Annual Homeowner Meeting

Renee, the BOD is responsible for holding the annual meeting. The PM may be responsible for sending out the notice and information which is provided by the BOD.

depends on how it's worded in your documents. Check out if their post is to "Serve terms" or "serve until someone else if elected"

They may be there until they get replaced at an election.

Are you suspecting that they are trying to delay an election.

If they don't hold the meeting, consider calling a special meeting of the members to recall and replace. Follow your documents for procedures.

Susan, checked our docs and it is worded as "...Each Director shall hold office until his successor shall have been elected and qualified and Directors may succeed themselves in office." Sounds like they are on BOD until election meeting is held. For as long as I've lived here, this is the first time this is happening--not like they don't know when this election should occur and we've had the same property management since day 1. And, according to our docs, only the President or 1/3 of BOD members can call a special meeting. So, that isn't even an option. Now what?

Check your Bylaws to see how the owners can call a special meeting by petition. If they are silent on this and you are incorporated, then check the state nonprofit act which may state how the members can petition for a meeting.

I think there is most likely a provision in one of these documents to allow the owners to call for a meeting by petition. If not, and the current Board really is stalling and will not schedule the annual meeting, you could have an attorney send them a letter pointing out their fiduciary duty to have the annual meeting as per the Bylaws.

Kirk, I was going down the same road as you.

The first thing that popped into my mind was something that just happened in my own association this past summer.

We were supposed to have a summer meeting (we are only mandated to have an annual meeting, which is in March, but we like to have additional member dialog meetings throughout the year).

I am president this year and would be the one scheduling it.

Due to some serious health issues, I was unable to organize it. I ended up in the hospital for 2 and a half weeks.

Unfortunately, even though my husband sent a notice out to the other board members, none of them picked up the slack. In fact, no one even stopped by the post office to check our mail. That led to other issues (certain bills not getting paid, etc), but I won't get into that.

At any rate, there may be a host of reasons why the ball was dropped and there may be actions behind the scenes right now trying to rectify the situation.

A gentle request to a board member may be all that is needed to both give you the answer you need and/or start a minor fire under someone's rear to move things along.

Let us know what happens. I'm very curious.

KirkW and MicheleD -Thanks for your input. Since my last post, I called the PM company only to learn that our CAM is on medical leave (they don't even know when she will be returning); she did have an assistant but obviously she or someone at PM dropped the ball. Anyway, I was told our annual homeowner meeting cancelled due to scheduling conflicts with attorney so now it'll be on 9/30/09. Personally, that is such a lame excuse as I know first-hand what is involved scheduling meeting/attendees and THEN sending out invites. So, after being told this new info, I said was there was no need to have any attorney present; their response was the BOD requested attorney to be there. Since lawyer will be paid for his services out of assocation funds, shouldn't this have been approved at an open BOD meeting? IMO, that is a waste of association funds. CAM or current BOD members should know how to run an election meeting by now or defer to a script.
My other quip is we homeowners are not given an opportunity to speak up or share our opinions or vote on other items at this meeting---my understanding this is only meeting where homeowners have that chance, why else call it an annual homeowner meeting. Past 3 years BOD managed to have attorney present as well and at the very beginning it is announced only business will be to elect new officers only. Do we homeowners have a right to ask for him to leave and if there is can someone tell me proper way to accomplish?

In the meantime, a 2nd letter with candidate form has now been mailed to all homeowners announcing new annual election date and if interested to complete ANOTHER candidate form and return it by 8/25. IMO, they are reinventing the wheel here again as I already submitted my form on 7/10 as instructed. Reason why I know as much as I do is because I do attend every meeting, listen and ask questions. More often than not my questions (either on spending or decisions they made) go unanswered because they believe it is either unnecessary or there isn't enough time to go into more detail. Also, since the community hasn't received a newsletter in over a year, I voluntarily share what I know with other owners if asked. General consensus is they too are fed up with lack of response from our BOD members and wish we also could change management company. I don't understand the secrecy behind all this. I guess these are some of the reasons I feel now is the right time for me to run for the board.

Oh, I forgot to address the meeting agenda.

According to our documents, our annual meeting is solely for the election of the directors to the board.

Our documents do not even require that the members approve the budget. That is the responsibility of the board.

So, without knowing your association's by-laws or other governing documents, I can't address your personal expectations of what the annual meeting should be versus what your documents require the meeting to be.

Re: budget approval. I hate to say that be happy they at least send the budget out ahead of time for everyone to see/review, even if people can't provide immediate input. Most HOAs don't even do that. I'm not being snarky, I'm just acknowledging a fact.

