Electronic voting is simple, convenient and cost effective. HOAs relied on electronic meetings and electronic voting to continue operations during the pandemic, but some associations have chosen to stick with those options, even though they don’t have to.
Table of contents
- Why e-voting works better for HOAs
- Not all states permit electronic voting
- E-voting rules by state
- Arizona
- California
- Florida
- Hawaii
- Illinois
- Maine
- New Jersey
- New York
- Texas
- Getting started
Why e-voting works better for HOAs
Voting is a critical component of HOA operations. Many big decisions require input from membership before the board can move forward with a plan or project. Plus, it gives owners an opportunity to determine how they want their money, paid in the form of assessments, spent.
But preparing for a vote takes a lot of time, money and organization. Unfortunately, after all that work, some communities still don’t have enough votes to reach quorum.
E-voting makes it easier for owners to vote, and it reduces admin work and costs associated with hosting meetings, too.
Convenient
People can do so much on their phones, so why not make it possible for them to vote using their mobile devices?
With a platform that supports e-voting, owners can vote from anywhere using their laptops or phones. This is really useful for snowbird communities since owners may live on the property for only half of the year.
Cost effective
With online voting you’ll save money on printing ballots and supporting documents, as well as postage. Those costs can add up to hundreds or even thousands of dollars over the course of a year.
The association will need to pay for the electronic voting software, and perhaps technology if your HOA intends to host virtual or hybrid meetings too. But the savings likely outweigh the costs, especially if you consider not having to reschedule votes due to the inability to reach quorum.
Automated
E-voting reduces the time admins have to spend collecting paper ballots, scrutinizing them and counting them.
Votes are processed automatically, and they tend to be more secure than paper ballots.
Not all states permit electronic voting
Before we get to state-specific voting rules, we acknowledge that not all states allow HOAs to vote electronically. These states include:
- Alabama
- Alaska
- Idaho
- Indiana
- Kentucky
- Louisiana
- Mississippi
- Missouri
- Nebraska
- New Hampshire
- New Mexico
- Oklahoma
- Rhode Island
- Tennessee
- Utah
- West Virginia
- Wyoming
Note that some states may have special requirements that must be met before e-voting can occur. Always consult state and local laws first before moving forward with e-voting. You can ask the association’s attorney to help you navigate this topic.
E-voting rules by state
Arizona
Unless prohibited or limited by the articles of incorporation or bylaws, any action that the corporation may take at any annual, regular or special meeting of members may be taken without a meeting if the corporation delivers a written ballot to every member entitled to vote on the matter.
The HOA must provide notice to members that a vote will be conducted by electronic means. The notice must also include information about how members can obtain and cast their ballots using other methods, including US mail and fax.
The online voting system must:
- Authenticate the member’s identity
- Authenticate the validity of each electronic vote
- Send a receipt to each member who casts an electronic vote
- Store electronic votes for recount, inspection, and review
California
E-voting is finally being permitted for director elections, amendments to governing documents, and votes to approve exclusive use of common areas. This comes into effect in 2025. Special and regular assessment votes must still be conducted by written ballot.
Members may change their voting method preference from electronic to paper ballots no later than the 90th day before an election.
HOAs must maintain a voting list indicating which members vote electronically and which use written ballots, and must also add to their annual policy statement information on how to opt out of (or, if applicable, opt in to) electronic voting.
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The HOA must notify each member of their current voting method, the email address designated (if applicable), and notice of the choice, deadline, and instructions on how to opt out of electronic voting, at least 30 days before the deadline to opt out of electronic voting.
The internet-based voting system must have the ability to:
- Authenticate the member’s identity
- Authenticate the e-ballot
- Transmit a receipt to a member who casts an e-ballot
Florida
A board resolution is required before e-voting may take place. The board resolution must provide that members receive notice of the e-voting option vote, establish reasonable procedures and deadlines for members to consent, electronically or in writing, to online voting, and establish reasonable procedures and deadlines for members to opt out of online voting after giving consent.
Written notice of a meeting at which the online voting matter will be considered must be mailed, delivered, or electronically transmitted to the owners and posted conspicuously on the property at least 14 days before the meeting.
