Indiana Bill HB 1074
Did you know that Governor Eric Holcomb just signed into Indiana legislation a bill that will make proxy voting so much easier for homeowners associations? Yes, indeed. Per bill HB 1074, owners can now fax or email proxies for meetings. The bill provides that proxies may be submitted by hand delivery, USPS mail, fax or email. If you are unfamiliar with proxies, they are a type of absentee voting and will allow homeowners to vote for board members by returning a proxy rather than being there in person for the vote.
Bill 1074 also addresses the case-by-case matter about the authority of the Board when there was not a quorum at the last election meeting. In a scenario when a meeting is called in accordance with the requirements of the association’s governing documents and the purpose of the meeting is the election or appointment of members of the board of directors, but the number of members attending the meeting does not constitute a quorum. The bill provides the members of the board at the time of the meeting may continue to serve until their successors are selected and qualified, regardless of the length of any board member’s term or the number of terms served. The bill further provides that the failure to achieve a quorum at a meeting does not exempt any member from otherwise abide by covenants regulating the use of real estate or the payment of assessments.
Proxy voting must be handled properly or there can be legal implications for HOAs. Homeowners should receive the proxy information in advance via mail describing the issues to be voted on. Additionally, the HOA is legally required to send details of all items to be discussed at annual meetings and a copy of the HOA’s annual report.
Examples of the type of information found on the proxy:
- name of the association
- the word proxy under the name of the association
- a statement that ____________ is the person’s proxy for the meeting
- all issues that are to be voted on at the meeting
- a place for the member to check “yes” or “no” or a place to vote for any candidates being considered for office
- a statement letting homeowners know the date the proxy is good for
- a place for the member to sign and date the proxy
A valid proxy MUST include full disclosure of all important information regarding the upcoming homeowners vote.
Community Management Services, Inc. (CMS) is happy to assist HOAs throughout Central Indiana with their requirements for annual meetings, annual reports and proxy mailings. Have questions regarding HOA proxy voting? Give us a call. We’re happy to help.