HOA Board Election Issue – Advice Needed

KasraN (Iowa)
Posts: 5

Posted:

Subject: HOA Board Election Issue – Advice Needed

Hello everyone,

I’m looking for advice on a situation we’re facing with our condo HOA in Iowa. Our condominium consists of 16 units owned by 8 different owners. One owner holds 9 units, while the remaining 7 units are owned by 5 other individuals. Among these owners, only three have been actively participating in the HOA board.

During previous elections, the owner of the 9 units and two other owners (who held proxies for the remaining non-participating owners) formed the board without major issues. However, in this year’s election, the owner of the 9 units transferred 1% ownership of two of his units to two of his tenants. This allowed those tenants to qualify as unit owners, making them eligible to be on the board. As a result, he secured full control of the HOA board by having himself and his two tenants elected, effectively pushing out the other two real owners.

Now, with full board control, he can make any decisions without opposition. We believe this maneuver was done to consolidate power and override the interests of the other owners.

Our question is: Is there any legal or procedural way to challenge or reverse this election, given that it was achieved through fractional ownership transfers?

Any advice on Iowa HOA laws, legal actions, or procedural steps we could take would be greatly appreciated.

Thank you!

ElleN (Idaho)
Posts: 1,339

Posted:

Quote:

Posted By KasraN on 02/05/2025 6:50 AM
This allowed those tenants to qualify as unit owners, making them eligible to be on the board. ...
Our question is: Is there any legal or procedural way to challenge or reverse this election, given that it was achieved through fractional ownership transfers?

Any advice on Iowa HOA laws, legal actions, or procedural steps we could take would be greatly appreciated.

To get substantive advice, please quote exactly what your bylaws say about --

-- who is eligible to be on the board.

-- who is an "owner" or who is a "member." See the definitions section (if present).

-- what the bylaws say about how a person is elected to the board. E.g. do the top three vote getters win seats on the board? Is cumulative voting allowed?

Chances are a reading of the entire Declaration, Articles of Incorporation and bylaws are needed. If you post these here, this would be best. If you are not comfortable posting these here, then post an email address, and I will reach out to you. Create an email address that you can easily delete, since this forum has some problem people on it.

I will check

KerryL1 (California)
Posts: 14,550

Posted:

Most will be in your Bylaws. But check to see if your Bylaws permit joint owners to serve simultaneously on the Board.

JeffT2 (Iowa)
Posts: 880

Posted:

From Iowa Code 499B (condo law, emphasis added):

"499B.2 Definitions...
3. “Co-owner” means a person, corporation, or other legal entity capable of holding or owning any interest in real property who owns all or an interest in an apartment within the building."

So these tenants are co-owners and would be eligible for the board, unless your bylaws say otherwise. I suspect that the owner of the nine units has had legal advice. Check that the tenants meet the criteria in your bylaws.

Assuming your condo is incorporated, you can remind these new fractional owners that board members are personally financially liable if they do not act in good faith and in the best interests of the corporation. If they act in the interest of their landlord to the detriment of the condominium as a whole (the corporation), then they can be held individually financially responsible (in theory).

KasraN (Iowa)
Posts: 5

Posted:

I appreciate you took the time to reply to my post and share your advice. Your insights and suggestions have been very helpful, and I truly value the support from this community. i will forward this advice to other owners and let them decide to take the next step. Thank you

KasraN (Iowa)
Posts: 5

Posted:

that is smart advise .thank you

JeffT2 (Iowa)
Posts: 880

Posted:

Please tell us about the votes at the election. How many positions were open? If you had 7 votes, then you should have elected one board member.

How many members are on the board? Three?

Assuming three board members and one vote for each unit, the big owner has 9 votes total, which might be voted as 3 votes each for 3 candidates. You have 7 votes, so you can elect at least one board member.

Do you know if you have fractional (or percentage) voting, where a larger unit gets a higher percentage of voting power? Many condos have it, but owners do not know this, and think that each condo unit has one equal vote.

CathyA3 (Ohio)
Posts: 6,299

Posted:

I second Kerry's comment. A number of states and/or bylaws prohibit multiple persons from a single voting interest from serving on the board - eg. no spouses, joint owners, etc.

The tenants and the owner of these units didn't ask me, but I would advise them to consult with their lawyers and their insurance agents to understand what they've let themselves in for by becoming joint owners. (Some years ago, a condo owner was upset that her live-in boyfriend had to park in visitor parking and was limited to a few hours only. She asked if she should put him on the deed to her condo. Everybody responded "oh dear lord, NO!" It was about the only time we regulars have been unanimous about anything. I sometimes wonder how that worked out...)

JeffT2 (Iowa)
Posts: 880

Posted:

You can keep an eye on things. From Iowa condo law:

"499B.15 …
2. If the form of administration is a board of administration, board meetings must be open to all apartment owners except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. Notice of each board meeting must be mailed or delivered to each apartment owner at least seven days before the meeting. Minutes of meetings of the board of administration must be maintained in written form or in another form that can be converted into written form within a reasonable time. The official records of the board of administration must be open to inspection and available for photocopying at reasonable times and places. Any action taken by a board of administration at a meeting that is in violation of any of the provisions of this subsection is not valid or enforceable."

