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HOAElection Process

The document provides guidelines for homeowners association (HOA) elections, including the roles of the Ombudsman’s Office, the process of nomination, and the election procedures. It outlines the requirements for board organization, including the election of board members, eligibility criteria for candidates, and campaigning regulations. Additionally, it details the rules regarding ballots, including the process for sending and receiving them, and the conditions under which political signs may be displayed.

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Malvin Rito
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0% found this document useful (0 votes)
56 views44 pages

HOAElection Process

The document provides guidelines for homeowners association (HOA) elections, including the roles of the Ombudsman’s Office, the process of nomination, and the election procedures. It outlines the requirements for board organization, including the election of board members, eligibility criteria for candidates, and campaigning regulations. Additionally, it details the rules regarding ballots, including the process for sending and receiving them, and the conditions under which political signs may be displayed.

Uploaded by

Malvin Rito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 44

1

Understanding HOA Elections


Rev. 03/07/2022
2

▪ Staff in the Ombudsman’s Office is prohibited from providing


legal advice. All Materials produced and provided to the public
are for informational purposes only and do not serve as legal
advice.
▪ Should confusion arise requiring the interpretation and
application of the law to your association's specific
circumstances, a legal opinion from a qualified attorney may
be necessary.
▪ Please review the course calendar, training request form, and
presentations published on the training webpage to gain an
understanding of additional opportunities for education and
training. See our training webpage at
http://red.nv.gov/Content/CIC/Program_Training/.

Office of the Ombudsman for CICCH


3

Agenda
➢ Declarant Control
➢ Board Organization
➢ Nomination
➢ Campaigning
➢ Ballots
➢ Election
➢ Removing a Board Member

Office of the Ombudsman for CICCH


4

Declarant’s Control
NRS 116.31032(2)
➢For associations of 999 or less:
➢Not later than 60 days after 25% of units which may be created have been
conveyed to unit owners
➢ 1 member, not less than 25%, of board must be elected by unit owners other than
declarant.
➢For associations larger than 999:
➢Not later than 60 days after 15% of units which may be created have been
conveyed to unit owners
➢ 1 member, not less than 25%, of board must be elected by unit owners other than
declarant.
➢Regardless of association size, not later than 60 days after 50% of units
which may be created have been conveyed to unit owners
➢not less than 1/3 of board must be elected by unit owners other than
declarant.
Office of the Ombudsman for CICCH
5

Declarant’s Control continued


NRS 116.31032(2)

➢Declarant’s control terminates:


➢Not later than 60 days after:
➢ 75% of units in a community with 999 units or less have been conveyed to unit
owners;
➢ 90% of units in a community with more than 999 have been conveyed to unit
owners.
➢5 years after all declarants have ceased to offer units for sale;
➢5 years after all declarants last exercised the right to add new units; or
➢The day the declarant provides notice to unit owners, via mail and email, and
records an instrument voluntarily surrendering all rights to control activities of
the association.

Office of the Ombudsman for CICCH


6

Board Organization
NRS 116.31034(1)

➢Unit owners shall elect an executive board of at least three directors.

➢All executive board members must be unit owners.

➢Newly elected members of the executive board take office immediately.

➢At the next executive board meeting following the election, directors
appoint officers in accordance with the bylaws.
➢Unless the governing documents say otherwise, officers are not required to
be unit owners however
➢ non-board member officers have no voting rights. NRS 116.3106

Office of the Ombudsman for CICCH


7

Board Organization: Bylaws


NRS 116.3106

➢Specify:
➢the required number of executive board members (at least 3);
➢the titles of the officers (president, treasurer, secretary, etc.);
➢the qualifications, powers, duties, terms of office and manner of electing and
removing officers and board members; NRS 116.31036
➢board powers that may be delegated to other persons such as a CAM;
➢procedural rules for elections;
➢meeting procedures (if different than Robert’s Rules); and NRS 116.3109
➢the month, time, and place of the annual Unit Owners Meeting.

Office of the Ombudsman for CICCH


8

Board Organization: Terms of Office

➢The executive board may NOT determine the qualifications, powers,


duties, or terms of office for board members. NRS 116.3103(2)(d)

➢Terms of office are designated in the Governing Documents (Bylaws).


➢Not more than 3 years, but NRS 116.31034(2)
➢ No limit on number of terms in NRS but may be limited by Governing Documents.
➢Terms MUST be staggered.

