Board should listen to homeowners on improvement issues
October 4, 2008 - 9:00 pm
Q: Some of our members are in favor of xeriscaping part of our lawns to save money.
When the vote was taken, the board was split 3-2 in favor of keeping the grass. The pro-xeriscape members collected the required 10 percent signatures of owners to call for a special meeting in the hopes that the members would overrule the board's decision.
At the June board meeting, xeriscape was back on the agenda and the manager announced that at the special meeting, the owners vote by ballot and the outcome will supersede the board's decision.
At the July meeting, the day the ballots were mailed for the special meeting, the manager informed us that ultimately this will be the board's decision and that the owners' vote is merely a survey.
When questioned about this, the manager said she researched our governing documents and then came to that conclusion.
In our covenants, Article III, Section 4, "Duty of the Association," states the association, acting through the board, shall have the sole and exclusive right and duty to manage, operate, control, repair and replace association property.
In our bylaws, Article II, Section 2.06, "Special Meetings," states that all business lawful to be transacted by members, may be held at any special meeting.
However, no business shall be acted upon in a special meeting except topics that were referred to in the notice calling the meeting.
Your opinion on the matter would be greatly appreciated.
A: Under normal business circumstances, the board does have the right to solely manage the affairs of the association.
But this is not necessarily the case. NRS 116.3108 recognizes the rights of the owners to call for a special meeting of the unit owners.
Please note the language, a "meeting of the unit owners."
This is not a special meeting of the board of directors. You did not send me a copy of the petition that was sent to the board, nor the agenda, nor the ballot sent to the homeowners by the board.
If the petition specifically stated the call for the special meeting was for the voting of the homeowners to approve or reject xeriscape at the association, then the homeowners' vote would not be a survey but would be a decision that could override the board's decision.
At the special meeting of the homeowners (and not a board meeting) to conduct the business would require that a quorum be present.
If a quorum were present and if at least 51 percent of the quorum voted to override the board, it would be obligated to follow the decision of the membership.
You need to review your governing documents to see what percentage constitutes a quorum for members to conduct business and to see if there is any specific quorum and or vote needed for the alteration of the common area.
The petition is the key. How was it worded? The whole concept behind the state law was to allow homeowners to override decisions of their boards.
If the petition can be construed to have the members just surveyed, then the vote would not be binding upon the board.
Obviously, if a majority or greater number of members supported the conversion, the board should seriously consider implementing the members' decision.
To ignore the decision would most likely be foolish, as there would probably be a recall action against the board by the membership.
Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q.&A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759, or she can be reached by e-mail at support@hlrealty.com.