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SamE3 (Alabama)
Posts: 5
Posted:
…..If it is, I would like to use it for my defense. A little background information: Nine years ago, my wife and I decided to build a home in an almost empty subdivision. We bought two lots to build on and rented the only house in the subdivision while ours was being built across the street. Upon completion of our new home, we moved in and the contractor who owned the subdivision sold the house we had been renting to a nice young couple. Several years went by and we were the only two homes there. About four years ago the subdivision was sold to a large developer who immediately moved in and started building houses. The homes were built on single lots. The HOA was being ran by a management company. Now fast forward to present: Some of the neighbors thought it would be cheaper to get rid of the management company and start running things themselves. Board members were elected and the simplified, long existent HOA By-Laws started getting amendments and changes. Some changes were warranted while others were petty and left me shaking my head. The main one in question, "Limited HOA members who own multiple lots to only (1) vote for HOA matters". My HOA dues, however would still be double than anyone elses, as I am the only one that has multiple lots (2). Each lot is charged dues assessment fees annually. It doesn't look ethical nor reasonable to take away a vote from a lot while still charging assessment fees to that lot. The HOA dues are not collected until after the first of the year (2020). There has been no discussion between me and the board concerning this. I just felt it best if I had some stated Law or printed common sense guidelines I could present in my defense. Any help would be appreciated.
AugustinD
Posts: 5,144
Posted:
You are correct in suggesting that the general rule is that voting rights are directly proportional to the assessments being paid. When the assessment is the same for all lots, then one vote per lot is the general rule. Furthermore, I have never seen HOA governing documents that assert that a member who owns multiple lots gets only one vote. I have seen HOA governing documents that assign a different assessment amount and different vote percentage for lots that do not yet have houses built on them. But the latter is not the case here. You are paying the exact same amount for your lot with a house on it and your lot without a house on it.

What I would like to see is

-- the exact wording from your HOA's Declaration and Bylaws on this.

-- the exact wording from your HOA's Declaration and Bylaws concerning amending these documents.

Alabama statute 35-20 is Alabama's HOA statute. See http://alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/Coatoc.htm

If your HOA is a corporation (and it probably is), I am thinking there may be some corporate law pertaining to removing shareholders' rights (like flat-out denying a shareholder, who is in all other respects equal to other shareholders, her or his voting rights at annual meetings et cetera).

I am betting there are arguments from case law that says the HOA may not amend the governing documents to take away significant property rights. It's a violation of the 14th amendment's clause about not depriving a person of property without due process. The courts equate taking away a significant property right to taking away property.

Most likely you will need to consult an attorney. If you provide more information, I may be able to draft a short demand letter, that you would send to the HOA, that starts you on your path and may even get you what you want without hiring an attorney.

AugustinD
Posts: 5,144
Posted:
Here's a draft letter of demand (lite version). Send it certified mail to either the HOA manager or each of the directors.

-------------------------
Dear Board of Directors,

In the year 200_ the HOA amended its Declaration to allow owners of multiple lots only one vote. This is despite the fact that multiple lot owners pay an assessment equal to the number of lots owned multiplied by the assessment for one lot. Alabama statutes appear to me to speak to the unlawfulness of this amendment as follows:

Section 35-20-7
"Election of a board of directors and officers; modification of declaration.
A declaration or the governing documents of a homeowners' association may provide for a period in which the declarant will maintain control of the election of directors and officers of the association and a right to reasonably alter, amend, or modify the declaration."

Section 35-20-8
"Priority of declaration.
If a conflict exists between the declaration and the governing documents of a homeowners' association, the declaration prevails, except to the extent that the declaration is inconsistent with this chapter."

Pursuant to the last phrase of Section 35-20-7, I believe it is not reasonable to amend the declaration so that, despite my paying the exact same assessment on each of two lots, I am limited to a total of only one vote. In addition, I understand that the courts have ruled that HOAs are quasi-governmental and do have some obligation to abide by the U. S. Constitution and state constitutions. By removing my property rights, I believe the HOA violates first, the U. S. Constitution's 14th amendment rights not to be deprived of property rights (effectively depriving me of property) and second, the Alabama Constitution's Section 6 clause on same.

