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Subject: who may be a board member
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JR8
(Oregon)

Posts:25


02/06/2018 4:57 PM  
We've looked at Oregon HOA law for the answer; governing documents do not address it at all.

Recently someone who is not an owner of record (but related to the owner of record) was made a board member. Does anyone if this is legal in Oregon? It feels like it opens the door to some strange stuff..
RichardP13
(California)

Posts:2538


02/06/2018 5:01 PM  
What do you Bylaws say?
TimB4
(Virginia)

Posts:15724


02/06/2018 6:23 PM  
Qualifiers on who may or may not serve as a board member are typically contained within your governing documents.
Usually the Bylaws.

If the documents are silent, then anyone may serve (be they a member or not).
DouglasK1
(Florida)

Posts:1109


02/07/2018 5:09 AM  
Posted By RichardP13 on 02/06/2018 5:01 PM
What do you Bylaws say?


Exactly, our bylaws specifically state that directors don't have to be members.
BenA2
(Texas)

Posts:401


02/07/2018 8:48 AM  
Interesting topic. I don't see a problem with non-owners being on the board since the membership elects them but I wonder who would sit on an HOA board when they are not a member. I could see residents who are either renting or living with an owner, e.g. adult children and parents of owners.
JR8
(Oregon)

Posts:25


02/07/2018 9:54 AM  
this is someone who filled a temporary position from a board member who resigned. Given a somewhat apathetic owner participation.. I'm guessing most owners don't realize this has happened. I guess it will come up at the annual meeting, when she'll need to be voted in by membership, but I doubt this particular board will even mention that the candidate is not an owner of record.

The bylaws are old - written in early 70s when condos were up and coming; very boiler plate generic. not adequately updated which is another issue. I don't like the idea that someone who has no financial stake in the complex can vote on policy.
CjC
(Maryland)

Posts:105


02/07/2018 10:27 AM  
Many documents allow a non-residents as the developer sits the original board and those are not residents.
KerryL1
(California)

Posts:5160


02/07/2018 11:28 AM  
Yes, I, too, wouldn't like a non-owner on our HA board, but if your bylaws are silent, and they often are since the developer needs a board when still in control and often they are the developer's employees, then non-owners may serve.

If the non-owner runs to be a director, campaign against her on those grounds.

Meantime, encourage your board to update your bylaws.
TimB4
(Virginia)

Posts:15724


02/07/2018 2:51 PM  
Posted By BenA2 on 02/07/2018 8:48 AM

I wonder who would sit on an HOA board when they are not a member.




Members are typically defined as those being listed on the deed.


There may be a second marriage and to keep the kids happy, the new spouse is not on the deed. However, the new spouse wants to be involved in the community they live.

There may be a long term renter who wants to make their community better.

There may be adult children living in the home who desire to serve.

There are home owners living with significant others who are not on the deed, hence not a member, who want to serve.

Initially, the developer appoints those who are not member to serve on the Board (which is why most initial bylaws do not have a members only qualifier)



SS11
(Arizona)

Posts:7


02/14/2018 4:25 PM  
Reading these replies made me curious. Just wonder if I could qualify to be a member of on HOA board?
I am removing my name from my deed and putting it in my sons name but will continue to live here.
I will still be liable for the mortgage, taxes, insurance, and HOA fees, etc. So the change is in the name on the deed only.
MelissaP1
(Alabama)

Posts:7294


02/14/2018 4:55 PM  
You have to be an owner. Name on the deed to be a member. Plus you have to be elected by the membership. So if stay the owner and get voted in, welcome to the board!

Former HOA President
RichardP13
(California)

Posts:2538


02/14/2018 5:20 PM  
Posted By SS11 on 02/14/2018 4:25 PM
Reading these replies made me curious. Just wonder if I could qualify to be a member of on HOA board?
I am removing my name from my deed and putting it in my sons name but will continue to live here.
I will still be liable for the mortgage, taxes, insurance, and HOA fees, etc. So the change is in the name on the deed only.



How would an HOA know a name was quitclaimed off the deed if you don't say anything?
DouglasK1
(Florida)

Posts:1109


02/15/2018 7:11 PM  
Posted By SS11 on 02/14/2018 4:25 PM
Reading these replies made me curious. Just wonder if I could qualify to be a member of on HOA board?
I am removing my name from my deed and putting it in my sons name but will continue to live here.
I will still be liable for the mortgage, taxes, insurance, and HOA fees, etc. So the change is in the name on the deed only.


Your governing docs should say if board members need to be owners (members). Some require it, some don't. If they do require membership, then if you quit claim your ownership you can't be a director. I suppose if the quit claim is not recorded you might be able to get away with it.

From a broader point of view, make sure you understand the pitfalls before quit claiming. There are other ways avoid probate while providing yourself greater protection (living trusts, etc.). Receiving the home while you are still alive vs. inheriting it will also affect your son's cost basis for capital gains taxes when he eventually sells it.
GenoS
(Florida)

Posts:2087


02/16/2018 2:52 AM  
Posted By TimB4 on 02/07/2018 2:51 PM
There may be a second marriage and to keep the kids happy, the new spouse is not on the deed. However, the new spouse wants to be involved in the community they live.

There may be a long term renter who wants to make their community better.

There may be adult children living in the home who desire to serve.

There are home owners living with significant others who are not on the deed, hence not a member, who want to serve.

We considered a change in our bylaws to allow non-members to serve as directors for exactly some of these reasons. That's a good list, Tim. We perennially have a shortage of people willing to serve on the board and figured this would be a way to allow some of the people, just like those you mentioned, to do so. Some are long-time residents who have demonstrated a committment to the community over a long period of time and would probably be outstanding board members.

The change was seriously considered by the board and many homeowners were disposed to vote in favor of it. At the end of the day (well, 6 months of formal and informal discussion) two arguments prevailed: (1) The homeowners of record (on the deed) should really hold all the cards, and (2) the law of Unintended Consequences would surely rear its ugly head sooner or later.

We have a really hard time getting board volunteers year after year. It's not out of the question - in fact it would have been more likely than not - that within 5 years we could have ended up with a board where the majority of directors were not homeowners.

So not to say it will never happen, but last year it did not. No one was really upset when the board finally squashed the idea, so that says something as well.
EllieD
(Vermont)

Posts:433


02/16/2018 1:36 PM  
Might this be a possibility?

The affairs of the Association shall be governed by the Executive Board composed of not fewer than three but not more than five persons, as set forth in the Declaration,

all of whom shall be an Owner, except for one (1) – or alternately for two (2) - or for a seven member Board, except for two (2) - or alternately three (3) - who do not need to be an Owner,

and none of whom shall be related by marriage or civil union, blood or adoption or by partnership.
NigelB
(Texas)

Posts:222


02/17/2018 3:16 PM  
Most communities ByLaws are written by the developer who created the HOA. As the developer generally controls the HOA until it is turned over to the members, the ByLaws are written to allow individuals who do not own property in the development to serve as directors. Once the HOA is turned over to member control, the board should seriously consider amending the ByLaws to only allow an individual who is listed on the deed to property in the community to be eligible to be a director.

This would preclude a non property owner from serving on a board which makes decisions that affect all of the property owners financially such as increasing assessments or spending the HOA's money. We amended our ByLaws exactly for that reason because if you don't it is possible that control of the financial affairs of the HOA would be in the hands of someone who neither owns property in the HOA or pays any assessments to the HOA.
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