The ballots for the CC&R and By-law changes were counted last Friday, 1/11/19. There was a total of 2123 ballots cast, out of 3450 homes. It takes 1761 votes to approve a change to the CC&R’s or By-laws. There were four measures on the ballot, and the results are:
Measure 1: To remove Pulte from the documents where possible and applicable, and all changes required because of new state laws. This measure passed with Yes votes totaling 1804, and No votes totaling 238.
Measure 2: To remove term limits on committee members. This measure did not pass with Yes votes totaling 987, and No votes totaling 1086.
Measure 3: To Prohibit Cumulative voting for Board member elections. This measure did not pass with Yes votes totaling 1498, and No votes totaling 554.
Measure 4: To Decrease the minimum rental term from 90 days to 45 days. This measure did not pass with Yes votes totaling 1196, and No votes totaling 872.
You will notice that none of the measures had total votes cast of 2123, and that is because people might not vote at all for one or more measures and there are some that only voted for quorum purposes but did not vote for any of the measures.
Given the results, the new CC&R’s and By-laws take effect immediately, so it will be much easier to know the current state code since our documents have been brought up to current state code requirements. We will make the changes to the website so you can download current documents.
The other 3 measures did not pass, so term limits for Committee members, cumulative voting in even years, and the minimum 90-day rental term were not changed.
As you can see, while Measure 3 did not pass, a large majority of Homeowners wanted to eliminate Cumulative Voting from future elections. This measure had 70.56% (71%) of homeowners that voted, approving the change to eliminate Cumulative Voting. I do believe 71% is a significant majority, but it took 82.9% (83%) of those voting to make the change happen.
Consequently, I have been reviewing the Civil Code to determine what can be done given these facts.
Civil Code Section 4275 allows for the HOA to Petition the Court to approve a change in the By-laws given certain facts. Clearly the Civil Code understands and has provided for a process to implement a change in the By-laws given that trying to pass such changes might be difficult for the HOA with the minimum vote requirements. If you Internet search on ‘Civil Code 4275’ you can read the section that describes this process.
I will be placing this item on the January Agenda for a Board vote to petition the court to eliminate Cumulative Voting given that 71% of the homeowners that voted wanted it to be eliminated. I do believe that 71% represents accurately the opinion of the entire HOA and requesting the court that Measure 3 pass will be in the best interest of the HOA and the significant majority of the homeowners. The Board will vote on this action at the January meeting.
If you have further questions, please let me know.