Brunswick Place HOA

I posted this in another thread but it was a full thread and I was concerned it might be overlooked. Please excuse the double-posting.
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I have just read parts of your CC&Rs regarding the special assessments and quorums and had two questions:

First, has there been an amendment that alters the reasons a special assessment may be presented for vote? I'm asking because your documents specify that special assessments may ONLY be made for capital improvements. The exact wording is: ''only for the purpose in defraying in whole or in part the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto . . '' It also stipulates that a 2/3 assent vote is required, by those eligible to vote, which vote would be in person or by proxy.

If the special assessment if for legal fees, is that not outside the scope of what the CC&Rs allow for special assessments to be?

My next question is the stipulation on requiring a QUORUM to conduct business and vote on anything, much less special assessments. Section 5 of Article III of your CC&Rs addresses the requirements of a quorum in order to authorize any action under Section 3 and 4 (which 4 is the special assessment section). The quorum for the meeting MUST be ''the presence of members or of proxies entitled to cast sixty percent (60%) of all the votes of each class of membership shall constitute a quorum.''

If you did have the requisite quorum, 60% of the membership (in person or by proxy), what would that number have been? If the quorum was not met, then you could, by virtue of the CC&Rs have closed the meeting and set a SECOND MEETING DATE, in which meeting only half that number (either in person or by proxy) would constitute the quorum, again, as specified in your governing document.

So the question is: how many members does your organization have? What is the number that represents a quorum for the first meeting (60%)? Do you have minutes that reflect that the quorum was met and that the assent vote was 2/3 of that quorum?

Just asking. Because if not, then the resident who is not willing to pay the assessment may have standing. She should also check with her attorney regarding the reason for the special assessment, unless you have amendments somewhere that indicate the special assessment can be voted on for any reason, and not ONLY for capital improvements.

quorum results

WOW, what a letter! We could use you on our board to keep us in line! To answer your question, we did not have a quorum at the first meeting and did go to the second meeting before being able to vote. I am going to have to look into some files to get you the exact numbers, but it was well over the required number of voters to reach quorum! Keep checking back and I will post the results as soon as possible. About the ability to approve a special assessment for the reason of litigation is a question for our association attorney. I will definitely follow-up on this question and post the answer as soon as I receive it!

Reply

That was my whole reasoning on this particular matter.
I also know that the vote by proxy was not mentioned at all in the first letter for attentance on the meeting. This makes the first meeting void as it is required for every voting member to have this option beforehand. Therefore, that allowed only 30% required for quorum for the second meeting, which seemed intentional.
As homeowners, each and every one of us have a right to see the votes, for and against. Not the names but the vote of for or against. We also have a right to see all documentation and to see the bidding contact for the ''ditch''.

By Twilla Free

not necessarily

It's not necessary that the board provide members with an ''option'' to vote by proxy for any meeting, as that option is granted to all members in the Deed Restriction documents. They aren't necessarily obligated to provide you with proxy documents, as much as you have the right to submit a vote by proxy, so I doubt that would void the first meeting. But then I haven't read the By-laws, which may or may not contain more proxy language.

The key thing to look at, however, may be the purpose for the special assessment to begin with. There may be amendments that allow for other types of special assessments. I'm not speaking about an assessment that would repair or whatever to the ditch, as that would be covered under the purpose, but rather an assessment levied for the purpose of paying legal fees. Legal fees don't APPEAR to be allowed as a special assessment. But then, I'm not a lawyer and it's a good idea that the association have the attorney review that.

By gf