I respectfully request that the Board please (1) consult the HOA's attorney on this matter; (2) announce that the amendment to our HOA's Declaration, assigning only one vote total to owners of multiple lots, has been found to be legally inequitable and unlawful and therefore, will be disregarded; and (3) assign me two votes at all HOA elections and any other time a vote of the membership is called.

Please let me know your decision on this by November 15.

Thank you,

Sam ______
Owner, Lots ___ and ___
Roy Moore HOA
SamE3 (Alabama)
Posts: 5
Posted:
Thank-You for the quick response! The exact wording from the HOA's Declaration and Bylaws is as follows: A. MEMBERSHIP: BOHOA shall have one (1) class of voting membership. The voting members will be the fee owners of each residential lot within the residential portions of BEVERLYE OAKS Subdivision; however, an owner of multiple lots shall be entitled to only one (1) ownership vote.

BOHOA stands for Beverlye Oaks Home Owners Association. The full By-Laws and Declaration with amendments and changes can be found on line at https://beverlyeoaks.weebly.com You just have to click on one of the tabs to get to everything. - SamE3
NpS (Pennsylvania)
Posts: 4,216
Posted:
Good advice from Augustin.

I've seen situations where someone can't own more than X units. But X was never 2 - more like 3 or more.

One way around it is to form an LLC, transfer title to one unit to that LLC, and -- tada -- there are different owners for the different units. Should be reasonably inexpensive for a lawyer to do.

Sikubali jukumu. Read all posts at your own risk.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Sam

To clarify. You own two lots (one with your house on it) and pay dues on both lots? I say you get one vote per lot thus you get two votes.
KerryL1 (California)
Posts: 14,550
Posted:
Sam, are you saying your declaration and bylaws are the same document, not two separate documents?

All of augustine's points make sense. I like NpS's idea of a having a different "owner" of the 2nd lot.
SamE3 (Alabama)
Posts: 5
Posted:
The Declarations and By-Laws are separate documents. Yes, I like Augustine's and NpS's ideas.
SamE3 (Alabama)
Posts: 5
Posted:
I had thought about my wife owning one lot and I owning the other, but that's a little murky. The L.L.C. would be the answer to that. Great idea, Thank-You for your reply, NpS.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I call LLC's "Owner of the short stick that does the prison time". Which in the end is what happens. Who's hand is still in the cookie jar and not in the Cayman Islands is stuck with the bills... A LLC won't change your voting. Still 1 vote per lot. Just more people own that 1 lot.

Former HOA President
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By MelissaP1 on 10/18/2019 7:19 PM
I call LLC's "Owner of the short stick that does the prison time". Which in the end is what happens. Who's hand is still in the cookie jar and not in the Cayman Islands is stuck with the bills... A LLC won't change your voting. Still 1 vote per lot. Just more people own that 1 lot.

Ignorance is bliss.

Sikubali jukumu. Read all posts at your own risk.
SamE3 (Alabama)
Posts: 5
Posted:
Thank You again both AugustinD and NpS, I really appreciate your input, very knowledgeable input, I might add. Many Thanks. - Sam
CjC
Posts: 210
Posted:
Quote:
Posted By SamE3 on 10/18/2019 9:20 AM
Thank-You for the quick response! The exact wording from the HOA's Declaration and Bylaws is as follows: A. MEMBERSHIP: BOHOA shall have one (1) class of voting membership. The voting members will be the fee owners of each residential lot within the residential portions of BEVERLYE OAKS Subdivision; however, an owner of multiple lots shall be entitled to only one (1) ownership vote.

BOHOA stands for Beverlye Oaks Home Owners Association. The full By-Laws and Declaration with amendments and changes can be found on line at https://beverlyeoaks.weebly.com You just have to click on one of the tabs to get to everything. - SamE3

Ok if the voting members are fee owners, come homes may have 1,2,3 or even 4 owners. According to this horribly written document, each person will get a vote.

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