💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

JuliaJ (Washington)
Posts: 3
Posted:
Washington State, 50 year old community. CCRs are included in plat documents. They contain NO mechanism for amending. Community is advised that 100% assent to amendment is required in these circumstances, however 25 year old amendment exists.

25 year old amendment does not state it is an amendment.

Vote on 25 year old amendment was taken via mailed ballot, no signature required.

No meeting was held or recorded wherein the count was validated. No records of that specific count exist, no forms (except blank ballots) exist.

25 year old minutes following the ballot mailing deadline state simply that they passed.

With over 100 parcels, including undeveloped parcels and non-resident landlords, and based on anecdote, there is very little reason to believe 100% assent was achieved.

Concurrent vote on articles (with shared ballot) received well under 100%.

One person in neighborhood (former board member) does not want 25 year old amendment invalidated and cites "ratification" as an argument against invalidation.

What argument prevails? What other positions/arguments should be considered (legally speaking)?
CathyA3 (Ohio)
Posts: 6,299
Posted:
Insufficient information to answer your question, and most of us here are not lawyers (specifically we're not your lawyer)s. Here's what I think you should check:

* If your CC&Rs don't specify a process for amendment, then check your state statutes. Do you have any covering community associations of your type? If not, look at corporate statutes, particularly any dealing with non-profits.

* Quote: Community is advised that 100% assent to amendment is required in these circumstances, however 25 year old amendment exists. Question: who is doing the advising? Association attorney? Community manager? Board member who's been on the board since Year 0?

* In my state/community, we don't need to have a meeting to approve amendments - it's done by snail mail ballots. Our amendments require 75% approval. In other states it's as low as 67%, and I think someone once said that a simple majority would do it in his community. I'd also question the 100%. Per my CC&Rs, this is only required if we change the formula for determining assessments, or if we acquire/sell off comment area. For all other changes, the super-majority of 75% is enough.

* You'll have to consult with a lawyer for this, but there are precedents where if an entity (person or corporation) has followed a particular course of action for a number of years, that course of action is deemed to be "the law". In other words, the amendment may be considered to be approved just because you've done it that way for so long.

Long story short, consult with your own attorney to get a solid answer.

ElleN (Idaho)
Posts: 4,420
Posted:
Do the Articles of Incorporation say anything about amending?

It sounds like Washington Statute RCW 64.38 applies. Some sections of RCW 64.90 might also apply. RCW 24.03A (nonprofit corps) likely applies. So far I find nothing in the statutes on amending that seems applicable.

I happen to think a signed ballot is not proper. If the ballots were sent in the mail, then validation/verification of the ballot's legitimacy typically occurs by examining the envelope which contained the ballot. Keyword search for "ballot" this section of RCW 64.38: https://app.leg.wa.gov/RCW/default.aspx?cite=64.38.120

One powerful argument here may be that everyone in the community has behaved for years as if the alleged amendment was valid. Courts have at times ruled that such conduct, in violation of the original Declaration but going unchallenged for decades, means "amendment occurred by acquiescence." If you want to know more about this, ask, and I will locate Washington case law on the subject.

Can you describe what the alleged amendment does? Is there overwhelming evidence that the HOA has operated as though this alleged amendment were lawfully passed and recorded?

JuliaJ (Washington)
Posts: 3
Posted:
100% info was supplied by real estate attorney the community works with, based on case law.

We are working with an attorney. Just trying to think of as many things as possible, and from all sides.
JuliaJ (Washington)
Posts: 3
Posted:
The "amendment" (because nowhere does it state that it's an amendment) is a fairly dramatic change from the initial covenants. The HOA has operated under them since 2002, but did work with an attorney in a few years later (per the minutes and budget) to rewrite them again. There is no record that document, though approved by the board, was brought to vote in the community and we don't know why. The current board doesn't have access to all the documents - multiple years are missing.

If you know of any applicable case law, I'd love to be pointed in that direction.
CathyA3 (Ohio)
Posts: 6,299
Posted:
It doesn't sound like this is the case here since you mentioned a "dramatic" change, but one kind of amendment that the board can approve without homeowner vote is one that brings the CC&Rs into compliance with current state laws and introduces no other changes beyond that. Such an amendment would still need to be recorded along with the original CC&Rs.

I'm glad you're working with a lawyer.

I was thinking about this earlier. What would I do if I were on the board of a community when we discovered that we'd been operating for years under some invalid CC&Rs? Here are the things I'd look at:

* What was the nature of the changes in the invalid amendment(s)?

* Were the changes positive, negative, or neutral? If negative, were the harms intangible or were they quantifiable? Can we put a dollar figure on any harms that the owners allegedly suffered as a result of the HOA following the provisions of the amendment(s)?

* Did the changes favor a particular subset of homeowners, or did they disadvantage another subset? Is the disadvantaged subset a protected class as defined by Fair Housing laws?

* Has the HOA been able to easily enforce the provisions in the amendment(s), or have homeowners periodically challenged them? What were the results of the challenges? Has the HOA spent money on enforcing these provisions, and how much is it?

* What would be benefits and costs of declaring the amendment(s) invalid? These would include the time, effort, and legal and other costs of restating the CC&Rs, getting them approved, and the newer version recorded. What are the chances that the restated CC&Rs would not be approved? Keep in mind that the cost of an amendment that fails is pretty much identical to the cost of one that passes (the recording fee is probably the only difference).

What would make me lean toward fixing this would be 1) identifiable, quantifiable and ongoing harm resulting from following the invalid CC&Rs, 2) the possibility of Fair Housing issues, and 3) the likelihood that the membership would vote in favor of corrective action. Without these three things, I'd question whether "fixing the problem" is in the best interests of the association, especially if the community has been operating well all this time.

ElleN (Idaho)
Posts: 4,420
Posted:
JuliaJ,

To learn a little about how the courts think about acquiescence in Washington HOAs, keyword search each of the following for "acquiesc". Then also look up any cases cited within each of these decisions, as the citation pertains to "acquiescence."

https://cases.justia.com/washington/court-of-appeals-division-ii/2016-47022-5.pdf?ts=1462300428

https://law.justia.com/cases/washington/supreme-court/1994/61475-0-1.html

https://cases.justia.com/washington/court-of-appeals-division-i/2021-80882-6.pdf?ts=1619730860

https://cases.justia.com/washington/court-of-appeals-division-i/68249-1.pdf?ts=1396151650

https://cases.justia.com/washington/court-of-appeals-division-i/68439-6.pdf?ts=1396151650

Not knowing what this alleged amendment says hamstrings this forum greatly. It's entirely possible that if you explained what is being done with regard to this alleged amendment, something might leap out at the long-time posters. On the other hand, I understand if you want to help ensure anonymity and not get into details. Just recognize that a general query here is going to get general counsel.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here