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Subject: Who qualifies as an eligable voter????????
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KevinJ1
(Florida)

Posts:51


11/21/2008 7:11 AM  
We had our annual meeting last night and we only had 42 votes.they said we need 51 for an election.we have 252 units alot which are in foreclosure and bank owned..we were told there was not enough votes to have an election,so we are stuck with the same board as last year..so i read florida statute 718-112 (3) which states 20%of eligable voters..so my question is who exactly is an eligable voter..do banks and foreclosures count..do they have to be sent a ballot...any help would be appreciated..thanks Kevin
SusanW1
(Michigan)

Posts:5202


11/21/2008 1:56 PM  
You needed to ask the presiding officer what the quorum was and how it was determined when they declared they could not hold the election.

Looks like it was based on 250 voters.

Your bylaws may read that the board retain their position UNTIL they are replaced. Since they were not replaced, then they stay in office.
MaryA1


Posts:0


11/21/2008 2:09 PM  
Posted By KevinJ1 on 11/21/2008 7:11 AM
We had our annual meeting last night and we only had 42 votes.they said we need 51 for an election.we have 252 units alot which are in foreclosure and bank owned..we were told there was not enough votes to have an election,so we are stuck with the same board as last year..so i read florida statute 718-112 (3) which states 20%of eligable voters..so my question is who exactly is an eligable voter..do banks and foreclosures count..do they have to be sent a ballot...any help would be appreciated..thanks Kevin




Kevin,

Eligible voters could mean members of the assn who are not in violation of the CCRs or delinquent in assessments. It would be stated somewhere in your gov. docs that these members lose their voting rights. If this is not stated in your gov docs, then eligible voters would mean members of the assn. It appears the board used the 20% FL statute requirement to determine the quorum and based it on 252 units. Even homes that are in foreclosure are owned by someone, so they would still count as a unit and be eligible for one vote.

If your bylaws allow proxy voting, perhaps the board should consider this for future annual elections. Also, some bylaws specify the meeting may be adjourned until a quorum can be reached. Were there many candidates on the slate?
SusanW1
(Michigan)

Posts:5202


11/21/2008 2:38 PM  
Why would a quorum be based on the number of units?

With the economy the way it is, there could be up to 10% of the units in foreclosure, abandoned, etc. (Maybe even more!!)

Is the HOA going to be paralyzed and unable to act if it is not able to reach a quorum based on unit size and not resident in good standing?
KevinJ1
(Florida)

Posts:51


11/21/2008 3:41 PM  
Susan,thanks for taking the time to post a reply ...I ask our cam today and she said that the banks become the owner,and there fore they get the vote..but i did read in our documents under by-laws it states.ROSTER OF UNIT OWNERS..each unit owner shall file with the association a copy of the deed or other documents showing his ownership..the association shall maintain such information..only unit owners of record on the date of notice of any meeting requiring their vote is given shall be entitled to notice of and to vote at such meeting. so i dont understand how they could come up with 51 being the 20% of the votes in todays economy..thanks Kevin
SusanW1
(Michigan)

Posts:5202


11/21/2008 4:00 PM  
Kevin - please note the difference in the quorum needed for the meeting to take place

and

the required number of votes to pass a motion or for elections.

Maybe your quorum could be obtained using proxies. Any unit owner (even if it's a bank) can sign a proxy so that the meeting CAN conduct the business of the day.


Now for the vote - check your vote thresholds for certain types of voting (elections, amendments, CCR amendments, etc) but it usually involves either a majority or 2/3 of the people IN ATTENDANCE AND VOTING.

Someone may even choose to abstain from voting.
RobertR1
(South Carolina)

Posts:5164


11/21/2008 4:26 PM  
I think we are going to see more and more of this type postings.

Might be a good idea for each association to check at least six months prior to meeting and insure that somehow a members meeting will take place and an election will be held. It may have to be tweaked to get the job done by starting with the premise that anyone holding the deed to a property has one vote, then maybe proxies or stipulations or resolutions by the board will smooth the way for a proper meeting. Again one size don't fit all.
EllenS1
(Florida)

Posts:1148


11/21/2008 5:10 PM  
Since many banks or loan companies do NOT pay assessments I would say they are not able to vote.
EllenS1
(Florida)

Posts:1148


11/21/2008 5:14 PM  
If the banks own the property and are behind in their assessments (providing your docs allow it) they should not be allowed a vote.
KevinJ1
(Florida)

Posts:51


11/21/2008 5:14 PM  
hey,i wish that were true Ellen..because we have over 60 units owned by banks ..so we would only need about 40 votes and we had 43..thanks kevin
RobertR1
(South Carolina)

Posts:5164


11/21/2008 5:26 PM  
I don't know how wrong this is, but, my recall of the savings and loan mess in the late 80's is that if the banks/mortgage company, etc (those holding deeds) do not pay assessments, the proper procedure in SC was to lien the property and collect when sold. I still think they retained the vote, but not sure.
MicheleD
(Kentucky)

Posts:4491


11/21/2008 5:38 PM  
They would not retain the right to vote in our HOA, AND the total of all ELIGIBLE votes is what determines how many votes are required.

We have 300 lots.

Of those lots, only 265 are eligible to vote, so we base the percentage required off of 265 rather than 300.

KirkW1
(Texas)

Posts:1665


11/23/2008 4:43 PM  
You have to read the documents. Chances are they state 20% of the total number of units, or possibly 20% of the units with a certificate of occupancy. If this is what the documents state, then you would need 51 votes for 252 units. This would not decrease because of foreclosures or other actions.

Now if the documents specify 20% of eligible votes, you would subtract the units ineligible before calculating the 20%.

It should be noted though that foreclosure in itself has no bearing on the status of being eligible for voting. If the dues have been paid, then the unit is eligible. But I can not imagine that more then 80% of the units are in foreclosure.

You should also read what the documents state regarding a lack of quorum. Many allow for a second meeting to be called with reduced quorum (and often times without additional notice).
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