POA sets deadlines for Board candidates

The Canyon Lake Property Owners Association is inviting community members to consider serving on its Board of Directors. Interested individuals are encouraged to pick up “Intent to Run” packets from the POA’s Corporate Office in the Canyon Lake Town Center and return them no later than 3:00 p.m. on Fe. 22.

Two of the five seats will be up for election. The two-year terms of Board President Bill Van Vleet and Vice President Greg Doherty expire in May. They are eligible to run again. The POA Board plays a crucial role in managing the association’s business affairs, with directors elected for staggered two-year terms by the homeowners of Canyon Lake. The board collaborates closely with the Corporate Department to fulfill the POA’s responsibilities and duties.

The election will occur in May and will also include three ballot measures in addition to electing members to the board.

One of the upcoming ballot measures will ask voters to vote on whether to amend its bylaws to include a restriction on the sale of common areas. This measure aims to ensure that any future sale of common areas within Canyon Lake cannot proceed without direct approval from the community’s property owners.

The measure was brought forward after the Canyon Lake POA sold the Canyon Lake Fire Station to the City of Canyon Lake after the city took over Fire Department responsibilities from the county and Cal Fire. If this ballot measure is passed, future sales of this sort would need to be approved by vote of the property owners.

To be enacted, the measure requires a majority vote in its favor during a meeting where a quorum of Canyon Lake owners is present. This change would mandate that the Board of Directors obtain a quorum and a majority vote from Canyon Lake property owners at a duly conducted meeting or election, adhering strictly to California law and the governing documents of the Canyon Lake POA, before any common area could be sold.

The second ballot measure proposes that Canyon Lake POA Board of Director terms be extended from its current two-year stint. The measure, which would change Canyon Lake POA bylaws, proposes that longer terms would enhance stability and efficiency.

Additionally, board elections would go from occurring every year to taking place every two years. Recognizing the challenges posed by annual board changes, this ballot measure aims to institute four-year terms for board members, commencing with the 2025 Annual Meeting & Election of Directors.

The introduction of four-year terms, coupled with a mandatory two-year waiting period between terms, is designed to ensure continuity and stability in the POA’s governance structure. This strategic adjustment would transition the election cycle to a biennial schedule, effectively reducing the frequency of elections, campaign signage, and associated costs by half.

The third ballot measure is an annual routine property owners in associations deal with annually. Voters will vote on whether to adopt this IRS rule.

IRS Revenue Tax Ruling 70-604 allows associations to avoid a tax consequence on any inadvertent excess member income that is applied to the following Fiscal Year (FY) assessment when filing a tax return Federal Form 1120. This IRS Ballot Measure is considered an annual industry standard to allow for clear tax filing authorization should the Board decide to apply excess income to the following year’s assessment.