ORS 94.574
Procedure for formation of homeowners association by Class I or Class II planned community


(1)

Intentionally left blank —Ed.

(a)

If the governing documents of a Class I or Class II planned community created before January 1, 2002, that was not created under ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply) do not provide for the formation of a homeowners association, at least 10 percent of the owners in the planned community or any governing entity of the planned community may initiate the formation of an association as provided in this section.

(b)

The owners or the governing entity initiating the association formation shall:

(A)

Call an organizational meeting for the purpose of voting whether to form an association described in ORS 94.625 (Formation of homeowners association); and

(B)

Provide notice of the organization meeting to the owners in the planned community.

(c)

The notice of the organizational meeting shall list the names of the initiating owners or the governing entity and shall include the following statements:

(A)

The organizational meeting is for the purpose of voting whether to form an association in accordance with the proposed articles of incorporation;

(B)

If the owners vote to form an association, the owners may elect the initial board of directors provided for in the articles of incorporation and may adopt the initial bylaws;

(C)

The formation of the association requires an affirmative vote of at least a majority of the owners in the planned community, or a larger percentage if so specified in an applicable governing document;

(D)

An affirmative vote of at least a majority of the owners present is required to adopt the articles of incorporation, to elect the initial board of directors pursuant to the articles of incorporation or to adopt the initial bylaws;

(E)

If the initial board of directors is not elected at the organizational meeting, an interim board of directors must be elected pursuant to bylaws adopted as provided in subsection (4) of this section; and

(F)

A copy of the proposed articles of incorporation and bylaws will be available at least five business days before the meeting and a statement of the method of requesting a copy.

(2)

The notice described in subsection (1)(c) of this section must be delivered in accordance with the declaration and bylaws. If there are no governing documents or the governing documents do not include notice provisions, the owners or the governing entity shall follow the procedure prescribed in ORS 94.650 (Meetings of lot owners) (4).

(3)

The initiating owners or the governing entity shall cause articles of incorporation and bylaws to be drafted at least five business days before the organizational meeting. The bylaws must include, to the extent applicable, the information required by ORS 94.635 (Association bylaws).

(4)

At the organizational meeting:

(a)

Representatives of the initiating owners or the governing entity shall conduct the meeting according to Robert’s Rules of Order as provided in ORS 94.657 (Rules of order), to the extent not inconsistent with the governing documents.

(b)

The initiating owners or the governing entity shall make available copies of the proposed articles of incorporation and bylaws.

(c)

The affirmative vote of at least a majority of the owners of a planned community, or a larger percentage if so specified in an applicable governing document, is required to form an association under this section.

(d)

An owner may vote by proxy or written ballot if so approved by a majority of the initiating owners or by the governing entity.

(e)

Intentionally left blank —Ed.

(A)

If the owners vote to form an association at the organizational meeting, the owners:
(i)
Shall adopt articles of incorporation;
(ii)
May elect the initial board of directors as provided in the articles of incorporation;
(iii)
Shall adopt bylaws; and
(iv)
Shall conduct any other authorized business by an affirmative vote of at least a majority of the owners present.

(B)

If the owners do not elect the initial board of directors at the organizational meeting, the owners shall elect an interim board of directors by an affirmative vote of at least a majority of the owners present to serve until the initial board of directors is elected.

(5)

Not later than 10 business days after the organizational meeting, the board of directors shall cause:

(a)

The articles of incorporation to be filed with the Secretary of State under ORS chapter 65.

(b)

The notice of planned community to be prepared, executed and recorded in accordance with ORS 94.576 (Class I or Class II planned community option to be subject to provisions of ORS 94.550 to 94.783).

(c)

A statement of association information to be prepared, executed and recorded in accordance with ORS 94.667 (Recording association information with county clerk).

(d)

Each owner to receive a copy of the notice of planned community, together with a copy of the adopted articles of incorporation and bylaws, if any, or a statement of the procedure and method for adoption of bylaws described in subsection (4) of this section. The copies and any statement must be delivered to each lot, mailed to the mailing address of each lot or mailed to the mailing addresses designated by the owners in writing.

(6)

If the owners vote to form an association, all costs incurred under this section, including but not limited to the preparation and filing of the articles of incorporation, the drafting of bylaws, the preparation of notice of meeting and the drafting, delivery and recording of all notices and statements, shall be a common expense of the owners and shall be allocated as provided in the appropriate governing document or any amendment thereto. [2017 c.423 §11]

Source: Section 94.574 — Procedure for formation of homeowners association by Class I or Class II planned community, https://www.­oregonlegislature.­gov/bills_laws/ors/ors094.­html.

