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BjN (Virginia)
Posts: 13
Posted:
Our HOA board argues that the HOA's bylaws take precedent over state law. I am not a lawyer, but I have worked on regulatory and legislative issues for many years and cannot imagine that this would be the case. But, I've been wrong before.

The two specific sections in the bylaws reference: (1) the Board can take any action in the absence of a meeting that they could take at a meeting provided they obtain approval of all the directors; and (2) board meetings shall be held without notice.

The bylaws were adopted in 2003 and have not been changed.

Virginia law is very specific that members must be given notice of meetings and that board members cannot use informal gatherings to circumvent the open meetings section of the law.

Am I off-base on this?
JohnB26 (South Carolina)
Posts: 1,569
Posted:
you are NOT 'off-base'

state law takes precedence

. . . . . . . . . . . . .
CharlesW3 (Florida)
Posts: 5
Posted:
I do not know anything about Virginia law but in Florida the statutes take precedence over documents. Your board must be wrong.
SusanW1 (Michigan)
Posts: 5,202
Posted:
The two specific sections in the bylaws reference:

(1) the Board can take any action in the absence of a meeting that they could take at a meeting provided they obtain approval of all the directors;

#####This is pretty boiler-plate for bylaws. This power can be used for emergencies only i.e. midnight flooding of the community center, the president calls board members to get approval to hire emergency clean-up crew. The decision is ratified at the next meeting. HOWEVER, this kind of decision making should NOT be used other than an for an emergency.#####

and (2) board meetings shall be held without notice.
#### Our board meetings are announced at the beginning of the year i.e. first Tuesday of the month. This applies to REGULAR board meetings only. All members are aware of the monthly time and date. There is no need for individual noticing to each HOA Member after that. This does not apply to special meetings. ####

DavidW5 (North Carolina)
Posts: 565
Posted:
Notice of board meetings must be given per Va 55-510. The bylaws cannot override this.

There is provision in the Va statute for "action in lieu" of meeting. Any such action must be approved unanimously by all directors. Our board often takes such actions between monthly meetings where waiting would lead to added expense (e.g for emergency repairs.
BjN (Virginia)
Posts: 13
Posted:
Thanks. We have a provision for emergency actions, which, of course, makes sense that they could take actions in emergency. Unfortunately, it's status quo for our board.

Nice to have this forum for my reality check.
SusanW1 (Michigan)
Posts: 5,202
Posted:
David - what does "notice" mean? For REGULAR board meetings, is it not enough to announce their time and place, i.e. second thursday of the month at the community center, 7 p.m.?

Newsletters usually will suffice for this kind of "notice.'

The OP did not state whether his question was about REGULAR board meetings or special meetings (which DO have to have written Notice to Members)
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By BjN on 11/04/2011 6:58 AM
Our HOA board argues that the HOA's bylaws take precedent over state law.

Nope. At least, not in general.

The only time bylaws can take precedence over state law is when the state law allows it. In other words, if state law says something like: "Unless otherwise provided in the bylaws the requirement is such and such," or something similar. This is known as a "default" requirement, meaning that if the bylaws are silent on the issue, then the requirement is as stated in state law.

Example: "Unless otherwise provided in the bylaws the quorum for any meeting of the association shall be at least 30% of the members of the association." If the bylaws say nothing about a quorum, then the quorum is 30%. However, if the bylaws stated: "A quorum of at least 20% of the members of the association shall be required to conduct business at any meeting of the association." In this case, the quorum would be 20% as stated in the bylaws instead of the 30% required by state law because the wording of the law allows the bylaws to prevail over the state requirement.

No contract (or organization bylaw provision) can violate any federal, state, or local law. Provisions that are in conflict with a law are unenforceable. Any motion made at an association members or board meeting that is in conflict with the law is out of order and, if passed, is automatically null and void.
BradP (Kansas)
Posts: 2,640
Posted:
as everyone else has said state law takes precedence...if they are that obtuse good luck!
JeffR7 (California)
Posts: 251
Posted:
I'll just repeat what most have stated. State laws will override your local HOA document. In fact somewhere in your document it might say that if any section contradicts with a state law the state law will prevail. This is there to cover situation when a state law changes and you don't amend your docs.

The order laws are usually applied is this:
Federal
State
County
City
Your governing documents

BjN (Virginia)
Posts: 13
Posted:
Thanks, everyone. You've confirmed what I was pretty sure of. As someone mentioned, however, unless more community members speak up (apathy is always an issue in HOAs), little is likely to change. But, a small group of us are certainly pushing for more transparency. It all boils down to a domineering president who gets her way because the other two board members are retired and just don't want to deal with it.
BradP (Kansas)
Posts: 2,640
Posted:
to quote a movie I like.."you have come this far, maybe you are willing to go a little further." Sounds to me like you have passion and care, why not recruit one other person and run for the other two board spots at the next election? Then you will have an opportunity to make a difference. Unfortunately as long as everyone bows to the current president she won't change, but why not make her seat a little uncomfortable.
TimB4 (Tennessee)
Posts: 21,047
Posted:
BJN,

Some State laws defer to the Bylaws. Some do not.

For the sections you are talking about:

Actions without a meeting is covered in VA Nonstock Corporation Act § 13.1-841 and VA § 13.1-865 addresses actions without a meeting.
This section does state that any action that could be taken in a meeting may be taken without a meeting and without notice.

As for notice of meetings:

VA Nonstock Corporation Act § 13.1-866
defers to the Bylaws for notice requirements. This is probably where your Board is getting that understanding. However, Virginia Property Owners Act, § 55-510.1 specifies that notice of meetings shall be published to the membership. Since there appears to be a discrepancy between the two State Statutes, you need to determine which law is applicable. For that we look at the applicability sections of the law:

VA § 55-508: The VPOAA applies to your Association unless it's a condominium, a timeshare or membership campgrounds. The Non-stock Corporation Act would apply if your Associations was incorporated within the State of VA as a non-stock corporation.

