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RobertR1 (South Carolina)
Posts: 5,164
Posted:
Our HOA allows for proxies to be assigned. The way it works is along with notice of annual meeting a proxie form is added to the package. You can assign your vote (proxie) to a specific individual or you can assign it to the Board. We are a condo in a resort location, our Quorum requirement is 51%, and presently the rental/nonrental ratio is about 75% rental. Of 65 units total we have only about 8 full timers. Our Board does not view this to be a problem although I, for one, have cautioned them about the effects this has on our mortgage market. They ignore any and all information I have gathered from the internet explaining the realities of this problem including Fiduciary Responsibility. So now, any vote taken will be lopsided with rental/investor owners. And we keep going down the road of self distruction, in my opinion. We do have a small group that has requested a meeting with the Board and our(Regime) lawyer. Up to this point they seemed to have responded with Turtle speed. About two months and we still haven't received a written response, although they have informed us via telephone a reply is forthcoming. All Board members are absentee owners so you can imagine how much rule enforcement is done.
I have been reading about a proposal that would add a Fulltime Resident to the Board, but that is not looked upon with favor.
First: Would a reduction in our requirements for a Quorum help?
Second: As nearly all our owners are absentee their proxies insure the interests of renting, and in the same breath defeat any interests of non-renters.
Third: How do other condos handle this situation or does it just fade into a rental apartment complex.
I have lived here by the Ocean for 17 great years and believe me when I say
full time residents keep this place together.

Thank you, advice appreciated.
HaroldS (Arizona)
Posts: 906
Posted:
Robert - I don't see how mandating that a resident owner be on the board would change anything - the rental owners would still control the board.
Have units been sold lately? Was there a problem getting normal financing because of the high rental/owner factor? I've heard this argued that it can be a factor and cause higher than the going current interest rate but have never heard or seen it actually happen. Harold
RobertR1 (South Carolina)
Posts: 5,164
Posted:
HaroldS,
Thanks for reply. When there is no one around to resolve Board related issues or decide Board related responsibility it sure would make it simply to go to that Board Member for action as oppossed to the telephone or e-mail.
Rule violations for one. Ultimately the owner of a units is responsible for what goes on in the unit and the conduct of his tenants while staying at the unit. Owners trying to tell other owners one is going to fine the other don't work well.

I have read documents and articles that cite cases of sellers being restricted because of the renter/nonrenter inbalance. Also, I understand an owner would not have to be selling his unit, just the fact that the Board allowed this to happen is sufficiant to file a suit. And that is how it should be because the owner is being harmed with the restrictive conditions.

Our Master Deed requires all owners to have a General Warrant Deed. If you have an inbalance you can't get a General Warranty Deed, they just give you a nonwarranty deed. That's what the banks tell me, don't worry about it we can find a company that will give the mortgage and apparantly do. What the Borad won't tell me is how they insure all deeds are general warranty. I believe they approve any kind of deed that the Mortgagor provides. Comments.

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