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December 4, 2009
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Community Apathy: The Cost of Letting Others Do It!

Question: I live in a community development consisting of more than 160 units. Our bylaws state that in order to have a quorum -- and to conduct a meeting -- we must have a majority of the owners of the association, either in person or by proxy, at the start of the meeting. At our last annual meeting, a majority of the owners did not attend, and the attorney for the board of directors said we could not elect new board members or have an official meeting because we did not have a quorum. We returned for a second meeting and again could not meet the quorum requirements.

The few of us (about 50 in person and by proxy) are quite upset because we cannot elect new members to the board or have our concerns raised with respect to such items as budget, maintenance and repairs. What recourse do we have?

Answer: Unfortunately, everyone involved with community associations recognize that apathy is often very strong. Indeed, the reason often given by people who buy a condominium unit is that they do not want to get involved anymore. They do not want to shovel the snow, or cut the grass. They want others to handle all of these matters. They are either too busy or too tired to get involved.

When faced with potential serious problems in a community association, I have only three recommendations: (1) get elected to the board of directors and make the changes you want; (2) accept the situation as a fait accompli, and live with it, or (3) sell your home and move out.

The most obvious answer that I can give you is to sell. You are facing the beginning of what appears to be significant problems in your community, and if a majority of the owners are not interested in casting their votes either in person or by proxy, the democracy of the community will fall to the will of the minority.

Obviously, it is clear that you do not want to sell but would like to get more deeply involved in the day-to-day activities of the Association. I suggest that you start a major political campaign within your community, quite similar to the political campaigns of candidates for public office.

Ask the management company for the names and addresses of all owners -- whether they reside in the complex or are absentee owners. This is information to which you -- as an owner -- are absolutely entitled to receive. Circulate a petition for a new special meeting. I am sure that your bylaws will tell you how many people will have to sign such a petition to require the board of directors to hold that meeting.

Before the meeting, it will be your responsibility to line up as many proxies as possible. Even if you have to stand on the street corner when people are on their way to or returning from work, you have to educate your fellow owners about the serious nature of the problems within your association.

The purpose of the special meeting should be to elect directors so that the association will be run by the will of the majority.

One caveat: read your bylaw provisions on proxies. There may be restrictions on the number that can be given any one owner.

You also should have a lawyer review local law to determine whether there are any comparisons that can be drawn from corporate law. Often, there are provisions in the law dealing with the inability to obtain a quorum, and there may be other legal avenues available to you that have not yet been addressed.

For example, in some jurisdictions, another meeting may be called, and the owners present (in person or by proxy) will constitute a quorum and the meeting can be held. However, for this second meeting to be valid, there are certain requirements that must be followed, including the publication of a "notice of the second meeting" in a local newspaper.

I also suggest that you plan to run for the board of directors.

Obviously, you are concerned enough about the stability and the future of your association, and people like you should not sit on the sidelines. You should get involved; that is the essence of community living.

One final solution is to go to court and have the court appoint a receiver to run and manage the association until the board has an opportunity to establish a new election. I am not advocating this severe remedy, because it is not only time-consuming and expensive, but the courts should not get involved in running your association.

After all, the court might take the position that if the membership of your community is not interested in attending the annual election or even giving proxies, why should the court get involved?

Unfortunately, the problems facing community associations today are varied and complex. You live in a community, but it is also a big business. It has to be run by a strong board of directors, with full authority from the membership. The board, however, must recognize that, like any other elected official, it owes its allegiance and gets its authority from the community at large.

For more articles by Benny Kass, please press here.


Copyright 2001 Benny Kass. Posted by Realty Times with permission.

Published: July 2, 2001

Use of this article without permission is a violation of federal copyright laws.




Author of the weekly Housing Counsel column with The Washington Post for nearly 30 years, Benny Kass is the senior partner with the Washington, DC law firm of Kass, Mitek & Kass, PLLC and a specialist in such real estate legal areas as commercial and residential financing, closings, foreclosures and workouts.

Mr. Kass is a Charter Member of the College of Community Association Attorneys, and has written extensively about community association issues. In addition, he is a life member of the National Conference of Commissioners on Uniform State Laws. In this capacity, he has been involved in the development of almost all of the Commission’s real estate laws, including the Uniform Common Interest Ownership Act which has been adopted in many states.







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