The Most Important HOA By-Law

If you have ever looked at the Governing Documents, it probably didn't take long for you to hyper-ventilate and get shaky. The "Governing Documents" are the CC&Rs, the By-Laws, Amendments, Procedures Reference Manual, Online Guides, and more.

Much of it is hard to follow. Sometimes, important information is not all in the same location. 

What is the most important Section in the whole batch? Article V (Committees), Section 3 (Neighborhood Committees). You can read the whole thing online on the HOA's website. For your ease in understanding it, I have deleted all but the most important sentences.

"Section 3. Neighborhood Committees. In addition to any other committees appointed as provided above, there shall be a Neighborhood Committee for each Neighborhood which has no formal organizational structure or association. Such Neighborhood Committees shall consist of three (3) members ...

"The members of each Neighborhood Committee shall be elected by the vote of Owners of Units within that Neighborhood at an annual meeting of such Owners. ... Committee members shall be elected for a term of one (1) year or until their successors are elected. ... Each Neighborhood Committee shall elect a chairman from among its members who shall at its meetings and who shall be responsible for transmitting any and all communications to the Board of Directors and shall be the Voting Member from that Neighborhood.

 

"The Voting Member of a Neighborhood may be removed, with or without cause, by the vote or written consent, or combination thereof, of a majority of the Members of the Neighborhood."

This is where the rubber meets the road. Without rigorous compliance with Art. V, §3, there is no one steering the ship.

Because homeowners do not elect Directors to the Board, it is imperative that each Neighborhood elect a legitimate Voting Member. That person is your voice and your representation at the board. Otherwise, you have no representation!

Barony Place Neighborhood (Barony Place I and Barony Place II) has not had an Annual Neighborhood Meeting and Election in the 5½ years I have lived here. Some long-time homeowners say they don't ever remember an Annual Neighborhood Meeting and Election.

I believe this is true for the other 27 Neighborhoods in the Association. When was the last Annual Neighborhood Meeting and Election in your neighborhood?

If there are no legitimate Voting Members, then who is voting for Directors each November? 

You can see names of Voting Members listed in The Summit Scoop each month and on the HOA's website. Many Neighborhoods claim to have Voting Members. But do they have legitimate Voting Members?

If those persons cannot vote, then there cannot be a legitimate election. Thus, NO Directors! If there are no legitimate Directors to elected officers, then there are no legitimate officers (President, Vice-President, Secretary, Treasurer). 

State Law requires a corporation to have a (legal) board of directors.

Who is hiring CAMS? Who is authorizing payment of bills? Who is signing contracts with the landscapers and RCSD?

Wouldn't you think that CAMS would be at the front of the line, insisting that the Board comply with its By-Laws? After all, isn't CAMS the professional HOA management firm collecting $500,000/year from the HOA?

This is why Members (homeowners) must not let the Board close monthly board meetings to their attendance.