Reader Questions - What Is “Good Standing”; What About the Renegade Association?

Hi Kelly,

When voting for an HOA be it elections, or dues increase, and the documents state a member in good standing, does this mean they need to be current on their dues, and if they are in collection do they count toward a quorum? Or is the 51% reduced by the number of owners in collection or behind in dues?

D.V., Los Angeles

Dear D.V.,

The term “voting power” is involved in this subject. “Voting power” is sometimes defined in governing documents, and refers to the total number of members entitled to vote. “Quorum” is the minimum number of participants necessary to conduct a membership meeting or vote, and usually refers to a percentage of the voting power. If the voting power reduces, so does the quorum.

The term “good standing” may be (but is often not) defined in the governing documents. Typically if there is a definition of “good standing” it will be found in the association bylaws. If it is not defined, then anybody who has not been formally suspended from voting (which requires a board disciplinary hearing with advance written notification, a board meeting and then notification of the action taken). If members are disqualified from voting, then yes it does reduce the voting power which in turn reduces the quorum.

Thanks,
Kelly

Dear Mr. Richardson,

Our HOA is corruption. I have tried contacting city officials, the AG and even the board directly.
Our board doesn’t hold meetings, doesn’t take minutes, doesn’t hold elections properly, doesn’t perform the independent audit required by our bylaws. Hasn’t updated our bylaws since 1971, the management agent is the wife of a board member, the president of the board doesn’t technically own his condo (his father does)? I don’t know what to do.

A.S., Duarte

Dear A.S.,

Some boards just refuse to learn how to operate properly. They refuse to join CAI, to peruse the Davis-Stirling Act or even to read a column such as this.

As private corporations, HOAs are not supervised or regulated by state or federal government, unless a violation of another law is involved (such as criminal or anti-discrimination laws).

The Davis-Stirling Act depends upon private court action for enforcement. This means that a party who believes an association is wrongly headed can file a lawsuit against the association, seeking a court order forcing the HOA to do or not do something.

In the many years of writing this column, I have never recommended lawsuits as a way to deal with errant or even rogue boards. This is for three basic reasons: Lawsuits are very expensive, lawsuits are divisive, and a court order does not win the war, but only one battle.

One way to get the board to do things well is to elect the right board. That can be tricky, as sometimes candidates will run on a “we’ll do it right” campaign, only to enjoy the power (and ignore the law) more than their predecessors. But the law allows members to request a special members meeting to vote on whether to recall the board.

I hate recalls. They are negative, and often further divide an association, but if you can elect a dedicated board of servants to the community, then it may be worth it as a last resort.

Best, and good luck to your HOA,
Kelly

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.