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Subject: Should a President be required to reside in the HOA?
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Author Messages
HelenS
(California)

Posts:7


06/17/2006 7:31 PM  
We currently have a President of our Board who has sold his property and moved our of our complex. It is my understanding that, since we have no CC&Rs or By Laws to the contrary, he is entitled to remain in office for the duration of his term.

It is also conceivable that he is grandfathered to be entitled to run again for the Board of Directors if he so chooses.

My question is: Is there a legal precedent or a discrimination issue that would prevent our Board from adding to our Rules and Regulations that in the future the President of our Homeowners Association OWN PROPERTY AND RESIDE IN THE ASSN.? ALSO, COULD WE MAKE IT PART OF OUR BY LAWS THAT A DIRECTOR WHO NO LONGER OWNS PROPERTY IN OUR COMMUNITY MUST RESIGN?

Let me know if you have ever experienced anything like this.

HelenS
RogerB
(Colorado)

Posts:5067


06/17/2006 9:17 PM  
Yes Helen you can amend your By-laws as stated. I think all By-laws should state that Board members must be a property owner AND reside on the property.
Jonathan
(New Jersey)

Posts:14


06/18/2006 5:49 AM  
Roger is correct, but you may want to take another look at your By-Laws. It is pretty standard for them to say that only members of the Association are allowed to hold office and most of the time defines members as either owners or (in some cases) individuals who live in the community (like renters). Requiring board members to reside in the community is sticky, because most of the time owners are entitled to be involved in the operation of the Association even if they don't reside in the community.
BradP
(Kansas)

Posts:2640


06/18/2006 11:15 AM  
Helen:

Actually our board of directors are not required to be property owners. We have never had anyone serve that isn't a member, and anyone who has moved while on the board has resigned. But, in theory it could happen here and they would be able to serve out their term and could get re-elected.

I think if you are uncomfortable with the situation there are steps to remove a board member. I think the first step would be to ask him to step down since he isn't a resident.

Brad
GeraldT1


Posts:0


06/18/2006 4:11 PM  
Helen,

I would be shocked if your by-laws did not state something to the effect that only owners of record are members and that only members are entitled to vote. Think of the alternative. Would you want someone not living in your association to decide issues, and vote? This concept defies logic, and can be down right dangerous.

I am sure your by-laws state something to the effect that the Board members are elected by the owners, and their officership (President, Vice President, Treasurer, Secretary, etc.) is decided upon by the Board members. Unless a vacancy occurs on the Board and the fullfilment of the spot may state that Board members pick.

If you are looking for legal precedent than you must contact an attorney. One amendment or Article will not do it. The nature of By-Laws is that they all work together. When referring to them, using them for governing, or more importantly amending or adding by-laws, you must consider the impact of one by-law upon the other. I strongly recommend you or your association consult an attorney However, if it's not in your docs already, you need Articles in your By-Laws similar to what I've outlined for you below. Keep in mind, these need to tailored and not followed to the letter but will give you a good idea of wording.

Article #
Membership and Voting Rights
Section # Members. Every person, firm, association, corporation or other legal entity including the Developer who is a record owner or co-Owner of the fee title to any Unit shall be a Member of the Association.

Section # Association Members. Every person who is entitle to possession and occupancy of a Unit as a tentant or lessee of an owner puruant to an Article in your Master deed may be an Association Member of the Association, but shall not be entitled to any vote with repsect to Association matters and therefore not entitled to be nominated for the Board of Trustees.

Article #
Membership in Good Standing
Section # Member in Good Standing. A Member shall be deemed to be in good standing and entitled to vote in person or by proxy at any meeting of the Association or in any ballot bymail, if he has fully paid all installments due for assessments made or levied against him or her or his and her Unit by the Board as hereinafter provided, together with all interest, costs, attorney's fees, penalties and other expenses if any, properly chargeable to him or her and to his or her Unit.

Article #
Board of Trustees
Section # Qualifications. the following criteria shall be aqualification fo nomination, appoiintment or election to a Trusteeship:
Membership in Good Standing: Membership in Good Standing must be a qualification of any nominee or appointee to a Trusteeship and for continued service on the Board.
Then list all your other qualifications ie. Representation: Partnerships, corporations, fiduciaries or co-owners holding memberships in good standing may designate on individual per Unit owned to be eligible for nomination, appointment, or election as Trustees in accordance with qualifications:
Then list all your other qualifications to include Co-owners holding a membership in good standing may designate any one of them but only one of them to be eligible for nomination, appointment, or election as a Trustee; however, in the case of any disagreement, the express consent of a majority in interest of such Co-owners shall be required.

Best of Luck,
GeraldT1
BrianB
(California)

Posts:2820


06/18/2006 5:44 PM  
i too am surprised... we have some of the worst CC&R and Bylaws ever written, and ours still manage to state that only owners can serve... in fact, only owners in good standing can serve. So if an board member is ever late with his fees... it's an automatic resignation from the board. By-laws state it unequivacolly.

I can't imagine allowing non owners to run your association.



SwanB
(Washington)

Posts:199


06/19/2006 7:21 AM  
What is your governing documents definition of 'reside'?
Of the 444 member owned lots in our HOA, we only have 56 members who actually 'reside' in our HOA on a full-time basis. Only two of our nine member Board are full-time residents, with one other member of the Board living full-time in another country and the rest living full-time in residences outside our HOA.
However our governing document does not define membership within our HOA as requiring our members to 'reside' in our HOA.
BradP
(Kansas)

Posts:2640


06/19/2006 7:29 AM  
Here is what ours state:

"The board shall consist of at least one (1) person but not more than seven (7) persons, who need not be Members of the Association, the exact number to be fixed and determined by the Board, with full authority in the Board to vary said number at any time and from time to time."

Membership is defined as follows:

"The owner of a lot shall automatically be the holder of a membership in the Association..."

RogerB
(Colorado)

Posts:5067


06/19/2006 8:09 AM  
Brian, there is a good reason for non owners to be Board members. The Developer writes the declaration and appoints people they know to be the members of the Board. Most to all of these are not owners. When the association is turned over to the homeowners they can amend the Declaration, but most HOAs don't.
DarrellP
(Oklahoma)

Posts:8


07/12/2006 2:45 PM  
our association had the exact same think happen to us
we changed our bylaws at the anually meeting to state all board members must be owners and in good standing.
(we actually had some board members that had not paid there dues)
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