The HOA annual meeting is an important yearly gathering where major events and presentations take place. Homeowners and board members alike should attend this meeting, as it plays an essential role in decision-making and keeping everyone in the loop. This is a guide to the annual meeting of an HOA.
What is the HOA Annual Meeting?
The homeowners association annual meeting is a meeting of all the members of an HOA. It includes both board members and homeowners. As its name suggests, this meeting takes place once every year. Other names for this meeting include membership meeting and general meeting.
What is the Purpose of an HOA Annual Meeting?
The purpose of the HOA annual meeting is to discuss community matters and review the past year’s activities. It is also where the HOA board presents the annual budget and where homeowners elect new board members. Due to the activities that happen at the meeting, it serves as a key event for engagement and governance.
Homeowner participation is of great importance at the annual meeting. Elections take place here, so attendance and votes are crucial.
Furthermore, a quorum is required for the meeting to proceed, and annual meetings require a quorum of all voting members. This is unlike a board meeting, where only a quorum of board members is typically necessary.
What Happens in the HOA Annual Meeting?
Although the exact events and flow can vary, the annual meeting of an HOA typically covers the following:
- Roll call or attendance
- Quorum verification
- Approval of the previous meeting’s minutes
- Presentation of reports
- President’s report
- Manager’s report
- Financial reports
- Committee reports
- Annual budget
- Board elections
- Open forum
- Closing and next steps
Is the HOA Annual Meeting Required?
Whether or not an annual HOA meeting is required depends on state laws and the governing documents. Several states require HOAs to hold annual meetings. This includes Texas, where Section 209.014 of the Texas Property Code requires annual membership meetings.
If state laws are silent, homeowners should turn to their governing documents. Specifically, an HOA’s bylaws should dictate whether or not the association must hold an annual meeting of its members.
HOA Annual Meeting Requirements
The requirements of an HOA annual meeting will also depend on state laws and the governing documents. Homeowners and board members should refer to their bylaws for specific provisions.
In general, there are three aspects of the annual meeting worth noting: the notice of the meeting, the agenda, and the minutes.
HOA Annual Meeting Notice
Homeowners associations must give written notice of the annual meeting. The exact timeframe, delivery method, and required details can vary from one community to another.
In Texas, Section 209.0056 states that annual meetings where elections will take place must have written notice ahead of time. The HOA must send this notice no later than 10 days before the vote and no earlier than 60 days before it.
If homeowners can vote, then every homeowner in the HOA must receive notice. On the other hand, if only certain homeowners can vote, then only eligible voters need to receive notice.
The notice must include the date, time, and venue of the meeting. If there is an option to attend virtually, details on how to participate must also be included.
HOA Annual Meeting Agenda
For most HOAs, it is mandatory to send a copy of the meeting agenda along with the notice of the meeting. This annual HOA meeting agenda should include all the points of discussion and events that will take place.
At the meeting itself, the agenda provides an organized and structured approach. Board members should stick to the agenda and avoid straying from it.
HOA Annual Meeting Minutes
Homeowners associations must document every meeting, including the annual meeting. To do this, the secretary must take minutes of the meeting. The minutes should not be a transcript or play-by-play of the meeting’s events or discussions. Instead, it should provide a general outline without bias or opinion.
Can the HOA Annual Meeting Be Cancelled?
Typically, an HOA may cancel its annual meeting under certain circumstances. Additionally, it must follow proper procedure for the cancellation. State laws and the governing documents of an HOA will dictate these.
What can trigger a cancellation or postponement of an annual meeting? These include emergencies (public health emergencies, natural disasters, etc.), lack of quorum, or facility issues.
If it’s necessary to cancel the annual meeting, the board must notify the members and reschedule the meeting as soon as possible. The HOA must also document the reason for the cancellation. It is crucial to comply with state laws and the association’s bylaws.
What If the HOA Board Fails to Hold an Annual Meeting?
In Texas, homeowners associations must hold at least one meeting of the membership per year. If the board fails to hold one or cancels a meeting without rescheduling, homeowners can take action.
According to Section 209.014 of the Texas Property Code, any homeowner can step in and demand an annual meeting. To do this, the homeowner must send a written request via certified mail (with proof of receipt). The homeowner must send it to both the HOA’s registered agent and the HOA’s official address.
It is also essential to send a copy of the request to all other homeowners. Once the board receives the demand, it has 30 days to schedule the meeting.
If the board still fails to do so, then at least three (3) homeowners can create an election committee to take action themselves. This committee must file written notice with the county clerk in the county where the HOA is located.
HOA Annual Meeting No Quorum, What to Do?
A quorum is the minimum number of members required to be present for a meeting to proceed. Without a quorum, an HOA can’t conduct association business, including the annual meeting. The meeting itself may still informally take place, but actions and decisions taken at the meeting aren’t binding.
When there is no quorum, an HOA would simply need to reschedule the meeting. It’s important to check the governing documents for additional guidance, too. Moreover, the board should document the lack of quorum before sending a new notice for the rescheduled meeting.
Board members should then encourage homeowner participation. Increasing attendance is crucial at this point so that the HOA can continue its operations. To do this, the HOA should advertise the meeting thoroughly, speak to homeowners in person, and even host a social event to make the meeting more exciting.
For the Success of the HOA
The HOA annual meeting is instrumental in continuing the operations of a community. Without this meeting, board members can’t make decisions or take action and homeowners can’t vote on new leaders. Everyone should make an effort to attend their annual meeting.
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