A functional homeowners association needs a pile of documents that act as its rules, just like any other organization. What you may and cannot do is outlined in these HOA governing agreements. Even for association members, it can be challenging to distinguish or recognize the governing papers of HOAs.
This article explains the purpose and details of these governing documents.
The Structure of HOA Governing Documents
An HOA has to be managed with some dedication and work. The amount of paperwork required might be intimidating for board members. These documents may be lengthy and many after all. The order of the regulating papers might also be unclear at times.
So, what exactly are the governing documents? You may find them listed from top to bottom below.
1. Laws of the land
The law enacted by the federal, state, and local governments is referred to as the laws of the land. All other governing papers within the association are superseded by these statutes.
There is a hierarchy inherent in these laws, with federal law superseding state law. The same holds true for local and city legislation; state laws take precedence.
If a rule in your association conflicts with the law, it is no longer enforceable. For instance, some neighborhood groups prohibit the use of clotheslines because of how unattractive they are. However, regulations protecting a homeowner’s “right to dry” exist in at least 19 states, and these states forbid the banning of clotheslines. So always verify local, state, and federal laws before enacting or enforcing any restrictions.
In any association, the legislative laws might not be explicitly declared to be at the top of the hierarchy. However, this is how everyone views them. These rules should eventually be enforced by the appropriate authorities, such as police officers. Individuals from the community may, however, report criminal activities to a board member, who must then get in touch with the appropriate authorities.
2. HOA Community/Plan
The community plan, often known as the plat, specifies the association’s legal territory as well as the boundaries of the buildings and lots that fall under it.
It could also be known to some as a subdivision map. Typically, it takes the shape of an image of the entire neighborhood, showing how the properties are split into lots and units.
The community plan is one of the first documents that an HOA files when creating a community. These maps are created by licensed professionals at the start of a development. The plan is then evaluated by government entities before being recorded with the county recorder’s office.
The community plan can be used by the association to assess if violation occurred inside the community’s boundaries and to resolve any property issues among homeowners. It is tied to the parcel’s deeds and mortgages.
Despite being one of the earliest documents created, the community plan is subject to change. It is absolutely easy to amend the plan, albeit this may need the approval of all parties concerned. Some associations incorporate it in the CC&Rs, which are described further below.
3. CC&Rs
The Declaration of Covenants, Conditions, and Restrictions, or CC&Rs, is the document that comes after the HOA plat in the document hierarchy. The CC&Rs are what provide the HOA board the authority to enforce the association’s bylaws.
The association’s and homeowners’ maintenance duties are outlined in this governing agreement. It also includes general architectural control standards, such as the placement of satellite dishes or antennas. Furthermore, the CC&Rs specify how assessments are calculated and collected. This paper also specifies the implications of unpaid payments, how to address infractions, and how to resolve disputes properly.
As you can surely understand, this is the most detailed governing document. It includes a library of facts that every homeowner should be aware of. In fact, several HOAs ask new residents to read these regulations and sign their agreement to them. If you want to rent out your property, the renter is not excluded from adhering to the CC&Rs.
The ARC, or Architectural Review Changes committee, is a group under the CC&R that analyzes any proposed adjustments to separate interests (such as erecting a fence) and authorizes designs for new projects.
Board members generally decide to work with an association management business to assist in enforcing the CC&Rs because these HOA governing agreements are complicated.
4. Articles of Incorporation
The Articles of Incorporation do not rank as high in the hierarchy of governance documents since they are rarely referred to by the board or community members. It is a brief document submitted at the state level that creates the homeowners association as a non-profit organization.
Undoubtedly, this agreement grants the association the legal authority to regulate the community in accordance with the HOA plan and the CC&Rs. While it is crucial inside the organization, it does not have a significant advantage over the other documents.
5. Bylaws
An HOA bylaws define standards for the governing body, or HOA board. The bylaws will often outline the number of board members, how each board member operates within the organization, how frequent meetings should be conducted, processes for yearly board elections, and so on.
While the bylaws are at the bottom of the hierarchy, they are nonetheless an important document in every organization. Indeed, board members frequently refer to the bylaws. For matters relevant to the association, such as the removal of a board member, community members (including board members) can turn to its bylaws.
6. Rules and regulations
The CC&Rs outline the rules that must be followed, such as the maximum height of a fence, and give the HOA board the authority to fine homeowners who break these rules.
Some things that are covered in the rules of the association are whether pets are allowed, whether there are limits on the size or breed of pets, how the common areas can be used, and how loud it can get. Other rules can include changes to the outside of homes, landscaping, and even small things like whether or not a person can put a basketball hoop in their driveway.
An HOA may establish new rules and regulations, but it must comply with all applicable federal, state, and local laws. Remember that the laws of the land supersede HOA regulations. Also, if there is a conflict between a rule or regulation and a provision in the CC&Rs, the CC&Rs take priority.
Frequently, complaints and disputes result from rules and regulations. Some homeowners find them to be an inconvenience. Board members must maintain a state of readiness and know how to handle such situations. Follow the CC&Rs and guarantee that no one receives preferential treatment.
Rules and regulations are important in the association, and so is following them. Associations usually ask for help from professionals, who can help the board enforce rules if the board isn’t qualified to do so on its own. But board members must always look over the rules and regulations and decide if they are still needed. These rules can still be changed or taken away by the HOA board.
Why are HOA governing documents important?
It’s important to get to know the HOA’s governing documents. They tell you about the community and what you should and shouldn’t do there. If you know what these documents say, you can act within your rights and do what you need to do.
Learning the hierarchy of these documents is crucial for board members who must determine which document takes precedence. Typically, a document’s ranking is determined by its filing or creation date; older documents rank higher than newer ones.
