Condo Association Management Blog

Regarding annual elections. We have 5 board members that have exceeded their terms. They have been on the board over 4 years. 
 
I am the President of the association and requested that this year elections to be held this October 2011 that they are to re-run if they choose too, otherwise they will be suceeded by those who the homeowners elected.  
 
Our by-laws state, in any event at least one third of the terms of the board members of Managers shall expire annually. In our case 5 board member exceeded their 3 year terms. The 5 board members are contesting it, and said I can not do this. Please give your opinion on this matter.

My company offers a sustainable funding amenity program that many HOA's really like. We have clients all over the US. The program delivers a valued amenity (internet)fully supported & managed so the HOA has no exposure. It can often be implemented with no out of pocket costs to the HOA and typically generates a positive cash flow for the HOA from day 1 even if the system is financed.  
 
 
 
By installing our wi fi campus systems we take the monies your owners or tennants pay to the local telephone company & cable TV company for internet and put them to work for the HOA.  
 
 
 
Its a seriously powerful & proven program. Can I get anyone more info on it?  
 
 
 

I can think of no reason why the assn cannot generate income from other sources; however, you must keep in mind that only the assessments are classified as "exempt income" meaning they are not taxed as income by the IRS. All other income is taxed. You may want to consult with a CPA to see what the tax impact would be on the assn.

JB, 
 
 
 
Since you say 5 board members' terms have expired, I'm thinking you must have a board comprised of more than 5 members. When a board member's term expires he must stand for re-election if he wishes to remain on the board. However, if there are other candidates on the slate there is no guarantee he will be re-elected. 
 
It sounds like your bylaws call for staggered terms, which, IMO,is great. We have a 5-member board, with staggered terms, and each year 1 or 2 members are up for re-election. Each has a 3-year term. 
 
Regardless of what the 5 board members say, you must do as the bylaws say. Sadly, some people get elected to the board and think they have a right to say on forever regardless of what the bylaws say. Sounds like you have 5 board members with this mindset. 
 
As far as hold elections in October; the bylaws should say when elections must be held and that cannot be changed. Elections should be held each year with at least one board member standing for re-election. In other words,with staggered terms, at least one board member's term should expire each year. The secretary or prop. mgr. should keep track of each board members' term so that each year everyone will know who is up for re-election and how many slots to put on the ballot.

It sounds like a great idea... However, you certainly want to ask your Association lawyer and CPA. The IRS may have an issue with it. Also, you want to make sure that your non-profit Condo or HOA remains a not-for-profit entity. 
 
 
 
Good Post!