Condo Association Management Blog

As always, there are at least two documents to read - State Condo Act and the condo bylaws. In addition, each owner needs to read his mortgage paperwork.  
 
First - the individual mortgage company may require their consent for an owner to approve changes in the bylaws of a condo. Financial institutions often must separately approve the amendment. 
Second - the condo bylaws, in 99% of the time, state how the amendment vote is to be counted. It normally is a much higher percentage than quorum for a member's meeting to be held. 
Third - the Condo Act may address the procedure to be followed in amending documents. 
Fourth - State Court cases may have defined certain portions of the procedure - such as a decision that all units, delinquent or not, must be given the opportunity to vote on an amendment. 
 
To ensure proper procedures are followed, the board should consult with legal counsel throughout the process. 
 
Until the proper procedures are followed and completed and the amendment is recorded, it is not in effect.  
When asked to assist a condo amending its documents, if the board is not totally in favor of the amendment and willing to "work" to obtain the necessary votes, my advice is to not undertake the amendment. Without written authorization for full access to their legal counsel, our company will not provide assistance.  
The entire process can take several months to achieve.  
 
It does not sound like your condo has completed the process.  
 
 

sounds like the current owners do not feel this is in the best interest of the overall association since the new vote was against it. If the association was not incorporated at the time it was doing business and nothing was recorded, the first vote may not be enforceable also

It is a misconception by people that a condo or an HOA must be incorporated. The decision to incorporate is made by the developer at the time a project is being designed, including the writing of the legal documents. 
 
Before the name of a project is selected, the decision regarding incorporation must be made. Each state has a process for accepting names for new businesses being incorporated in that state - different from businesses incorporated elsewhere and just registering to do business in a particular state.  
Condo legislation often will state that an unincorporated condo will be treated as if it were incorporated. HOAs that do not incorporate immediately may not have this same protection under the state's corporate laws. 
There may be valid reasons to incorporate a residential association at a later date; however the association must follow specific procedures for obtaining consent to take this action. Then the bylaws of the association must be amended to recognize the new name. The District of Columbia is one jurisdiction whereby condos should consider incorporating if not initially established as an incorporated business.  
Before going through the process and the expense, the board of an association should seek legal opinion as to the value in taking such action. Reminder: financial institutions would have a voice in this process.  
The status of a business as incorporated or not has no immediate impact on the legal actions a board or the members may take. The bylaws generally will state that the association is NOT an incorporated entity.  
 

We did consult counsel & I think that may be part of the issue. Throughout the ENTIRE process we were told that the initial votes were valid & that the board had final approval for these documents. (Initial votes to amend were shared as well as the 2010 decision not to agree to the amendment with the attorney). All financial institutions agreed to the amendment without prejudice. Essentially I have three concerns: 1. Billing & attorney's advice. What is our recourse considering we followed his advice that FINAL approval was not needed.  
 
2. Since there were not enough votes to overturn the initial vote of limiting renting, how is it allowable 
 
3. Recourse against the prior Presidents (both are now renting & were using personal gain under their terms).

My hoa board tried to pass new bl's that didnt pass and even filed them with the county. 
Make them show the votes if they wont then get a court order. 
Many hoa dont understand anything but a court order. 
Get a petition showing how it is not possible for a valid vote to have been made in favor of the proposal. 
Let them know you mean business.