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DebraH5 (Michigan)
Posts: 6
Posted:
Hello, We are currently voting ahead of our annual meeting for a new board. We are voting under our current term that board members get one year. The voting will end 5 days before the annual meeting. Our current board wants to amend the board term to 3 yrs at the meeting. My question is if we voted for the board under the one year term before this vote and the owners vote yes to 3 yrs wouldn’t that take affect at the next year meeting since the one year term was still in place prior to the change.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By DebraH5 on 11/01/2023 9:53 AM
Hello, We are currently voting ahead of our annual meeting for a new board. We are voting under our current term that board members get one year. The voting will end 5 days before the annual meeting. Our current board wants to amend the board term to 3 yrs at the meeting. My question is if we voted for the board under the one year term before this vote and the owners vote yes to 3 yrs wouldn’t that take affect at the next year meeting since the one year term was still in place prior to the change.
The owners' vote to change the term should take place before the election of directors.

There are only bad options and bad guesses as to proceeding as described above. Which means whatever happens here is an invitation to litigation.

Do the bylaws and state law even allow voting to end before the annual meeting?

It sounds like your board is just making things up.

Is this a condo? Or a subdivision of stand alone homes? It makes a difference, statute-wise.
DebraH5 (Michigan)
Posts: 6
Posted:
Thanks for replying. This is a newer subdivision . We have the 3 anti HOAboard members who went to a lawyer and wiped out all of our rules stating they could not be enforced. We knew nothing until a letter last week. I’ve lived in annHOA for 35 years and have never experienced anything like this. And only my husband has stepped up on the ballot to challenge them.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Debra

Covenants, Bylaws, Rules and Regulations are different things. Typically owners must vote to change Covenants and/or Bylaws but the BOD alone can change Rules and Regulations. What Rule changes are you referring to?
DebraH5 (Michigan)
Posts: 6
Posted:
On our rules they wiped out all of it. Like We can’t stop owners from storing their boats and campers on their property, we can’t restrict fences on pond lots, basic rules. They spent thousands of our money doing this behind our backs. Them wanting us to approve giving them 3 years terms AFTER we already voted for new directors under the current one year term. Voting ended yesterday (Oct 31)for a new board and our annual meeting is not until Sunday. So they would get a one year term because we haven’t voted in the 3 yr change right?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By DebraH5 on 11/01/2023 10:26 AM
So they would get a one year term because we haven’t voted in the 3 yr change right?
Until someone lawyers up, I suspect the incumbent directors are going to do whatever they want.

This happens a lot.
KerryL1 (California)
Posts: 14,550
Posted:
Please answer, Dara: How many directors are there? How many vacancies on the Board are there and how many candidates? What size is your HOA? In the first place, I doubt the board can change term limits without more and better notice to Owners even IF they have the sole powers to change this, which I doubt.

As JohnC points out, Bylaws & rules are very different. Usually boards can make rules, e.g., dogs must be on leashes, front yards may not have fake flamingos, garages must be used for cars, no cars may be parked on the street, etc. What does "anti HOAboard" mean? Does it mean the current directors want more "freedom" for owners and fewer rules??

Bylaws, however, are about the structure & governance of your HOA. They say how many board members, what kinds of meeting there are, and requirements about directors and officers.

How long directors' terms are, Debra, is usually in the Bylaws (vs.the CC&Rs). Please quote exactly what the Bylaws say about directors' term lengths. Now, towards the end of the Bylaws, tell us what it says about "amending" them. Almost always (but not always,) owners must vote to amend/change the Bylaws. So, owners would have to vote to make directors' terms three years.

Make sure you see the difference between directors and "officers." We're NOT talking about officers in this thread.

To amend, if it says Owners must vote, and your Bylaws say terms are one year, the Board is NOT permitted to vote to change the term lengths to 3 years.

You're saying, Debra, that the Board wants to amend the Bylaws to say that director terms are to be 3 years at this meeting of the Owners. How do you know this? Is this possible action listed on the agenda that Owners have seen?

The thing is that if this is a meeting of the Owners and not a meeting of the Board (see your Bylaws) you owners can actually vote down the proposed term limits. But I don't see how you'd have enough time to alert owners that they have the power to vote down the Board's proposed change. Your or your husband would have to speak up AT the meeting. If you know a few others, get them involved right now!!

You're right--the terms should only be for one year per your ballot info & probably your bylaws. But the Board sounds like they'll just bully through their wishes. If you're in great luck, the HOA attorney will attend this meeting and will set the board straight. But....

CathyA3 (Ohio)
Posts: 6,299
Posted:
In many states and communities, the board can only amend things over which they have authority - ie., yes to rules and regulations, no to bylaws or the declaration.

This article isn't entirely helpful, but it does contain a relevant quote:

Michigan HOA Laws and Regulations

Quote: "Amendments can be made to community regulations with a majority vote from the board of directors. Approval from homeowners is not required unless it is stated in community bylaws. Any changes to the Articles of Incorporation or the bylaws must be documented in the county in which the community is located."

(Opinion: I find it ironic that a state that is so anti-HOA has essentially put so much power into the hands of an HOA board. So much for buyers being able to rely on the terms of the contracts they signed. Way to protect homeowners' rights...)
KerryL1 (California)
Posts: 14,550
Posted:
I must br missing something, Cathy: Your Quote: "Amendments can be made to community regulations with a majority vote from the board of directors. Approval from homeowners is not required unless it is stated in community bylaws. Any changes to the Articles of Incorporation or the bylaws must be documented in the county in which the community is located."

