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AdamL1 (UnitedStates)
Posts: 559
Posted:
I've been digging into the proposed bylaws coming up for vote, to which the HOA Leadership chose to send only a 3-bullet point summary.

I've found dozens of things that are added, removed, or substantially changed, and some that are quite shocking to me. Wondering what you think....

1. The section from original Bylaws that says that the Bylaws apply to all persons that own a lot parcel in the HOA is completely removed. essentially, the new version doesn't apply to any of the members without this paragraph.

2. sneaks in the line "only members may attend meetings of the members, unless invited by the board" into the paragraph defining what is a "member" --> this means the Board can exclude experts or relevant input from an Annual Meeting...no long up the the Membership.

3. removes the requirement to hold an election at each annual meeting.

4. Removes requirements to keep minutes of meetings.

5. Allows the Board to change the quantity of Directors on a whim.

6. Lists powers of the Board as "The Board will conduct, direct, and exercise full control over all activities of the Association." --> this raises an eye-brow...what are normal activities of the Membership?

7. Removes requirement to hold any Board Meetings at all.

8. Gives the President a Vote in tied Board of Directors votes.

9. Removes the requirement to hold an Organizational Meeting to elect officers.

10. Says that the Board can send all communications and notices over email. Explicitly states that Members cannot opt out, and its the Member's responsibility to make sure they receive the email.

================================

Maybe I'm overreacting, but to me, these seem like quite odd changes to sneak into the proposed Bylaws, especially since they were not summarized or noticed. In a worst case scenario....the Board now has total control over the HOA and has no requirement to hold any elections, can vote off non-compliant Directors and then shrink the Board quantity to just themselves.....yikes.

What are your thoughts?
MaxB4
Posts: 3,513
Posted:
I think the only hope we can give you is give us a directed proxy, other than that, you're SOL.
SheliaH (Indiana)
Posts: 6,964
Posted:
You already know what I think, but in case I have to spell it out (again):

This is a power grab by your current board and is extremely dangerous if people sign off on that 3 point nonsense. I like max's directed proxy idea (they'd have to list out these proposals and homeowners can vote each one up or down). to

For me, stuff like board meetings being optional would be met with "are you high?" response. If you're doing your best and Being transparent about association, you don't even begin to think of stuff like this.

Throughout all these conversations, I have yet to see where your talked to your neighbors about the upcoming shitshow - and if not, I fail to see why not. You know many people won't do What you've done in taking a deep dive into all this, and if you don t try to get their help in quashing this mess, a lawsuit will likely ensure and cost everyone time and money.

Time is still marching towards this meeting - keep posting if you want, but I'd be spending a lot more time talking to my neighbors and strongly encouraging them to attend this meeting - especially the ones who signed that proxy without reading it. Good luck - you're going to need it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
My general impression is: do these folks WANT to get sued? More specific comments in bold:

1. The section from original Bylaws that says that the Bylaws apply to all persons that own a lot parcel in the HOA is completely removed. essentially, the new version doesn't apply to any of the members without this paragraph.

2. sneaks in the line "only members may attend meetings of the members, unless invited by the board" into the paragraph defining what is a "member" --> this means the Board can exclude experts or relevant input from an Annual Meeting...no long up the the Membership.

This will cause problems for LLC owners who typically appoint a person to act for them but who are themselves not "members" and for elderly/disabled or others who may need to appoint another non-member to act in their behalf. These non-members typically are allowed to attend board and annual meetings.

3. removes the requirement to hold an election at each annual meeting.

. Bad. But you knew that. :-)

4. Removes requirements to keep minutes of meetings.

. Bad. But helps address those pesky records requirements and accountability issues...

5. Allows the Board to change the quantity of Directors on a whim.

Why? I assume they believe this will give them something. Controlling the outcome of votes, maybe?

6. Lists powers of the Board as "The Board will conduct, direct, and exercise full control over all activities of the Association." --> this raises an eye-brow...what are normal activities of the Membership?

. Bad...

7. Removes requirement to hold any Board Meetings at all.

. Bad...

8. Gives the President a Vote in tied Board of Directors votes.

Do you mean the president gets to cast a second vote to break the tie? Tie votes can be avoided by having an uneven number of directors. And since the board wants to change the number of directors on a whim, this should pose no problems, eh?

9. Removes the requirement to hold an Organizational Meeting to elect officers.

This bothers me a bit less since our "organizational meetings" are pretty casual. The newly elected board members generally meet right after the annual meeting, look at each other, and go "so what do you want to do?" We do at least keep minutes...

