Question:
our HOA Board members do not pay the annual dues and it states in the by-laws they should not be compensated. How then can they get away with this? They stated years ago in a meeting that it was passed but not by a quorum of the majority of the neighborhood. our by laws state any changes to the laws have to be by a majority vote of the entire neighborhood
– Tricia
Answer:
Hi Tricia,
Kindly verify whether the amendment is valid. According to the Indiana Homeowners Association Act Section 32-25.5-3-9(2), the consent of the owners must be obtained as evidenced by: (1) The vote of the owners at a meeting duly called for the purpose of considering the amendment; or (2) A written instrument signed by the owners. If the HOA is using the former as evidence, you may find evidence of it from the meeting minutes. If there is no evidence, you may raise this with the HOA board.
Apart from this, if the association is incorporated as a non-profit, the Indiana Nonprofit Corporation Act of 1991 Section 23-17-12-15, the board can fix the compensation of directors unless the bylaws or articles of incorporation state otherwise. If the board amended the governing documents to provide for compensation, the amendment may be valid under this section. However, it’s best to consult a lawyer for further guidance.
Regarding the non-payment of dues, Section 23-17-7-7(a)(2) may apply, which states that a member may become liable to the corporation for dues and assessments. Nonpayment constitutes grounds for expelling or suspending the member or suspending or terminating the membership. The governing documents may also require all members, including the board, to pay assessments. You may raise these with the HOA board. Again, it may be wise to consult a lawyer to navigate this issue.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.