Many people have questions about “quorum” and how it affects an HOA’s operations. Quorum is defined by Oxford as “the minimum number of members of an assembly or society that must be present at any of its meetings to make the proceedings of that meeting valid.” In an HOA, the majority or supermajority rules, meaning that if the majority or supermajority of members do not support something, it cannot happen. This principle is what quorum refers to.
In the mid-2000s, owner-member participation in HOAs was high, but as more properties entered the rental market and the recession took hold, participation began to decline. Failed elections due to apathy are now common. Although low participation is often viewed as a vote in favor of the status quo, the state has opened up the courts to reduce quorum and make final determinations. However, this can be expensive and time-consuming. Additionally, Association Board members may be hesitant to take action due to their egos.
Fortunately, after years of lobbying, Assemblyman Tri Ta of Orange County has introduced AB-1458, which rewards those who participate and eliminates the need for supermajority and majority requirements. Quorum would be determined by the majority of those who participated, not of all members. If 20 people vote and 11 are in support, that is quorum. If you do not like the outcome, you have only yourself to blame for not voting.
As the process of making AB-1458 into law is a long road, you can follow its progress here: https://leginfo.legislature.ca.gov/faces/billHistoryClient.xhtml?bill_id=202320240AB1458.
If this bill is signed into law it will negate the need for Corporations Code section 7515 petitions in relation to Director elections further saving owners and HOAs money.
We thank Assemblyman Ta for introducing this bill.
** UPDATE: Amended in the Assembly to increase from members present to at least 20% participation to meet quorum absent a lower percentage authorized by the Association’s bylaws.