CC&Rs are 93 pages + an Exhibit. Our Restatement is 77 pages + 2 Exhibits. We, should say, I, did reduce "legalese" considerably with our GC's OK of every word.

I agree that its length IS an obstacle to getting folks to vote. One man says it's too long for him to to read and he won't vote for something that he hasn't read. Maybe 3-4 pages were moved to the Bylaws, which are now 15 pages vs. 25. Still, an owner asked if I could explain the CC&Rs in one paragraph! Again, our expert GC couldn't see removing any further sections. We also added, I'd say, a total of 3 pages scattered in different sections. Smoking is forbidden everywhere at our buildings including in our units, for instance. He most certainly is NOT the original attorney.

One reason for its length is that 3.61% of our HOA is held by a Commercial Owner (our developer). A fair # of sections are only about them, e.g., a page re: what isn't permitted in their suites (no tattoo parlors!). What they contribute to the "Base" operating budget and what they contribute to Base reserves. Their maintenance obligations. Info about their own small reserve account, etc.

Good idea, Augustin, to increase raffle $. It's currently at $100 with about 4 drawings total. Our GC sees it not in conflict with our CC&Rs due to your own argument, which he's used in previous cases.

To Max's meanderings and unrelated side remarks: 67% of 211 is not 144. More, we don't have 211 units. How does "your" number, even if correct, help me get out the vote? We also are proceeding where only if a voter gives one of us their ballot with a note saying they're unable to deliver their vote in person to the inspectors' location, is it lawful. As I wrote above, every owner has been personally contacted by a board member or by me, some 2,3 or more times.

For JohnC & Adam: Our HOA attorney, whose been our GC for about 8 years--whose firm specializes in CA HOA's governing documents--says he's worked on about 100 of them and ours are among the top 10 most complex. His letter to Owners, which accompanied the ballots starts: "Enclosed for your review are the complete texts of the proposed Restated and Amended Declaration of Covenants, Conditions and Restrictions (“Restated CC&Rs”) for the Association and proposed Restated Bylaws. I have no interest in arguing with him on such a minor point. I don't see how the question's content helps us get out the vote????
MaxB4
Posts: 3,513
Posted:
Kerry

If the 211 is incorrect, then you need to have your management company update the numbers with the Secretary of State, because that is what it states, period! Based on what you have stated, you have no idea what votes you have. You have been in charge of this for what, 4-5 years? Why has the board (you) and attorney been farting around with for that long. You can personally demean me all you want, but I and my group were successful, where you are falling flat on your face. Maybe it's time for you to look in the mirror.
MaxB4
Posts: 3,513
Posted:
Let me add a couple of things. Your first comment was to degrade the number of votes I calculated you needed, which I said 144, yet you stated it was "about" 143. A total of one! Again, my statement of the number of units is from what your association provided to the Secretary of State of California. The number of 211 units, does that also include the commercial units as well and do they have a vote in the matter?

It was you who wanted to be put in charge of this project with all your legal "expertise". You have 80 ballots with just 17 days before the deadline. You might have come to this group before ballots were mailed out, not 5 weeks or so after ballots sent out and facing the possibility of not having enough ballots returned. This failure is on you.

As I mentioned, I did a combination of 10 CCRs and Bylaws during 2011 to 2013. All were passed on the first try. We provided a game plan BEFORE ballots were mailed. The best I have heard from anyone is "let's raise the amount of the raffle". Good luck with that one. Your residents pay up to or more than $1200.00 a month in dues, and you think throwing them a dime is really the answer.

You can say what you want about me, but I ain't the one holding the short end of the stick!
KerryL1 (California)
Posts: 14,550
Posted:
We have a game plan & have been following it. It is well-known that it's difficult to get 67% of owners to vote yes. Neighboring high rises have had to go to court and judges have approved their amendments or restatements. IMO, our % of absentee owners & and part-time owner occupants are less likely to vote. Same reason why the high rises around us cannot get 67% to approve.

Thanks again to those who actually have ideas.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Kerry
Change scares many people especially if they are doing just fine under present conditions. You have to convince people that the proposed changes are for their betterment especially the "changes".
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By JohnC46 on 03/26/2022 2:39 PM
Kerry
Change scares many people especially if they are doing just fine under present conditions. You have to convince people that the proposed changes are for their betterment especially the "changes".

