There may come a time when homeowners would want to push for an HOA board recall. This process can be a tricky one, and certain requirements must be followed to ensure validity. Failure to meet these requirements and follow proper procedures can result in a wrongful recall, which would effectively undo the results.
What is an HOA Board Recall?
An HOA board recall is a process wherein homeowners vote to remove one or more elected board members before the end of their term. The method also allows for a total board recall, which would remove all board members from their positions.
There are several reasons why an HOA would want to recall its board members. More often than not, they originate from feelings of dissatisfaction with the way board members run the association.
Requirements and procedures can also vary. Associations should check their governing documents for specific guidelines. That said, the process typically involves support from a large percentage of homeowners for a petition. Once the petition passes, homeowners can vote to recall board members at a special meeting.
Following a successful recall vote, the board member must leave their position. Homeowners must then elect a new volunteer, or the remaining board members can appoint someone to fill the vacancy. It ultimately depends on the governing documents.
Can You Recall HOA Board Members?
When homeowners are displeased with certain board members, the idea of removing them from their posts often comes up. But can HOA board members be recalled?
The general answer is yes. Most state laws and governing documents do give homeowners the power to remove a board member (or more), provided they follow specific requirements and procedures.
State Laws
Homeowners should check their state laws for guidance. Most states have statutes that specifically apply to associations. For those that don’t or lack provisions for board removal, owners can usually turn to their state’s nonprofit corporation act. This law applies to associations organized as nonprofits, which is often the case.
State laws may dictate the conditions and procedures that associations must meet to recall board members. In California, for instance, Corporations Code Section 7222 specifies these requirements. The section explains that corporations may remove board members without cause through a vote.
In North Carolina, similar provisions exist. Section 47F-3-103 of the NC Planned Community Act allows for the removal of a board member with or without cause through a majority vote at a meeting where a quorum is present.
Governing Documents
Apart from state laws, homeowners should also refer to their governing documents. These documents, particularly the bylaws or articles of incorporation, should outline additional requirements and procedures to follow. Sometimes, the bylaws contain stricter standards than those defined in state laws.
Reasons for an HOA Board Recall
Board members have a fiduciary duty to serve the association with care, loyalty, and the community’s best interest in mind. Although board members generally don’t receive compensation for their work, they must still uphold specific ethical and professional standards.
Although some associations can remove board members without cause, it doesn’t happen often. Homeowners typically have reasonable cause to recall one or two directors. Possible grounds for the removal of a board member include:
- Breach of fiduciary duty
- Self-serving actions or decisions
- Consistent absence at board meetings
- Failure to disclose or intentional conflict of interest
- Disruptive or antagonistic behavior
- Theft from the association or any other financial crimes
How do You Recall an HOA Board?
The path towards a board recall is not always easy or straightforward. Here are the steps for how to recall a board member.
1. Confirm Authority
First, it is essential to verify if state laws or the governing documents permit an HOA board recall. Homeowners should review their state laws, bylaws, and articles of incorporation for guidance. When in doubt, it is a good idea to consult a lawyer.
2. Petition to Recall HOA Board
If homeowners decide to pursue a recall, it is imperative to follow the guidelines outlined in the governing documents or state laws. This usually involves filing a petition with support from a large percentage of homeowners. In California, at least five percent of the total voting power must sign the petition to proceed.
After gathering enough signatures for the petition, the board must call a special meeting. At this meeting, homeowners, including board members, will vote on the recall. Associations will have varying requirements for a recall, but a majority or two-thirds vote is often needed.
If the HOA board initiates a recall, it usually does not need a petition. In California, for example, the board can call a special meeting for the lawful purpose of removing a director. State laws and bylaws can differ, so boards should check these first to make sure the same applies to them.
3. Vote for Replacements
If one or more board members are successfully recalled, the association must then proceed with a new election to vote for replacements. In some instances, board members can appoint someone to fill the vacancy.
Understanding the Impact and Considering Other Options
Recalling HOA board members is no small act. It can have profound effects on the association. Removing one or more board members mid-term can disrupt operations. This can cost the community valuable time and resources. Projects can be delayed, and maintenance tasks can be deferred.
Because of this, homeowners should think about the decision carefully. Weigh the gravity of the board member’s offense and consider whether a recall is justified.
Homeowners should also consider alternatives to a recall. Board members will make mistakes, but that doesn’t mean they deserve to be removed for every failure. Perhaps homeowners can bring up their concerns at an open board meeting or file a private complaint. Entering dispute resolution is also another credible option.
Can Recalled HOA Board Members Run Again?
In general, yes. Board members who have been recalled can run for office again. Depending on the bylaws, they can even run in the same election to replace the seat they were removed from.
Homeowners can’t permanently oust a board member, which prevents them from running for election. So long as the candidate is qualified, they can run for a position on the board.
The Final Word
An HOA board recall gives homeowners the chance to remove ineffective or corrupt board members and replace them with competent ones. Requirements and procedures can vary from one association to another, so it is best to check state laws and the governing documents for guidance.
Clark Simson Miller can assist HOAs and condo associations with board elections and removal. Call us today at 865.315.7505 or reach out to us online to request a proposal!
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- How And What Grounds To Remove An HOA Board Member?
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