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JeffB22 (Texas)
Posts: 1
Posted:
Hello. I am one of 6 members on my local HOA board. My question is: are there any rules in Texas that stipulate that when and if the board enters into a new contract, or contract renewal($300,000+), whether or not the board must vote on this, and if so must approval be by unanimous vote or simply by majority vote. Thank you.
ElleN (Idaho)
Posts: 4,420
Posted:
Texas statutes (TPC 209 and BO 22) and undoubtedly your bylaws and articles of incorporation all say contracting decisions are the board's to make. Which means yes, there must be a board vote. If your HOA's bylaws are silent on whether a majority vote or super majority (say 2/3rds or 3/4s) of the board is necessary, then a simple majority of the board gets to decide.

You need a crash course in the legal structure of HOAs. Keep asking questions here. If there is something you do not understand, ask about it.

How many homes roughly are there in your HOA?

Is your HOA incorporated?

Is the developer long out of the picture, such that control is in the hands of a board of directors, with all directors normally elected by the owners?

Is this a condominium? I think not but I want to be sure.

Please answer all questions people here ask you.
KerryL1 (California)
Posts: 14,550
Posted:
Please answer Elle's questions.

As a board member, it's your job and you're responsible for reading your governing documents. Read your Bylaws. In them, you'll most likely see that a quorum of the Board must be present to vote on anything. A "quorum" is usually a majority of the board, in your case 4. The same Bylaws probably say that a vote of the majority of the board OR of a quorum of the board.

It'd be very, very rare that any matter before the Board would require a unanimous vote. Speaking of which, do your Bylaws say you may have a Board of 6??? Generally they call for an odd number. Since on HOA boards all directors have equal power, "the Board," not the president governs the Association, I'm wondering why you thought it possible that one director could approve of that or any size?

Not that I say "most likely" and "probably"and "generally" because not all bylaws are the same, so you must read yours.

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