SPECIAL MEMBERSHIP MEETINGS PROVIDE A PLATFORM FOR ASSOCIATION MEMBER COLLABORATION AND OVERSIGHT
Homeowners’ association governing documents (Bylaws and/or Declaration) contain provisions relative to the conducting of organized meetings of the members of a homeowners association. Membership meetings are categorized as either “Annual Meetings” or “Special Meetings.” Annual membership meetings are conducted once a year for the purpose of electing new directors and transacting such other business as is included on the agenda for the meeting. Typically, the additional business includes a review of the association’s financial statements for the last fiscal year and the budget for the next fiscal year. Special membership meetings are formal gatherings of the association’s members that can take place any time throughout the year to address specific matters that are deemed so important that they must be addressed before the next annual meeting. 21 Common reasons for calling a special membership meeting include:
- Board Member Removal: Members may seek to remove a board member due to poor performance, misconduct, or failure to act in the association’s best interest.
- Election of New Board Members: Filling vacancies or addressing disputes about board composition.
- Board Accountability: Reviewing decisions made by the board that members find problematic.
- Budget Approval: Members may want to review, amend, or reject a proposed budget.
- Special Assessments: Discussing and voting on special assessments or dues increases.
- Financial Transparency: Requesting clarification or audits of financial statements.
- Amendment of Governing Documents: Proposing changes to the HOA’s bylaws, CC&Rs, or rules and regulations.
- Adoption of New Rules: Debating and approving new policies, such as parking, pets, or architectural guidelines.
- Challenging Board Decisions: Addressing controversial or unpopular rules implemented by the board.
- Community Projects: Deciding on major projects like renovations, landscaping, or new facilities.
- Vendor Disputes: Resolving issues with service providers, such as landscaping or security companies.
- Maintenance Concerns: Addressing delays or neglect of community property maintenance.
- Dispute Resolution: Resolving disputes between members or between members and the board.
- Enforcement of Rules: Addressing concerns about inconsistent or unfair enforcement of HOA rules.
- Lawsuits: Discussing ongoing or potential legal actions involving the HOA.
- Compliance with Laws: Ensuring the HOA is in compliance with state laws or municipal regulations.
- Insurance Coverage: Reviewing issues related to HOA insurance policies.
- Safety and Security: Discussing concerns about crime or safety issues within the community.
- Community Events: Proposing or organizing events to foster community engagement.
- Disaster Preparedness: Planning for emergencies such as earthquakes, hurricanes, or wildfires.
- Overriding Board Decisions: Where permitted, members may vote to reverse certain board actions.
State statutes and/or an association’s governing documents specify who can call a special membership meeting and the procedural requirements for calling the meeting. Typically, special membership meetings can be called by either the association’s directors, specified officers, or a specified percentage of the association’s members. A special membership meeting initiated by the association’s members will generally be organized by the association’s board of directors following the receipt of a petition from the requisite percentage of members that sets forth the purpose of the desired membership meeting. If the directors fail to act on the petition and schedule the requested membership meeting, the members can either organize the meeting on their own or seek a court order compelling the board of directors to conduct the desired special meeting.
A member petition for a special membership meeting must contain the names and signatures of the requisite number of members that are required for the board to act on the petition. The required number of members is specified in state statutes and/or the association’s governing documents (i.e. bylaws and/or CC&Rs). For example, in California a statute (Corporations Code § 7510) specifies that special meetings of members for any lawful purpose may be called by 5 percent, or more, of the members. Thus, a California homeowners association with 100 members requires the signatures of at least 5 members on a petition for a special membership meeting.
Through the effective use of special membership meetings, association members can: address urgent or critical issues affecting their community; enhance community involvement; hold leadership accountable; promote financial oversight; enable democratic decision-making; resolve conflicts and disputes; support transparency and communication; ensure legal and procedural compliance; and build trust and cooperation. Special membership meetings empower homeowners to actively shape their community and respond effectively to pressing matters. By providing a platform for collaboration and oversight, special membership meetings promote association operations that serve the members’ best interests.