This doesn't at all state how changes to the Bylaws can be made. It's about Ruels & Regs.Is there anything in this article about how bylaws are amended?
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By KerryL1 on 11/02/2023 1:27 PM
I must br missing something, Cathy: Your Quote: "Amendments can be made to community regulations with a majority vote from the board of directors. Approval from homeowners is not required unless it is stated in community bylaws. Any changes to the Articles of Incorporation or the bylaws must be documented in the county in which the community is located."

This doesn't at all state how changes to the Bylaws can be made. It's about Ruels & Regs.Is there anything in this article about how bylaws are amended?

That's why I said that the article wasn't entirely helpful. Too many holes. And I'm not clear whether the quote above is referring to "regulations" in the general sense or in the specific sense used by most HOAs. The article mentions that "the Nonprofit Corporation Act describes all regulations regarding association administration but does not limit the powers of an HOA", which sounds like "regulations" is a catch-all term.

Google isn't in any hurry to answer my questions. I'm about ready to consult ChatGPT. :-)
DebraH5 (Michigan)
Posts: 6
Posted:
Here are our Bylaws pertaining to changing bylaws. I’ll restate my question. We were given our ballots last week to vote on a new board members. The voting ended on Halloween but our meeting is on Nov. 5. At the meeting we are voting amend the two things. To raise BOD terms from one year to three. And to lower our quorum vote from 51% to 33% (just to pass things through easier). I oppose both. So if we voted for BOD prior to the meeting are they on one year teams still if we haven’t voted for the three years?

ARTICLE VII.
AMENDMENT OF BY-LAWS
Section 1. Amendment Procedures. The power to amend or repeal these Association By-Laws, or to adopt new Association By-Laws, has been reserved exclusively to the members of the Association; provided, however, that until the initial meeting of members has been held, these By-Laws may be amended by the unanimous action of the directors appointed in the Articles of Incorporation or their successors. Amendments may be proposed by the Board of Directors or by petitions signed by at least twenty (20%) percent of the members, but shall not be effective until approved by a majority of the members voting at any regular or special meeting of members at which a quorum is present. A description of any proposed amendment shall accompany the notice of any regular or special meeting which proposed amendment is to be voted on.
ElleN (Idaho)
Posts: 4,420
Posted:
DebraH5, I asked you if the bylaws and state law allow voting for directors to end before the annual meeting starts. I am betting the bylaws and/or state law require that voting for directors conclude //at// the annual meeting. The latter is common. If I am correct, this is when you have a good argument to stop this nonsense.

I expect a court might very well rule that the lack of clarity on all the ballots likely invalidates either the election of directors or the amendment to change terms or both.

What you can do (maybe) is write a cogent argument to the board asking them to stop now and re-do the ballots.
KerryL1 (California)
Posts: 14,550
Posted:
Jeez, Debra. Is the correct? you have a ballot to elect new directors and it says for a one-year term. Is that right?

You also will vote at a meeting of the members (owners) to amend your Bylaws. One amendment would increase directors' terms from one to 3 years. You only are voting for this AT the meeting??

(Another would lower the quorum from 51 to 33%. This kind of decrease is very common, btw.)

What is still confusing is that you seem to be saying there are two ballots?? One that had to be turned in already, and another that you'll fill out in person AT the meeting??

From what I can see in your Bylaws, the latter would require the presence of a majority of your current quorum of 51% to pass the proposed Bylaw amendments.

Can you tell us if a quorum can only be comprised of voters attending in person? Or in person and by proxy? Or in person, by absentee ballots, and by proxy? This also is in you r Bylaws.
KerryL1 (California)
Posts: 14,550
Posted:
Ugh, sorry for my poor wording. Let's try:

It appears that a quorum of 51 % of all lots must be present at the meeting, and a majority of those votes would be needed to approve one or both amendments.
DebraH5 (Michigan)
Posts: 6
Posted:
We have no State laws governing HOA in Michigan. The verbiage I posted is all it says on voting in our bylaws.
DebraH5 (Michigan)
Posts: 6
Posted:
We have no State laws governing HOA in Michigan. The verbiage I posted is all it says on voting in our bylaws.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By DebraH5 on 11/02/2023 4:19 PM
We have no State laws governing HOA in Michigan.
Ma'am, if your hoa is incorporated, this is not so. The Michigan Nonprofit Corporation Act (a statute) has a lot to say about electing directors outside the annual meeting.

Is your HOA incorporated?

KerryL1 (California)
Posts: 14,550
Posted:
Debra, is my understanding of your upcoming election(s) correct? If not, please make repairs,rs. this will help other posters who want to contribute. Thier contributions, in turn, will help you : )
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By DebraH5 on 11/02/2023 2:59 PM
Here are our Bylaws pertaining to changing bylaws. I’ll restate my question. We were given our ballots last week to vote on a new board members. The voting ended on Halloween but our meeting is on Nov. 5. At the meeting we are voting amend the two things. To raise BOD terms from one year to three. And to lower our quorum vote from 51% to 33% (just to pass things through easier). I oppose both. So if we voted for BOD prior to the meeting are they on one year teams still if we haven’t voted for the three years?


For what it's worth, my community's board has 3 members who serve staggered 3-year terms. Quorum for homeowner meetings (annual and special) is 20%. This is pretty common.

Condos are often worse than HOAs as far as apathy goes - but a higher quorum can mean that nothing gets done, no elections are held at all, and the same group remains on the board regardless of the length of their terms (also pretty common).

With 1-year terms, you can have a steady procession of clueless newbies on the board. Even if the newbie has served on the board elsewhere and has a vague hint of a clue about how HOAs work, they'll probably have no institutional memory and will be making the same mistakes over and over because none of the current board remembers getting burned in the past by a particular bad decision. And all homeowners better be prepared to take their turn - none of this sitting around and griping about the small minority of owners who are willing to serve.

IMHO these proposed changes suggest that the current board does maybe actually know what they're doing.

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