changing member qualifications

Started by LisaC8 • 10 replies • 1178 views

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LisaC8 (North Carolina)
Posts: 8

Posted:

In NC. Our bylaws allow for the board to accept new members.
Currently our bylaws state that members are lot owners with dwellings, which goes for dues/road assessments.
We are currently billing lot only owners 1/5 of member road assessment dues even though they are not "members".
I don't think they are legally bound to pay this.
My question is can we change the bylaws to include lot owners? and
Can we base voting rights upon the percentage of dues billed? for example if dwelling owners pay 125/year and lot owners pay $25 a year, can dwelling owners get 5 votes and lot owners get 1 vote?
Thanks for your input, I am new to HOAs, volunteered to be VP and then the President died leaving me that position. So much to learn!

MaryA1 (Arizona)
Posts: 7,043

Posted:

Lisa,

Seems to me you already asked this question on another thread????

First of all the CCRs should state who is a member of the HOA. Normally any lot owner is automatically a member whether they own an improved lot or an unimproved lot. Everyone pays the same assessments unless otherwise stated in the CCRs. Also every lot owner gets one vote for each property they own, whether it's unimproved lot(s) or improved lot(s). Any changes to this would have to be done through an amendment. If these provisions are stated in your bylaws, instead of the CCRs, then that is the document which should be amended. But I can't help but wonder what is in your CCRs if these type provisions are in your bylaws.

IMO, each property owner has a vested interest in the HOA so every property owner should have the same voting rights.

You should also check out state laws to determine if there are any that the board needs to be aware of. There may be state laws for condos and planned communities (single family homes) and there should also be a state nonprofit corp act that would also apply to your HOA.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Our bylaws speak about members as anyone owning property in the subdivision. The membership/water dues rate is based on improved or unimproved lots. PLUS we provide water to 25 "outsiders" who are billed at a rate set by the board. These folks have no membership rights.

LisaC8 (North Carolina)
Posts: 8

Posted:

the articles of incorporation state that the association will decide who is a member.
The only thing I find as far as CCRs is that the association has authority over what is built on lots.
The bylaws state that lot onwners with dwellings are members of the association.
All of these are old, some from 1975.
Thanks

LisaC8 (North Carolina)
Posts: 8

Posted:

Also, I have seen in many association where the developer gets more votes per lot than homeowners and have seen a few others that give more votes to homeowners, but don't know the legality of it.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Lisa,

Yes, it's not uncommon for the developer to have more than one vote for each unsold lot but that is only to insure that he has the majority vote while still in control of the assn. After transition, his vote usually drops to 1 per unsold lot. I've never heard of a member having more than one vote unless they own more than one property.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By LisaC8 on 09/28/2009 7:54 AM
the articles of incorporation state that the association will decide who is a member.
The only thing I find as far as CCRs is that the association has authority over what is built on lots.
The bylaws state that lot onwners with dwellings are members of the association.
All of these are old, some from 1975.
Thanks

Lisa,

Could you post the exact wording of the article in the articles of inc that states the assn will decide who is a member? I've never heard of this b/4 and would just like to see how it's worded. THX! Also, it seems to conflict with what you say is in the bylaws (owners with dwellings are members of the assn). If there is a conflict between gov docs the articles of inc. would prevail. Frankly I'm surprised this is even addressed in the articles of inc.

It's not uncommon for the CCRs to state that the assn has authority over what is built on the lots. That simply means the architectural committee must approve the building plans per the specifications outlined in the CCRs.

LisaC8 (North Carolina)
Posts: 8

Posted:

The articles of Iinc. state
Membership
This corporation whall have no common stock. Participation in its affairs shall be by membership therin. The qualifications and requirements for admission to and retention of membership, and the rights, privileges, duties and obligations of members shall be as provided by the ByLaws of the corporation and the rules and regulations enacted pursuant thereto.
The Bylaws state
Voting Membership
Every person or corporation that owns a lot in Bear Cove Subdivision, upon which a dwelling is located, shall be entitled to become a voting member of this corporation....
Associate Membership
Spouse, Joint tenent, coowner etc of voting member...shall have no vote
Additional Admission to Membership
...a prospective member shall be admitted to either voting or associate membership in the corporation only upon majority vote of a membership committee.
Thanks

MaryA1 (Arizona)
Posts: 7,043

Posted:

Lisa,

It sounds to me like yours is a voluntary association. If it were a mandatory assn all property owners (whether owning an improved or unimproved lot) would "automatically" be members of the HOA.

SusanW1 (Michigan)
Posts: 5,202

Posted:

It depends.

If something like water and/or beach privileges are what members receive, then only improved property owners would benefit from being a member.

In our sub, unimproved (empty lots) are not assessed dues UNLESS they have a water tap installed. We have had homes torn down and the membership went into unimproved status. (re-Hook up fee is $4K)

LisaC8 (North Carolina)
Posts: 8

Posted:

The association has no amenities, our duty is to manage the private roads. Lot owners have an interest to keep the roads up if they ever want to build or sell, but they don't cause much wear/damage because they are not here very often, except when they are selling the propery.

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