The Differences Between CC&Rs, Bylaws, and Rules & Regulations
Your homeowner's association has three governing documents: Covenants, Conditions & Restrictions (called "CC&Rs"), Rules & Regulations, and Bylaws. The function of the CC&Rs or the property management company's role in implementing them can be confusing. Therefore, it’s always best to work with your management company to develop guidelines that work best for your community.
What are Covenants, Conditions & Restrictions (CC&Rs)
Covenants, Conditions & Restrictions (CC&Rs) are legally binding documents officially recorded and filed with your state. Your CC&Rs cover the rights and obligations of the homeowners association to its members and vice versa. CC&Rs often cover legal issues, such as:
Property-use restrictions
Clearly defined maintenance obligations for the HOA and individual members
Mechanisms for rule enforcement and dispute resolution
Lender protection provisions
Assessment obligations
Insurance obligations
Because this record is kept on file with the state, it can be difficult to amend and requires a vote by the membership to make any changes.
Bylaws
If CC&Rs cover the "what" of the HOA, the bylaws cover the "how." Your community's bylaws establish the structure of day-to-day governance of your homeowner's association, which includes things like:
Frequency of HOA board elections
Process for nominating and electing new board members
Number of members that serve at one time
Length of board member service terms
Meeting frequency and quorum requirements
Duties and responsibilities of board members
Like CC&Rs, Bylaws are challenging to change, as they, too, require a vote by the membership to amend.
Rules & Regulations
Your community's Rules & Regulations are a catch-all for things not covered in the Bylaws or CC&Rs. These are often the rules that need revising over time due to changes in the community. For example, an HOA might have a rule that states that no children are allowed in the community pool before noon. This rule would not be a part of the community's CC&Rs because it might need to change seasonally or as more children move into the community.
An HOA board vote can change Rules & Regulations with review by the community members. Traditionally, the Board will adopt a rule and then send a notice to the community members, who will have 30 days to review it. After 30 days, the Board will review the comments and concerns of members, considering the members' feedback in the final decision.
Changing Restrictions
CC&Rs, Rules & Regulations, and Bylaws are usually determined when a developer incorporates the community. The developer will try to anticipate the type of community or commercial property space they are creating. Still, the needs of a community often are only apparent once residents move in.
Every rule, regulation, covenant, condition, and bylaw can be changed–simply a matter of which process is required to make the change. CC&R changes require re-filing with the state, so changes should be made sparingly and with the help of an experienced attorney. Meanwhile, Rules & Regulations are in effect at the community level and require a board vote with community member review.
The Role of Your Property Management Company
Your residential or commercial property management company is an agent of your homeowner's association corporation, whose primary role is to increase your property value and facilitate the enjoyment of your community. Your property management company has no say in developing your CC&Rs, Rules & Regulations, or Bylaws; they act to implement the guidelines set forth by your Board.
Your property management company will also provide advice and guidance as you develop your community's guidelines to ensure that you adhere to state and local laws. They should provide practical advice to ensure your Board makes decisions that best protect and enhance your community.
Your management company and property manager can show you the risks and rewards of changing your CC&Rs, Rules & Regulations, or Bylaws and provide a valuable framework to develop your community in a way that serves residents today and long into the future.
