J.L. from Litchfield County, Connecticut writes:
Dear Mister Condo,
Is there a rule that states or can we have in place that an investor who does not live on site is not allowed to be on the board? Also, if so, can it be placed into our new condo rules and regulations we are in the process of redoing?
Mister Condo replies:
J.L., my short answer is “no” because as an owner of a unit in your association, the investor is a member of your corporation. You are looking to remove rights that the investor has with the corporation. I suppose that, technically, you could pass the rule using the required method of doing so. My guess is that it would take a supermajority or no abstaining votes and I am guessing the investor/owner isn’t going to willingly vote away his right to serve on the Board. I am guessing if the situation were reversed, you wouldn’t voluntarily give up your right to serve on the Board just because you didn’t occupy the unit you owned. Please keep in mind that I am not an attorney. Your question requires legal counsel before you proceed. A more practical solution would be to simply have enough volunteer leaders to run for the Board who actually occupy their units. With the backing of the other unit owners, these volunteers should be able to win election to the Board which would remove your investor/owner without removing his rights. A far better solution. All the best!