10. Says that the Board can send all communications and notices over email. Explicitly states that Members cannot opt out, and its the Member's responsibility to make sure they receive the email.

This isn't the first association I've heard of to do this. Email is a pretty normal business requirement these days, so I'm less upset at this.

You live in interesting times, my friend.

In your place, I would vote No at the meeting, then lawyer up or move before the brown matter hits the rapidly oscillating device.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AdamL1 on 05/10/2022 10:12 PM
I've been digging into the proposed bylaws coming up for vote, to which the HOA Leadership chose to send only a 3-bullet point summary.
?

In another recent thread of yours, you posted:
Quote:
Posted By AdamL1 on 05/09/2022 12:36 PM

The draft was emailed to "everyone" ....but there's a few problems.
1st: The President has sent 3 different drafts over email. And there's definitely edits that have been made since the latest email.


Did the HOA leadership send out the proposed amendment to the bylaws (even if it was three different versions), or did it not?
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AdamL1 on 05/10/2022 10:12 PM

1. The section from original Bylaws that says that the Bylaws apply to all persons that own a lot parcel in the HOA is completely removed. essentially, the new version doesn't apply to any of the members without this paragraph.
I'd say it's almost guaranteed that the Bylaw section that is deleted in the proposed amendment is almost assuredly redundant. I expect the Articles of Incorporation, the state's HOA act, and the Declaration likely indicate the Bylaws apply to all lot owners.
Quote:

2. sneaks in the line "only members may attend meetings of the members, unless invited by the board" into the paragraph defining what is a "member" --> this means the Board can exclude experts or relevant input from an Annual Meeting...no long up the the Membership.
It is what it is. I do not see this as unlawful. I would rather the Bylaws comply with Robert's Rules. Robert's Rules allows the president to make the call of who may and may not attend. (Note: even if RONR does apply, in a conflict between the bylaws and RONOR< the bylaws supersede RONR.)
Quote:

3. removes the requirement to hold an election at each annual meeting.
What's the exact, proposed text for the above?
Quote:

4. Removes requirements to keep minutes of meetings.
>Foolhardy. The minutes are a lawful record of actions taken by the owners at the owners' meetings and by the board at board meetings. Who is the blithering idiot who suggested not keeping minutes? Importantly, the Iaho nonprofit corporation act's records section to me says minutes are still required. See https://legislature.idaho.gov/statutesrules/idstat/Title30/T30CH30/SECT30-30-1101/

Quote:

5. Allows the Board to change the quantity of Directors on a whim.
IMO stupid but not unheard of. I see interpretation of whatever proposed clause says this as presenting problems.
Quote:

6. Lists powers of the Board as "The Board will conduct, direct, and exercise full control over all activities of the Association." --> this raises an eye-brow...what are normal activities of the Membership?
Whatever powers the Bylaws give the owners are their powers. The Bylaws better go on to clarify whether the owners have any powers.
Quote:

7. Removes requirement to hold any Board Meetings at all.
Stupid but possibly lawful under statute.
Quote:

8. Gives the President a Vote in tied Board of Directors votes.
Not necessary but many city councils, for one, operate in this way, with the Mayor voting only when a tie arises. The U. S. Senate operates this way as well. Also needs clarification in the event not all directors are present.
Quote:

9. Removes the requirement to hold an Organizational Meeting to elect officers.
If officers are still required, I would not tarry over this proposed change.
Quote:

10. Says that the Board can send all communications and notices over email. Explicitly states that Members cannot opt out, and its the Member's responsibility to make sure they receive the email.
Interesting. A bit open to court challenge, as some owners may remain either computer/"smart" phone illiterate or unable to afford a home computer. I think Idaho statutes allow the Bylaws to provide notice by email.
TimB4 (Tennessee)
Posts: 21,062
Posted:
I think the question is, what will you do about it now that you know it.

Will you publish a newsletter to inform the membership of the actual changes proposed (along with your analysis of pros and cons)?
Will you knock on doors and gather proxies to try and defeat the changes?

What will you do now?
SteveH35 (Washington)
Posts: 339
Posted:
Quote:
Posted By AdamL1 on 05/10/2022 10:12 PM
I've been digging into the proposed bylaws coming up for vote, to which the HOA Leadership chose to send only a 3-bullet point summary.

