Question:
We are a small community with 30 members. We are all on a lake owned by the property owners which requires maintenance along with the common grounds, a community well, fencing and lights. We are considering a rework of our Bylaws and Covenants to reduce the power of the BOD and empower the general members as a voting body on all issues that normally require approval under the Bylaws and Covenants. The BOD will take an administrative role. The Bylaws and Covenants will be reworked by a volunteer committee made of members and presented to the entire membership for approval (2/3 of responding votes for approval). We intend to enlist the services of an attorney but first we would like to know if there is precedent in our model elsewhere that we can contact. If not, what challenges will we face in proceeding with this plan. Thank you.
– Terry
Answer:
Hi Terry,
An HOA management company or HOA attorney familiar with such cases may be able to help you contact another community with a similar case. As for the challenges you may face, you may refer to the Georgia Property Owners Association Act Section 44-3-226(a)(1). It states that:
“if there is an unexpired option to add any additional property to the property owners’ association or during any such time as the declarant has the right to control the association under the instrument, the agreement shall be that of the declarant and the lot owners of lots to which two-thirds of the votes in the association pertain, exclusive of any vote or votes appurtenant to any lot or lots then owned by the declarant, or a larger majority as the instrument may specify.”
Other parts of the section also require the declarant’s agreement, depending on the amendment and if the declarant/developer is still involved. It’s also best to be clear about the board’s powers and the voting requirements of the membership, as Section 44-3-231(f) states that:
“Except to the extent otherwise expressly required by this article, by Chapter 2 or 3 of Title 14, by the instrument, by the articles of incorporation, or by the bylaws of the association, the powers inherent in or expressly granted to the association may be exercised by the board of directors, acting through the officers, without any further consent or action on the part of the lot owners.”
For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
