Proxy Voting in HOAs: What is it and How is it done?
The annual meetings of homeowners associations (HOA) is when the major changes are voted on in the for the community. Things such as assessments, election of board members, amendments and changes to the governing documents to name a few things. When thinking about annual meetings for HOAs hitting quorum (minimum number members needed to be present for a meeting to be valid) is necessary to vote and make changes within a community and is the most common and one of biggest problems. Although most homeowners live in their community there’s no guarantee they can attend every meetings to vote on all issues. The homeowners might have competing obligations that prevent their physical attendance. When this occurs proxies are essential. A proxy is a document that allows someone usually a board member to appoint someone else to represent and vote on their behalf at meetings. Proxies are particularly useful when the homeowners cannot attend in person and when electronic voting is not an option. With Proxies this makes certain the necessary number of votes are present to achieve quorum and allow business to occur during the annual meetings.The rules of quorum and proxies should be found within the HOA's governing documents.
Who Can Be Appointed as a Proxy?
Any homeowner within a HOA can typically be appointed as a proxy, however exceptions may occur based on new state laws and governing documents. When asking someone to be your proxy you want to make sure they are trustworthy and you can be more certain of this person votes align with your preferences. Some good ideas are of choices include friends, spouses, neighbors, and sometimes board members. Depending on laws and rules, a proxy can be appointed to more than one person make sure to talk to your property manager to make sure everything is being done correctly.
How Does Proxy Voting Work?
The biggest thing is proxies must be assigned in writing. There are standard templates available with the information required for all proxy documents. The proxy designation must include at least details about the homeowner giving the proxy as well as the recipient, and the date for the meeting. Each meeting requires a new proxy form as previously designated proxies cannot be reused.
Types of Proxies:
There are two main types of proxies:
- Directed Proxy: The proxy holder votes only on specific issues as directed by the proxy giver.
- Non-Directed Proxy: The proxy holder has discretion to vote on all issues as they see fit.
Using Proxies Appropriately
The best practices for proxy voting include following the HOA's governing documents as well as state and local regulations. It is also a good idea to make sure the proxy holder is transparent of being a proxy holder. The designating homeowner receiving the proxy should provide a copy of the proxy designation document to the proxy holder. If a homeowner wants to be a directed proxy it is a good idea to keep multiple copies of the document can help ensure the proxy votes as intended as well as use different colored ballots for proxies to easily identify and evaluate their votes.
Final Thoughts
Navigating proxy procedures can be complex, especially with varying bylaws and state regulations. Consulting with your property manager or using using a system like ElectionBuddy, can streamline the voting process and ensure fairness. If you have questions regarding this in your HOA reach out to PMI Cross Timbers and we will be happy to help guide you in this process. With guidance and support you can manage elections and proxies with confidence and ease.
If you are uncertain about the laws in Texas regarding this or other issues you can use the following website:
https://guides.sll.texas.gov/property-owners-associations/meetings-voting
