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RobertS17 (Florida)
Posts: 52
Posted:
I am now a director in a homeowners association which never really functioned as it should. All assessments have not been collected and several homeowners are behind several years, restrictions haven't been enforced, regular board meetings and member meetings haven't been called, a proper budget was never created, the minutes book is incomplete and poorly written… You can imagine the picture.

We are trying to get the association turned around and right now I'm in the process of learning all that I can about our governing documents, Florida statutes chapter 720, and reading through what little minutes we have in the minute book. Thank God it's a very small community!

All of this has led me to some questions regarding rules and restrictions. It's my understanding that "rules" are what the board adopts to conduct business affairs (as mentioned in the bylaws). "Rules and regulations" are mentioned in the declaration as such:

ARTICLE IX. GENERAL PROVISIONS
Section 9. Rules and Regulations. The Association has the right, power and duty to establish rules and regulations for the maintenance and upkeep of the Lots and Common Area.

And "restrictions" are what's listed in the declaration under "Article VI. Use Restrictions for the Common Good."

"Rules" and "Rules and Regulations", in my case, would only require a majority of directors to adopt whereas "Restriction" changes would require an amendment to the declaration by way of an affirmative three fourths vote of all members, correct? (As well as being recorded in our County records.) To put it another way, whether you're talking about "rules" or "rules and regulations", they are merely standards adopted by the board whereas altering "restrictions" (whether adding or removing) requires an amendment.

If I am correct so far, I have follow-up questions to come.
GlenL (Ohio)
Posts: 5,491
Posted:
You're on the right track, the Covenants say what and the By-Laws and rules say how. For instance a Covenant might require the HOA to maintain a pool, the Board can pass rules on how the pool is operated. Keep in mind that you cannot write a rule to countermand a Covenant.

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RobertS17 (Florida)
Posts: 52
Posted:
Quote:
Posted By GlenL on 10/08/2012 3:38 PM
You're on the right track, the Covenants say what and the By-Laws and rules say how. For instance a Covenant might require the HOA to maintain a pool, the Board can pass rules on how the pool is operated. Keep in mind that you cannot write a rule to countermand a Covenant.

Thanks, Glen. We don't yet have a rulebook; only the CC&Rs, bylaws and articles of incorporation. Luckily, the only common areas we have are a private paved road with a cul-de-sac and the surface water drainage system.

On a side note, you guys are fast with your responses!
PaulT6 (California)
Posts: 409
Posted:
Robert,

Sounds kind of complex? In our HOA when the Covenants Committee was established our attorney recommended we write a set or sub-set of rules, called "Covenants Rules". They had to be based on the C&R's and follow the "intent" of the C&R's. These rules can be established and revised with only the Board's approval whereas changing the C&R's require member approval. Sounded kind of unusual to me at the time but they have worked well for the past 16 or so years.

Covenants Rules: http://www.tahoedonner.com/wordpress/wp-content/uploads/2011/11/covenantsrules.pdf

C&R's & By-Laws: http://www.tahoedonner.com/wordpress/wp-content/uploads/2011/11/governingdocs.pdf

Paul T
RobertS17 (Florida)
Posts: 52
Posted:
Paul,

Our HOA consists of only 17 properties. It's hard enough finding people willing to serve as directors and officers so we don't have any committees. I like the covenant rules idea you have working for you. We are working with a lawyer now and he suggested setting up a fine system for enforcement because as the C&Rs are worded now, enforcement is to be done through litigation.
RobertS17 (Florida)
Posts: 52
Posted:
Here is more to add to the story. Right now I'm looking through some 2005 minutes of a Joint Meeting of the Board of Directors and members where six members were present. Six members establishes a quorum, but is not three fourths of the community.

"A vote was taken on the mailboxes and outside storage buildings. Upon motion duly made, seconded and carried, the directors and members by unanimous vote: To retain original mailbox design through Creative Mailbox Designs and the outside storage buildings to have appearance of the home design including the roof."

Article VI of the declaration mentions nothing about mailboxes or sheds, therefore that order of business conducted in 2005 would be invalid because these would be restrictions rather than a rule as I understand it and proper criteria wasn't met nor procedures carried out to make it valid.

This is very significant because neighbor A has constructed a metal garage on his property which I'm sure will come up at the board meeting where we explain how restrictions will be enforced, past assessments collected, etc. This same neighbor likes to tinker with satellite dishes and has at least five of them in his side yard in plain sight. There is nothing in the declaration about satellite dishes, but they don't look very neat in appearance.
PaulT6 (California)
Posts: 409
Posted:
Quote:
Posted By RobertS17 on 10/08/2012 4:14 PM
Paul,

Our HOA consists of only 17 properties. It's hard enough finding people willing to serve as directors and officers so we don't have any committees. I like the covenant rules idea you have working for you. We are working with a lawyer now and he suggested setting up a fine system for enforcement because as the C&Rs are worded now, enforcement is to be done through litigation.

Seems like that could get costly. I can only speak from my experiences in two HOA's but it seems unusual? I would try to change that one.

Paul T
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By RobertS17 on 10/08/2012 4:14 PM
We are working with a lawyer now and he suggested setting up a fine system for enforcement because as the C&Rs are worded now, enforcement is to be done through litigation.

This might be more problematic than you think, if you have problems getting volunteers. FL 720.305 (2)(b) allows the BOD to impose fines & suspensions BUT they only become valid AFTER validation by the fining committee:

(2) The association may levy reasonable fines of up to $100 per violation against any member or any member’s tenant, guest, or invitee for the failure of the owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association. A fine may be levied for each day of a continuing violation, with a single notice and opportunity for hearing, except that the fine may not exceed $1,000 in the aggregate unless otherwise provided in the governing documents. A fine of less than $1,000 may not become a lien against a parcel. In any action to recover a fine, the prevailing party is entitled to reasonable attorney’s fees and costs from the nonprevailing party as determined by the court.

(a) An association may suspend, for a reasonable period of time, the right of a member, or a member’s tenant, guest, or invitee, to use common areas and facilities for the failure of the owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association.

(b) A fine or suspension may not be imposed without at least 14 days’ notice to the person sought to be fined or suspended and an opportunity for a hearing before a committee of at least three members appointed by the board who are not officers, directors, or employees of the association, or the spouse, parent, child, brother, or sister of an officer, director, or employee. If the committee, by majority vote, does not approve a proposed fine or suspension, it may not be imposed. If the association imposes a fine or suspension, the association must provide written notice of such fine or suspension by mail or hand delivery to the parcel owner and, if applicable, to any tenant, licensee, or invitee of the parcel owner.

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