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KathleenJ (California)
Posts: 8
Posted:
A copy of the final restated CCR"s and Bylaws was not mailed to every member before the
vote at the annual meeting. Is this required by civil code 1355 (Amending the CC&Rs)?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Were the proposed amendments sent?

A Restatement may include new amendments or it may simply be combining all previously approved amendments into one document.

ElaineS2 (California)
Posts: 47
Posted:
Yes Kathleen, it IS required.
Here's the language of 1355:

For purposes of this subdivision, an amendment is only
effective after (1) the proposed amendment has been distributed to
all of the owners of separate interests in the common interest
development by first-class mail postage prepaid or personal delivery
not less than 15 days and not more than 60 days prior to any approval
being solicited;
TimB4 (Tennessee)
Posts: 21,062
Posted:
Elaine,

If you read the first part of 1355, the Board is provided an option:

Civil Code ยง1355. Amending the CC&Rs.

(a) The declaration may be amended pursuant to the governing documents or this title.

Therefore, if the CC&Rs specify a way of amending the document the board does not have to follow 1355, as the statute gives them the option. Granted, I'm not an attorney nor do I work in the legal profession, but that is the way I read the statute.

With all that said, I do believe that the proposed amendment should be mailed with the notice of the meeting as that is common sense.

Kathleen,

Do your governing documents specify how they may be amended?
If they do, it may be helpful if you could share that information.

Tim

JeanneK3 (Maryland)
Posts: 562
Posted:
Kathleen:
I certainly hope that by "restated" you didn't mean these bylaws were completely rewritten. This can be disasterous for a community as many times homeowner-unfriendly provisions are slipped in with the hope that no one will notice them.
Jeanne
KathleenJ (California)
Posts: 8
Posted:
Yes, our CC&R's address Amendments and does specify that the documents be mailed to all members
KathleenJ (California)
Posts: 8
Posted:
that is exactly what happened but many of our members are older and the attorney sent a letter listing all the
reasons they should vote yes but did not mention the items giving the board more powers
KathleenJ (California)
Posts: 8
Posted:
I meant to say document does NOT specify mailing to all members
TimB4 (Tennessee)
Posts: 21,062
Posted:
Well, one thing that could be done (expecting that you against the changes) is a simple flyer stating the reason why and (depending on the cost) provide a copy of the proposed amendments.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I, too, read the part of 1355 that Tim cites. But, Kathleen, could you post the exact wording of your CC&Rs about amending them & owner notification? Something doesn't feel right here because CA & Davis-Stirling are so protective of Owners' right

Can you also tell us what the attorney left out in the letter to Owners that gives the Board more powers? It sounds like the attorney walked a very fine line by stating the positive aspects of the changes, but leaving out something important. I think it verges on "campaigning," which may not be done using HOA funds.

When our board, for example, needed Owner approval via their votes to obtain a nearly-1 mill. loan for a huge emergency repair, we were very careful to include, in the letter that accompanied the ballots, both sides of the issue, which boiled down to the loan vs. a special assessment.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I, too, read the part of 1355 that Tim cites. But, Kathleen, could you post the exact wording of your CC&Rs about amending them & owner notification? Something doesn't feel right here Davis-Stirling is so protective of Owners' right

Can you also tell us what the attorney left out in the letter to Owners that gives the Board more powers? It sounds like the attorney walked a very fine line by stating the positive aspects of the changes, but leaving out something important. I think it verges on "campaigning," which may not be done using HOA funds.

When our board, for example, needed Owner approval via their votes to obtain a nearly-$1 mill. loan for a huge emergency repair, we were very careful to include, in the letter that accompanied the ballots, both sides of the issue, which boiled down to the loan (which we hoped, couldn't promise, but ultimately did recoup from a construction defect settlement) vs. a special assessment.
KathleenJ (California)
Posts: 8
Posted:
Our CC&R's state "This Declaration may be amended at any time and from time to time by the vote or written consent of a majority of the total membership of the Association. Any amendments shall be effective upon the recording thereof with the Office of the County Recorder of xxxxxx County, Ca."
It does not state the document must be mailed to all members. It does not address owner notification at all. 80% of the members were emailed the final version and 20% received first class mailed package.
The lawyer letter was definitely campaigning. The Board was given new powers over our private lots.
Example of a few of the new laws that were not mentioned by lawyer
1 Have to have permission to plant annual flowers on our front lots.
2. Can't take down a tree over 10 ft. in our back (private) yards without board permission.
3. Board has right to charge members for review of their architectural requests
4. A nonmember can be on a committee and a member with just 10% ownership can be elected to the Board
5. The Board must have a unanimous vote to rehire any company that was previously fired by the last board
6. The Board can lien, foreclose and take title to a home in our association and then does have to pay HOA
fees for that home.
We are in the process of a third opinion regarding the mailing.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Considering CC&R's are public documents it may be cheaper to not mail them. When we changed our CC&R's and by-laws, we did not send copies out. That being due to the extreme cost associated with doing that. The documents were probably 25 pages or more each plus adding on the cost to mail them. It was just cost prohibitive to us. However, we could charge a copy fee and provide a copy upon request. Otherwise since they were on file at the courthouse and public documents we didn't spend the money to mail any off. We also did have an electronic copy available upon request to help with cost a board member did on their own. That format may save you some money.

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By MelissaP1 on 02/27/2013 3:09 PM
Considering CC&R's are public documents it may be cheaper to not mail them.

Less expensive or not. If the law or governing documents require mailings then they must be mailed.

ElaineS2 (California)
Posts: 47
Posted:
Carol-

I can see from your posts that your BOD tries to be fair and transparent. I like your use of the term "campaign" and I agree. But I'l go even further:

Sometimes a restatement is not really necessary. Some Boards rely too much on their legal team (or paid managers) because they are inexperienced, confused, too busy, or otherwise unable to make decisions in the best interest of the (usually apathetic) members. In these cases, the few thousand dollars which the board pays the lawyers to revise the CC&Rs, along with the fee they pay the attorney to "campaign" for the revised documents at a town hall meeting (with no allowance for debate) is just a down payment. The attorneys ususally DO consolidate power in the board, since it is in the attorney's best interest in the long run. They can secure a steady stream of back end income with the right provisions in the new CC&Rs/bylaws. The up front costs to the association are minor compared to the cascade of billable hours they can predict. I almost think those law firms should pay us to allow them to rewrite our ruling documents! It reminds me of the "free" wrinkle cream offerred in a late-night infomercial, delivered to your door, just for signing up for monthly bank account debits for future cosmetics...

This is an area where I would love to see some real community engagement in forums such as this one. If we were to discuss the particular provisions of our ruling documents which have proven the most effective, or the most problematic, then we could share best practices and avoid pitfalls. We're all owners, but I'm convinced that it is industry pros who benefit by pitting boards against mere owners, to the detriment of the entire neighborhood. Attempting to undermine the intent of Davis-Sterling by consolidating power further into the hands of Boards, and then counseling those Boards in ways that incite and prolong conflict, does NOT serve the long-term interest of owners in particular, nor of the whole CID housing system in general. That is a shame, since most new housing will continue to be CID as municipalities struggle with budgets.

Elaine

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