KasraN (Iowa)
Posts: 5

Posted:

I appreciate all the comments and advice. We plan to consult with a lawyer to explore options for contesting the election.
Thank you

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By CathyA3 on 02/05/2025 11:11 AM
I second Kerry's comment. A number of states and/or bylaws prohibit multiple persons from a single voting interest from serving on the board - eg. no spouses, joint owners, etc.

The tenants and the owner of these units didn't ask me, but I would advise them to consult with their lawyers and their insurance agents to understand what they've let themselves in for by becoming joint owners. (Some years ago, a condo owner was upset that her live-in boyfriend had to park in visitor parking and was limited to a few hours only. She asked if she should put him on the deed to her condo. Everybody responded "oh dear lord, NO!" It was about the only time we regulars have been unanimous about anything. I sometimes wonder how that worked out...)

Maybe, but Ohio isn’t one of those states. A husband and wife being co-owners of a unit may both serve on an HOA board if elected or appointed.

ElleN (Idaho)
Posts: 1,339

Posted:

KasraN, I think you would be a lot better prepared for any meeting with an attorney if you answered this question from Jeff:

Do you know if you have fractional (or percentage) voting, where a larger unit gets a higher percentage of voting power? Many condos have it, but owners do not know this, and think that each condo unit has one equal vote.

Quote:

Posted By KasraN on 02/07/2025 5:09 AM
I appreciate all the comments and advice. We plan to consult with a lawyer to explore options for contesting the election.

I think you all should keep in mind that this owner owns more than half the units. He has a much bigger stake in the well-being of the association than any other owner. Yes, the bylaws should be followed, but if they allow what he is doing, then this is completely reasonable IMO.

JeffT2 (Iowa)
Posts: 880

Posted:

Quote:

Posted By DeanJ on 02/07/2025 6:22 AM

Posted By CathyA3 on 02/05/2025 11:11 AM
I second Kerry's comment. A number of states and/or bylaws prohibit multiple persons from a single voting interest from serving on the board - eg. no spouses, joint owners, etc.

The tenants and the owner of these units didn't ask me, but I would advise them to consult with their lawyers and their insurance agents to understand what they've let themselves in for by becoming joint owners. (Some years ago, a condo owner was upset that her live-in boyfriend had to park in visitor parking and was limited to a few hours only. She asked if she should put him on the deed to her condo. Everybody responded "oh dear lord, NO!" It was about the only time we regulars have been unanimous about anything. I sometimes wonder how that worked out...)

Maybe, but Ohio isn’t one of those states. A husband and wife being co-owners of a unit may both serve on an HOA board if elected or appointed.

Just curious, what does Ohio have to do with it?

KasraN (Iowa)
Posts: 5

Posted:

Ellen is correct. However, as an owner of five units, I was not elected because the owner of the nine units voted for the fractional (1%) owners/tenants, who have little to no vested interest in protecting the property’s overall interests.

ElleN (Idaho)
Posts: 1,339

Posted:

Quote:

Posted By KasraN on 02/07/2025 10:18 AM
Ellen is correct. However, as an owner of five units, I was not elected because the owner of the nine units voted for the fractional (1%) owners/tenants, who have little to no vested interest in protecting the property’s overall interests.

Don't you think the tenants are going to take their marching orders (as directors) from their landlord?

This situation is certainly interesting legally (to me anyway).

I wish I could read the articles of incorporation and bylaws in their entirety.

JeffT2 (Iowa)
Posts: 880

Posted:

Quote:

Posted By KasraN on 02/07/2025 10:18 AM
Ellen is correct. However, as an owner of five units, I was not elected because the owner of the nine units voted for the fractional (1%) owners/tenants, who have little to no vested interest in protecting the property’s overall interests.

How many directors do you have? How many open positions at the election? With five votes, you should have been elected, unless only one position was open.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By DeanJ on 02/07/2025 6:22 AM

Posted By CathyA3 on 02/05/2025 11:11 AM
I second Kerry's comment. A number of states and/or bylaws prohibit multiple persons from a single voting interest from serving on the board - eg. no spouses, joint owners, etc.

The tenants and the owner of these units didn't ask me, but I would advise them to consult with their lawyers and their insurance agents to understand what they've let themselves in for by becoming joint owners. (Some years ago, a condo owner was upset that her live-in boyfriend had to park in visitor parking and was limited to a few hours only. She asked if she should put him on the deed to her condo. Everybody responded "oh dear lord, NO!" It was about the only time we regulars have been unanimous about anything. I sometimes wonder how that worked out...)

Maybe, but Ohio isn’t one of those states. A husband and wife being co-owners of a unit may both serve on an HOA board if elected or appointed.

If so, do they each get a vote?