Your community’s governing documents are the structural backbone of your community’s identity and how it operates. We’ve already covered a detailed description of each governing document, but here is a quick review of the name and purpose of each:
Covenants, Conditions & Restrictions (CC&Rs) – This document details the rights and obligations of both the homeowners association and its membership. This document is legally binding and must be officially recorded and filed with the state.
Bylaws – Bylaws outline the processes and structure of the governance of the HOA. These are designed to cover more of the day-to-day operations of a property, such as board meetings, responsibilities, and elections.
Rules & Regulations – Rules & regulations cover any items that aren’t included in the community’s CC&Rs or Bylaws. Rules & regulations are usually more fluid and may be updated seasonally or on an as-needed basis with a 30-day resident review period for any proposed changes.
Many governing documents are established immediately after the community’s developer completes construction. Therefore, they follow a standard set of guidelines that are intended to protect the community even though the houses are still empty.
As a result, governing documents can eventually become outdated when there’s no regular review. When a property fills with (and changes) residents, a true community emerges and the governing documents may eventually need to be amended to reflect the current real-life needs of its homeowners.
So, when is it appropriate to update governing documents? The truth is there is no hard and fast rule. However, as time passes, we recommend reviewing them to pace with your evolving community, usually every 4-5 years is a good rule of thumb to follow.
Here are a few guidelines to determine whether these official docs are still relevant or may require a few changes.
Check what’s needed to change documents
Before you can even consider changing your community’s governing documents, you must review the requirements for enacting change. For example, a community might notice they had a hard time reaching a quorum, inhibiting their ability to make any changes to their documents.
Amendments to CC&Rs and Bylaws require either a supermajority homeowner vote (67% approval or more) or a majority (51% or approval) to encourage participation and acceptance by homeowners for the change(s) being proposed.
Therefore, the first goal might be to amend the clause that requires a supermajority, lowering required attendance levels. It may be a good idea to appoint a sub-committee of interested members with experience reading legal documents.
Along with your community association management company, the committee members will help identify areas that might be time for change and can take note of the update requirements. Keep in mind, though, the overall goal is to keep all homeowners informed of the voting process with regular communication on all changes, big or small.
Assess your community’s needs
When evaluating your governing documents, consider how well you are currently meeting the community’s needs. Pay attention to things like the use of your common areas and amenities, resident suggestions, general aesthetics, state and local guidelines, and area trends in housing. These factors will inform which areas may be outdated.
Also, actively involve homeowner participation to hear direct suggestions and insight on what’s working and what’s not, and collaborate with your community property management company. Their team of experts can offer insights into what other communities in your area are doing to remain competitive, maintain high property values, and satisfy residents.
Next, prioritize proposed changes, and as you move down the list, identify the mechanisms that would be required for each. Make sure the HOA has the authority to make these changes and assess the time and resources required for each. Understanding the bigger picture will help you determine whether or not a change to your governing documents is worth it.
Communicate with members
Governing documents affect every member of the HOA, so changes should be made transparent. Your community association management company will help you create a communications strategy to invite participation from members.
Share with the membership your reasons for updating your community’s governing documents, so they understand why it is beneficial for the community. Be sure to take a thoughtful approach and be clear about exactly what’s been changed.
Since these documents outline the association’s legal obligations and the rules you expect all residents to live by, they should not be altered on a whim. However, don’t get locked into rules that no longer serve your community.
Understand changes take time
As communities evolve, it only makes sense that updates to CC&Rs, Bylaws, and Rules & Regulations may be necessary as well. Most community changes are not sweeping and sudden. Instead, they are often part of a gradual roll-out as time and budget allow and may require lengthy and complicated legal processes.
Since these are the documents that guide the association, they must be accurately written and universally enforced. Consider the last time the board reviewed your community’s governing documents.