How Important is the Annual Meeting?

Admin

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What if a director on the Board of Directors decides that the association won’t hold an election and annual meeting? What are the consequences? 


Annual meetings, as their name suggests, is a meeting called once a year. In that meeting, members vote on association business that requires a membership vote (amendments to dedicatory instruments and elections, etc.). But, are HOAs required to call an annual meeting? Yes, a resounding yes. 


There are two code sections that deal with this subject. Texas Business and Organizations Code §22.154 and Texas Property Code §209.014. 22.154 states that the nonprofit corporation must call an annual meeting. 209.014 states that the association must hold an annual election. 


Under the Property Code, if an association does not hold an election, the membership may demand that the association hold an election in writing. If the association still does not hold an election as demanded, the membership can then move forward with appointing an election committee and hold their own elections. This action can essentially force the association to have a new board of directors which will force out the “original board of directors”. 


209.014 is very specific in its requirements. The code section needs to be followed with intention to be effective.


The Bylaws must be followed, or the association may be at risk of falling to the code sections referenced above. Annual meetings and elections are essential to the association conducting business. These code sections were drafted and passed for a reason. Members need to elect representatives that reflect what the membership wants as it pertains to the association.

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By Admin December 1, 2025
It is time to put up holiday decorations!! I love this time of year! The week of Christmas, my family and I go out and look at all of the holiday decorations and lights. But, what about the HOA? Some HOAs, that have the budget for decorations, might put up lights and bows in the HOA common area. Most HOAs hire someone to put and take down décor. I am sure a lot of people wish they could hire someone for their own personal decorations. No one wants to get that dreaded letter from the HOA stating that they need to take down decorations. No HOA wants to be considered a scrooge at the holidays either. I read an article from 2019 where a Texas HOA asked a couple to take down their holiday decorations because they were installed too early. The mother was pregnant with their third child and they needed to put the decorations up early because she was due to have her baby a month later. Oops! I think that whole situation could have been avoided if both parties communicated with each other. Here are some tips regarding how to avoid those uncomfortable situations. Draft guidelines if the declarations allow for it. In those guidelines, the HOA can set a timeline for when decorations can be put up and when they need to be taken down (be reasonable!). The guidelines can also address any nuisance concerns (such as lights and other noisy or distracting decorations that can cause issues). Don’t limit the types of decorations or the subject matter. Limiting some colors or certain types of decorations used in specific religions or cultures can actually open the Association to liability. Using specific identifying words in any guidelines can alienate homeowners. The Association should air on the side of caution when prohibiting decorations and the wording should be broad enough to include everyone. Lastly, communicate with each other! If there are decorations that are causing issues, talk to neighbors about it. If you want to install decorations before the guideline dates, call the HOA or management company. Give them the reason why early installation is needed. The point is to be inclusive and keep the Association safe and happy. I hope everyone is safe and happy during the holidays! 
By Admin December 1, 2025