Question:
Can a Declairant HOA Board remove an appointed Director-President who replaced a resigned member, without a membership vote?
Also declairant provisions for 95% of lot ownership to others than decairants has been met. What are the steps to assume control of the HOA by the members?
– Bob
Answer:
Hi Bob,
It depends on whether the president was appointed by the declarant or simply appointed by the board. If the president was appointed by the declarant, then typically the declarant (or someone they give power to) is the only one who can remove the president. The membership vote does not matter.
This is true in condominiums following the Arizona Condominium Act Section 33-1243(E). However, if the board member was appointed by the board, the membership can vote to remove them with or without cause according to Section 33-1243(H), unless the governing documents provide otherwise. Kindly review the governing documents to see whether or not the board has the power to remove board-appointed directors.
Meanwhile, if the association is a non-profit, it follows the Arizona Nonprofit Corporations Act Section 10-3809(B), which states that only the person who appointed the director may remove them. This is true whether the director is appointed by the HOA board or the declarant.
As for turnover, if you live in a condo, according to the Arizona Condominium Act Section 33-1243(E), the period of declarant control terminates not later than the earlier of:
- Ninety days after conveyance of seventy-five percent of the units that may be created to unit owners other than a declarant.
- Four years after all declarants have ceased to offer units for sale in the ordinary course of business.
Not later than the termination of declarant control, the unit owners must hold an election to elect a board of at least 3 members according to Section 33-1243(G).
If you live in a planned community other than a condominium, then your governing documents may provide specific steps regarding turnover. They may specify a time frame when the HOA can assume control or what percentage of home sales are required to transition. If you meet the requirements, the homeowners may assume control by electing a board of directors. Afterward, the previous board must turnover association records and other duties to the new board.
For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