Office of the Ombudsman for CICCH


9

Knowledge Check

1. The period of declarant’s control terminates __ years after all declarants


have ceased to offer units for sale.
2. The association must have at least __ board members.
3. Which governing document specifies the qualifications, powers, duties,
and terms of office for board members?
4. The term of office of a member of the executive board must not exceed
__ years.

Office of the Ombudsman for CICCH


10

Nomination
NRS 116.31034(4)

➢Methods of nomination:
➢Self nomination,
➢By board member, and/or
➢By nominating committee established by the association.
➢Notice of eligibility must be mailed or emailed to each unit owners’
designated address not less than 30 days before the ballots are created.
Includes:
➢Eligibility requirements;
➢Nomination & Disclosure forms; and
➢Implementation of Duly Elected option (if applicable).

Office of the Ombudsman for CICCH


11

Nomination: Eligibility
NRS 116.31034(1)&(14)

➢A candidate must be either:


➢A unit owner,
➢An officer, employee, agent or director of a corporate owner of a unit,
➢A trustee or designated beneficiary of a trust that owns a unit,
➢A partner of a partnership that owns a unit,
➢A member or manager of a LLC that owns a unit, or
➢A fiduciary of an estate that owns a unit.
*If the candidate is not the record owner, they shall file proof of eligibility
under one of the above conditions.

Office of the Ombudsman for CICCH


12

Nomination: Eligibility continued


NRS 116.31034(10)&(12)

➢A candidate must not:


➢reside with, be married to, domestic partners with, or related by
blood/adoption/marriage to another person who is also a member of the
executive board or is an officer of the association;
➢ Unless the number of nominees is less than or equal to the number of vacancies;
➢stand to gain any personal profit or compensation from executive board
matters;
➢perform the duties of, or have their spouse, parent/child by
blood/marriage/adoption performing the duties of a community manager for
➢ their association;
➢ their master association, or
➢ any of their sub associations.

Office of the Ombudsman for CICCH


13

Nomination: Eligibility continued


NRS 116.31034(11)

➢A person who owns 75% or more of the units in an association MAY:


➢be a candidate or an officer of the association; and
➢reside with, be married to, domestic partners with, or related by
blood/adoption/marriage to another person who is also a member of the
executive board or is an officer of the association
*Unless the two board members together would constitute a majority of the
board.

Office of the Ombudsman for CICCH


14

Nomination: Form
NRS 116.31034(9)

➢Each candidate must prove their eligibility via a Nomination Form.


➢Each candidate must complete a Disclosure Form in which the candidate
must:
➢Make a good faith effort to disclose any financial, business, professional or
personal relationship or interest that would result or appear to result in a
potential conflict of interest; and
➢Disclose whether they are in good standing with the association.
➢ A candidate is not in “good standing” if they have any unpaid assessments or
construction penalties that are due to the association.
➢Both forms are sent by the candidate to the association.

Office of the Ombudsman for CICCH


15

Nomination: Form continued


NRS 116.31034(13)

➢If a person is not eligible to be a candidate for, or a member of, the board,
the existing board:
➢must not place their name on the ballot; and
➢must prohibit them from serving on the board or as an officer.
➢If a person is eligible, their disclosure statement will be sent to each unit
owner with the ballot.
➢In the event ballots are not prepared, disclosures are sent in the next regular
mailing of the association.
Template
http://red.nv.gov/uploadedFiles/rednvgov/Content/CIC/Program_Training/Flowcharts/candid
ate-nomination-form-template.pdf

Office of the Ombudsman for CICCH


16

Nomination: Duly Elected


NRS 116.31034(5)

➢The executive board, in compliance with the governing documents,


determines whether to allow candidates to be duly elected.
➢If it is implemented, the association must disclose the following:
➢That the executive board has authorized its use, and
➢If, at the closing period for nominations, the number of candidates is equal to
or less than the number of vacancies, then:
➢ The association will not prepare or mail any ballots; and
➢ The nominated candidates shall be deemed to be duly elected to the executive
board at the meeting of the unit’s owners at which ballots would have been
opened and counted.