I've found dozens of things that are added, removed, or substantially changed, and some that are quite shocking to me. Wondering what you think....
were not summarized or noticed. In a worst case scenario....the Board now has total control over the HOA and has no requirement to hold any elections, can vote off non-compliant Directors and then shrink the Board quantity to just themselves.....yikes.

What are your thoughts?

Adam,

First of all, your state CIC statutes probably govern many of the items you've highlighted. For example, if your CIC is a nonprofit corporation, your state likely has a nonprofit corporations act that dictates the minimum requirements for meetings, etc. In another example, your declaration / CC&Rs should dictate the powers of the Board (and is probably similar to your CIC statutes). If your lesser governing documents such as your Bylaws disagree with your declaration / CC&Rs, the declaration / CC&Rs trumps (and is trumped by statutes). Overall, given the relative lack of knowing which state you're in and what's in your declaration/CC&Rs, it's impossible to provide you exact answers.

Regards,
Steve
AdamL1 (UnitedStates)
Posts: 559
Posted:
curious what most HOA's separate as "powers, duties, responsibilities" between the Board and the Membership.

Any input?
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AdamL1 on 05/11/2022 5:08 PM
curious what most HOA's separate as "powers, duties, responsibilities" between the Board and the Membership.
I think the quickest way to identify the powers of the membership (in the aggregate) are to look for CC&R and Bylaw sections that speak of how many owners must vote in the affirmative to accomplish xyz. Typically owners, in the aggregate, have the power to:

-- elect directors
-- call special meetings
-- remove directors
-- ratify or reject budgets and other budget features, like reserve funding.
-- amend the bylaws and CCRs (including selling common area)
-- terminate the HOA/COA
-- vote on and pass "advisory motions" to the board (said motions having no legal force)

For some HOAs/COAs, the membership in the aggregate might also have the power to:
-- petition to add items to board meeting agendas (Florida)
-- reject special assessments
-- decide whether to bring suit (for example, see Florida FS 720)
-- terminate the reserve account
-- throw out rules the Board created
-- authorize compensation for directors and/or officers

Owners of course have "rights" as well, but I think these "rights" are distinguishable from powers that the membership has when the membership acts in the aggregate. Also "rights can be exercised by a single owner. Not so with 'membership powers.'

I think this is instructive:

https://www.davis-stirling.com/HOME/R/Rights-Powers-of-HOAs-Members

To look at a buncha different Bylaws, google:

bylaws homeowners' association filetype:pdf

KerryL1 (California)
Posts: 14,550
Posted:
Been away for a while.

Adam (with Steve) --WHAT do your ID HOA or nonprofit codes say about some of the changes that trouble you???? In CA, the latter specifies minimum numbers of meetings per year, and a few other matters. They specify that meeting minutes must be kept Ah! I see Augie's citation). In Our state, organization meetings MUST be held. In some states like CA, they MUST be open meetings so owners can see the process by which the board (s)elects its officers. Important, imo. some may specify annual meeting MUST be held to elect board members. In CA, email as the ONLY source of communication to owners is forbidden. At minimum, there must be "general notice" on a common area bulletin board, etc. of assn. matters & meetings.

In most HOAs, I think, Ownrs have enforcements rights as individuals and, I guess, in the aggregate. They have notice rights before the assn may enter their homes. In open meeting state, Owners have the right to attend board meetings, and such states may have notice requirements for meeting agendas. In many states Owners have the right to assn. notice to cure violations and to due process prior to fines or other types of discipline (e.g. withholding common area amenities).

Re members' powers. I haven't heard of a state where owners can have any say about the funding level of reserves. Some states require/allow Owners input into ratifying budgets. a lot do not unless proposed budgets exceed certain levels. Ye, owners may call special meetings of the members.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By KerryL1 on 05/12/2022 1:00 PM
... snip ...

Re members' powers. I haven't heard of a state where owners can have any say about the funding level of reserves. Some states require/allow Owners input into ratifying budgets. a lot do not unless proposed budgets exceed certain levels. Ye, owners may call special meetings of the members.

FYI: In my state HOAs are required to "maintain adequate reserves" unless a majority of owners waive the requirement annually. Condominiums are required to make annual contributions to the reserve funds, although the language of the Ohio Condo Act is a bit vague. One interpretation says that if the association contributes at least 10% of its annual budget to the reserves, then it can levy special assessments in order to fund necessary capital expenditures. A second interpretation that a majority of owners may vote to fund the reserves at a level lower than what is required by the latest reserve study, but a special assessment may not be used to make up the difference.

