2017 ORS 94.574¹
Procedure for formation of homeowners association by Class I or Class II planned community

(1)(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)(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]

1 Legislative Counsel Committee, CHAPTER 94—Real Property Development, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors094.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.