Wednesday, December 3, 2008

How To Run A Community Association Board Election

The annual meeting of a community association is the only way for the members to have a say in the operation of their association, by electing their representatives to the board of directors. It is necessary, therefore, for every association to make sure it holds a fair annual meeting and that board elections are properly conducted.

Many board elections are not carried out in accordance with the technical legal requirements and procedures established by law because the persons who run the elections are not familiar with the law, and the board has failed to consult with competent legal counsel.
The purpose of this article is to provide a step-by-step explanation of how to call and run an annual meeting. Please note that the legal requirements of your association's bylaws may differ, and they may be binding. Your board should seek legal advice to make sure that it follows the requirements of its bylaws.

1. Notice
The date for the annual meeting is usually stated in your bylaws. Condominium association boards must send notice to the unit owners at least ten days but no more than thirty days before the meeting (other associations must send notice five to sixty days before the meeting). If a condominium board wants to send out biographical and background information about board candidates, it can do so but only if the board does not express a preference in favor of any candidate, the board makes a reasonable effort to identify all candidates, and all candidates are given the opportunity to include their biographical and background information. Proxies distributed by a condominium board must give the unit owners the opportunity to express a preference for any of the known candidates for the board or to write in a name.

2. Registration & Quorum Requirements
At the time of the meeting, and before it is called to order, the members of the Association must register with the Association's Secretary (or other person appointed by the board). Proxies also must be registered at that time.

Members may vote in person, or by proxy unless proxies are prohibited by the governing documents. Proxies must be dated when signed, and will expire after 11 months unless the proxy specifically states it will be valid for a longer period. A proxy may be executed by a member or by a member's attorney-in-fact. A proxy may be revoked by a member at any time by informing the board, by signing a new proxy, or by appearing at the meeting. If there is any irregularity about the proxy, if the authenticity of the proxy is questionable and cannot be verified, or if the same members have signed more than one proxy, a proxy may be declared invalid.

The meeting can be held only if there is a quorum. That is, enough of the members are present in person or by proxy for the meeting to proceed. In condominium associations with 20 or more units, a quorum is at least twenty percent (20%) of the votes unless the unit owners holding a majority interest in the association provide for a higher percentage. In an association of fewer than 20 units, the quorum will be twenty percent (20%) unless the declaration or bylaws provide otherwise. For non-condominium associations, a quorum is one-tenth of the votes unless the articles or bylaws of the Association state otherwise.

3. Call to Order
After the members have registered, and if a quorum is present, the chairperson should call the meeting to order (usually the Association's president, or some other person provided in the bylaws, or selected by the board, or selected by vote of the members after the meeting is called). The chairperson should have the Secretary read the notice of the meeting into the minutes, and then should ask the membership if there are any objections to the notice and the calling of the meeting. If there are any objections, they should be carefully considered and decided by the chairperson.

4. Appointment of Inspectors (election judges)
The first order of business for the election is for the chairperson to appoint one or more inspectors. The job of the inspectors is to ascertain the number of votes present, determine the validity of proxies, count the ballots, report the results of the voting, and to generally conduct the election with impartiality and fairness to all members. The inspectors must be absolutely neutral as to the outcome of the election. The inspectors must report in a writing signed by a majority of the inspectors. The report has the legal effect of being proof of the number of votes and of the outcome of the election. Many associations appoint their professional managing agent to be the inspector.

5. Introduction of Candidates
It is customary for associations to next provide an opportunity for the candidates to present themselves and their qualifications to the membership. Usually, it is a good idea to impose some time limits for the presentations. Unless the Association's bylaws require a different procedure, the members may nominate themselves or any other eligible candidates at the time of the meeting. The qualifications to be a director are set forth in the Association's bylaws. For condominium associations, a director must be a unit owner elected at large. Only one of multiple owners of a single unit will be eligible to serve on the board at any one time. Any vote cast for a person who is ineligible to serve on the board will not be counted by the inspector.

6. Voting
After the presentation, the voting may proceed. Condominium unit owners have the number of votes equal to the percentage interest in the common elements attributable to their units (although the bylaws of some associations require voting on the basis of one vote per unit). Installment contract purchasers may exercise the right to vote and to hold office in condominium elections unless the contract-seller retains that right in writing. In non-condominium elections, the members usually have one vote per dwelling unit.
The inspectors officially tabulate the vote. In condominium elections, the candidates or their representatives have the right to be present during the counting of ballots. If there are any irregular ballots or a question about the validity of a ballot, and if the questionable ballots could potentially alter the results of the election, then the inspector must make a determination of the issue and report the decision. If the inspector is not an attorney, the inspector must not decide legal issues, but instead should refer all legal questions to the Association's attorney.
While the ballots are being counted, the chairperson usually directs discussion of other matters and business before the association. This is a good time for the members to air their views and concerns, and to discuss the goals of their Association.
For board elections, a plurality vote is usually required. That is, those qualified persons who receive the most votes are elected. All other matters usually require either a majority vote or higher.

