What is being changed in the CC&Rs and why...

CC&R Election Guidelines

In order to have a valid election, the election portions of the CC&Rs must be changed! If these changes are not approved, it is highly unlikely we will ever secure the votes needed to have a successful election.

Below is a summary of the election information as it is currently stated in the CC&Rs and the changes that we are proposing to create a more cohesive election portion of the document. These changes are necessary because:

1) Currently, the CC&Rs specify a class system which gives the developer the final say in all elections. This must be removed to give all property owners an equal say in proportion to the properties they own.

2) Requirements guiding the election are not consistent throughout in regards to quorum and number of votes required for something to pass.

3) The current CC&Rs specify that a 2/3 vote is required to elect new members to the steering committee. With multiple candidates for multiple positions, it would be very difficult to achieve the specified 2/3 of a vote for any one candidate. This must be changed to “simple majority” to facilitate the process.

4) There is no guidance in the CC&Rs as to how an election is to occur. We need consistent rules set forth to provide a framework for all elections. The procedures that will govern all elections – be it for steering committee, assessments, etc., were created and placed in one chapter of the CC&Rs.

In the current CCRs, information on elections can be found in four (4) locations:

Chapter III – Voting Rights

Current: This section outlines voting rights as belonging to two classes of members.

Recommendations:

1) Remove voting classes for the following reason:

The project is now established and the class system was put into place “to insure that the Association continues the original vision for the Project”.

2) Define “Member in Good Standing” to establish who has a right to vote – title to land and that all VEHOA debts are current

3) Refer to a separate document “Rules of Election” as detailing the election procedures. Changes to this document are upon majority vote of the Steering Committee, as is the case with the Architectural Review Guidelines.

4) Define Quorum – Current CC&Rs specify 50% and 60%, depending on what is being voted on. Change so that all elections have same requirement of 60% (30% if not met at first meeting) - which can be accomplished through a “virtual” meeting whose attendance is specified by an electronic vote.

5) Establish the timeline for announcing and holding the election – maintain that as specified in other sections of the CC&Rs at 25 – 50 working days prior.

6) State existence of Committee appointed Election Inspector(s) as detailed in the “Rules of Election”.

7) Specify the number of days prior to the election as a cut-off for the Election Inspectors to determine eligible voting members.

Chapter II – Article 6 Internal Committee of Evaluation and Execution

Current:

1) Election notice must be given 25 – 50 days prior to vote

2) Quorum of 60% of each class of voters (30% if not met at first meeting)

3) Need 2/3 vote from each class

4) Two year term

Recommendations:

1) Notice and quorum reflect procedures laid out in Chapter III – Voting Rights

2) Replace a portion of the five (5) committee members each year – 2 members to begin their term in even number years and 3 members to begin their term in odd number years. This will facilitate continuity of work on the committee.

3) Members will serve a two year term

4) Candidates with the highest number of votes win the election (simple majority). If there are 2 members coming in to office, the two candidates with the highest number of votes win.

5) If the number of candidates by the nomination deadline matches the number of committee members vacancies, the election does not need to be held and can be deemed complete by the Election Inspector.

6) Steering Committee will vote by majority rule to replace a member who has resigned. This replacement will be in affect for the remainder of the two-year term of the position being vacated

Chapter V – Article 1 and 3 - Assessments

Current:

1) Election notice must be given 25 – 50 days prior to vote

2) Need 2/3 vote from each class

Recommendations:

1) Notice and quorum reflect procedures laid out in Chapter III – Voting Rights

2) To pass, vote needs approval from 67% of the voting members

Chapter XI – Article 2 – Amendments to the CCRs

Current:

1) Election notice must be given 25 – 50 days prior to vote

2) Quorum of “General Assembly” – lawyer interpreted this to be 51%

3) Need 75% vote from each class

Recommendations:

1) Notice and quorum reflect procedures laid out in Chapter III – Voting Rights

To pass, vote needs approval from 67% of the voting members