Pine Hollow HOA Board Changes Bylaws Without Notification to Owners
The Pine Hollow HOA Board modified our bylaws on February 6, 2014. Why wasn’t the membership told that changes to the Bylaws were made? Doesn’t the membership have the right to be informed about changes to our governing documents? Do we not have the right to know what changes are being proposed and why? Even months after the change has been approved SOLELY by the board and filed in the county records, no mention has been made to the membership. State law requires that changes to the governing documents be posted on the HOA website. Yet this bylaw amendment is missing.
The wording of the change in the document is also very disturbing. The document states “Whereas the following amendment to the Bylaws has been approved by a majority of a quorum of the members at a meeting of members at which a quorum was present and certified by the President of the Association herein below.” This would lead people to believe that there was a vote of the membership for the bylaw amendment. This is simply not true. The membership never voted on this bylaw amendment, especially on February 6, 2014. The only members voting on this bylaw change was the Board itself. So “quorum” referred to must be a quorum of the board, not of the membership. Why is the language in the amendment not clear that it was the Board that passed it? It never came to the vote of the membership.
As previously pointed out, our bylaws state how they can be amended. Our bylaws do not give the Board the sole right to change the bylaws themselves. However, since our bylaws do not explicitly prohibit the Board from making changes at will, the Board is using a section of the Texas Non-Profit code to trump what our bylaws intended. The bylaws should not be changed by the whim of the Board, especially when such matters under consideration are not shared with the membership. Even afterwards, the membership has never been informed of these changes. With this power, the Board can do whatever it likes, including changes such as implementing pay for Board members.
As another example, at the time that this bylaw amendment was passed, it was evident that the Board appointed a non-member to an unexpired term. The amendment includes the following language, “Not withstanding the prior provision, any non-members serving as a Trustee at the time this amendment is enacted may serve the remainder of their term.”
If the Board is so willing to change the bylaws, then its time to change the bylaws to ensure protections for homeowners and stability of the Association.
These Bylaws are important to our community and its governance. They give guidance on how our HOA is supposed to operate and our rights as residents to define how we will be governed. It is time for the Board to use their new power to update our Bylaws to ensure that there are provisions:
- To explicitly prohibiting Board action alone from modifying the Bylaws.
- To allow residents to propose bylaw amendments.
- To create a Homeowner Bill of Rights which secures the following basic rights:
- Security against Foreclosure– An association shall not foreclose against a homeowner except for significant unpaid assessments, and any such foreclosure shall require judicial review to ensure fairness. Prohibit the use of the expedited foreclosure process. Even consider eliminating the Board power to foreclose against residents.
- The Right to Resolve Disputes without Litigation – Homeowners and associations will have available alternative dispute resolution (ADR), although both parties preserve the right to litigate.
- The Right to Fairness in Litigation – Where there is litigation between an association and a homeowner, and the homeowner prevails, the association shall pay attorney fees to a reasonable level.
- The Right to Be Told of All Rules and Charges – Homeowners shall be told – before buying – of the association’s broad powers, and the association may not exercise any power not clearly disclosed to the homeowner if the power unreasonably interferes with homeownership. Recently, the Pine Hollow HOA has adopted new fees but these fees have never been communicated to the entire membership. It would be nice if we had a list of all the things and the amounts that the HOA is now charging membership.
- The Right to Stability in Rules and Charges – Homeowners shall have rights to vote to create, amend, or terminate deed restrictions and other important documents. Where an association’s directors have power to change operating rules, the homeowners shall have notice and an opportunity, by majority vote, to override new rules and charges.
If our board truly believes in HOMEOWNERS FIRST and that the membership is the beneficiary of the Association, these are the first steps to create a community where the membership has protection and a voice.