Rules on Association buying property

Started by GaryT • 8 replies • 1824 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

GaryT (Illinois)
Posts: 12

Posted:

I'm curious what wording and voting requirements other associations have on the association buying additional property. We have a community of 95 lots (81 have houses, 14 are vacant lots) situated around a 9-hole golf course. The course is owned by the developer, not the HOA. Developer is trying to sell the course; the HOA is interested in purchasing some of the land owned by the course at the entrance to the subdivision so we can expand and improve our entrance landscaping. Our bylaws state "The following actions shall require the affirmative vote of all of the votes of Property Owners present at a meeting duly called for that purpose

a)merger or consolidation of the Association; (b)sale, lease, exchange, or other disposition of all, or substantially all, of the property and assets of the Association; (c)the purchase or sale of land on behalf of all Property Owners." Basically, the bylaws allow one individual to block the purchase of additional property. That seems extreme. everyday items are approved with a majority vote; bylaws changes require 75% of the voting members. How do others Associations treat things like this? Thanks for your input.

GlenL (Ohio)
Posts: 5,491

Posted:

Purchase of Real Property The Association may purchase, hold title to, and sell real property that is not declared to be part of the Condominium Property with the approval of the Unit Owners who exercise not less than seventy five percent (75%) of the voting power of the Association and the authorization of the Board of Directors. Expenses incurred in connection with any such transaction are Common Expenses.

Studies show that 5 out of 4 people have problems with fractions

TimB4 (Tennessee)
Posts: 21,059

Posted:

Annexation of additional property shall require the assent of two-thirds (2/3) of the members, if any, at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than 30 days nor more than 69 days in advance of the meeting setting forth the purpose of the meeting. The presence of members or of proxies entitled. to cast sixty percent
(60%) of the votes of membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth above, and the required quorum at such subsequent meeting shall be one-half (1/2) of the required quorum of the preceding meeting. No such subsequent meeting shall be held more than 60 days following the preceding meeting. In the event that two-thirds (2/3) of the membership are not present in person or by proxy, members not present may give their written assent to the action taken thereat.

SusanW1 (Michigan)
Posts: 5,202

Posted:

"on behalf of all prpoerty owners" may be a hard sell to a non golfer.

SusanW1 (Michigan)
Posts: 5,202

Posted:

"on behalf of all prpoerty owners" may be a hard sell to a non golfer.

SusanW1 (Michigan)
Posts: 5,202

Posted:

"on behalf of all prpoerty owners" may be a hard sell to a non golfer.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Gary,

Requiring an affirmative vote of all the Property Owners may seem a bit steep; however I don't know that it's better or worse than mine, which state:

"From time to time the size of the property may be increased by declarant adding, or permitting others to add, land thereto by declarant recording with the Co Recorder of XXX Co, AZ a supplement to this declaration."

Who knows what the declarant was thinking when these requirements were writter. But, what is written is what applies unless the members choose to amend the declaration.

Because of the vote requirement which would be near impossible to meet, perhaps the BOD could convince the developer to donate to the HOA a portion of the property at the entrance.

GaryT (Illinois)
Posts: 12

Posted:

Thanks for all the replies. Seeing what others have to deal with always makes our own problems seem less problematic. GlenL's 75% requirement and TimB4's 2/3 requirement seem to be more reasonable as a threshhold to meet for approval of a purchase, especially if it is only of the voting members attending the meeting. TimB4's quorum requirement seems awful stiff though -- 60% of the voting members. Ours is only 15% of the voting members to get a quorum. That, at least, makes things easier since few people attend even the annual meeting.

To answer MaryA1, the developer won't donate the land to the HOA because he needs money. Originally, he wanted to sell us the parcel for close to $300,000; now we've got him down to $40,000, which is much more reasonable for what we're getting.

To SusanW1, since we're only talking about area around the entrance to the subdivision, we should be OK dealing with non-golfing residents. We're planning on selling the idea of upgrading the entrance and turning some of the area into a neighborhood park.

The Board is still discussing how we want to proceed. We may end up proposing a change to the bylaws to lower or eliminate the 100% requirement first, then come back later with the question of buying the land. We'll have to see. Thanks again for your input.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Gary,

My Association has different quorum requirements for different items. The 60% quorum you saw applied only to the purchase of new land. Our annual meeting only requires a 10% quorum. Different quorums are needed for special assessments, changing the bylaws, etc. Additionally, in VA quorums may be obtained by members present in person or by proxy.

Tim

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here