How many votes for HOA to borrow money

Started by BH5 • 7 replies • 354 views

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BH5 (Virginia)
Posts: 84

Posted:

Hello,

We are having a discussion on the MINIMUM number of Class A votes need to carry a vote to take out a loan. Please offer your interpretations of this wording in our Bylaws. (Note: Class C was the builder from 40 years ago and no longer part of the governance):

"The right of the (HOA), in accordance with the Articles of Incorporation and Bylaws, to borrow money for the purpose of improving the Common Area and facilities and in aiding thereof, with the assent of the Class C, if any, and more than two-thirds (2/3) of the Class A members who are voting in person or by proxy, at a meeting duly called for the purpose at which a quorum is present, to mortgage said property, subject to the Declaration and the easement of enjoyment created hereby, and to acquire property encumbered by the lien of the deed or deeds of trust securing improvements on said property, provide that all such mortgage of the Common Area must state....

Thank you

BH5 (Virginia)
Posts: 84

Posted:

Addition:

I neglected to mention that there are: 530 Class A members.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By BH5 on 12/25/2022 1:12 PM
[emphasis added}

"The right of the (HOA), in accordance with the Articles of Incorporation and Bylaws, to borrow money for the purpose of improving the Common Area and facilities and in aiding thereof, with the assent of the Class C, if any, and more than two-thirds (2/3) of the Class A members who are voting in person or by proxy, at a meeting duly called for the purpose at which a quorum is present, to mortgage said property, subject to the Declaration and the easement of enjoyment created hereby, and to acquire property encumbered by the lien of the deed or deeds of trust securing improvements on said property, provide that all such mortgage of the Common Area must state....

Thank you

Expecting every lot/unit present are voting:

Minimum needed - 2/3 (rounded to next highest or 2/3 + 1 if 2/3 is a whole number) of a quorum at the meeting

OR

If more then a quorum is present (in person or by proxy) then 2/3 rounded to next highest or 2/3 + 1 if 2/3 is a whole number.

Basically - the number can change dependent on who attends the meeting and if all in attendance can vote.

ElleN (Idaho)
Posts: 4,420

Posted:

It's more than two thirds of the members who show up at the meeting. It's not "more than two-thirds of all 530 members." Examples, if quorum is 10%:
Say 53 people attend the meeting in person or by proxy. Quorum is met. 2/3 * 53 = 35.3. If at least 36 owners vote in person or by proxy for the loan, the loan is approved.
Say 300 people attend the meeting in person or by proxy. Quorum is met. 2/3 * 300 = 200. If at least 201 owners vote in person or by proxy for the loan, the loan is approved.

MaxB4
Posts: 3,513

Posted:

I am going with a minimum of 178.

DavidG45 (Delaware)
Posts: 994

Posted:

Quote:

Posted By BH5 on 12/25/2022 1:12 PM
Hello,

We are having a discussion on the MINIMUM number of Class A votes need to carry a vote to take out a loan. Please offer your interpretations of this wording in our Bylaws. (Note: Class C was the builder from 40 years ago and no longer part of the governance):

"The right of the (HOA), in accordance with the Articles of Incorporation and Bylaws, to borrow money for the purpose of improving the Common Area and facilities and in aiding thereof, with the assent of the Class C, if any, and more than two-thirds (2/3) of the Class A members who are voting in person or by proxy, at a meeting duly called for the purpose at which a quorum is present, to mortgage said property, subject to the Declaration and the easement of enjoyment created hereby, and to acquire property encumbered by the lien of the deed or deeds of trust securing improvements on said property, provide that all such mortgage of the Common Area must state....

Thank you

Seems pretty clear to be 2/3 of those who vote at a duly-called meeting that meets quorum.

NA1 (Massachusetts)
Posts: 190

Posted:

Check that your bylaws don’t have other sections that modify or override the paragraph quoted. Also check that the state doesn’t have any laws that override your bylaws.

WendyM5 (North Carolina)
Posts: 1,522

Posted:

%Needed for Quorum x 530 x 0.666 = Minimum people needed to affirmatively vote for approving a loan

vis ta vie

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