If an association does not have election rules consistent with applicable law, may the association hold an election?
No.  If the association proceeds with an election but does not have a current set of election rules, the election conducted will be subject to challenge.  An owner could argue that the outcome of the election may be different had proper election rules been enacted, especially because the election rules establish director qualifications and various other rights that could have an impact on an owner's decision to run or not run for the board.