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SayA (North Carolina)
Posts: 19
Posted:
On the HOA, and we have some very old, out of date, and irrelevant rules currently (20 years old).

Our Covenants grant the Board the "power to formulate, publish, and enforce reasonable rules and regulations concerning the uses and enjoyment of the front yard space of each lot..."

By these words, does that give the Board the power to simply toss the old rules and publish new ones?

Thanks,
TimB4 (Tennessee)
Posts: 21,062
Posted:
SayA,

Possibly. It depends on how the old rules (resolution/s) were adopted.

Is there a policy on how to adopt resolutions? If there is, that procedure must be followed.

Are the "old rules" part of, or reenforcing, existing clauses in the CC&Rs, Articles of Incorporation or Bylaws? Any new rule can not be in conflict with these documents or any State or Federal laws.

Have there been State laws adopted that supersede that section giving the Board authority? You need to check.

Since your discussing the front yards of peoples properties, is the rule accounting for any previous approvals (i.e. grandfathering)? There can be a lot of issues that arise if the board doesn't account for this - especially if there was previous written authorization for a change.

Adopting rules, regulations or guidelines is never an easy task and should be approached properly. Since the rules will affect the membership, I like to form a committee of homeowners to review and recommend to the board what changes should take place. This will typically give support to any rules adopted.

Hope this helps,

Tim
LawrenceC1 (Georgia)
Posts: 480
Posted:
There is a volume of case law regarding rule making by an HOA, with court decisions for and against. The clause in your covenants gives you some authority - but not the ability to enact anything you want. In general a rule will be upheld if it:

1. Furthers the goals of the Association as stated in its Articles of Incorporation and Restrictive Covenants.
2. Complies with all local, state, and federal laws.
3. Follows the guidelines for making rules as spelled out in the Bylaws; including notification of members and filing in the corporate records.
4. Is applied consistently and impartially, never being used against a particular homeowner or class of homeowners.
5. Is reasonable.

The last item depends on the legal standard of "reasonable" that has been defined by the courts as:

1. Having some legitimate and explainable basis for existence.
2. Being in accordance with reason, fairness, duty, or prudence supported or justified by fact or circumstance.

There is a great deal of grey area here, but this gives you some guidance for making rules.

The other advice that I would give you is to be sure your rule is supported by a majority of the homeowners. Trying to push through a minority action is hard, will likely be reversed, and is probably a violation of the board's fiduciary duty.

LarryB13 (Arizona)
Posts: 4,099
Posted:
I second everything Lawrence said above and in answer to your original question, yes, the board can toss out everything and start all over if it chooses to do so.
JM10 (California)
Posts: 503
Posted:
I'm not clear if you're talking about general rules or actually amending your CC&R.

Rules can't contradict the CC&R (since that's the binding contract everyone signed) or city/state law.

Amending the CC&R is more involved.

I agree with Lawrence as well and emphasize the reasonable part.

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Our documents are ove 30 years old and desparately in need of updating. I plan to start retyping some of the in preparation for presenting changes to the members to vote on as amendments.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Are these your CC&R's you want to update? That has the process on changing IN the documents. Ours took 90% of the membership and a special meeting. Our By laws and incorporation documents took 75% of the owners to change and special meeting. There are ways to get out of the special meeting requiremnt but can answer that lateer.

A HOa is governed by it's members for it's members. I recoomend every 5 to 7 years updating your docs. Technology changes and a HOA needs to adapt.

I'd suggest a lawyer be involved, One that specializes in contracual/busniess/ or corporate law. NOT a Real estate attorney. Your dealing with contractual law and corpoate. It took us over 2 years and about 3K to file the docs. CC&R'a and Incorporation docs require filing. By laws don't but can be with the CC&R's.

Former HOA President
SayA (North Carolina)
Posts: 19
Posted:
Thanks for all the replies - this is for updating the rules, not CCRs.

We have very dated stuff in there, satelite dishes, etc. and we have some state law that dictates the fining process now, so we want to put some "fences" down in writing so people know the boundaries.

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