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Subject: Proxy Voting Help Needed

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CharlieS
(Tennessee)

Posts:21

06/26/2008 8:45 PM
I am really trying to understand my HOA. We are only 47 homes and the homeowners are the committee. I have some issues, I really need to know who is out of line, me or the committee. First off we do not Proxy vote but it is listed in the Covenants that we are suppose to. Everytime I address this at a meeting I am told we do have proxy voting that it is up to me to send a ballot in. I was unable to attend our meeting for the budget. The proposed budget was for $120. During the meeting they raised it to $180 (a year) and passed it. Less then 20 people were there, 12 voted yes, 1 voted no and 5 did not vote. When I brought up the proxy voting about this I was told I had the opportunity to send in a vote. What about the $60 increase I asked I knew nothing of that, I was told they passed a motion during the meeting and that is acceptable. I only sent in a particle payment and explained why. A few months later minutes were emailed out from the committee. They made the comment that "some legal cost have been incurred due to a few members not paying or partially paying their dues." A few days later I received a registed letter stating if I did not pay the balance then the collection process would start. I did pay the balance and tonight we had a meeting. They did lie about "incurring a cost" this was just a scare tatic to get people to pay. The discussion was getting a little hot and the VP passed out a copy of my emails him and I sent to each other (They were professional and addressed my concerns about the proxy voting)and a copy of the registered letter that was mailed to me, he passed these out to everyone. Well need less to say they say I am wrong about the Proxy, I feel the board should mail one out and they feel I should just send on in and if there is a motion at the meeting they can pass it without any proxy voting. Was it right of them to pass out a copy of the registered letter? I am sorry for rambling on my first post. I do appreciate any advice. I am here to learn and understand this HOA stuff.

KevinK7
(Florida)

Posts:59

06/26/2008 8:51 PM
Do the by-laws state that only a quorum of people present are needed to pass any kind of motion? In my association, the HOA does mail out proxy votes and it states that any proxy vote that is not mailed back is counted as a "no" vote. Are there any provisions that outline the details of a proxy votes?

GlenL
(Ohio)

Posts:1375

06/26/2008 10:24 PM
Charlie welcome and I hope you can find what you need here. Just because your documents allow a proxy vote, this does not mean that the BOD has to send proxies out. Since I don't know what is in your documents I'll take from mine: Members may vote or act in person or by proxy. The person appointed as proxy need not he a member of the Association. Designation by a member or members of a proxy to vote or act on his or their behalf shall be made in writing to the Board of Trustees of the Association and shall be revocable at any time by actual notice to the Board of Trustees by the member or members making such designation. Notice to the Board of Trustees in writing or in open meeting of the revocation of the designation proxy shall not affect any vote or act previously taken or authorized. Note nowhere does this say my Association must send out proxy forms just that they're allowed to be used. A proxy is a simple document that anyone can draw up giving their voting power to another person for a specific meeting; in this scenario the proxy holder can vote as s/he pleases. There is what is called a directed proxy in which you spell out exactly how you want the proxy holder to vote. You also have the ability to draw up a proxy and take it to your neighbors and ask them to give you their proxy and then you would have the ability to vote in their place if they could not or did not want to attend the meeting. No it was not proper for the VP to discus a collection matter with everyone there; it should have been done in executive session with you and the BOD.

GeraldT4

Posts:932

06/27/2008 5:41 AM
CharlieS - Your association President needs to learn the difference btwn. public and private information, and chair a meeting by treating association members with respect. Your President failed miserably in that regard. 20 out of 47 homes is 42%. Probably more than enough to hold the vote meeting, please tell us what your governing documents state regarding the percentage necessary to attend a membership meeting and hold a vote. Those that voted in favor of the increase were the majority present at the meeting.

MaryA1
(Arizona)

