Does Your Association Have Quorum Requirements?
Achieving quorum in Homeowners Association (HOA) meetings has often been a challenging task. During last year’s biennial legislative session Assembly Bill 1458 reduced the HOA meeting quorum requirements (if they are stated in the association’s governing documents or required by statute). 1458 easily passed the Assembly and Senate in 2023 and was signed into law by the governor.
However, confusion around the language of AB 1458 led to the introduction of Assembly Bill 2460 to provide further clarification and definition.
Understanding Quorum in HOA Meetings
What is a Quorum?
It represents the minimum number of voting members that must be present at a meeting for the proceedings to be valid. For HOAs, this ensures that decisions made during meetings reflect the interests of the community.
If a HOA quorum is not achieved no vote to elect board members is permitted and the board may not act. Failing to achieve a majority of voting homeowners attending a board meeting in person is typically due to member apathy.
Importance of HOA Meeting Quorum
Decision Making: Gets plenty of members involved in important decisions, creating a more collaborative and inclusive vibe.
Legitimacy: Boosts the board's credibility and makes their actions more legitimate, which is crucial for maintaining both trust and transparency with stakeholders.
Preventing Stagnation: Stops board members from staying in their roles too long due to election delays and brings in new ideas and perspectives by regularly welcoming fresh faces. Incidentally, board elections are required every four years.
Challenges in HOA Annual Meeting Quorum
The subject of establishing a quorum to elect new HOA board members has been contentious in the past as meeting quorum requirements and determining exactly who may vote has often been an issue. Unlike municipal elections where a quorum of voters is not required to determine who is elected, HOAs may have quorum requirements.
Consequences of Failing to Meet Quorum at an HOA Meeting
When a sufficient number of association voting members fail to show up or vote, a new board cannot be elected and seated. In those cases the existing board may remain seated until voted out in a subsequent election…either in person or by proxy, or via mail-in voting as determined by the HOA’s governing documents.
And, that was the main opposing argument to the bill…namely, board members weren’t replaced by election and so they remained a “tyranny by a few over the many” as it was once characterized. As a result, without the required quorum the meeting would be adjourned.
AB 2460: Clarifying Quorum Requirements
AB 2460 was introduced to "clean up" the confusing language of AB 1458 and attempts to fix this situation. AB 2460 amends Section 5115 of the Civil Code, and Section 7512 of the Corporations Code, relating to common interest developments.
Key Provisions of AB 2460
Reduced Quorum Threshold
Allowing another board meeting to be convened to conduct a new election with a lower quorum of only 20% of the voting membership.
Subsequent Meeting Requirements
The date of the subsequent meeting must be at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a reconvened membership meeting would be 20% of the voting members present in person, by proxy, or by secret written ballot received.
Flexibility for Small Associations
The 20% does not apply if an HOA's governing documents provide for a voting quorum of less than 20% of the association's members...typically in very small associations.
Ensuring Effective Quorum for HOA Meetings
Communication
Keep everyone in the loop about upcoming meetings and stress the importance of joining in. Use different methods—emails, newsletters, social media—so no one misses out. Also, think about holding some regular briefings or even check-ins to keep everyone on the same page with key goals and expectations. More importantly–encourage open conversations and feedback to create a more inclusive and engaged community.
Convenience
Provide multiple voting options to suit everyone's preferences, like in-person voting, proxy voting, and mail-in ballots, so we can cater to different lifestyles and schedules, giving everyone the chance to participate.
Incentives
To boost attendance at meetings, try offering some perks like snacks, raffles, or small giveaways. Having refreshments can create a more welcoming atmosphere, and raffles or giveaways add a bit of excitement and anticipation. These little incentives not only make your meetings more appealing but also show that we appreciate everyone's time and participation.
Monitoring and Adapting HOA Quorum
HOAs need to stay alert and adapt to changing laws. Keeping up with new legislation and updates helps ensure compliance and smooth governance. Board members should also regularly review and update their governing documents to stay in line with these changes.
For more info, keep following our updates. With HOA Laws, we'll keep you in the loop on any changes or developments in HOA regulations, so you can stay ahead and ensure effective governance for your community.