Agree 100%. We approached getting our docs rewritten into several phases. The first was, via multiple methods, we educated the owners on why the the docs had to be re-written and what some of the major changes were that we wanted to implement. We always tried to tie the proposed changes back to them and spell out exactly how it would benefit them personally. People can be selfish so make it appear to be all about them!

After getting feedback we then sent out periodic electronic surveys. These surveys listed some of the proposed changes and then asked them if the vote was held today would you vote YES or NO. We tallied these votes and if the owners overwhelmingly voted no then we dropped the proposed change from our draft. (We did not survey them on anything that was required legally by the state, etc.) What we wanted to avoid was having the entire re-write shot down over some silly proposed change such as should garage doors be allowed to stay open if the owners are working in the garage? By the time we finished with the surveys we had a very good idea of what people wanted and what they didn't. In some cases when the survey said they wouldn't vote yes to a change we felt was needed, we spent more time explaining and educating them on why we wanted this change and then re-surveyed them on the question. In several instances we were able to swing the vote to yes.

Another useful thing we did was to hold several Zoom meetings were we made ourselves available for an hour or two. We sent out invitations to everyone inviting them to use this time to ask any questions that they wanted in regards to the new docs. There was no agenda for these meetings and it was simply advertised as "your chance to ask us anything." We did this starting around 6 months after we had started the process and the owners understood what was going on and they had been given access to the draft we were working from at the time.

Overall from start to finish we spent about 18 months on this project and we spent an enormous amount of time educating, advertising, education, advertising to the owners on this subject. In the end we made it but barely. The final yes vote was 69%.

Good luck Kerry!
MaxB4
Posts: 3,513
Posted:
This seems to puzzle me and why the courts haven't stepped in.

Most CCRs in HOA's require at a minimum of 67 2/3 to amend or restate. Many HOAs' will make a half ass attempt to get them passed only to throw themselves onto the court system and get them changed at a lower rate. If an HOA couldn't get them passed at the higher percentage, why doesn't the court have that percentage changed prior to giving a waiver. Look at the HOA that courts gave waivers to, they still have at least a 67 2/3 percentage approval rate.
KerryL1 (California)
Posts: 14,550
Posted:
Wow good for you & your HOA JohnC! Your survey methodology early on sounds like something really positive!! Seems especially important if someone reading this is considering controversial CC&R changes. None of ours are. Do you know your % absentee owners? We're 20-25%, an they're just not voting much.

Otherwise we did pretty much the other steps you did. Actual proposed changes were discussed and Board-approved at open Zoom meetings of which there were 2-3 in the past 15 months. Trouble is only 1-3 absentee owners attend. Same with the two Town Halls. Maybe 50 attended in person or via Zoom, but only a small handful were absentee or part timers. That smidgen all have voted.

Our election was held in 11/21 and I didn't seek reelection, i.e. retired. At the Board's invite I was appointed as Asst. Sec'y until we'd completely finished the docs with our HOA attorney. Our VP is managing the current voting campaign and I'm a volunteer, though I'm invited to meetings that involve our attorney to keep up to date. As noted above every residential director, 6, and I have personally contacted every owner.

I think, JohnC that some do fear change. Not surprising as in '17-'19 we had an abusive board who tried to ram a hideous balcony surface down all Owners'and weren't truthful about it. This led to an ADR (Alternative Dispute Resolution) in '19. So some owners still may not trust the current, good-ppl. Board. Some might think the Board's trying to pull a fast one.

I'm now thinking too, that the huge rehab projects that see our two lobbies gutted and our residential hallways being stripped too make Owners nervous & cranky. it's really noisy around here. BUT this doesn't affect the absentee owners unless this tenants complain to them. Hm.

AugustinD
Posts: 3,698
Posted:
Quote:
Posted By MaxB4 on 03/26/2022 7:00 PM

Many HOAs' will make a half ass attempt to get them passed only to throw themselves onto the court system and get them changed at a lower rate.
I think this is a California statutory mechanism for amendment that does not exist in other states. At least, and with the exception of expressly racist et cetera covenants, I am not aware of other states that have a court procedure for amendments.

As has been noted in the past, more at https://www.davis-stirling.com/HOME/C/Court-Petition-Re-CC-Rs

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