Sometimes, dissatisfaction with how the board runs the community can push homeowners to pursue an HOA board recall. But removing a board member isn’t as simple as it seems. There are certain requirements and procedures that must be followed, plus a voting threshold to meet.
What is an HOA Board Recall?
An HOA board recall is a formal, legal procedure that allows homeowners to remove one or more elected board members from office before their term expires. While it is not common, a recall is typically the last resort when owners have grown tired or frustrated with a director’s actions or behavior.
Can Homeowners Remove a HOA Board Member?
Whether or not homeowners can remove a board member depends on state laws and the governing documents. In general, most communities allow members to remove a director. After all, owners must have a way to address board problems without resorting to legal action.
In the District of Columbia, the Nonprofit Corporation Act addresses board member recalls. According to Section 29–406.08, members have the power to remove directors. They usually don’t need a reason to do so, but the bylaws can require it if they want.
According to DC law, only those who elected the board member may remove them. This essentially means that board members can’t simply vote to remove a fellow director.
That said, there are some situations that work as exceptions. The board may remove a director if the latter is:
- Mentally incompetent as declared by a court,
- Has a felony conviction/s,
- Violated their fiduciary duties as determined by a court,
- Consistently absent from meetings (if the bylaws say this is grounds for removal), and/or
- No longer meets board eligibility requirements.
Most associations, including HOAs, condominiums, and cooperatives, operate as nonprofit corporations in DC.
Common Reasons to Recall the HOA Board
While homeowners can typically remove board members without cause, calls for a recall don’t just materialize out of nowhere. Understanding the common reasons for an HOA board recall will help directors avoid them.
1. Mismanagement of Association Finances
Financial concerns are one of the most common reasons owners push for removal. If they find that the board is constantly overspending, approving questionable contracts, and failing to collect dues properly, a removal is likely in the cards.
Board members also have certain financial obligations. A lack of financial transparency and failure to complete financial reports are both causes for removal.
2. Lack of Transparency
Speaking of transparency, board members must operate and communicate openly with residents. When a board member refuses to share information, owners might question the intention.
A board member doesn’t even have to be up to no good for trust to wane. Boards often face complaints such as refusing to share records, making decisions without input, and holding illegal board meetings.
3. Selective Enforcement of Rules
Owners may call for removal if they believe a board member is not enforcing the rules in a fair and consistent manner. For example, they might ignore violations by friends or neighbors, show favoritism in approving requests, and strictly enforce the rules against certain owners. Selective enforcement not only damages the board’s credibility, but it can also render the rules void.
4. Abuse of Authority
Some board members might abuse their position of power. They might threaten homeowners, harass residents, or strong-arm others into getting their way. When owners feel a board member is abusing their authority, they may push for removal.
5. Conflicts of Interest
Board members have a fiduciary duty to act in the best interests of the association. If owners believe a director is putting their personal interests first, they may seek removal.
Common examples include awarding contracts to personal business or relatives, voting on decisions that benefit themselves, or failing to disclose vendor relationships. There doesn’t even have to be an actual conflict of interest. Even the appearance of one can cause problems.
6. Failure to Perform Board Duties
Sometimes, a board member will simply stop fulfilling their roles and responsibilities. They could repeatedly miss board meetings, fail to respond to communications, or ignore their duties altogether. When owners feel like a board member is no longer active, they might call for a removal.
7. Violating Governing Documents or Laws
An HOA board recall can also happen if a board member always violates the law or the governing documents. Examples include violating election procedures, enforcing a made-up rule, and misusing the association’s funds. These types of violations not only expose the association to legal liability, but they can also lead to removal.
8. Personal Conduct Issues
Sometimes, a board member’s behavior might go a little too far. Owners might ask to remove a director if they constantly create conflict, disrupt meetings, or treat owners disrespectfully. Such behaviors can impede operations and cause owners to push for a change in leadership.
What is the HOA Recall Process?
Removing an HOA board member must follow requirements and procedures. Otherwise, the outcome would become invalid. Here are the steps for a smooth HOA board recall.
1. Review the Governing Documents
Before starting any removal process, the association should check its governing documents. These documents should indicate the following:
- Whether directors can be removed only for cause,
- What qualifies as a cause for removal,
- How meetings are called, and
- Voting requirements for removal.
2. Determine Authority to Remove the Director
Under DC law, only those who elected the director may remove them. This means that homeowners must vote on the removal. The board can’t simply vote among themselves to remove a fellow director.
3. Call a Meeting of the Membership
A petition to recall HOA board is often necessary. This petition will trigger a special meeting, which is required for removal. Petitions should be in written form and gather support from other owners.
4. Provide Proper Meeting Notice
Associations must provide a meeting notice beforehand. This notice must clearly state the purpose of the meeting: removing a board member. Other details include the date, time, and location of the meeting, the name of the director being considered for removal, and a statement that removal will be voted on.
5. Hold the Removal Vote
Recalling HOA board members requires a vote, which must take place at the meeting. Typically, the number of votes to approve the removal is the same as the number to elect the director. The bylaws should specify the percentage or the number of votes.
6. Address the Board Vacancy
If enough votes approve the removal, the director is officially out of the board. With a vacant seat, the association must then proceed to fill this position.
The governing documents should outline the procedures for this. That said, options typically include appointing a replacement until the next election or electing a new director at the same meeting.
7. Document the Decision
Boards must document everything, from the petition and the meeting notice to the votes to remove the director and to replace them. These must be outlined in the meeting minutes. It is also important to update any key records that list the removed director’s name.
Avoiding a Recall
An HOA board recall may seem drastic, but some situations definitely make it necessary. To avoid removal, board members must fulfill their roles consistently and transparently. Trust is essential, and alienating residents will only create problems.
TNWLC offers HOA management services to communities in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
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