After a hearing conducted by the Bankruptcy Court on Thursday, May 12, we are now ready to take this matter to you, our members, to vote on the two fees that will be required to support the Plan of Reorganization.
We anticipate conducting the vote beginning Tuesday, June 28th through July 28th with a special meeting of members to certify the vote planned for Saturday, July 30th. At the conclusion of this vote, we will know if our CCC members support the two fees or not. In addition to the Things to Know messages we have sent you over the past many months, the board is preparing additional messaging including posters throughout the community and round-table discussions.
Some of you have been interested in how the voting process will work for this effort. The following two charts summarize 1) the governing document requirements and 2) the application of the requirements to a sample.
As you can see, each of these two fees have different requirements, beginning with the required quorum. For purposes of the upcoming example, let’s look at the above chart if enough members vote to meet the 60% quorum required for the Special Assessment: 1,437 members (2,395 x 60%). Since there is also a minimum of single-family votes required, for purposes of this example, let’s say that of the 1,437 total members voting, 836 of them are single-family members.
In summary, we need a minimum of 1,437 members to show up for the vote. Then, we need 2/3 of the members who are voting to approve both ballots.
What happens if we pass one ballot but fail to pass the other? Since both ballots are required to support the plan of reorganization, if one ballot fails to meet the required approvals, the plan of reorganization will fail and we will likely transition to a Chapter 7 proceeding.
What is “quorum” and what role does it play in our vote? A quorum is the number of members legally required to transact business. Although the CCC governing documents do not have a reference to a 60% quorum, it is referenced in the declarations for six of our townhome/condominium sub-associations for voting on special assessments. Because those declarations require quorum to be 60% of all the votes of the membership at the first meeting (followed by a reduced quorum with appropriate notice) to vote on the special assessment, the Association needs to follow that quorum requirement for voting on the special assessment.