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RichardP13 (California)
Posts: 1,767
Posted:
What is the voting procedure for changing or amending Bylaws to an Association. Our requirements are 51%. Is that 51% approval or yes or just a 51% quorum whether they vote for approval or not. Our PM says that you just need 51% to sign a proxy form for quorum purposes only.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Our documents for our condo in SC say you must first establish an offical meeting. You need greater than 50% to establish a quorum by vote of those present, and combination of the directed proxies as submitted in this case. The notice of the meeting is delivered to all certified voters in our Regime. We allow 1 vote per unit for a total number of the individual units. Who carries this vote is decided by the co-owners of each individual unit. The single person elected must be listed on the deed or as a member of the entity that control the unit, and written designation on file at the regime office. All proxies and votes are vetted.

The proposal to amend the By-laws or whatever is presented along with the mailing of the call for the meeting and specific handling direction are included.
The reason for the amendment, the authority to change the whatever and the old language and the amended language is included. And the question to amend or not amend is printed on the directed proxy.

To pass the proposal we need 2/3rds.

To call a special meeting we only need 10% vote of the membership.

We would normally do this at an annual meeting time, and call the special meeting before the annual meeting, Open that, conduct business, closed that and then Open annual meeting.

2/3rds has always seemed a lot to me, and maybe someday it will be changed. I would like to see something like less than 20% for quorum. It can be changed.
I realize we are lucky to get this number when we amended our documents, but we have always been able to get quorum for our annual meetings also. I would contribute that to being proactive in communication well before the meeting. Nex month is our annual so we will see what that brings, hope we stay lucky.

I did not go back and verify all this as these numbers are not germane to the subject.
GlenL (Ohio)
Posts: 5,491
Posted:
Actually Richard the section in your By-Laws on amending is poorly written and confusing IMHO but as I read it you need 51% member approval. The operative word in the section is and meaning both are required. So as I read it you are required to have a quorum of 51% (you can’t require more or use the reduced quorum section) AND 51% of ALL members must approve the changes. Also D-S requires it be done by secret ballot.

ARTICLE 9 - AMENDMENT
So long as the two-class voting structure provided for in the Bylaws shall remain in effect,these Bylaws may be amended only by the vote or written assent of at least fifty-one percent (5 1%) of the voting power of each class of Members. At such time as the Class B membership shall cease and be converted to Class A membership, amendments to these Bylaws shall be enacted by requiring the vote or written assent of:

(i) At least fifty-one percent (5 1%) of a quorum of the Members of the Association, but not more than fifty-one (5 1%) of the voting power of the Association; and

(ii) At least fifty-one percent (5 1 %) of the votes of Members of the Association other than Declarant.

Notwithstanding the foregoing, the percentage of a quorum of the Members or of the votes of Members other than the Declarant necessary to amend a specific provision in these Bylaws shall not be less than the prescribed percentage of affirmative votes required for action to be taken said provision.

Studies show that 5 out of 4 people have problems with fractions
MaryA1 (Arizona)
Posts: 7,043
Posted:
Richard,

There are two things to look for in your bylaws. What are the quorum requirements for a special meeting and what is the vote requirement to amend the bylaws. They may be the same or they may be different. Also note whether the requirements are based upon the total number of members of the assn, the members who are voting in person or by proxy, or by the members eligible (meaning in good standing) to vote. Also check out CA D-S act to see if state law differs from what your docs say, in which case state law would most likely prevail.
GlenL (Ohio)
Posts: 5,491
Posted:
Oops I meant: So as I read it you are required to have a quorum of 51% (you can’t require more or use the reduced quorum section) to hold the vote AND 51% of ALL members must approve the changes. Also D-S requires it be done by secret ballot.

Studies show that 5 out of 4 people have problems with fractions
JohnW18 (Georgia)
Posts: 18
Posted:
Our by-laws read similar to the ones here.

Our board says there are HUD/FHA/VA rules that require a 2/3 vote (rather than a 51% vote)to approve by-law changes if their are any HUD/FHA/VA loans in the subdivision.

I have been searching high and low for this rule.

Does anyone know where to look?

Thanks!
GlenL (Ohio)
Posts: 5,491
Posted:
John, it sounds to me as if the Board is trying to pull a fast one. Since the BOD says that is what is required rather than what is in your CC&R's then they need to be the one to produce it.

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
John, it sounds to me as if the Board is trying to pull a fast one. Since the BOD says that is what is required rather than what is in your CC&R's then they need to be the one to produce it.

Studies show that 5 out of 4 people have problems with fractions
RichardP13 (California)
Posts: 1,767
Posted:
John

As a Mortgage Banker, I can assure you that there is NO requirement that the Board is suggesting. Government agencies do have some requirements, but only for the stability of HOA's mainly as it relates to delinquencies.
JohnW18 (Georgia)
Posts: 18
Posted:
Glen,
I suspected as much, but let's be clear what I'm asking about:

CC&R's are what is commonly called "the covenents", right? Our covenents call for an 80% vote to amend them.