Expecting that your Association is incorporated under these acts, it appears that there is a conflict within the State Statutes. One law, VA non-stock Corporation Act says you don't need notice and one law, the VPOAA, says you do have to provide notice. However, if you read the documents closely,

The VPOAA uses the word "shall" which makes it a requirement. The Corp. Act defers to the governing documents and uses the word "may" which makes it an option. Therefore, I don't think that their is an actual conflict between the two and that notice of meetings are required. However, I can understand how someone could interpret it as being a conflict.

The Fairfax County Community Association Manual under chapter 2 specifies that the laws were changed in 2000 to require notice of Board meetings.
You may want to provide these links to your Board.

BjN, Since your Association is choosing to interpret this law differently, you might request that the Board consults an attorney for advice. You also might want to pose the question to the CIC board. However, if your board insists to going by their interpretation, you will probably have to seek legal action for a court ordered interpretation.

Tim

MikeD13 (Virginia)
Posts: 9
Posted:
Our counsel STRONGLY discourages taking actions outside of a regularly scheduled or properly noticed meeting. Many of the rules in VA code are specific to ensuring transparency. Even emergency actions can be noticed to the community so that everyone is aware and the board avoids a lawsuit.

If notice or an actual meeting is just not possible given the circumstances, document everything and get every board vote in writing (email can be a useful tool here).

I know this is an older post, but it caught my eye, and hope this is useful to folks.
AlexK (Colorado)
Posts: 2
Posted:
Well said. This law is not only applicable to Florida but almost in every state of USA. rent homes Arlington Virginia
AlexK (Colorado)
Posts: 2
Posted:
Quote:
Posted By CharlesW3 on 11/04/2011 7:11 AM
I do not know anything about Virginia law but in Florida the statutes take precedence over documents. Your board must be wrong.

Well said. This law is not only applicable to Florida but almost in every state of USA.Arlington Virginia rent homes
GlenL (Ohio)
Posts: 5,491
Posted:
Well while Mike acknowledges that it is an old post he just wanted to update, Alex took it as an opportunity to SPAM. I have no knowledge or stake in what Alex is hawking but since he took the time to SPAM us IMO whatever he is pedaling should be avoided at all costs. If they can't follow simple posting rules, how could you trust them to deal honorably with you?????? And why is someone supposedly in Colorado hawking a Virginia company?

Studies show that 5 out of 4 people have problems with fractions
PaulT6 (California)
Posts: 409
Posted:
Old post, but interesting. In our case we can have more restrictive rules than the Town as long as the rule doesn't effect the Town's streets or right of ways. Our parking rules for private properties are more restrictive than the Town's rules. However for land use issues we have to at least meet the Town's codes. And for operational issues, to the best of my knowledge, we obey State laws.

Paul T
AndrewS5 (Oregon)
Posts: 3
Posted:
State law always takes precedent. The only thing that trumps State law is and applicable Federal statutes and the Constitution.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Quote:
Posted By AndrewS5 on 11/28/2012 6:58 PM
State law always takes precedent. The only thing that trumps State law is and applicable Federal statutes and the Constitution.

Andrew,

In you are generally correct. However, it actually depends on the language used in the law. Often, laws (especially corporate laws) are written which defer to the governing documents but provide a procedure if those documents are silent.

The following phrases used in laws are examples of the law deferring control to the governing documents:

Unless the articles of incorporation or bylaws provide otherwise . . .

Except to the extent that the articles of incorporation or bylaws require . . .

BrianB (California)
Posts: 2,820
Posted:
I know this is a necromatic post, but...
when we trumpet the phrase "X law takes precedence", we are doing our folks here a slight misservice. It's like saying "A stitch in time", and leaving it at that.

We should say "X law takes precedence when in conflict with Y"... because that is the real, legal aspect of it.

State law may say "No loud noises between 6 am and 8 am". Your by-laws state "No loud noises between 4 am and 7 am".

Which law trumps? In this case, a court would have to decide first "what was the intent of the state law", and then adjudicate the result. It is very likely, should you be making loud noises at 5:30, the court would hold that the by-law applied, and took precedence over the state law, even though, by state law, you 'could' make noise then. If you made noise at 7:30, however, the same court would convict you under the state law, saying that IT had precedence from 7:01 to 8.

If there is no conflict, then all levels of law can apply. When there is, however, then the higher law takes precedence.

and this should up my total to six now, I think...
TimB4 (Tennessee)
Posts: 21,047
Posted:
Quote:
Posted By BrianB on 11/28/2012 7:42 PM

and this should up my total to six now, I think...

LOL
AnnS7 (California)
Posts: 4
Posted:
Interesting discussion. My HOA has just approved amendments to the CCRs. Embedded in these amendments is language that clearly contravenes Davis-Stirling and the California Corporations Code. Due to the serverability clause in our governing documents, this language does not invalidate the entire amendment, but leaves parts unenforceable. I would like to see this cleaned up. My aim would be to amend the amendments only to strike out the illegal language. Does anyone know of particular case law on the subject?
CarolR11 (Colorado)
Posts: 2,563
Posted:
Interesting question, Ann. I don't know the answer. But davis-stirling.com includes a lot of case law and may be able to help.
JeanI (Louisiana)
Posts: 112
Posted:
Any person who runs for a homeowner association board should educate themselves as to the appropriate state and federal laws which impact the associaton and the internal legal documents,ie. covenants, articles and bylaws of the association. Otherwise you are setting yourself up for lawsuits. JMI

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