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There is a legal process to recall HOA board

Q: I live in a small community of 68 homes. The homeowners association board has been misrepresenting the majority of owners and we are discussing the possibility of a recall.

We are not exactly sure of how the process plays out. I understand to begin with we need 10 percent on the initial petition to initiate the recall. Then we need 35 percent of the total of voting members of the association to make it official.

Where the confusion comes in is where it states a majority of all votes cast in that removal election, and if this is a multiple-stage process.

Does this mean there is one stage, which involves the removal process, and then another stage for a separate vote of the owners in the association for the election of a new board?

Could you clarify this and describe the exact process in the proper legal order of exactly how it’s done?

A: Under Nevada Revised Statutes 116.3106, a removal election may be called by the owners constituting at least 10 percent or any lower percentage specified in the bylaws of the total number of voting members of the association. To call for a recall election, the owners must submit a written petition, which is signed by the required percentage and sent to the board or the community manager.

Upon receiving the petition, the association must send the recall ballots for the removal election not less than 15 days and not more than 60 days after the date that the petition was received. The board shall set a date for the meeting to open and count the secret written ballots not more than 15 days after the deadline for returning of the ballots and not later than 90 days after the date on which the petition was received.

The number of votes cast in favor of the removal must constitute at least 35 percent of the total number of voting members of the association. If this first requirement is not met then the recall fails. If the first requirement is met then at least a majority of all votes cast in the removal election must vote in favor of the recall.

In the same manner that board members are elected, the recall election must be held by secret written ballot. Only the secret written ballots that are returned to the association may be counted to determine the outcome. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

Q: I am emailing you in regard to our HOA increasing fees by more than 125 percent within the last three years. They are saying it’s because of the insurance premium going up as well as inflation, etc; but the majority of the residents who actually attend the board meetings aren’t really buying it. I would greatly appreciate your input on this matter. I can forward the proposed budget plans because, in all honesty, I have no idea what I’m looking at.

A: To better understand your budget, you should have a copy of the following financial information: the previous budget (some associations will have a budget comparison, which will show you the projected changes); the current year-to-date financial report; and the last annual financial report (income and expenses in 2022).

If your association does not provide this information in your budget ratification package, you would need to request this information in writing or set an appointment to view the reports.

You also need to look at your assessment history. When was the last increase? Was the percent increase greater than the cost of living index.

Yes, insurance increases have been significant, especially if your association has had many claims.

Barbara Holland, CPM is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.

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