My question is about the by-laws which appear to be a different document. The by-laws call for 51% vote to amend them.

Now a new question:
Does the 51% generally mean 51% of a quorum, or 51% of the total membership?

This site is going to be a great resource!

Thank you.

John
RogerB (Colorado)
Posts: 5,067
Posted:
John, I hope your Bylaws actually do not state "51% vote to amend them". That wording is ambiguous. If stated accurately, I suggest your HOA amend their Bylaws. For example: "These Bylaws may be amended, at a duly called meeting of the Members, by a vote of a simple majority (over 50%) of the votes of a quorum of Members present in person or by proxy."
RichardP13 (California)
Posts: 1,767
Posted:
Roger

"These Bylaws may be amended, at a duly called meeting of the Members, by a vote of a simple majority (over 50%) of the votes of a quorum of Members present in person or by proxy

If you use this language, the Bylaws can be amended too easily. For instance, if you have 100 homes and quorum in the bylaws is defined as a majority, the a majority of a majority would be 26 votes. It would also need the language of "affirmative Vote" to pass.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well Richard makes a good.
However, rules seldom fit the lot. Mu place needs fifty one percent of the membership of 65 owners. We have never failed to makes quorum becaause we have a active program to beat the drums for the annual meeting, so we are comfortable. It is not abnormal for some associations not to get ten persent show up. So, is the solution to make this number float around at the different HOA's. As you know it can't be that way because it would require too many covenant changes. My suggestion is to err on the lower % number. If your board CAN start a communication committee that will help to get out the members. Start with a good small number, %, and shoot for as good small number of live attendees and work toward the higher percentages as the lower percentages are dangerous if a rogue board steps in. The board should look at the big picture, meaning member interest, and give that issue some strong attention. The percentages are only important when things are going bad and owner interest is in the pits.
JohnW18 (Georgia)
Posts: 18
Posted:
Thanks again to everyone who is helping me out.

In response to Roger, Richard and Robert, what I wrote is my understanding of the language.

Here is the actual text from our by-laws. FYI section (a) talks about the class B member (which not longer exisits) and section (c) talks about how the board can amend the bylaws.

(b) By Members Generally. Except as provided above, these By-Laws may be amended only by the affirmative vote or written consent, or any combination thereof, of members representing at least 51% of the total Class β€œA” votes in the association, and the consent of the Class β€œB” Member, if such exists. Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less that the prescribed percentage of affirmative votes required for action to be taken under the clause.

We have 530 homes, so I interpret this to mean 271 affirmative votes. At one point, I thought it meant 51% of the members in attendance at the meeting.

Here is what the GA Code says. I think (3) is want applies to us.

Β§ 14-3-1022. Voting by classes of members

If the articles or bylaws provide for voting by classes of members, then unless the articles or bylaws provide otherwise:

(1) The members of a class are entitled to vote as a class on a proposed amendment to the bylaws if the amendment would change the rights of that class as to voting in a different manner than such amendment would affect another class or members of another class;

(2) If a class is to be divided into two or more classes as a result of an amendment to the bylaws, the amendment must be approved by the members of each class that would be created by the amendment; and

(3) If a class vote is required to approve an amendment to the bylaws, the amendment must be approved by the members of the class by two-thirds of the votes cast by the class or a majority of the voting power of the class, whichever is less.

I think since our by-laws say 51% the (3) does not apply.
RichardP13 (California)
Posts: 1,767
Posted:
John

If you have 530 members in good standing then you were correct that the Association needs 271 yes votes.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
John,

#1. I agree with Richard.
#2 I don't believe the Ga requirement as far as your association is concerned is germane.
#3 I would think the mail in would not be a proxy. The draft of the proposal to amend the documents and how would have to be sent by mail to each owner, and extra copies made, there should be spaces for signing and a selection for yes or no. Instruction as to when the vote is due by post mark, likely a couple days before the announced meeting, An explanation that in person voting can be done up to a specific time after the opening of the meeting. This in effect is a mail in ballot and for my money a much better way for associations to handle voting on anything.

I would have extra copies to use for beating on doors to get out the vote, some will swear they didn't get them. This beating on doors is not all bad.......it demonstrates a presence of the associations concern and may open a door for a member actually coming to the meeting to vote. All votes and ballots should be counted and verified at time of meeting by a couple volunteers and the results read and a formal notice of acceptance or not.

With such a large group, the Board should consider hiring a parliamentarian to run meeting from a front table seat with the Board. Keep the agenda tight, controlled and don't let it get out of hand with items not on agenda. Consider holding meeting for amendment at time of annual meeting as a special meeting held right before annual meeting. Allows to get the amendment done and out of way. IMHO

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