So owners in my state do have a say in funding reserves. It's unfortunate that the laws so vague that owners don't know what's what (and it allows them to kick the can down the road indefinitely, or until the place falls apart).
KerryL1 (California)
Posts: 14,550
Posted:
Thanks for the info, Cathy. I'm not under the impression this is common or even typical, but I guess all exceptions are good to mention.
KerryL1 (California)
Posts: 14,550
Posted:
Thanks for the info, Cathy. I'm not under the impression this is common or even typical, but I guess all exceptions are good to mention.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By KerryL1 on 05/12/2022 1:00 PM

Re members' powers. I haven't heard of a state where owners can have any say about the funding level of reserves.
Florida gives owners enormous power over reserves. One example from FS 720

After one or more reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section.

FS 718 says similar.
AugustinD
Posts: 3,698
Posted:
From the Illinois Condo Act:

Notwithstanding the provisions of this subsection (c), an association without a reserve requirement in its condominium instruments may elect to waive in whole or in part the reserve requirements of this Section by a vote of 2/3 of the total votes of the association.

KerryL1 (California)
Posts: 14,550
Posted:
Exceptions are good to mention. thanks, Augustin.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By KerryL1 on 05/13/2022 9:39 AM
Exceptions are good to mention. thanks, Augustin.
I see I posted above that owners in the aggregate having say on reserve funding is 'typical.' It's not. It's more like owners having such say (over reserve funding) is, as KerryL1 put it, the exception.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By AugustinD on 05/12/2022 6:13 PM
Posted By KerryL1 on 05/12/2022 1:00 PM

Re members' powers. I haven't heard of a state where owners can have any say about the funding level of reserves.
Florida gives owners enormous power over reserves. One example from FS 720

After one or more reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section.

FS 718 says similar.



Sometimes I think people vote for stuff like this because they really believe they'll have moved out (or be taking a dirt nap) before stuff comes down, and they never seem to consider there's a reason why most people have some sort of savings accounts and insurance (which DOES appear to work like a scam, but I know I can't afford major losses if something happens to my car, house, etc.)

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AdamL1 (UnitedStates)
Posts: 559
Posted:
another interesting thing I've found is that all over the new Bylaws, most sentences are changed from SHALL to WILL.

I think this isn't a huge deal, colloquially, but reading technically, this seems to be very important. In Legal language, this is incredibly different and important. "SHALL" is used to impose obligations or duties on the parties, while "WILL" is used to refer to future action and does not impose any obligation or duty. This may be a non-issue, and there is debate on both sides, but it is noticeable that most everything was replaced with "WILL"

Anyone else experienced this?
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By SheliaH on 05/13/2022 10:31 AM
Sometimes I think people vote for stuff like [not funding reserves yada] because they really believe they'll have moved out (or be taking a dirt nap) before stuff comes down,
Dirt nap? Tell me you did not mean what I think you mean.

Anyway, I guffawed when I saw this.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AugustinD on 05/13/2022 11:13 AM
Posted By SheliaH on 05/13/2022 10:31 AM
Sometimes I think people vote for stuff like [not funding reserves yada] because they really believe they'll have moved out (or be taking a dirt nap) before stuff comes down,
Dirt nap? Tell me you did not mean what I think you mean.

Anyway, I guffawed when I saw this.

As in dead.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AdamL1 on 05/13/2022 10:37 AM
another interesting thing I've found is that all over the new Bylaws, most sentences are changed from SHALL to WILL.

I think this isn't a huge deal, colloquially, but reading technically, this seems to be very important. In Legal language, this is incredibly different and important. "SHALL" is used to impose obligations or duties on the parties, while "WILL" is used to refer to future action and does not impose any obligation or duty. This may be a non-issue, and there is debate on both sides, but it is noticeable that most everything was replaced with "WILL"

Anyone else experienced this?
No, I have never seen a board amend the bylaws to replace all, or nearly all, "shalls" with "wills."

I agree with your thoughts on this. "Shall" is the right language much of the time, so as to get the legal meaning as right as possible.

Has an attorney even reviewed the draft?

