Quorum Mulit Lot owners

Started by ConchoP • 14 replies • 255 views

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ConchoP (Texas)
Posts: 208

Posted:

I want to make sure I understand correctly.

We have several property owners who own two lots.

If I understand correctly if one property owner owns two lots, both lots count as one toward the quorum.
However, the property owner can cast a vote for each lot owned.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Huh? It is one vote per lot. A quorum is usually needed amongst board members to make official decisions or actions. Owners can call a special meeting amongst themselves if they choose. Majority vote rules.

Former HOA President

ConchoP (Texas)
Posts: 208

Posted:

I apologize...I failed to mention this is for meeting a quorum for an annual meeting of the membership.

SheliaH (Indiana)
Posts: 6,964

Posted:

What do your documents say? Is it one vote per owner regardless of how many homes are owned or 1 vote per unit? That will help you answer the quorum question, along with simple math.

To wit - it's one vote per unit and your documents call for at minimum of 15% to make a quorum for the annual. If you have 100 homes, you need 15 homeowners to show up or submit a proxy to establish quorum (assuming your documents allow signed proxies) if it's one vote per owner, regardless of how many homes are owned you'd still need at least 15 to participate.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By ConchoP on 10/26/2023 8:11 AM

We have several property owners who own two lots.

If I understand correctly if one property owner owns two lots, both lots count as one toward the quorum.

Why would you think this?

What is the wording of the bylaws on "quorum"?

Assuming each lot receives one vote at your HOA, my reading of TPC 209 is that both lots would count as two for purposes of quorum.

ConchoP (Texas)
Posts: 208

Posted:

Quote:

Posted By SheliaH on 10/26/2023 8:32 AM
What do your documents say? Is it one vote per owner regardless of how many homes are owned or 1 vote per unit? That will help you answer the quorum question, along with simple math.

To wit - it's one vote per unit, and your documents call for a minimum of 15% to make a quorum for the annual. If you have 100 homes, you need 15 homeowners to show up or submit a proxy to establish a quorum (assuming your documents allow signed proxies) if it's one vote per owner, regardless of how many homes are owned you'd still need at least 15 to participate.

Our CCR does not address how multi-lot owners' property counts toward quorum for the annual meeting. It just states the percentage needed for a qourum.

ConchoP (Texas)
Posts: 208

Posted:

Quote:

Posted By ElleN on 10/26/2023 8:36 AM

Posted By ConchoP on 10/26/2023 8:11 AM

We have several property owners who own two lots.

If I understand correctly if one property owner owns two lots, both lots count as one toward the quorum.

Do you know what section where that is stated in TPC 209 Sec.

ElleN (Idaho)
Posts: 4,420

Posted:

ConchoP, go to https://statutes.capitol.texas.gov/SOTWDocs/PR/htm/PR.209.htm; keyword search the latter for "quorum"; proceed to section 209.00592 (b). It indicates that, for one vote per lot, each ballot counts as one for purposes of quorum.

Will you please quote verbatim what your bylaws say about quorum?

ElleN (Idaho)
Posts: 4,420

Posted:

Texas's nonprofit corporation act says even more in support of two lots counting as two (even if both lots are owned by the same person) for purposes of quorum:

Sec. 22.159. QUORUM OF MEMBERS. (a) Unless otherwise provided by the certificate of formation or bylaws of a corporation, members of the corporation holding one-tenth of the votes entitled to be cast, in person or by proxy, constitute a quorum.

(b) The vote of the majority of the votes entitled to be cast by the members present or represented by proxy at a meeting at which a quorum is present is the act of the members meeting, unless the vote of a greater number is required by law or the certificate of formation or bylaws.

(c) Unless otherwise provided by the certificate of formation or bylaws, a church incorporated before May 12, 1959, is considered to have provided in the certificate of formation or bylaws that members present at a meeting for which notice has been given constitute a quorum.

See https://statutes.capitol.texas.gov/Docs/BO/htm/BO.22.htm

You are a long time member here. Respectfully, is there a reason you seem to not have checked the statutes first?

TimB4 (Tennessee)
Posts: 21,061

Posted:

As others have pointed out, if an owner owns multiple lots they would pay assessments on each lot and get a vote for each lot.

Regarding quorum, that one individual counts for the number of lots they own. If it helps illustrate, think of it as one person showing up with x number of proxies. For quorum and voting purposes that person is x+1.

The only gray area would be if the owner combined the lots into one and had the PLAT changed with the County/City. In these cases, one has to look at the governing documents to determine if, for association purposes, that owner still owns multiple lots or just one. Legal advice in these cases would be prudent.

ConchoP (Texas)
Posts: 208

Posted:

I was looking at TPC 209 not BUSINESS ORGANIZATIONS CODE

TimB4 (Tennessee)
Posts: 21,061

Posted:

To clarify, x+1 assumes that the individual (the +1) is also a member of the association.

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By ConchoP on 10/26/2023 9:18 AM
I was looking at TPC 209 not BUSINESS ORGANIZATIONS CODE

Respectfully, I hope you are looking at both now.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Look at it this way:

An owner of 5 homes could plan to attend in person (1 home) and appoint others as proxies for the other 4 homes. Quorum looks at how many are present in person (1) *and* by proxy (4). So yes, this owner counts as 5 owners, not 1 - and would be entitled to cast 5 votes (unless your bylaws are very different from others I've seen).

ConchoP (Texas)
Posts: 208

Posted:

I am; we just became a nonprofit and only used TPC 209, still trying to figure it out.

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