If your governing documents leave the final say on the budget in the laps of the board, then your opportunity to affect that budget process is to vote in or out board members who are putting into the budget items which the majority of you don't approve or want.

You can't affect the budget, per your own documents, any other way.

Regarding annual meeting: Though the purpose of the annual meeting (at least in our organization) is for electing board members, it also can be a time when amendments to the governing documents, or other similar business on which the membership can vote, can be put on the agenda.

It would be more cost effective, in my mind, than the logistics and notifications involved in setting up a second or special meeting to address those items.

But if there are no proposed amendments presented prior to the meeting, then, no, the membership present at the meeting cannot simply add that to the agenda then try to force a vote on it that night.

In our organization, anyone wanting to call a meeting for any reason must obtain a petition with the signatures of 25 % of the membership, then present that to the board, who must then make all the arrangements and notifications.

If the purpose is to vote on an amendment, then there is a minimum of 51 % of those eligible to vote as the threshold for a quorum for that meeting.

If that number is not met, then there can be no vote.

Hi Renee,

First, here is some info from the IL Condo Act. Your bylaws should address what you are asking. Then I’ll follow with how we have done things.

http://www.ksnlaw.com/?p=1720

Section 18: contents of bylaws:
(a)...(6) that each unit owner shall receive, at least 30 days prior to the adoption thereof by
the board of managers, a copy of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs or payment of real estate taxes...

(8) (i) that each unit owner shall receive notice, in the same manner as is provided in
this Act for membership meetings, of any meeting of the board of managers concerning the adoption of the proposed annual budget and regular assessments pursuant thereto or to adopt a separate (special) assessment,...

(b)...(3) that the members shall hold an annual meeting, one of the purposes of which shall
be to elect members of the board of managers;

(4) the method of calling meetings of the unit owners;

(5) that special meetings of the members can be called by the president, board of
managers, or by 20% of unit owners;

(6) that written notice of any membership meeting shall be mailed or delivered giving
members no less than 10 and no more than 30 days notice of the time, place and purpose of such
meeting;

Re budget:

Our PM provides the proposed budget at least 30 days prior to the Board meeting at which it will be adopted. The cover letter states that written comments are welcome. We try to make it clear that specific suggestions are preferred/welcome over general statements. Oral comments/questions may be presented at the meeting. Our practice has been to provide a written response to written comments/questions. Oral ones are answered at the meeting. Our Board has made changes based on written HO input (well...at least once, that is. It is rare for any comments to be submitted.)

Re annual meeting, election/terms:

1. Our PM handles the notice to HOs, etc. per direction of the Board. Our Board determines the dates of all BOD meetings and the annual meeting before the end of the year so that all meeting dates can be provided in the winter newsletter for the following year (and are repeated in spring newsletter – we send 2 newsletters/year). The only additional notice sent would be if a meeting date needs to change (a postcard is sent with new date), and, the required notice for the annual meeting with proxy, info re election, agenda, etc.

2. We have never had a HO request any items be added to the agenda for the annual meeting, but HOs may bring up questions, etc. at the meeting. I would like to think that if a HO were to contact the PM and request something be included on the agenda, it would be. We rarely achieve a quorum, though, at the annual meeting. For those annual meetings that do not have a quorum, the Board will hold a HO session for those who attended, if desired. Our practice is to hold a regular BOD meeting following the annual meeting.

3. As to timing of the annual meeting, early on we were told by our PM we had a 30 day window to hold the annual meeting – i.e., if it is scheduled for February 10, we could hold it up to 30 days later. I have not found that in the Act – but then haven’t looked very hard for it, either.

4. When we do not achieve a quorum and there is no election, the existing Board members continue for another year (if they want to). We have Board members who have been “on” without an election for several years running.

BTW – we have not ever had an attorney present at the annual meeting. I'm at a bit of a loss to know why s/he would need to be present.

Re your receipt of a new candidate form – it is my understanding that the first one you submitted was only “good” for the originally scheduled meeting. With the rescheduling of the meeting, new notice, etc. must be sent, including you would need to resubmit your candidate form. The old one “expired” – again, as I understand things.

As for voting on other issues at the annual meeting, it is my understanding that HOs only vote on candidates to the Board. Check the Act to see if there is anything else (I have not looked). We have never had anything else on the annual meeting agenda other than the election vote.

As for changing your governing docs – they should specify how to do that. We amended ours shortly after turnover, and the process we used did not entail a HO vote. The process was similar to the budget process.

I’m glad you have decided to run for the Board. Good luck!! :-)
Keep us posted on the results.

Bonnie