By-Laws and C&R's

Started by MaryG11 • 3 replies • 1222 views

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MaryG11 (Michigan)
Posts: 4

Posted:

We are currently allowing members with past due assessments to pay monthly in order to get caught up. It was agreed that they would be considered "members in good standing." We now will amend the by-laws to reflect this. One board members says that we cannot do this unless we change the C&R's as well. She states this is a State of Michigan law. We are now confused. Any help/information would be appreciated. Thanks so much...

FredS7 (Arizona)
Posts: 927

Posted:

Depends in part on whether the CC&Rs define the requirements for voting. Read them yourself or pay a lawyer to do so.

As far as state law is concerned- is one is going to opine on what the law says, one should be prepared to produce a document with the relevant section highlighted. Even then, the applicability of a particular section may not be clear.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Mary

Why would you need to change the BYlaws, nevermind the CC&R's?

Off the top of my head I would say the BOD has in its power to declare a member is in good standing if they have reached a payment plan with them. I doubt there would be a reference to payment plans/times/methods in the Bylaws thus an agreed upon payment plan means they are in good standing.

Also rather then take the time and effort to change Bylaws the BOD could inform those on a payment plan thart they are not a member in good standing until they are caught up in their payments.

What I am saying is I see no need to chaange the Bylaws nor CC&R's.

DorothyO (Washington)
Posts: 293

Posted:

Mary,

Amending the Bylaws from what? Annually? Semi-annually?

Our Bylaws stipulate semi-annual payments of assessments. They were amended several years back from any which way you want to pay, as long as they get paid within the year. If anyone is late with the first half a late fee is assessed. If anyone is late with the balance a late fee is assessed. However, we have had one instance, a foreclosure, where the homeowner asked for our help while he was getting help from his bank. We figured if the bank was willing to work with him, we would be. We worked out a payment plan, which he followed, satisfied his debt and kept his house.

What we never even considered was amending the Bylaws for everyone to accommodate someone. I would think each homeowner would have to bring an appeal before the association to pay their assessments, to determine why they are in arrears in the first place, and if any special considerations are warranted. If it is determined that it would be in the best interests of the association to grant this special consideration, than it also should be understood that this would be a temporary payment plan until they are caught up. As long as the conditions of the payment plan are being met, naturally they would be a member in good standing. Why wouldn't they be, if they have entered into an agreement with the association? Only if this agreement is broken would they not be in good standing. Once their debt has been satisfied they would then be held to the same payment schedule as required by the governing documents.

I also think a homeowner gets one chance at this. If it becomes a pattern, it would seem then to be a simple case of non-compliance and the enforcements procedures that go along with that. Bottom line -- do not amend the governing documents.

Dorothy

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