Homeowners and Suspended Voting Rights
The Colorado Court of Appeals recently upheld a ruling that allows a homeowners association (HOA) to bar a homeowner with suspended voting rights from running for a board position. The case, Majersky v. LCM Property Management, Inc., highlights the importance of HOA governing documents and the authority they grant.
In this case, homeowner Gregory Majersky filed a lawsuit against the Summerfield Villas HOA, alleging his constitutional rights were violated when he was prohibited from running for the board due to delinquent assessments. Majersky claimed that only the board had the authority to suspend voting rights and argued that the board had not explicitly delegated this power to the property manager, even if such delegation was allowed.
LCM Property Management defended its actions by pointing to the HOA bylaws, which explicitly allowed the suspension of voting rights for delinquent homeowners and the delegation of enforcement powers to a community manager or independent contractor. The trial court dismissed Majersky’s claims, ruling that suspending voting rights could reasonably extend to barring delinquent homeowners from board candidacy.
The court reasoned that a board member without voting rights would face inherent conflicts of interest and be unable to effectively fulfill their fiduciary duties. This ruling emphasizes the importance of financial responsibility and good standing in ensuring that board members act in the association’s best interests.
Majersky appealed, but the Colorado Court of Appeals affirmed the lower court’s decision. The appellate court concluded that suspending voting rights inherently disqualifies homeowners from seeking board positions, as their lack of standing creates logistical and ethical challenges for the association.
Implications for Maryland Homeowners
While this case occurred in Colorado, it raises questions relevant to HOAs nationwide, including Maryland. The Maryland Homeowners Association Act (MHAA) permits HOAs to suspend voting rights for delinquent members if the governing documents allow it. However, the MHAA does not explicitly state whether such suspensions disqualify homeowners from board running.
Typically, HOA bylaws and governing documents outline the qualifications for board candidacy. Many require members to be in “good standing,” which includes being current on assessments. This provision ensures that board members uphold financial responsibilities and prevents conflicts of interest, as delinquent members could face challenges representing the community’s financial interests.
Strengthening HOA Governance
For HOAs, clearly defining voting rights and board candidacy requirements in governing documents is critical. Associations should also ensure that bylaws explicitly state whether enforcement powers, such as suspending voting rights, can be delegated to managers or other contractors.
If you or your HOA have questions about governing documents or enforcement, it is advisable to consult with an experienced HOA attorney. Attorneys can help clarify existing provisions and propose amendments that better align with community needs and legal standards.
Oliveri & Larsen can assist with drafting and enforcing bylaws. Call 410-295-3000 or contact us online to schedule an initial consultation. We serve clients throughout Annapolis, Ocean City, Anne Arundel County, Baltimore County, Baltimore City, Calvert County, Harford County, Howard County, Kent County, Queen Anne’s County, St. Mary’s County, Worcester County, and the upper and lower Eastern Shores of Maryland.