Office of the Ombudsman for CICCH


17

Nomination: Appointments
NRS 116.31034(7) & NRS 116.3103(2)(c)

➢The executive board MAY, if the governing document so allow, fill any
board vacancies by appointment if:
➢there are not enough qualified candidates at the close of nominations; or
➢the vacancy occurs between elections.
➢Such appointments:
➢Are only effective until the next regularly scheduled election, and
➢Only for the remainder of that term in order to keep terms appropriately
staggered.

Office of the Ombudsman for CICCH


18

Knowledge Check

1. The nomination form must be sent out at least __ days before the
preparation of a ballot.
2. True/False: The duly elected process is automatic and required by NRS
116.
3. True/False: If vacancies remain at the closing period prescribed for
nomination, the CAM may appoint individuals to fill the vacancies.
4. In all events where the potential candidate is not the record owner, the
person shall ___.
5. What two disclosures must be included in the candidate disclosure
statement?
Office of the Ombudsman for CICCH
19

Campaigning: Candidate Information Statement


NRS 116.31034(17)(a)

➢Candidate information statement:


➢Must not be longer than a single, typed page and
➢Must not contain any defamatory, libelous or profane information.
➢The statement may be distributed at the association’s expense, to all unit
owners;
➢ with or separate from the secret written ballot.

Office of the Ombudsman for CICCH


20

Campaigning: Candidate Information Statement continued


NRS 116.31034(17)(b)

To allow the candidate to communicate campaign material directly to the


unit’s owners:
➢Upon written request, the association must provide the candidate a list of
mailing addresses for each unit, not including any names.
➢In paper format at a cost not to exceed 25 cents per page for the first 10
pages, and 10 cents for each additional page;
➢by compact disc for $5 or less, or
➢by email at no cost.
➢The candidate must provide a signed written statement to the
association, stating that the request for addresses is to communicate
campaign material only, and nothing else.
Office of the Ombudsman for CICCH
21

Campaigning: Candidate Information Statement continued


NRS 116.31034(17)(b)(2)(II)

➢The association or its agent may refuse the request for addresses, if
➢The candidate refuses to sign the written statement, or
➢If the candidate has already requested the association mail material at the
associations expense.

Office of the Ombudsman for CICCH


22

Campaigning: Additional Materials


NRS 116.31035

➢If an official publication of the association contains:


➢any mention of a candidate,
➢ the official publication must, upon request, provide equal space to all candidates.
➢views or opinions concerning an issue of official interest,
➢ the official publication must, upon request, provide equal space to opposing
views.
➢“Official publication” means:
➢An official website (social media);
➢An official newsletter or other similar publication that is circulated to each
unit’s owner; or
➢An official bulletin board that is available to each unit’s owner.

Office of the Ombudsman for CICCH


23

Campaigning: Interference
NRS 116.31034(16)&(18)

➢An association shall not adopt any rule or regulation that has the effect of
prohibiting or unreasonably interfering with a candidate’s campaign for
election.
➢That the campaign may be limited to 90 days before the date that
ballots are required to be returned.
➢An association and its directors, officers, employees and agent are
immune from criminal or civil liability for any act or omission which arises
out of the publication or disclosure of any information related to any person
and which occurs in the course of carrying out any duties required
pursuant to NRS 116.31034(17) and/or NRS 116.31035.

Office of the Ombudsman for CICCH


24

Campaigning: Displaying Political Signs


NRS 116.325

➢Defined as a sign which expresses support for or opposition to a


candidate, political party or ballot question in any federal, state, local or
association election.
➢Neither the board, nor the governing documents, may prohibit a unit owner
or occupant from exhibiting one or more political sign(s), subject to the
following conditions:
➢No political sign may be larger than 24x36 inches.
➢If the unit is occupied by a tenant, the unit owner may not exhibit any political
sign unless the tenant consents, in writing.
➢All political signs are subject to any applicable provisions of law.
➢A unit owner or occupant may exhibit as many signs as desired but not more
than one sign for each candidate, party or ballot question.

Office of the Ombudsman for CICCH


25

Ballots
NRS 116.31034(8)&(15)

➢If the number of candidates is greater than the number of vacancies, or if


the duly elected process is not authorized, the association shall prepare
and mail ballots to unit owners whose voting rights have not been revoked.
➢The officer specified in the bylaws shall cause a secret written ballot and
return envelope to be sent, prepaid by U.S. mail, to the designated mailing
address of each unit owner.
➢A 3-envelope system can be used to track receipt of the ballot and maintain
confidentiality.
➢Each unit owner must be provided with at least 15 days after the date the
secret written ballot is mailed to return the ballot to the association.

