two "annual" meeting in one year

Started by EileenH • 11 replies • 1336 views

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EileenH (Delaware)
Posts: 7

Posted:

We are a new HOA actually going into the transition phase. Most of the owners do not live in the community (beach area) and use homes on week-ends and summer or rent out. A small number that live here full time started having meeting with developer and builders in August (and now understand this is extraordinary. There has been a push for this Transition Board so our group (that apparently thought we had leverage) HA! agreed to a special meeting to explain the transition process and election a Transition Board.

All this being said we are now aware the property management company sent out the announcement for the meeting calling it the Annual Meeting. There have been two previous Annual Meeting both in late March/early April - the 2nd quarter of the year (stated in the regulations handed to owners at settlement)

This meeting is set for 8 months since the last Annual Meeting. Can a developer/property management company legally hold what would be two Annual Meetings in one year time frame.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Eileen,
Not making light but if the developer wants to hold an annual meeting every day and the documents don't forbid it, you all, when you take over can do this also. I wouldn't call them annual meetings, just call them 1,2,3.etc.

If I understand right the meeting sounds like a great idea if your group is allowed to explain what it is all about to the rest of owners. You should stress you are an independent body appointed by the developer. Your interest are the owners interest and list what difficulties you have had with the developer.

It is certainly a step in the right direction and as long as you are not calling the meeting let the developer call it whatever he wants, just don't sign anything until all the owners reach a concensus about the takeover.
If you all don't have a knowledgable member, get together and HIRE an INDEPENDENT lawyer to attend the official transition, get a lawyer that specialices in HOA's.

Right now, you are on the right track, again, don't sign anything, but be open to compromises.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Eileen,
Look at your Articles of Incorporation. That document should state that the Annual Meeting must take place at such and such time and place. It will also probably state that the BOD elections must be held at that time. The annual meeting might be the only required meeting for you association. Any other meetings would be considered a "Special Meeting"

Transition time is a very scarey and confusing time. Make sure that you take your time and have an engineering study done to insure that the Developer is handing over all of the community to your BOD, in great shape. Things like infrstructure, (roads, sewers, lighting )and other areas that you will be responsible to maintain and replace as time goes on. Make sure that if he has bonds with the county, that you have signed off on them but ONLY when everything is in good working order. There is alot more to a "turnover" than we think so be on top of this.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I've never seen paramenters of the Annual Meeting in the Articles - but for sure that info should be in the bylaws.

Insist on seeing the agenda for these meetings they are calling "annual". Usually, the Board is elected at annual meetings.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

To all,
You can't have two annual meetings in any 12 month period. One the Annual meeting is adjourned then it becomes the Annual meeting.

Just like you can not have the first annual reunion. When it is over then it becomes the first annual.

I can't see attaching any purpose worrying about what the transition is called by the developer as long as he don't call it anything that signifies it is a meeting of the owners. The developer can not call a meeting of the association because it is not an association until it is turned over. Prior to that it is a "tool" (for want of a better word).
This is probably all semantics, but the developer will at some point leave the association as formed and a new association appears under some of the same regulations, plus the important fact that the association has only OWNERS as members.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Also - why is the property management company calling a meeting?

Do you have a Board and bylaws?

EileenH (Delaware)
Posts: 7

Posted:

There was a meeting of a core group of homeowners that live here full time with the developer, builder and property management company. It is expected the development will be complete early spring and the developer and builder want to put a Transition Board in place now. The core group agreed to a "special" meeting to explain the transition and vote on Transition Board members. It was never referred to at the time at our Annual Meeting.

It is not the property management calling the meeting, but developer and builder. BUT it appears the property mangement is making this the Annual Meeting (maybe by the direction of developer/builder). That would mean we have had two Annual Meetings in an eight month time frame. Can't image this is legal.

Not new to living in community with HOA, but never been there at the conception and what a headache.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Until the builder/developer officially turns over everything to the owners, there is no "official" guideline for meetings, procedures, etx. for your group. You don't exist, yet!!

These are transition times, and he can call these "meetings", sessions, gatherings, work discussions, or anything else he wants to.

In the meantime, get your prospective, interested "Board" people together and hold your own discussion sessions, so the new Board is ready to take over when the day comes.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Susan,
I don't know if you have ever gone thru a "turnover" from a Developer but he is usually the one who will appoint the first BOD. After that, your association will start electing officers per your document requirements but to start to get your own Board together is not the way it is done. A group of owners can ask the Developer if he will consider the Board that they have put together but you still are at his mercy.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Here's an article to read that outlines a typical procedure:
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/10/AR2006021000867.html

EileenH (Delaware)
Posts: 7

Posted:

Thanks for all the answers. With some pressure we got this changed to a "Special" meeting which it was all along.
We voted in a Transition Committee and onto even bigger and better headaches!

At the end of the meeting the property management company handed out the 2008 budget as folks walked out the door to find out later there was a 22% in the HOA dues - YIKES

Being part of the Transition Committee I am working with the others to look into this.

We also found out the last 6 houses to settle are paying a higher dues than all the older owners for 2007. I am so sure that is legal and where that decision came from. Should not the dues be the same for all owners annually due to budgets?

Thanks,
Eileen

EileenH (Delaware)
Posts: 7

Posted:

Our developer did not want to appoint members for the Transition Board. He wanted a vote to put them in place, but due to lack of qorum he ultimately had to take part and use his votes.

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