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ChristineG3 (Arizona)
Posts: 8
Posted:
I'm new to this forum and just elected Pres of my HOA Board. At our annual meeting we notified all voting members by mail (for non-resident owners) and hand delivery (for resident owners) giving the date, time, location, and topic 30 days ahead of time. We were voting on a special assessment for water line replacement and road replacements. The assesment passed, but now a group of homeowners who were not at the meeting are claiming that failure to send absentee ballots is "illegal." The non-resident owners to whom we sent notices have not protested that, and in fact, have been sending in the first installments of their assessment. My question is, how serious a breach is this and are there penalties? Would someone have to file suit in order to pursue this? Our state laws governing HOAs (Arizona) are very specific that absentee ballots SHALL be provided. Anybody have experience with this?
MicheleD (Kentucky)
Posts: 4,491
Posted:
I have to admit, I'm somewhat confused about what happened (or didn't happen).

Are you saying that notices of the meeting was mailed, but a voting ballot covering the item to be voted on was not included?

Just needing a little more information or clarification.

Thanks.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By ChristineG3 on 03/24/2009 4:24 PM
I'm new to this forum and just elected Pres of my HOA Board. At our annual meeting we notified all voting members by mail (for non-resident owners) and hand delivery (for resident owners) giving the date, time, location, and topic 30 days ahead of time. We were voting on a special assessment for water line replacement and road replacements. The assesment passed, but now a group of homeowners who were not at the meeting are claiming that failure to send absentee ballots is "illegal." The non-resident owners to whom we sent notices have not protested that, and in fact, have been sending in the first installments of their assessment. My question is, how serious a breach is this and are there penalties? Would someone have to file suit in order to pursue this? Our state laws governing HOAs (Arizona) are very specific that absentee ballots SHALL be provided. Anybody have experience with this?

Christine,

I get the impression that what you're saying is that a ballot was not included in the meeting notice. If so, this was a serious violation of state law because it resulted in illegally taking away the voting rights of all the nonresident owners together with those resident owners who chose, or were unable to attend the meeting. Don't be surprised if someone -- or a group of people -- who are very upset with the passage of a special assessment file a lawsuit.

The state law, ARS33-1812 is very specific in saying; "The association shall provide for votes to be cast in person and by absentee ballot. . .", meaning an absentee ballot must be provided each member should they choose not to attend the meeting. How did the board expect the non-resident owners to cast their votes?

This definitely is a violation of state law and the assn would certainly lose should a member decide to bring suit against the assn. Since we no longer have the benefit of the OAH to hear disputes, the only way to contest this would be in a court of law.

Is your assn self-managed or do you contract with a mgmt co? Where in AZ are you located? I'm in N. Glendale.
ChristineG3 (Arizona)
Posts: 8
Posted:
That is correct. No ballots were sent out with the notices to homeowners who don't live in the complex. Most live in town and apparently it was anticipated that they would attend the meeting and vote in person.
ChristineG3 (Arizona)
Posts: 8
Posted:
We are self-managed, a small townhome complex of 85 units. What we are hoping we can do is do a complete re-vote, with ballots, to satisfy the people who are protesting this.
ChristineG3 (Arizona)
Posts: 8
Posted:
Mary, we're in Tucson
SusanW1 (Michigan)
Posts: 5,202
Posted:
Usually, absentee ballots are requested, not sent automatically.

If this was assumed that the vote would be a live (not a written ballot vote) you did nothing wrong.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Susan,

You are absolutely wrong! I quoted the law here in AZ, absentee ballots are a requirement and they "shall" be provided to all members. Please don't confuse the poster!!
JohnK3 (Pennsylvania)
Posts: 967
Posted:
Sending different packages to different "sets" of Members based on an assumption, or for any other reason, was just plain stupid. If I were a Member, I'd be ticked off, too. This vote can't stand. Try a re-do.

DwightT (Idaho)
Posts: 664
Posted:
Quote:
Posted By MaryA1 on 03/25/2009 9:16 AM
Susan,

You are absolutely wrong! I quoted the law here in AZ, absentee ballots are a requirement and they "shall" be provided to all members. Please don't confuse the poster!!

Mary - from the bit of the law that you posted, I don't see that absentee ballots must be included with the meeting notice. Your post stated:
Quote:

The state law, ARS33-1812 is very specific in saying; "The association shall provide for votes to be cast in person and by absentee ballot. . .", meaning an absentee ballot must be provided each member should they choose not to attend the meeting. How did the board expect the non-resident owners to cast their votes?

Taken by itself, the statement "The association shall provide for votes to be cast..." can also be interpreted to mean that the association must provide the member with an absentee ballot if the member requests one, but otherwise is not obligated to automatically send a ballot to every member.

