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CaroleL1 (Georgia)
Posts: 5
Posted:
Hello Everyone,

We are a 60 unit townhouse condominium association in Georgia. Built in the 1970s, many of our residents have lived here for 20 years or longer. Throughout the years, we have been quite fortunate to have good Boards of Directors who concentrated on maintenance of the infrastructure and funding for same rather than persnickety rule enforcement . The residents have been supportive of fee increases for the reserves, maintenance and capital improvements, while generally acting like adults and good neighbors without requiring Board supervision. Then end result is a stable and harmonious community with stable property values that can sell overnight, low past due receivables (if any), low legal bills, FHA approval and a great place to live.

However, several years ago a rogue BOD with a different agenda ran amuck, enforcing old rules, writing new ones, sending out violation notices and even fines (for the first time in our history) and retaining a lawyer. All of this was legal according to our governing docs and GA law, but it caused much confusion and eventually an erosion of the community trust and harmony that had existed prior to the invasion. It took awhile, but we were finally able to replace the BOD members and most of the former rogue BOD members have since moved away. It was then agreed at the annual meeting that violations would be reserved for serious health and safety reasons while undergoing the process of re-writing the documents to insure against the possibility of such events happening in the future. Since then goodwill and harmony has been restored.

I'm on the New Documents committee. We would like to get a general idea of how we would like the documents re-written to present to the membership before taking them to a lawyer for the final version. Despite Googling my fingers off, I can't seem to find any current documents that aren't pretty much boiler-plated and look like our own current documents. The general idea is to give the BOD as much authority as they need to maintain the infrastructure, enter contracts for landscaping and pool care, pursue late payments, etc while restraining their ability to control the types of patio furniture we purchase. We want flexible documents that allow for member participation and consent in those area where they are affected the most.

Does any one here have ideas on where to look for this type of template or any ideas of what might work in these circumstances?

Thanks in advance for any help.
MoM1 (Massachusetts)
Posts: 56
Posted:
The Association (via member vote) gives the board as much or as little authority as the members want. If the membership doesn't want patio furniture styles dictated, leave it out of your docs. If the board's job is to only contract for very limited servies, collect fees, run elections, etc., that is what you put in your by-laws. Anything else leave out so subsequent rogue boards have nothing to work with.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Unless your state laws prohibit it, you might consider placing in your bylaws what's required by law in CA: When the Board proposes, at an open meeting, new rules, deleting old rules, or amending existing rules, the proposal(s) must go to owners for a 30-day comment period. Then the Board takes these written comments into account at the subsequent board meeting where the rule changes are approved by the board or not. Your ND Committee might want to start out this way to get Owner feedback on your ideas.

If in your bylaws, an arbitrary, capricious board may not just make any rules it pleases without giving them careful thought. Our Board, anyway, takes owners' comments seriously.

Sorry I can't help with sample docs. There are certain state laws that simply must be in, especially, your bylaws.
CaroleL1 (Georgia)
Posts: 5
Posted:
Thank you, Mom and Carol. You both mention the ByLaws, but the Document draws its authority from is the Declaration. With an 80% affirmative vote, we can strike the parts of the Declaration that we are concerned about. Because we aren't making material changes (in boundaries or vote allocations), we don't need the mortgage holders to affirm. Our ByLaws pretty much only deal with how and when to hold meetings and elect Directors.

I forgot to mention that we're also interested in a "plain English" Declaration vs the legal soup we have now.
CaroleL1 (Georgia)
Posts: 5
Posted:
Ok I need to proofread better. The 1st sentence of the last post should read "The document the Board draws its authority from is the Declaration".

Sorry.
JeanneK3 (Maryland)
Posts: 562
Posted:
Carol L:
Your plain English version of your governing documents will undoubtedly be changed into legal soup by your attorney.

I strongly recommend that you do not entirely rewrite your governing documents. It gives an attorney too much of an opportunity to insert sections favorable to the attorney and not the community. You should only change those sections that need changing.

Before you begin, see http://www.marylandhomeownersassociation.info/Site/Predatory_Bylaw_Alert.html

Jeanne

TimB4 (Tennessee)
Posts: 21,059
Posted:
Carole,

This is the procedure I would recommend:

I would also suggest the following procedure:

1) committee of members to come up with the first draft (this helps get membership support).

2) Board reviews the draft and makes changes.

3) Board holds hearing on draft and solicits opinions from members.

4) Board reviews the suggestions and makes changes.

5) Draft is reviewed by attorney

6) Board reviews the attorney's advice and makes changes

7) Board publishes draft to membership for review

8) Board holds meeting to vote AND/OR if allowed (and in the case of the CC&Rs) Board solicits written agreement for change - as this allows more time to get 100% participation.

9) Board files amended documents as required and informs the membership - perhaps publishing adopted documents for the entire membership.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
While I agree with Tim's suggestions, I would be concerned that a BOD still needs the ability to perform/control even if it opens the door to a BOD that could be nitpicking, nazi like, etc.

The answer is to elect a BOD that reflects the views/beliefs of the association and replace them if they do not, versus limit/control them via the documents.

Expressions like "community standards" can be subjective and subject to abuse but also without such, makes for free for all like polka dotted painted houses versus which shade of white.

Hope this helps.

GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By CaroleL1 on 05/02/2013 1:47 PM

However, several years ago a rogue BOD with a different agenda ran amuck, enforcing old rules, writing new ones, sending out violation notices and even fines (for the first time in our history) and retaining a lawyer. All of this was legal according to our governing docs and GA law, but it caused much confusion and eventually an erosion of the community trust and harmony that had existed prior to the invasion.

The scoundrels should be horse whipped before being tared and feathered, can you imagine the effrontery of attempting to enforce the documents everyone signed and agreed to abide by when they purchased there? Maybe you could get them tried in the Hague for crimes against humanity.

Most people running for the Board promise to abide by the CC&Rs but in Carole's HOA it's: I promise to turn a blind eye to all but the most egregious violations.

Of course what's egregious to me, might not be egregious to you.

Studies show that 5 out of 4 people have problems with fractions
CarolR11 (Colorado)
Posts: 2,563
Posted:
Say, Carole, yes, declarations trump bylaws. So, in our case, the CC&Rs give the Board the authority to levy fines and make rules. It also give the board the power to suspend common area privileges if owners are repeatedly violate our rules or a re delinquent on their dues without setting up a payment plan with the Board. Our Rules & Regulations (which are a gov. doc in my HOA), lays out a Schedule of Fines for various infractions.

For the first time, I visited the Library on this site and went to "Associations," where I found a governing docs section. I just skimmed through it and there might be something there that can assist you. I didn't see any templates, though.

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