Discussion Paper
13 June 2009
Subject: CLMHOA Board of Directors Term Length
Background: The CLMHOA By-Laws specify that the term length for the
seven Board members will be two years. The current Board has passed a
motion to amend the By Laws to change the board term length to three
years. This paper discusses potential advantages and disadvantages of
the proposed By-Law amendment. The paper is intended to stimulate
community discussion and gain support for the Board’s motion.
Discussion: The two year term length for the seven member Board requires
that no less than 42 % of the members are changed each year. This
percent turn over is not conducive to the continuity of plans and
purposes of the Board. Two year terms are not a fatal flaw. However, a
three year term will level the turn over thereby promoting year to year
continuity and even handedness from Board to Board.
The Community Associations Institute (CAI) recommends that HOA Board
members serve for a period of three years. The specific justification
for this recommendation is not stated. It may be assumed that CAI’s
recommendation is based upon their experience dealing with HOA Board of
Directors across the country.
Implementation of a three year term will decrease the number of
candidates to be recruited to run for election on an annual basis due to
the limited vacancies each year and will facilitate a competitive
campaign.
Many of the CLHOA Committees have extended the term for membership to
three years. The specific justification for this extension has not been
formally recorded however it is widely accepted that the extension was
needed to ascertain cohesive actions and to extend the “memory” of the
committee.
The three year term may be intimidating to prospective candidates for
the HOA Board. This year’s Nominating Committee has met with five
of the seven candidates and not one has expressed any issues with a
three year term.
Extended terms may allow a particular Board member to exert undue
influence on projects or programs that he/she favors. The By-Laws have
provisions that require the Board to act based on majority votes.
If the By-Laws amendment is approved the three year term would be
implemented as follows: For those elected in 2009, two candidates
elected with the highest number of votes take the three year terms and
the other two take the two year terms. The 2009-2010 board would look
like this:
Three members: 2008-2010
Two members: 2009-2011
Two members: 2009-2012
Therefore, beginning with the election in 2010, all new board members
will serve for three years.
The By-Law amendment proposal will appear on the 2009 Annual Meeting
ballot as follows:
Amend the BY-LAWS OF CYPRESS LANDING HOMEOWNERS ASSOCIATION, INC.
Article II Section 2 second paragraph third sentence to read, “all other
directors selected by election shall be elected for three (3) year
terms”.
VOTE: FOR ____________
AGAINST__________