New Laws Affecting Board Elections in Homeowners Associations

Two new laws affecting residents of homeowners associations that will begin in January 2020.

SB323 – NEW LEGISLATION AFFECTING BOARD OF DIRECTORS ELECTIONS IN HOMEOWNERS ASSOCIATIONS

SB323 (Wieckowski) is new legislation that affects the election of the board of directors of homeowners associations. This legislation limits the right of members of an association to establish the qualifications of candidates for the board of directors. In particular, the association cannot specify that board members must have a certain level of education, experience, or knowledge to be a board member. The legislation also prevents non-owners from serving on the board of directors.

Only owners can serve on the board of directors. Owners may be disqualified as candidates for the board if (a) the owner has been an owner for less than one year, (b) a co-owner is on the board or is a candidate for the board, (c) the owner has a conviction passed for a felony, or (d) the landlord is behind in paying fees. The law prohibits an association from suspending the voting rights of an owner. Legislation requires the election inspector to be an entity or individual with no prior contractual relationship with the association.

This disqualifies managers, attorneys, and accountants who are currently employed by the association. Legislation requires the association to publish the requirements to run for the board at least thirty days before the appointment deadline. Specifically, the association must publish the list of candidates, the deadline for returning ballots, and the time and place of the annual meeting, at least thirty days before the ballots are mailed. The legislation allows landlords to review the signatures of all other landlords on the outer ballot mailing envelopes and copy voter lists, including the postal addresses of voters in an election. Legislation requires that election rules be adopted at least 90 days before an election. Legislation allows emails to be included in member lists.

SB754 – NEW LEGISLATION ALLOWS LARGE LANDLORD ASSOCIATIONS (5,000 OR MORE MEMBERS) TO HOLD ELECTIONS BY ACCLAIM IN AN UNAUTHORIZED ELECTION

SB754 (Moorlach) allows homeowners associations with 5,000 or more members to be elected by acclamation, that is, not counting the ballots, if the number of candidates does not exceed the number of open seats when nominations are closed. The legislation is designed to avoid the additional expense of counting ballots.