Developers are allowed to establish different classes of voting memberships in the governing documents. This is so the developer can maintain control of the of the development for as long as possible as units/lots are sold.
Class A Membership. Class A members are designated as owners of units and have one vote for each unit/lot owned. One vote per unit (not per person) is normal and legal. Although each person on title has a right to cast that one vote as a member of the association, whoever casts the vote, by ballot or otherwise, is presumed to be voting for all his/her co-owners. (Corp. Code § 7612.) If each person on title casts a ballot, the first envelope received and registered is counted. All others from that same property are marked "Invalid" and set aside. Even if one of the owners objects and wants the person's ballot withdrawn (because they disagree with how the other owner voted), the ballot is not withdrawn. Once received by the Inspector, the ballot is irrevocable. (Civ. Code § 5120(a).
Class B Membership. Class B membership is reserved to the developer, who is given three votes for each unit/lot held by the developer. Class B membership is tied to the developer's ownership of separate interests that are subject to assessments. Class B votes may be used on any issue presented to the membership for a vote. As provided for in 10 Cal Code Regs §2792.32(c), Class B membership automatically converts to Class A when one of the following occurs:
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When 75% of the authorized residential interests transfer to homebuyers;
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On the 5th anniversary of the most recent conveyance of a residential interest to a homebuyer. This deadline can be extended indefinitely as long as a residential unit is transferred once every 5 years; or
- On the 25th anniversary of the first conveyance of a residential separate interest in a master planned community.
Class C Membership. Class C membership may only be used in master planned communities. It allows the master developer to extend control of the board of directors by giving him the right to elect directors to the board for an extended period of time. 10 Cal. Code Regs. §2792.32(f). Class C votes are limited to the election of directors only. These extended rights automatically terminate when any of the following occur (10 Cal. Code Regs. §2792.32(f)(1)):
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