94.504
Development agreements
94.508
Approval by governing body
94.513
Procedures on consideration and approval
94.518
Application of local government law and policies to agreement
94.522
Amendment or cancellation of agreement
94.528
Recording
94.531
Severable development interest in real property
94.534
Policy on transferable development credit systems
94.536
Definitions for ORS 94.536 and 94.538
94.538
Transferable development credit systems
94.550
Definitions for ORS 94.550 to 94.783
94.560
Legislative findings
94.565
Planned community to be created under ORS 94.550 to 94.783
94.570
Applicability of ORS 94.550 to 94.783
94.572
Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities
94.573
Class I or Class II planned community option to amend governing documents to conform to statute
94.574
Procedure for formation of homeowners association by Class I or Class II planned community
94.575
Applicability of subdivision law
94.576
Class I or Class II planned community option to be subject to provisions of ORS 94.550 to 94.783
94.577
Recording amended governing documents
94.580
Declaration
94.585
Authority to amend declaration and initial bylaws to comply with federal or state laws
94.590
Amendment of declaration by owners
94.595
Reserve account for maintaining, repairing and replacing common property
94.600
Declarant control of association
94.604
Transitional advisory committee
94.609
Notice of meeting to turn over administrative responsibility
94.616
Turnover meeting
94.621
Rights of declarant following turnover meeting
94.622
Obligations and liabilities arising from transfer of special declarant rights
94.623
Acquisition of special declarant rights by successor declarant
94.625
Formation of homeowners association
94.626
Corporate dissolution of association
94.630
Powers of association
94.635
Association bylaws
94.639
Criteria for board of directors membership
94.640
Association board of directors
94.641
Assent of director to board action
94.642
Receivership for failure of homeowners association to fill vacancies on board of directors
94.644
Meetings of board of directors
94.645
Adoption of annual budget
94.647
Use of written ballot for approving or rejecting matters subject to meeting of association members
94.650
Meetings of lot owners
94.652
Electronic notice to owner or director
94.655
Quorum for association meetings
94.657
Rules of order
94.658
Voting or granting consent
94.660
Method of voting or consenting
94.661
Electronic ballot
94.662
Notice to lot owners of intent of association to commence judicial or administrative proceeding
94.665
Authority of association to sell, transfer, convey or encumber common property
94.667
Recording association information with county clerk
94.670
Association duty to keep documents and records
94.671
Application of ORS 94.670 (5)
94.673
When compliance with specified provisions of ORS 94.640 and 94.670 required
94.675
Insurance for common property
94.676
Insurance deductible for certain planned communities
94.677
Election to have ORS 94.645, 94.655 and 94.675 apply
94.680
Blanket all-risk insurance
94.685
Specification of insurance for individual lots
94.690
Terms of insurance under ORS 94.680
94.695
Authority to delegate association powers to master association
94.700
Duration and termination of initial management agreements and service and employment contracts
94.704
Assessment and payment of common expenses
94.709
Liens against lots
94.712
Lot owner personally liable for assessment
94.716
Lien against two or more lots
94.719
Lien foreclosure
94.723
Common expenses
94.728
Taxation of lots and common property
94.733
Easements held by owner of lot and by declarant
94.760
Promotional material showing possible improvements
94.761
Legislative findings regarding electric vehicle charging stations
94.762
Electric vehicle charging stations
94.763
Association use of pesticides on lots
94.764
Changes or actions that require approval or consent of mortgagee
94.770
Application of rule against perpetuities
94.775
Judicial partition of lots
94.776
Development and division of lots
94.777
Compliance with bylaws and other restrictions required
94.778
Prohibition against installation of solar panels void and unenforceable
94.779
Unenforceability of certain irrigation requirements and restrictions on family child care
94.780
Remedies
94.783
When certain administrative provisions apply
94.785
Short title
94.803
Definitions for ORS 94.803 and 94.807 to 94.945
94.806
Legislative finding
94.807
Application
94.808
Managing entity as taxpayer
94.809
Valuation of timeshare property
94.811
When owners of planned community, condominium or subdivision may prohibit timeshare plan
94.813
Character of timeshare estates
94.816
Partition prohibited
94.818
Recording of timeshare instrument
94.821
Content of timeshare instrument
94.823
Notice of intent to sell timeshares
94.826
Information on exchange program
94.828
Public report on plan
94.829
Sale not allowed before issuance of public report
94.831
Filing fees
94.833
Sale of timeshare plan located out-of-state
94.836
Cancellation of purchase within five days
94.839
Notice of cancellation right
94.841
Waiver of rights void
94.843
Limits on developer right to transfer
94.846
Designation of managing entity
94.848
How managing entity of developer terminated
94.853
Payment of common expenses
94.856
Assessment of common expenses as lien
94.858
Owners’ association
94.863
Developer’s duty to managing entity
94.867
Judicial declaration of failure in management
94.869
Insurance coverage
94.871
When purchase money agreement prohibited
94.873
Escrow account
94.876
Requirements for closing escrow
94.878
Duties of escrow agent
94.881
Who may serve as escrow agent
94.885
Rights of lienholder
94.890
Lien payment trust
94.895
Trust irrevocable without alternative arrangement
94.900
Alternative to lien payment trust
94.905
Surety bond
94.915
Inspection of records
94.920
Consent to service by out-of-state developer
94.925
Civil penalty
94.930
Commissioner order
94.940
False practices prohibited
94.945
Advertising regulation
94.953
Definitions for ORS 94.953 to 94.989
94.956
Registration required to sell membership camping contract
94.959
Application for registration
94.962
Exemptions from registration
94.965
Effective date of registration
94.968
Denial, suspension and revocation of registration
94.971
Fee for registration or amendment of an offer or sale of membership camping contract
94.974
Written disclosures required
94.975
False practices prohibited
94.976
Advertising regulation
94.977
Registration as salesperson or broker
94.980
Application for registration
94.983
Cancellation of contract by purchaser
94.986
Requirements for sale of membership camping contract
94.987
Judicial declaration of failure in management
94.989
Interpretation of membership camping contracts
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