When the ballots have been counted, the election results should be announced by the inspectors. The election results should be specific, as the members are entitled to know the number of votes cast in favor of each candidate. The chairperson should then specifically ask whether there are any objections to the election report. All objections, if any, must be raised and should be resolved by the inspectors during the meeting. The objections and the inspectors' resolution should be recorded in the inspector's written report. If no objections are heard at the meeting, objections are effectively waived and the election will be presumed valid.

All ballots and proxies must be retained by condominium associations along with the inspector's report for at least one (1) year. It is also a good idea to record the meeting either by audio or video recording devices or transcription by a court reporter.

7. Fair Voting Serves the Best Interests of the Association
If the meeting was conducted fairly, then the association will probably not be divided by political fighting and angry resentment among the members. After all, only at the annual meeting and election can the members have the opportunity to state their concerns and to take action by electing their board of managers. Associations with properly run elections are generally healthy and vital organizations, with an active and interested membership and with few problems.

STANDARD AGENDA FOR ANNUAL MEETING OF THE MEMBERS OF CONDOMINIUM ASSOCIATIONS
I. Call the Meeting to Order
A. Report on whether there is a quorum
B. Report on notice
C. Ask for and rule on any objections to calling of meeting or notice
D. If no valid objections, the meeting is lawfully called to order
II. Reading of Minutes of Previous Meeting (or Waiver of)
III. Any Reports or Presentation from the Board or Committees
IV. Election of Board
A. Introduce the Known Candidates
B. Floor Nominations to the Board
C. Candidate's Presentations (5-10 minute limit)
D. Appointment of 1 or 3 inspectors to inspect and count the ballots.
Candidates for the Board are NOT eligible (but they have a right to be present at the counting of ballots)
E. Balloting
V. Old Business
VI. New Business
VII. Inspector's Report
A. Announce Election Results
B. Introduce new Board
C. Motion to Accept Inspector's Report
D. Are there any objections to the Inspector's Report?
VIII. Motion To Adjourn

Friday, June 27, 2008

Vacation for Less


Keep Your Driving Costs Down This Summer


With summer here many of us are thinking about vacation, but fuel prices are so high that it may seem impossible to keep road-trip expenses affordable. Here are some tried and true tips for you to take that trip and still have some spending money when you get there.


Mind your maintenance. A well-tuned car burns less gasoline, so get your oil and air filters changed regularly. Not sure if your filter needs changing? Take it out and hold it up to the light. If you can't see any light coming through, it's too dirty. It's also important to check your tire pressure monthly. (You'll get the most consistent results by using your own gauge when the car is cold.) Americans driving on under inflated tires waste 4 million gallons of gas a day and reduce the lifespan of their tires.


Clear out the clutter. According to the Department of Energy, every 100 pounds you carry inside your car lowers its fuel economy by 1-2%. So if you don't need it on the trip you’re taking, don't have it in your trunk.


Rethink the roof rack. A roof rack or carrier provides additional cargo space and may allow you to meet your needs with a smaller car. However, a loaded roof rack can decrease your fuel economy by 5 percent. Reduce aerodynamic drag and improve your fuel economy by placing items inside the trunk whenever possible.


Don't drive like my brother. Fast, aggressive driving is a big fuel waster. Try to maintain a constant speed--most cars reach peak efficiency while cruising steady between 55 and 60 miles per hour--and avoid rapid acceleration and braking, which can increase fuel consumption by as much as 40 percent. (And make everyone else on the road hate you.)


Keep your cool. Need relief from the heat? Consumer Reports recommends using the air conditioner if you're going faster than around 40 miles per hour, since a lot of engine power at high speeds goes to reducing drag. When you're cruising around town, it's more efficient to keep your windows open.


Think different. Could some of your short trips be made on public transportation, or by walking or riding a bike? Combining trips also helps, as does carpooling with friends.Find the lowest gas price. Instead of driving around to find the lowest gas price, look online! Try www.chicagogasprices.com or www.gasbuddy.com.

Elena's 1st Birthday

Yes, I know its June and I am just now posting a photo from Elena's 1st birthday. Does the proverbial 'better late than never' still apply? Though the photo was taken a half-life ago (in Elena terms), I remember the day as clearly as the day she was born. Mostly because right after this photo was shot, Elena threw up on my sweater and the stairs. I highly recommend O'Connor's Dry Cleaning Service on Chicago Avenue.
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Monday, June 2, 2008

Pilgrim Projects

Most of you know me as our office's AgentAchieve Trainer/emergency-fix-it-all-when-Alyce-is-unavailable. Well, I also want to introduce you to a few of my other sides. First, there is the activist Jenny who is trying to save the world by lowering her carbon-foot print, reducing waste, recycling goods and reusing whenever possible (though she hasn't given up the 2 block drive to work). Second, there is the business development manager struggle to make sense of our depressing real estate times. Lastly, there is the late-night-after-the-kids-are-in-bed-blogger. The final feature for this even seldom surfaces anymore withstanding the random exceptions.
I am highlighting a few of my personalities to make way for the introduction of my latest efforts:
  • Pilgrim's Green Initiative Committee
  • Agent Business Building Committee

More to come....

Friday, February 1, 2008

Why am I here?

The intent in not philisophical but rather literal.
I am here, on blogger, to build a platform from which I can promote my real estate business.
That's it.