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JackieB (California)
Posts: 198
Posted:
Would like to know any right or wrongs that a CA HOA might have experienced
with updating their governing documents. We are ready to send out the final
version of each, for each HO to review.and attend the Q/A our attorney will
holding. We want to send the ballot close to the Q/A session, which is at least 30 days after review......so it doesn't get lost and hopefully will get
the high response we need. We are even considering giving a raffle ticket
for ????(something)for sending in the ballot (to encourage ballots being sent in.) Any words from the wise.......???
ps- our prior docs were 22 years old...never touched!!
thanks,
Jackie
SusanW1 (Michigan)
Posts: 5,202
Posted:
Your title is confusing - are yoou amending both the CCRs and bylaws?

RickW (Illinois)
Posts: 169
Posted:
Quote:
Posted By JackieB on 09/25/2009 3:14 PM
Would like to know any right or wrongs that a CA HOA might have experienced
with updating their governing documents. We are ready to send out the final
version of each, for each HO to review.and attend the Q/A our attorney will
holding. We want to send the ballot close to the Q/A session, which is at least 30 days after review......so it doesn't get lost and hopefully will get
the high response we need. We are even considering giving a raffle ticket
for ????(something)for sending in the ballot (to encourage ballots being sent in.) Any words from the wise.......???
ps- our prior docs were 22 years old...never touched!!
thanks,
Jackie

Raffle a one month assessment fee!
JackieB (California)
Posts: 198
Posted:
yes.......both CCR's and bylaws.
JackieB (California)
Posts: 198
Posted:
Rick W.......brilliant!!! thanks
TracieS (Colorado)
Posts: 460
Posted:
If you decide to "raffle" anything off, you could come under fire in your state for raffling anything (there are requirements, and all non-profits ((if you're a non-profit)) must abide by that). Raffles, by definition, bring income to the association, and the value of what you're raffling off may be taxable to the recipient.

Also, check your existing documents (ALL of them) to make sure the association/BOD has the authority to waive/raffle/giveaway any dollar amount of assessments. My documents don't allow it.

I'm wondering why you need to update anything, if you don't have owner interest in doing it.

My association's documents are old as well (almost 25 years), and the only update was an amendment to our Articles of Incorporation back in 1989 (which should NOT have been done anyway). Other than that, mine haven't been touched either. We're looking at making some admin resolutions to address how we operate, but I doubt most changes will require an amendment at all.

JackieB (California)
Posts: 198
Posted:
Tracie,
The BOD is tired of outdated docs that are aren't easily understaood.
Each of the 140 HO's read this laborious document differently. We want
it clean, simply, and lawful. Several changes needed to be made due to
Davis_Stirling laws in CA. Our goal is to have everyone on "same page."

I wonder if the great idea of one month free assessment might divert
the non-profit challenges??
TracieS (Colorado)
Posts: 460
Posted:
I understand wanting to change the docs...just wondered why it was happening...

If California requires raffles to get a business license (like Colorado does...where I am), then the cost of the business license to hold a raffle might end up costing the association big bucks. Legal/Business status would NOT matter to the state, UNLESS there's an exemption for non-profits.

If your documents require all owners to pay their assessments, then I doubt you're able to waive/raffle/giveaway assessments. Your association would be losing valuable assessment money, and the recipient might have a higher tax liability.

I agree...it's a good idea, and I would certainly return my forms to get a free month of assessment... BUT...I'm just saying it's a good idea to check with the state AND to verify in your documents that you're able to do it.

You guys out there in California are pretty highly regulated. Will you be amending your documents everytime there's statutory changes in your state/county/muni? That would be pretty costly.

JackieB (California)
Posts: 198
Posted:
LOL.......I agree, highly regulated and very costly to change. This has been a year "in the restating", and soon it will go to vote. We surveyed
the membership prior attorney selection and a few felt it was a waste of
money....but of course these few don't run for office or committee vol.
and are usually the ones that nickel-dime a moot point. If these last
20 years, with simple BOD vote for Rules/Regs and ARC guidelines and membership notification 30 days prior effectiveness......it will be worth
it.
GlenL (Ohio)
Posts: 5,491
Posted:
Jackie, it may take getting out and knocking on doors before the meeting to get enough valid ballots to do this.

Studies show that 5 out of 4 people have problems with fractions
JackieB (California)
Posts: 198
Posted:
I agree...so close....yet, so far away!!
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Jackie B,
All good advice here to consider and that getting out the vote has to be considered way before meeting. When you hold this meeting the BOD should know exactly what is going to happen. You could do some straw votes, etc. Lawyers presentation is right on target. I am of the opinion that 22 years is too long to wait to re-do documents. If there is going to be any kind of amendment made over the years is probably should include a Revised amendment of the documents.
It is just as easy to revise as it is to amend, unless you do amendments all the time, which most people don't. It requires an effort and once you are in the middle, best to just go all the way. Hope this makes sense. IMHO
JackieB (California)
Posts: 198
Posted:
I guess I don't know the difference: revised vs amended?? Any chance of
one being more simple or cheaper?? LOL!!

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