Posts:2243

06/27/2008 8:17 AM
Posted By CharlieS on 06/26/2008 8:45 PM I am really trying to understand my HOA. We are only 47 homes and the homeowners are the committee. I have some issues, I really need to know who is out of line, me or the committee. First off we do not Proxy vote but it is listed in the Covenants that we are suppose to. Everytime I address this at a meeting I am told we do have proxy voting that it is up to me to send a ballot in. I was unable to attend our meeting for the budget. The proposed budget was for $120. During the meeting they raised it to $180 (a year) and passed it. Less then 20 people were there, 12 voted yes, 1 voted no and 5 did not vote. When I brought up the proxy voting about this I was told I had the opportunity to send in a vote. What about the $60 increase I asked I knew nothing of that, I was told they passed a motion during the meeting and that is acceptable. I only sent in a particle payment and explained why. A few months later minutes were emailed out from the committee. They made the comment that "some legal cost have been incurred due to a few members not paying or partially paying their dues." A few days later I received a registed letter stating if I did not pay the balance then the collection process would start. I did pay the balance and tonight we had a meeting. They did lie about "incurring a cost" this was just a scare tatic to get people to pay. The discussion was getting a little hot and the VP passed out a copy of my emails him and I sent to each other (They were professional and addressed my concerns about the proxy voting)and a copy of the registered letter that was mailed to me, he passed these out to everyone. Well need less to say they say I am wrong about the Proxy, I feel the board should mail one out and they feel I should just send on in and if there is a motion at the meeting they can pass it without any proxy voting. Was it right of them to pass out a copy of the registered letter? I am sorry for rambling on my first post. I do appreciate any advice. I am here to learn and understand this HOA stuff. Charlie, First of all, the actions of your President were highly unprofessional and unethical. I would certainly have a private conversation with this guy. Given the fact that this is such a small community -- everyone probably knows all the residents -- I might even demand a public apology. But, of course, that's for you to decide. Secondly, I suggest a thorough reading of your gov. docs -- bylaws and CCRs. There are a number of things to look for: 1) quorum requirements for a membership meeting 2) must the membership vote to approve the budget 3) if so, what is the vote requirement; 4) is it a % of the membership or a % of the membership voting (a big difference) 5) proxy voting: do the docs say the board must mail a proxy to each member 6) mail-in ballots: do the docs say votes may be cast by mail-in ballot Lastly, you stated having mentioned the proxy voting issue to the board on many occasions. Each time you were told to just mail in your ballot. Mail-in ballots and proxy voting are two different things. A proxy allows you to name another individual to cast a vote for you. A mail-in ballot means you casting your vote and mailing the ballot, usually to the board secretary. One has nothing to do with the other. My question is this: why haven't you bothered to mail in a ballot if you were not able to attend the meeting? Regarding the $60 assessment increase you say you knew nothing about: Regardless of whether or not you knew the assessment was increased, you are obligated to pay the amount stated on the invoice. The reason you knew nothing about the increase is because you did not attend the meeting. Apparently when the budget was reviewed a motion was made to increase the assessment; the members voted and the motion passed. Bottom line: You stated: "I am here to learn and understand this HOA stuff." Well, you've come to the right place. There is alot to be learned by just reading the messages posted here. But, the best way to start your "learning" process is to thoroughly read all your governing docs. It may require a 2nd, 3d or even 4th reading to digest it all. In fact, about every time I read through mine I find something new and I've lived here for 5 yrs! If there are state laws governing HOAs you will want to research them also. The key to knowing if the board is doing everything legally is to know your docs and state law inside out. Making false accusations will only result in you being labeled a trouble maker and get you nowhere fast. I'm not saying you have done this, only that this is what happens to people who don't know (only "think" they do!) the rules and the laws. Good luck and happy reading! :-)

KirkW1
(Texas)

Posts:1145

06/27/2008 6:44 PM
Here are my 2 cents: 1) I will assume for lack of information that your quorum requirements are the typical 20%. Given this, the quorum was amply met as only 10 needed to attend to make 20%. 2) Consider also, that unless you designate it as a limited proxy the holder can vote on any motion from the floor. And thus if held by one of the 10 would have made it 11 yes votes. 3) If it had been held by one of the people abstaining or the person voting no, the motion would still carry. You need a simply majority of the votes present. Thus either as the meeting was held or the addition of a single proxy a motion required 10 affirmative votes to carry. 4) Your vice president is a legal time bomb. He likely created a legally actionable issue when he revealed that you were one of those holding out on paying the full amount. That being said, taking legal action is more likely to make maters worse. So what is the purpose of the extra $60 a year? You do have a right to see the revised budget. You have a right to know where the money goes. The best advice I can give you is to put the issue behind you and get involved somewhere. If nothing else, get to know your neighbors and especially those who attended. Try to find out why they voted for the increase. This is your best bet to influence future actions. Also, try and take a vacation day for your HOA's next election night.

CharlieS
(Tennessee)

Posts:21

06/27/2008 10:45 PM
Thanks to everyone who responded. There is a lot of great advice here. There is nothing in our Covenants that states Proxy votes must be mail out, at the same time we have never been given direction on how to proxy vote. I am going to post a new question but please if there is anything to add please do so. Thanks, Charlie

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