Office of the Ombudsman for CICCH


26

Ballots: Sending Multiple Ballots


AO 20-02 & NRS 116.31034(15)(a)

Question:
Is an association permitted to mail secret election ballots to multiple
addresses requested by a unit owner?
Short Answer: No
An association must send only one secret election ballot to a unit owner.
That secret ballot must be sent to only one address- EITHER
to the mailing address of the owner’s unit within the CIC, or
to the mailing address that the unit owner designates in writing.
Election ballots may not be sent to a unit owner at multiple addresses.

Office of the Ombudsman for CICCH


27

Ballots: 3 Envelope System


Association Address Unit Owner’s Address
1. Place
Stamp 3. Place
Here Stamp
Unit Owner’s Address Association Address Here

This envelope contains: Return Envelope


1. Ballot & Disclosure Statement
2. Secret Ballot Envelope
3. Return Ballot Envelope

Ballot Disclosure 2. Secret Ballot Envelope


Do not write any identifying marks on the ballot or on
Statement this envelope.

After completing the ballot,


place inside this envelope and seal it.
Place this sealed envelope inside the
included return envelope.
Office of the Ombudsman for CICCH
28

Knowledge Check

1. True/False: The candidate information statement may contain


defamatory, libelous or profane information.
2. True/False: To allow the candidate to communicate campaign material
directly to the units’ owners, the association must provide a list of names
and mailing address for all unit owners, when requested.
3. True/False: If an official publication contains any mention of a candidate,
that publication must provide approximate space to all who request it.
4. Is an association permitted to mail secret election ballots to multiple
addresses if requested by a unit owner?
5. Does NRS require the use of a 3-envelope system for elections?
Office of the Ombudsman for CICCH
29

Election: Counting Ballots


NRS 116.31034(15)

➢Ballots must be opened and counted at a unit owners’ meeting;


➢Either at the annual or a special meeting. NRS 116.3108(1)
➢A quorum is not required.
➢Only secret written ballots returned to the association, by the due
date/time, may be counted.
➢Neither incumbent members of the executive board nor any person whose
name is on the ballot may
➢possess,
➢be given access to, or
➢participate in the opening or counting of the secret written ballots.

Office of the Ombudsman for CICCH


30

Election: Counting Ballots continued

➢Except as otherwise provided in the declaration or bylaws, once a


completed ballot is delivered to the association it is not revoked
➢by death, NRS 116.311(9)(e)
➢disability, or
➢attempted revocation by the person who cast that vote.
➢Ballots and identifying envelopes are kept as records of the association for
at least 10 years. NRS 116.31175(7)

Office of the Ombudsman for CICCH


31

Election: Prohibited Acts


NRS 116.31107

➢A person shall not knowingly or willfully:


➢change or falsify a ballot;
➢forge or falsely sign a ballot;
➢fraudulently cast a vote;
➢reject or fail to count (if properly completed) a ballot;
➢destroy, deface, or otherwise invalidate the ballot of another voter; or
➢submit a counterfeit ballot.

A person who violates this section is guilty of a Category D Felony


(Enforced by criminal courts pursuant to NRS 193.130)
Office of the Ombudsman for CICCH
32

Election: Timeline
NRS 116.31034

➢At least 15 before the Ballots are opened, they are distributed.
➢Often sent with the Unit Owners Meeting notice
➢Not less than 30 days before ballots are prepared, nomination forms are
sent to the owners designated mail OR email address. Ballots
UO meeting Opened &
Notice & Ballots Counted at
Nomination Forms Mailed UO meeting
Mailed & emailed

30 Days (till ballots mailed) 15 Days Day 0


= 45 days before opened

Office of the Ombudsman for CICCH


33

Election: Post Election


NRS 116.31034(19)

➢Members of the executive board shall immediately take office upon


election or appointment.
➢Within 30 days after election or appointment of a new board member(s):
➢The CAM shall provide the new board member(s) with a copy of the
management agreement.
NRS 116A.620
➢Within 90 days of assuming office, each member of the executive board
shall:
➢read all governing docs,
➢read NRS 116 & 116A,
➢read NAC 116 & 116A, and
➢certify, via form 602, that they read/understand all, to the best of their ability.
Office of the Ombudsman for CICCH
34