AugustinD
Posts: 3,698
Posted:
Quote:
Posted By JohnC46 on 05/13/2022 11:14 AM
Posted By AugustinD on 05/13/2022 11:13 AM
Posted By SheliaH on 05/13/2022 10:31 AM
Sometimes I think people vote for stuff like [not funding reserves yada] because they really believe they'll have moved out (or be taking a dirt nap) before stuff comes down,
Dirt nap? Tell me you did not mean what I think you mean.

Anyway, I guffawed when I saw this.


As in dead.
Is that meme really making the rounds in the HOA/COA world? Or is it one of those occasional SheliaH gems?
AdamL1 (UnitedStates)
Posts: 559
Posted:
Quote:
Posted By AugustinD on 05/13/2022 11:15 AM
Posted By AdamL1 on 05/13/2022 10:37 AM
another interesting thing I've found is that all over the new Bylaws, most sentences are changed from SHALL to WILL.

I think this isn't a huge deal, colloquially, but reading technically, this seems to be very important. In Legal language, this is incredibly different and important. "SHALL" is used to impose obligations or duties on the parties, while "WILL" is used to refer to future action and does not impose any obligation or duty. This may be a non-issue, and there is debate on both sides, but it is noticeable that most everything was replaced with "WILL"

Anyone else experienced this?
No, I have never seen a board amend the bylaws to replace all, or nearly all, "shalls" with "wills."

I agree with your thoughts on this. "Shall" is the right language much of the time, so as to get the legal meaning as right as possible.

Has an attorney even reviewed the draft?


our board has paid nearly $5000 to an attorney to prepare these....on top of the issues highlighted here, I've found at least 4 issues where one paragraph conflicts with another....

seems like a hackjob.
KerryL1 (California)
Posts: 14,550
Posted:
Is tre a reason, Adam, why you haven't yet checked your Idaho corporations codes to see if some of the above is even legal in your state?

I recall, bt, our board talking about using "will" instead of "shall"in our CC&Rs rewrite because will seems less stuffy or some such. Our GC suggest that shall is actually more correct--don't remember why.
AdamL1 (UnitedStates)
Posts: 559
Posted:
Quote:
Posted By KerryL1 on 05/13/2022 12:34 PM
Is tre a reason, Adam, why you haven't yet checked your Idaho corporations codes to see if some of the above is even legal in your state?

I recall, bt, our board talking about using "will" instead of "shall"in our CC&Rs rewrite because will seems less stuffy or some such. Our GC suggest that shall is actually more correct--don't remember why.

Kerry, I have. Its been referenced multiple times in other threads. This thread is more about what's normal. Most of this stuff is not addressed in (my) state laws.
KerryL1 (California)
Posts: 14,550
Posted:
Probably lazy of me, but I don't search for or refer back to old posts to seek replies to clear, obvious questions. Not all of us remember your every response, in any case, to your many questions. Perhaps you're willing to tell us here, where your topic is specific to particular changes the Board wants:

Do ID corporations codes or Assn statutes:

state organization meetings must be held after the election of directors? If so, must they be open to members?

require annual meetings of the members and elections under all circumstance?

Is email as the ONLY source of assn. communication to owners permitted?

must meeting minutes be taken as meetings of the members?

We also don't all remember your state, Adam, and new posters don't know what it is. It might be a nice courtesy to mention it in every post.
AdamL1 (UnitedStates)
Posts: 559
Posted:
Quote:
Posted By KerryL1 on 05/13/2022 1:41 PM
Probably lazy of me, but I don't search for or refer back to old posts to seek replies to clear, obvious questions. Not all of us remember your every response, in any case, to your many questions. Perhaps you're willing to tell us here, where your topic is specific to particular changes the Board wants:

Do ID corporations codes or Assn statutes:

state organization meetings must be held after the election of directors? If so, must they be open to members? --> no statement of Org Meetings. Yes all Board Meetings must be open (new law)

require annual meetings of the members and elections under all circumstance? --> yes, require Annual Meetings, but no elections required if the bylaws allow for another method to elect/fill/appoint directors....aka the directors can vote to fill an empty seat outside of an election.

Is email as the ONLY source of assn. communication to owners permitted? --> silent. Just says that they can communicate via electronic means.

must meeting minutes be taken as meetings of the members? --> yes, state law says this.

We also don't all remember your state, Adam, and new posters don't know what it is. It might be a nice courtesy to mention it in every post.

KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Adam. These few show your Board intends to violate ID states. Your assn. is paying $5,000 to an attorney for gov. docs that oppose the state statures in part?

With Tim and Shelia, you must act soon Adam. But how? What is your plan?

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