An association’s Covenants, Conditions & Restrictions (CC&Rs), Bylaws, and Rules & Regulations are packed with information, some of which is written in dense legalese. Therefore, it’s no wonder homeowners are often overwhelmed by all the information provided.
Though each part of the governing documents is important and meant to be thoroughly reviewed, we’re highlighting the core tenets of each and how they benefit your property values and community.
Covenants, Conditions & Restrictions (CC&Rs)
CC&Rs are legally binding and filed with the state. They outline the rights and obligations of the association to the membership and vice-versa. Here are a few detailed definitions of the main types of issues that CC&Rs cover:
Property Use and Maintenance Obligations
Property use restrictions are in place to preserve property values by maintaining a set of standards across all homeowners to ensure the community’s beauty.
This includes rules about paint color, the type of patio or deck you can install, etc. These restrictions also require homeowners to care for their landscape for the same purpose.
Part of these obligations also articulates the aspects of maintenance the HOA is responsible for versus what you as a homeowner are required to cover. The HOA is responsible for maintaining common areas of the community including but not limited to the cleanliness and upkeep of property structures and amenities, as well as landscaping.
Whereas, homeowners are responsible for maintaining their own property, including all exterior and interior updates and extended lots. When there’s a question of responsibility, refer to your governing docs for specifics.
Rule Enforcement and Dispute Resolution
This section outlines exactly how enforcement of the various association rules will take place, including the process and timeline for warning letters, fines, and any potential legal action.
Having a process in place makes it easier when navigating code violations and ensures fairness for all members. This section also articulates the role your HOA management company plays in enforcement, whether it’s clarifying compliance, assisting with communication, or some other strategy to make the resolution as smooth as possible.
Assessment and Insurance Obligations
This is a fancy phrase for “monthly dues.” This section details when you pay and how your dues are calculated. Some associations have variable assessments based on square footage, not a flat rate. So, if your neighbor pays more (or less) than you, there’s a reason why—and it’s in your CC&Rs.
These are also requirements that associations and sometimes homeowners must meet to maintain adequate insurance. Again, all CC&RS are in place to achieve the top two goals of your HOA – preserve property values and enrich the community to make it a great place to live.
Read more: HOA Living: How to Read Your CC&Rs.
Bylaws
Bylaws outline day-to-day HOA management and administration. As a non-profit corporation, HOAs are required to abide by a clearly defined system of governance. Here’s a bit more detail about what the Bylaws cover:
Frequency of HOA Board Elections
Every association has the right to structure the frequency of elections in a way that makes the most sense for them. Many associations choose to stagger elections to maintain continuity and ensure there is never a full turnover of the board at one time. Experience is always a valuable asset for board members but a fresh perspective is always welcome, too.
Process for Electing New Board Members
This section establishes the protocols for the elections themselves: candidate nomination process, campaign restrictions, voting locations, absentee or proxy voting rules. Every association’s election rules are different. When establishing the limit for the number of seats on an HOA board, there should be an odd number to avoid tie votes.
Length of Board Member Service Terms
This guideline clearly articulates how long a board member is required to serve in their position. Most HOAs do not place a limit on the number of terms a board member can serve. As such, some HOA members may serve two years on the board or twenty.
Duties and Responsibilities of Board Members
This section is a must-read for anyone curious about what it’s like to serve on the board of an HOA, as it outlines the board’s obligations and authority. Remember, board members receive no special accommodations in exchange for their service. They must follow the same rules as the rest of the membership or risk being penalized equally.
Read more: Important Association Management Terms You Should Know.
Rules & Regulations
Rules & Regulations cover anything that has not already been outlined in an association’s CC&Rs or Bylaws. As such, each community’s Rules & Regulations will be unique and will change as the community changes. Common examples of HOA Rules & Regulations include:
- Pet size and quantity limits
- Parking rules and guidelines
- Holiday decoration restrictions
- Short-term rental restrictions
- Exterior storage rules
- Trash and recycling regulations
- Amenity use and restrictions
HOAs may institute seasonal Rules & Regulations as well. For example, a community with a pool may have different operating hours during the summer than in winter based on the weather.
Making Changes to Governing Documents
One of the main benefits of including Rules & Regulations in an HOA’s set of governing documents is it allows the community to be more dynamic in its governance. Depending on each HOA’s specific structure, Rules & Regulations can usually be amended by the board or membership.
Meanwhile, changes to an HOA’s CC&Rs require filing official documents with the state. For instance, if an HOA wants to change parking restrictions, refiling the association’s entire set of CC&Rs with the state may cause an undue burden. Therefore, it’s best to include that type of provision in the Rules & regulations, which are much easier to change.
Governing docs are put into place as a property is built with guidance on how to preserve property value for homeowners. However, what’s relevant when the property is built may be outdated for those living there today.
As an example, the introduction of solar panels, electric vehicle charging stations, and other modern updates were likely not included in the governing docs of older HOAs. Therefore, it’s important to review these every few years and identify areas that may need to be changed for relevancy.
Collaborate with Your Association Management Company
Governing documents are a detailed description of life inside your HOA and your association’s vision for the future. Some of the language might be confusing or complex. And there may be areas that need a refresh.
Work with your association management company to follow the correct process and changes to any of the documents. They provide their support, experience, and resources to make compliance and communication more transparent for everyone.
If you have any questions about where to find specific information or are unclear about anything you read, reach out to your property manager, who can explain it all.
Want to know more about what’s in your governing documents? Our expert HOA managers can help.