There may be times when the board would like to reverse an HOA decision. When this happens, it is important to follow proper protocol. Some decisions can’t be overturned. While the board typically reverses decisions, homeowners also have options.
Why Would the Board Reverse an HOA Decision?
An HOA board may reverse a decision if it violates state laws, conflicts with the governing documents, involves procedural errors, is affected by new information, raises fiduciary duty concerns, is unenforceable, or follows a homeowner petition. Let’s discuss these reasons below.
1. Violation of State Laws
If a board decision doesn’t align with federal, state, or local laws, it must be reversed. The board must take immediate action to avoid exposure to potential liability.
For example, in Maryland, an HOA can’t effectively prohibit an owner from installing an EV charger on their own property (Section 11B-111.8). If a rule directly contradicts this, the board must overturn it.
2. Conflict with the Governing Documents
Decisions must conform to the association’s governing documents. For instance, if a rule conflicts with the CC&Rs, the board must reverse it to avoid problems. This is where hierarchy also plays a role. The CC&Rs take precedence over the operating rules, so if they don’t match, the CC&Rs control.
3. Procedural Mistakes
The HOA board must make decisions in accordance with the association’s requirements and procedures. Common violations include passing a policy during an illegal board meeting, without a proper quorum, or without enough votes. Such decisions must be reversed.
4. New Information
Board members may reverse a decision after new information comes to light. For example, if the board discovers that a contractor’s bid was inaccurate, they may overturn the decision to hire the contractor.
5. Fiduciary Duty Concerns
Board members have certain fiduciary responsibilities to fulfill. If they later discover that a decision breaches these responsibilities, they may overturn it to avoid liability and protect the community.
6. Unenforceable
Sometimes, HOA boards pass rules that they later realize are impossible to enforce fairly. This would lead to selective enforcement, which can expose the association to legal issues. To avoid this, the board can reverse the HOA decision.
7. Homeowner Petitions
If enough homeowners petition to repeal a decision or rule, the board may be compelled to obey. Such a petition shows that many owners don’t support the resolution, so enforcing it may be more difficult if the board ignores feedback.
Can an HOA Decision Be Overturned?
Generally, an HOA board can overturn or rescind its own prior decision, provided it complies with the governing documents.
There are a couple of ways this can happen. During the meeting itself, a board member who previously voted in favor of a decision may reconsider their position. Using parliamentary procedure, such as Robert’s Rules of Order, they may change their vote. This can change the outcome of the decision, leading to it being overturned.
Additionally, at a later meeting, the HOA board can move to amend or rescind a previously adopted decision. That said, this meeting must follow open meeting rules and notice requirements. It must also meet a quorum.
When Can’t the HOA Board Overturn a Decision?
An HOA board can no longer overturn a decision if it has already created a legally binding contract, incurred expenditures, or passed the deadline for reversal.
For example, the board’s original decision may be to hire a landscaping vendor. If the HOA has already executed the contract, then it can’t be reversed anymore. Canceling the contract before its expiration could lead to early termination fees or legal penalties for breach of contract.
Sometimes, homeowners have already spent money after acting on a board decision. This is what’s known as good faith reliance. In this case, the board generally can’t reverse a prior choice.
Finally, some governing documents impose time constraints for reversals. If the board misses this deadline, it may no longer be able to overturn the decision.
How Can the Board Reverse an HOA Decision?
To reverse an HOA decision, the board must check the governing documents, file a motion, hold a vote, and then notify homeowners of the change. Let’s break down each step below.
1. Check the Governing Documents
First, board members must review their CC&Rs and bylaws to ensure that they follow proper procedures when reversing a decision. The move must not violate any restrictions and must meet all requirements.
2. File a Motion
Next, a board member must request a motion to reconsider or rescind the decision. This motion must be formally made at a later meeting.
3. Hold a Vote
After the motion is seconded, the board then discusses it before holding a vote. If a majority of voters approve reversing the decision, then it passes. The original decision is no longer in effect.
4. Notify Homeowners
Finally, the HOA board must inform residents of the change. This notice must clearly state which decision has been overturned and the reasons behind the reversal. The meeting minutes must also reflect the motion and outcome.
What are the Ways to Reverse a Decision by the HOA Board?
Homeowners have a few options to reverse an HOA decision, including petitioning for a special meeting, protesting the decision, looking for a compromise, recalling the HOA board, and taking legal action. Let’s break these down below.
1. Petition for a Special Meeting
Homeowners may call for a special meeting if enough of them petition for it. The exact percentage will depend on the governing documents, but it typically ranges from 10% to 25%. This petition must clearly state the purpose of the special meeting.
2. Protest the Decision
Homeowners can object to a board decision by making their voices heard. They can send mass emails to the board or raise concerns during the open forum of a board meeting. These actions can push the board to overturn its ruling.
3. Look for a Compromise
Sometimes, homeowners push back on a decision simply because they don’t understand it. If they feel that the decision places an undue burden on them, owners can reach out to the board and find middle ground.
4. Recall the HOA Board
If the board consistently makes poor decisions, owners may initiate a board recall. This would require calling for a special meeting, voting out the current directors, and electing a new board. This new board can then reverse the prior decision.
5. Take Legal Action
When all else fails, owners can file a lawsuit or seek a court injunction to overturn the board’s choice. This is particularly effective if the decision violates state laws or the governing documents. Of course, lawsuits are lengthy and expensive, so they should be used as a last resort.
No Flip-Flopping
It is entirely possible to reverse an HOA decision even after the board votes on it. Still, it is important not to make a habit of vacillating between different courses of action for no reason. Board members must always do their due diligence before casting a vote.
Majerle Management, Inc. provides management services to HOAs and condo associations in Maryland. Call us today at (301) 220-1850 or contact us online to start your journey!
RELATED ARTICLES:
- Electric Car Charging In HOAs: Can It Be Restricted?
- HOA Board Tie Vote: How To Resolve A Deadlock?
- Neighbor Violating HOA Rules: Why A Clear Process Matters