How to Amend Your HOA Bylaws and Covenants
Governing homeowners associations include documents, including the bylaws and the CC&Rs. However, there will come a time when you will need to amend those documents. Continue reading to learn how to change HOA bylaws and CC&Rs.
HOA Bylaws and CC&Rs
A homeowners association's bylaws define how the community operates. It consists of various stipulations. These specifications include how many board members can serve at any given time, how often to hold board elections, meeting requirements, and the responsibilities of each board member.
On the other hand, the CC&Rs—short for Covenants, Conditions, and Restrictions—define the rights and obligations of an HOA toward its members and vice versa. It consists of provisions such as property-use restrictions, the enforcement of covenants, and dispute resolution. It also covers obligations relating to maintenance, dues, and insurance.
Typically, it's essential to establish these governing documents upon the development of the planned community. In addition, HOAs can change bylaws or covenants, though it often involves a lengthy process.
6 Steps to Amend HOA Bylaws and Covenants
Before proceeding with the process, HOA boards must first consider why they want to change the bylaws or CC&Rs. If there is no justifiable reason to do so and the board intends to alter the documents "just because," it is unwise to proceed. Remember that amending HOA covenants and bylaws is a time-consuming and often financially demanding process. After careful consideration, you can initiate the amendment process. This process may vary depending on state laws and your HOA's governing documents.
According to HOAManagement.com, here is how to change HOA covenants and bylaws:
1. Amendment Proposal
The first step consists of a proposal describing the changes to the bylaw or covenant. The board will receive this proposal and then submit it for review.
2. Discussion Meeting
The board will then discuss the proposed amendment at a board meeting. During this meeting, the board must allow homeowners to provide their input on the proposal. In some cases, the board may call a special session to confer.
3. Give it a Vote
After review, the entire membership will vote either for or against the amendment. Specific requirements may apply here, too. For instance, in California, HOAs must use secret ballots to vote for these changes. The process for changing HOA covenants will also need secret ballots. Some associations may need help with voter turnout. In that case, the HOA board may extend the voting period.
4. Count the Votes
The next step in the process of how to change HOA bylaws and covenants is counting the ballots. The tallying of the votes usually takes place during an open meeting. This way, vote counts are done in front of homeowners. Doing this ensures not only transparency but also gives members peace of mind.
5. Amendment Approval
Homeowners associations require a majority vote from the membership to approve the amendment. What counts as a majority will depend on your governing documents. Usually, though, HOAs need two-thirds or three-quarters of members to support the change.
6. Recording and Effectivity
After approval, record changes to the CC&Rs with the county recorder's office. Bylaws, on the other hand, don't need recording. Instead, give notice of bylaws when the membership enacts changes. But the board can still skip the message regarding covenant changes.
Changing HOA Bylaws and CC&Rs
Bylaws and covenants only stay relevant for a while. Specific societal and community changes might trigger the need to amend an association's governing documents. Shifts in state laws may also cause a difference in your bylaws and covenants to remain compliant.
Another reason to amend your bylaws or CC&Rs is due to overwhelming demand from homeowners. For example, suppose most of your members want to change quorum requirements for a meeting. In that case, your board should consider it. However, base your decisions on sound judgment and rational thinking. Don't just change your governing documents because you can.
Bylaws Updates
Unfortunately, there is no standard frequency for updating your bylaws and covenants. Generally, it is a good idea to review your governing documents every 3 to 5 years. During your review, check whether any provisions or stipulations need to be updated or are no longer in compliance with the law. Again, having your HOA attorney help you with this is best.
Expiring & Revitalizing Covenants
Believe it or not, HOA covenants do expire in some states. Covenants generally reach this point when they become over 30 years old. When covenants expire, you can no longer enforce them.
The subject of expiring covenants may agitate you because you must go through the entire amendment process to enforce them again. But, a process known as Covenant Revitalization makes it more accessible.
Through Covenant Revitalization, you can reinstate expired covenants and enforce them as if they never expired in the first place. To revitalize covenants, you will still need a majority vote from the membership. After that, you must seek approval from local or state governments.
How to Change HOA Rules and Regulations
HOA rules are another term for bylaws and CC & Rs. While many people use these terms interchangeably, there is a difference between them. An association's operating rules and regulations are additional rules not covered in the bylaws and CC&Rs. Usually, these rules are more specific and help homeowners comply with the covenants.
Like bylaws and CC&Rs, the HOA has the power to change its rules and regulations. The process, though, is a little different. It starts the same—with a proposal for the rule change and a meeting to discuss the proposal. The board must provide notice of the proposed change to all homeowners within a specific period. Boards also obtain input from homeowners, but there is no vote from the members.
HOA Board Change & Member Approval
Typically, the board does not need permission from the members to enact a rule or make a rule change. The only vote will come from the board members themselves. The law will pass if the board reaches a majority vote defined in the bylaws or CC&Rs. The board must then send a notice following the adoption of the new rule.
The process for changing condo rules and regulations remains essentially the same. It is best to check your governing documents and state laws to avoid potential liability.
How Homeowners Can Change the Rules
The easiest way to change laws in a community association is to run for a position on the board. Even though the board typically holds authority regarding rule changes, homeowners are still somewhat powerless. Homeowners who want to change their rules should review their governing documents; there are outlines on how to submit a proposal. Then, homeowners can draft a proposal and submit it to the board for review. If most homeowners feel the same way about an issue, it is good to include that in the proposal. There are plenty of benefits and reasons to serve on the HOA board.
Follow the Procedure to Avoid Liability
Every HOA board must know how to change HOA bylaws, covenants, rules, and regulations. Familiarizing yourself with the proper procedures will enable you to make and adopt amendments smoothly. Failing to do so will render any changes you make unenforceable. You may even find the association and your board in legal trouble.
