Posted:
Janet,
First, the President is wrong. The mandatory payments of all assessments are spelled out in the covenants which go with the land. The covenants rule. In other words, you are still HOA governed by the covenants and the Articles of Incorporation. The By-laws only provide for a procedure how the assessments are collected. Clearly, the Board adopted ‘informal ’ procedures for collecting assessments, etc. but again, if there are copies of ‘minutes’ of all meetings these become official documents of the Association. Do these minutes exist?
Second, the President is simply stealing money from the Corporation. If he does not return the money, you may have to sue him. Any judge would rule in your favor.
‘So here is my question...in absence of the bylaws can we utilize the state statutes in Chapter 720 as guidelines for the meeting (days of notice, what constitutes a quorum, etc)? ‘
Yes, you should follow those procedures to call the meeting and vote. You need 30% (in person or by proxy) to constitute a quorum. However, I would try to have a copy of the By-laws prepared for the next members’ meeting if at all possible. There are plenty of boilerplates you can find on the web. In your instance, the By-laws could be a very simple document, tailored to your needs and as long as it is not in conflict with Chapter 617 and 720 and your Articles of Incorporation you will be ok. This forum can also look at it and give you independent opinions, no doubt.
‘Next question is if a property is in foreclosure do they get to vote as a member of the association? By the way, they have never paid their dues either. ‘
Well, yes and no. The Board can vote to suspend voting rights of all delinquent owners (see Chapter 720).
'We only have 7 properties in this association. Two are in foreclosure, one of which is hiding from authorities and cannot be found, one is the prior president who is in arrears and the remaining four live out of state (undeveloped properties). We will have a quorum if the remainder call in. In addition we will have their proxy vote. '
So, you could only end up with 4 voting members? If true, the quorum would be 2 members and a majority of the membership would be 3 members. Otherwise, if you allow all 7 members to vote, the quorum would be 3 members and the majority of the membership would be 4 members. Am not sure, what you mean by ‘if the remainder call in’.
‘This really has become a nightmare for us. Whatever bit of practical advice you can offer would be helpful. ‘
I bet it is a nightmare. Do you have a recorded or certified copy of the Articles of Incorporation? If not, please contact the Secretary of state (link below) and get a copy. It is also possible that this document includes most of the procedures otherwise spelled out in the By-laws or the By-laws are also recorded in Tallahassee. It does sometimes happen.
http://sunbiz.org/search.html