Two New legislations that affect the residents of Communities of Owners that will enter into force in January 2020.
SB323 – NEW LEGISLATION AFFECTING THE ELECTIONS OF THE BOARD OF DIRECTORS IN HOUSEHOLDERS’ ASSOCIATIONS
SB323 (Wieckowski) is new legislation affecting the election of the board of directors in homeowners associations. This legislation limits the right of association members to establish the qualifications for candidates for the board of directors. In particular, the association may not specify that board members must have a certain level of education, experience, or knowledge to serve on the board. 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 from running for the board if (a) the owner has owned less than one year, (b) a co-owner is on the board or running for the board, (c) the owner has a conviction for a past felony, or (d) the landlord is delinquent. The legislation prohibits an association from suspending the voting rights of an owner. The law requires that the inspector of elections be an entity or natural person with no prior contractual relationship with the association.
This disqualifies managers, lawyers, and accountants who are currently employed by the association. The legislation requires the association to post the requirements to run for the board at least thirty days before the nomination 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 property owners to review the signatures of all other property owners on ballot mailing envelopes and copy voter lists, including mailing addresses of voters in an election. The legislation requires that the rules relating to the election be adopted at least ninety days before an election. The legislation allows to include emails in the lists of members.
SB754 – NEW LEGISLATION ALLOWS LARGE LANDLORD ASSOCIATIONS (5,000 OR MORE MEMBERS) TO HOLD ELECTIONS BY ACCLAMATION IN AN UNCONTESTED ELECTION
SB754 (Moorlach) allows homeowners associations with 5,000 or more members to be elected by acclamation, meaning without counting the ballots, if the number of candidates does not exceed the number of seats open when nominations close. The legislation is designed to avoid the added expense of counting ballots.