Evidence of compliance with the 14-day notice requirement must be made by an affidavit executed by the person providing the notice, and filed with the official records of the association.
HOAs may conduct elections and other membership votes through an online voting system if a member consents, electronically or in writing, to online voting and if the following requirements are met:
- Each member’s identity can be authenticated
- Members can confirm, at least 14 days before the voting deadline, that their electronic devices can successfully communicate with the online voting system
- The voting system must support existing election and voting procedures laid out in the association’s bylaws
- The system must be able to authenticate the validity of each electronic vote
- The system must be able to transmit a receipt from the online voting system to each member who casts an electronic vote
- The system must be able to store electronic votes for recount, inspection, and review
Hawaii
The board may direct the use of an electronic voting device regardless of whether a secret ballot is used or required.
The electronic voting device, and all associated equipment, shall be isolated from any connection to an external network, including the internet.
The board must establish reasonable procedures to provide for the secrecy and integrity of votes, including but not limited to procedures that ensure the availability of a printed audit trail containing:
- The reference number of the electronic voting device
- Each common interest vote
- The vote that was tabulated
Illinois
HOAs may, upon adoption of the appropriate rules by the board, conduct elections by electronic or acceptable electronic means. Members may not vote by proxy in board elections.
Instructions regarding the use of electronic means or acceptable technological means for voting shall be distributed to all members no less than 10 days, and no more than 30 days before the election meeting.
The instruction notice must include the names of all candidates who have given the board or its authorized agent timely written notice of their candidacy, and must give the person voting electronically the opportunity to cast votes for candidates whose names do not appear on the ballot.
Members who submit a vote electronically may request to cast a ballot in person at an election meeting, and thereby void any vote previously submitted electronically.
Maine
There are no special e-voting requirements other than bylaws established by the HOA.
New Jersey
Electronic voting for board members must be allowed where the executive board allows electronic voting and members consent to electronic voting. A mailed ballot or an electronic ballot shall be deemed to be a proxy for purposes of determining a quorum for the meeting at which the election is conducted.
An association must provide members written notice of an election by personal delivery, mail, or electronic means, no less than 14 days and no more than 60 days prior to the meeting at which an election of executive board members will take place.
New York
A corporation may, if authorized by the board of directors, implement reasonable measures to provide shareholders not physically present at a shareholders’ meeting a reasonable opportunity to participate in the proceedings of the meeting.
Furthermore, reasonable measures can be made to enable shareholders to vote or grant proxies with respect to matters submitted to the shareholders at a shareholders’ meeting by means of electronic communication; provided that the corporation shall, if applicable:
- Implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of electronic communication is a shareholder of record
- Keep a record of any vote or other action taken by a shareholder participating and voting by means of electronic communications at a shareholders’ meeting. A shareholder participating in a shareholders’ meeting by this means is deemed to be present in person at the meeting
Reasonable measures with respect to participating in proceedings shall include, but not be limited to, audio webcast or other broadcast of the meeting, and for voting, shall include but not be limited to telephonic and internet voting.
Texas
If authorized by the certificate of formation or bylaws of the corporation, a member vote on any matter may be conducted by mail, by facsimile transmission, by electronic message, or by any combination of those methods.
Getting started
Before e-voting can be offered to HOA members, it’s up to the board to decide if this is something they want for the community. While many associations like having this option, it’s not for everyone.
If it is something the board wants to pursue, the next step is to identify e-voting requirements established by state legislature and/or HOA bylaws.
The board will need to think about how the online voting process will be conducted. They must consider procedures, deadlines, how owners will consent to e-voting, etc.
After that, the HOA will need to purchase an e-voting platform that can meet all of the association’s requirements.
Condo Control, for example, has a very simple e-voting platform that can be used in combination with virtual or hybrid meeting software.
A reputable online voting software company will always offer a no-obligation demo so that boards can see how it works before they make a final decision. So make sure to ask questions and preview the platform before making your choice.
Conclusion
E-voting isn’t going away. An online voting system offers convenience to owners, and lightens the workload for staff who must organize meetings and count ballots. If your HOA is allowed to vote electronically, consider taking advantage of this option.