Many people think a Home Owners’ Association is some distant company that tells them how to live, charges assessments, and is intent on making life unpleasant for some residents. The residents don’t feel they have a voice, or representation.
Actually, the company who sends the bills, and those sometimes annoying letters, is hired by the Board of Directors of the Association. There are many companies that provide management services, but they are all under the direction of the Board.
So who makes up the board ? The property owners ! In a new development, the builder holds the seats on the board, but then releases them to residents as the units sell. Ultimately, the board is made up of only owners.
Every year the HOA holds an election. The owners receive a Proxy ballot, usually with names of candidates. This is not a simple process unfortunately. First, the board can use Proxies to cast ballots for anyone they want if the owner returns it without designating how the votes are to be cast. Candidates can collect proxies, even if an owner has sent one in, and they can use it if the signature date is later then the original returned to the board. A ballot can be used to cast votes equal to the number of openings, so a proxy could be worth 3 votes if there were 3 seats available.
When a board becomes entrenched and seems intent on retaining power, they do so by collecting the ballots that are used for “quorum purposes” and don’t specify candidates. They can then cast the votes for the individuals on the board which usually is sufficient to retain the seats.
A group of owners, concerned about the direction of the association, can get elected and take control. This is usually done by “walking the neighborhood” of the association homes, and asking people to sign proxies on behalf of themselves, or the slate of candidates they wish to elect. This is usually done fairly close to an election, and the ballots are then presented at the annual meeting when the officers are chosen.
Most people simply won’t get involved. However, if you have concerns about your HOA, and how it is being run, then perhaps you, and other like minded owners, should seek seats on the board and redirect the efforts of the association in the direction you believe will be best for everyone.
Next: The Management Company