Removing a Board Member


NRS 116.31036
➢Any member of the executive board, other than those appointed
by the declarant, may be removed by unit’s owners with or
without cause.
➢A removal election may be called by at least 10% of unit owners
who are eligible to vote (or any lower % specified in the bylaws).
➢Unit owners must provide, in writing, their qualifying unit
address, the date, and print and sign their name on a petition.
➢Once the required number of signatures are obtained, the
petition must be
➢submitted by mail, return receipt requested, to the association, or
➢served to the board or CAM by process server.
Office of the Ombudsman for CICCH
35

Removing a Board Member continued


NRS 116.31036

➢The board shall not adopt any rule or regulation which prevents or
unreasonably interferes with the collection of the required % of signatures.

➢Removals must be conducted by secret written ballot in the same manner


as elections.
➢All provisions and procedures for possession, opening, and counting of
election ballots apply to the removal process.

Office of the Ombudsman for CICCH


36

Removing a Board Member: Timeline


NRS 116.31034
➢No later than 90 days after the petition is received by the board, a special
meeting of the unit's owners must be held to open and count the ballots.
➢Between 15 and 60 days after a recall petition is received by the
association,
➢ballots for the removal MUST be mailed to each unit owner.
➢Unit owners must be provided at least 15 days to return the removal ballot.
Special meeting may occur anytime after this 15 days.
Petition 15 Ballots Due to Association
Received by Days
Association Deadline
Ballots Mailed

Day 15 Day 30 Day 45 Day 60 Day 75


Day 0 Day 90
15 Ballots Due to
Office of the Ombudsman for CICCH Days Association
37

Removing a Board Member: The Math


NRS 116.31036

In order for a board member to be removed by units’ owners:

A. At least 35% of the total number of voting members of the association


must cast a vote; and

B. At least 35% of the total number of voting members of the association


must vote in favor of removal; and

C. Those votes cast must also represent a majority of all votes cast.

Office of the Ombudsman for CICCH


38

Removal Math: Example 1

An association has 100 total voting members.

If 30 voting members cast votes and all 30 votes are in favor of


removing the board member, is that board member removed?

No. While the 30 votes represent a majority of all votes cast, it is


not 35% or more of total votes in the association.

Office of the Ombudsman for CICCH


39

Removal Math: Example 2

An association has 100 total voting members.

If 40 voting members cast votes and 30 of those votes are in


favor of removing the board member, is that board member
removed?

No. 30 votes in favor represents a majority of all votes cast, but it


is not 35% of the total votes in the association.

Office of the Ombudsman for CICCH


40

Removal Math: Example 3

An association has 100 total voting members.

If all 100 voting members cast votes and 40 of those votes are in
favor of removing the board member, is that board member
removed?

No. 40 votes is greater than 35% of possible votes in the


association, however, 40 votes is not the majority of all votes
cast.

Office of the Ombudsman for CICCH


41

Removing a Board Member: Additional Methods


NRS 116.31036

➢NRS 116.31036 IS NOT the only way to remove a board member.


➢Governing Documents may authorize additional methods for unit owners
and/or the board to remove a member of the board; so long as they do not
violate the protections in NRS 116.31036.

Office of the Ombudsman for CICCH


42

Knowledge Check
1. True/False: A quorum is not required to be present at the annual meeting
of the units’ owners to open and count the ballots.
2. True/False: An incumbent member of the executive board may possess,
have access to, and assist in the counting of the secret written ballots so
long as their name is not on the current ballot.
3. At what type of meeting must the secret written ballots be opened and
counted?
4. What happens if a unit owner passes away after they submit their secret
written ballot?
5. What percentage of unit owners must vote to approve the removal of a
board member for it to pass?
Office of the Ombudsman for CICCH
43

Conclusion!
➢ Declarant Control
➢ Board Organization
➢ Nomination
➢ Campaigning
➢ Ballots
➢ Election
➢ Removing a Board Member

Office of the Ombudsman for CICCH


44

Questions?

• http://red.nv.gov/ - Main Page

• CICOmbudsman@red.nv.gov – Email Questions

• http://red.nv.gov/Content/CIC/Program_Training/

Office of the Ombudsman for CICCH

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