(a) Election dates and procedures. Not less than 10 nor more than 90 days before an election for the governing body of an association, the governing body must notify all members of the association of election procedures and the date of the election. An initial election for the governing body must be held not later than 60 days after the date that 50 percent of the units have been conveyed by the developer to the initial purchasers. (b) Election materials. All election materials prepared with funds of the association: (1) must list candidates in alphabetical order; and (2) must not suggest a preference among candidates. (c) Absentee ballots or directed proxies. Any unsigned absentee ballot or directed proxy, to be valid, must be: (1) received in a signed, sealed envelope, bearing the identification of the dwelling unit and proportional voting percent, if any, on the outside; and (2) opened only at a meeting at which all candidates or their delegates have a reasonable opportunity to attend. (d) Proxy or power of attorney. Any proxy or power of attorney valid under state law may be used at any association meeting. However, any proxy or power of attorney containing votes for candidates for a governing body’s election may be counted only to meet a quorum or to vote on matters other than an election for a governing body unless the proxy or power of attorney contains a directed vote on the election. If a proxy or power of attorney form must be approved before it is cast, the approving authority must not unreasonably withhold its consent. A general power of attorney valid under state law may be used for any purpose at an association meeting that is consistent with the provisions of the general power of attorney, including for an election of the governing body. (e) Cumulative voting prohibited. In an election for a governing body, for each unit that a member owns the member must not cast more than one vote for each candidate. (f) Counting votes. Until the time for voting closes, an association must not open or count election ballots, absentee ballots or directed proxies, and must keep all such documents in a sealed container which must not be opened or counted until the election. If an election is conducted electronically, the votes must not be disclosed or counted by anyone until the election. The individuals counting absentee ballots or directed proxies must ensure that the individual who has been directed to cast the proxy vote was in fact in attendance at the meeting. (g) Terms of office. Unless the association documents provide for other terms of office: (1) a member elected to the governing body of an association is elected for a term of three (3) years; and (2) the individual terms of the entire governing body are staggered, so that as close to one-third as possible are elected each year.

Unless the association documents provide otherwise: (a) the governing body must provide members of the association with the proposed budget of the association at least 30 days before the governing body votes on the budget; and (b) the governing body must provide members of the association with any proposed amendment to the budget at least 30 days before the governing body votes on the amendment, if the amendment will result in an increase or decrease of more than 15 percent of the approved budget. This requirement does not apply to expenditures made to respond to an imminent threat to health or safety or of serious property damage, or to properly fund the most recent reserve study conducted for the association.

(a) The Department may enforce this Article by appropriate legal action. (b) In addition to any action by the Department and any other action authorized by law, including the filing of a dispute under Article 2, any person may file an action: (1) for injunctive relief to enforce this Article or correct any violation of it; and (2) to recover damages for a loss sustained as a result of a violation of this Article.