Now there may be other parts of the law that DOES require a ballot be included with the meeting notice, but I don't see it in the part that was posted.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Lets assume the ballots were not included by mistake.
Lets assume the ballots were not included by design.
Lets assume the issue is now being reconsidered by the board.
Lets assume the question has become, can the Board do anything now. Lets assume if Mary is right or maybe not, I bet she is, but that don't matter.

It is plain this kind of error is evidence that the process as a whole has some serious flaws.........that's clear.

I believe not matter any of the above or because of the above there should be a re-vote, and get it right. I can't see the board has a choice. Suppose they stand up and fight these folks that have some concerns. No matter the court outcome, the Board loses, in lose of trust, and creates disharmony.

Far better the Board be transparent and lay out the fault of the Board in not recognizing all members had not been notified. But, don't waste the opportunity for the board to become more human and more friendly. Good chance to make new friends.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By ChristineG3 on 03/24/2009 5:07 PM
We are self-managed, a small townhome complex of 85 units. What we are hoping we can do is do a complete re-vote, with ballots, to satisfy the people who are protesting this.

Christine,

A re-vote sounds good! Make certain to include a ballot in each notice, whether mailed or hand-delivered. Actually, there's another thing you can do, which I feel would be much better since you've already had a meeting. You can do an "action by written consent". This is IAW the provisions of ARS 10-3704 of the nonprofit corp act, which HOAs must also abide by. This is how it works:

1) instead of a ballot, entitle the form "Action By Written Consent". State the reason for the vote (special assessment for +++++++) and provide for a "yes" or "no" vote and require the form be signed by the property owner and dated. Also state on the consent form the date by which it must be returned to the HOA.
2) send this consent form to all property owners, whether residing on the premises or not. The consent form can be hand-carried to those property owners residing on the premises.
3) the record date for determining members entitled to take action w/o a meeting is the date the first member signs the consent form
4) the consent is approved by members holding at least a majority of the voting power unless the articles of inc or bylaws require a different amount of voting power.
4) the consent is effective on the date that the consent form was signed by the last member whose signature.
5) all of the consent forms recieved by the HOA should be filed with the corp records.
4) the statute says: "written notice of member approval pursuant to this section shall be given to all members who have not signed teh written consent"; however, IMO, all members should be notified of the outcome of the vote.
5) any member may revoke his consent by delivering a signed revocation of consent to the Pres or Sec b/4 the date stated in #4 above

If the board agrees to conduct the re-vote in this manner it will mean not having to call a meeting and worrying about obtaining a quorum. I think the members would be happier with this method also as it would only takee a minute of their time! The board may also consider including a self-addressed stamped envelope for the consent to be returned in.

I asked where you are located because here in the Phx area many cities have started providing HOA classes which are very informative for board members. In Glendale we have the HOA Training Academy. I don't know if Tucson is doing this, but you might want to check it out with the City Neighborhood Dept.

I get the impression you are new to HOAs and are trying to learn all the state laws and digest what your gov docs say. Know that I've been there, done that, so I know exactly what you are experiencing. If I can be of any help please feel free to email me privately at sweetpea.43&cox.net

Take care,
Mary

PS:
I was treasurer of a small self-managed HOA (49 single family homes) so I have experience with that also! :-)
MaryA1 (Arizona)
Posts: 7,043
Posted:
Dwight,

The state law says: "The association shall provide for votes to be cast in person and by absentee ballot. . .",

As you know use of the word "shall" means something MUST be done; no and's, if's or but's about it! It's clear to me that absentee ballots are to be provided to all members and that was not done in this case so it's a violation of the state law. I think the law is very clear.

What I didn't include in my response was the fact that the statute goes on to state exactly what must be included on the absentee ballot. It's apparent that the absentee ballot is to be used to cast all votes, whether they are cast in person or mailed-in. I will agree the statute is a bit ambiguous, but no where does it allude that the member should request an absentee ballot. It should be noted that "absentee ballot" is only a term used to describe a ballot that has been mailed-in. It is the same ballot used to cast a vote in person.
DwightT (Idaho)
Posts: 664
Posted:
Mary - I'm guessing that the part of the law that hasn't been posted here provides more clarification, but the "shall provide for..." part that HAS been posted only looks to me like a process must be in place that will allow for in-person votes and for absentee votes. The law doesn't need to specify exactly what the process is, only that there must be one. I don't know about AZ, but in ID we can vote in general (non-HOA) elections either by requesting an absentee ballot or by going to the polling place on election day. I would think that the same would hold for HOA elections.

If that is the case, then that requirement can be satisfied by allowing members to request an absentee ballot and by holding a meeting where members can vote in person.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Dwight,

Guess we'll have to agree to disagree on this one!

But, in the case in question, the fact remains that ballots were not provided to the members living off the premises. Ballots should always be included in the notice packet; a member should not have to request a ballot.

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