[GA] Can an HOA board convert to a POA without homeowner approval and can residents legally reverse it?

GA Real Estate Law

Liz

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Normally a change like that would require public notice and an actual vote.

There is technically a right for members to sue the board if they are not acting in their best interest. First, checking the bylaws thoroughly to be clear on all the rules and how the vote should be done is also helpful.

You would start by thoroughly reviewing your community's governing documents, including the bylaws, covenants, and any other relevant agreements. Look for specific provisions about how changes like adopting a POAA should be handled, including requirements for notice (GA Code § 14-3-705) and voting (GA Code § 14-3-702)(GA Code § 14-3-707) and for amendments. That document is supposed to be how everything is run. If there is a method to easily vote them out, for example, that can avoid a more lengthy suit.

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Can a GA POA be rescinded by the property owners in the community if the board decides to change from an HOA to a POA surreptitiously without the homeowners' consent? Our covenants say that the time to create a POA has expired since the declarant (the builder) changeover happened over a year ago.

Lexi, Chatbot

I understand that you're concerned about the changes in your community's governance. Can you please confirm if you are a homeowner in this community?

Yes.

Lexi, Chatbot

Have you already attempted to address this issue with the board or any other homeowners?

We are in the process of doing so, but our board and the property management company have lawyers to represent them and we don’t. They are all in favor of the POA and have been acting in secret and lying to the community about it.

Lexi, Chatbot

Is there anything else the real estate lawyer should know before I connect you? Rest assured they’ll be able to help with your POA concerns.

Yes.

Liz

Hi there! My name is Liz, and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns. So I can best help, did the board hold any meetings for the change?

Are you licensed in GA?

Liz

I am not, as we can only provide information. We are all over.

I’m afraid of this getting back to our property management company’s attorneys.

Liz

I am in PA, if that helps with that fear. So I am not connected to them.

The meeting they held was just to tell us they had already adopted it. By then, they were already lawyered up.

Liz

Got it, thanks for sharing that.

The new property management company hired by the board (announced at a previous meeting) started issuing a lot of violations, and then all of a sudden we got an email announcing the next meeting. On the agenda for that meeting was a statement that they had adopted the POAA.

The POAA is voluntary and should include things like a vote of association membership. There was no vote. The community wasn’t involved.

Can you help me form a plan of action? We want to get rid of the POAA, the board, and the management company. We would also like to amend the covenants so this can’t happen again.

Liz

It sounds like you're in a tough spot with the board's decision to adopt the POAA without a vote.

Liz

Normally a change like that would require public notice and an actual vote.

Can you review the document if I share it?

Liz

The system here doesn't allow attachments unfortunately. I know you're concerned with the HOA's attorney, but have you been to any locals?

Many of us have reviewed it and disagree with their lawyer’s interpretation.

We are looking for a lawyer, but we are having a hard time finding one that doesn’t already represent a POAA or who doesn’t just do signings.

Liz

Are you near Atlanta? Their bar has a referral service that can be helpful. If not, your county likely has a bar association too.

I am near ATL.

Liz

So the ATL bar referral can be helpful. You could also reach out to the law school at Emory to see if anyone would be interested in an HOA case.

Okay. Thanks.

Liz

You're very welcome.

Any other advice? What is your feeling about this? Is it a lost cause?

Liz

It can often be an uphill battle, but with making sweeping changes without even notice to homeowners until it's done, and no real right to contest, due process is not being served.

Liz

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