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JR4 (California)
Posts: 6
Posted:
Our HOA CC&R's state we can Amend our CC&R's by vote. I know the Davis Sterling says it needs to be changed by Secret mail in ballot. What is correct? Also, since our CC&R's are very out of date written in 1979, what would it cost to have them rewritten? Here is what our CC&R's state.

2. Amendment Subsequent to the close of First Sale. Except as otherwise expressly herein provided, subsequent to the close of the first sale in the development to a purchaser other than Declarants, this Declaration may be amended by the vote or written assent of at least two (2) members entitled to vote, and the recording of such amendment in the office of the Los Angeles County Recorder, accompanied by a certificate signed by the secretarty, stating that such required vote or assent has been obtained.

3. Business and Professions Code Section 11018.7. The foregoing to the contrary notwithstanding, all amendments of this Declaration shall comply with the provisions of Section 11018.7 of the California Business and Professions Code, to the extent said section is applicable thereto.

Thanks for your help.
RichardP13 (California)
Posts: 1,767
Posted:
JR4

Depending on the age of the HOA, a typical price for restating CCRs and Bylaws runs anywhere from $3500 to $5000. To change the CCRs would require membership approval of at least 66 2/3 while Bylaws generally 51%. Your governing documents may have a lower or higher requirement. It is not a state requirement, but an individual HOA's legal document that prevail.

Again, the age of the complex and the documents would determine if both need to be changed. If the current documents are 30 year or more, its best to have both done. Also CCRs and Bylaws are matched pairs in that items in the CCRs are mentioned in the Bylaws and vice versa.

In reading the age of the your documents, I would recommend both. Also get an attorney who will also take an active role in getting them passed.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By JR4 on 05/09/2014 5:06 PM

Our HOA CC&R's state we can Amend our CC&R's by vote.

Then that is how the CC&Rs are amended, by a vote of the membership.

Quote:
Posted By JR4 on 05/09/2014 5:06 PM

I know the Davis Sterling says it needs to be changed by Secret mail in ballot. What is correct?

Using a mail in ballot is one way of voting.

Quote:
Posted By JR4 on 05/09/2014 5:06 PM

Also, since our CC&R's are very out of date written in 1979, what would it cost to have them rewritten?

Depends on how much work you do yourself, who you use to assist in the rewrite and how much of a rewrite is done.
Additionally, prices vary from region to region.

Here is one method to rewrite governing documents that can minimize costs:

1. Formed a committee to write an initial draft.

They looked at what other associations had, reviewed applicable laws, looked for any existing conflicts and compared it to what we currently had.

2. Draft was reviewed and modified by the Board.

Note: both documents were brought into one by showing the current document and the draft rewrite. This was done paragraph by paragraph. This was done to easily see the changes

3. The Board held a special membership meeting for discussion and comment.

The revised draft was published and sent to the membership with the changes shown. Again, the draft contained both the existing and the rewrite.

4. The Board made a proposal which consisted of reviewing the membership remarks and making modifications as needed.

5. Sent it to the attorney for review and comment

6. The Board made the final proposal by making changes based on the legal review and comment

7. A general membership meeting was called to vote on the proposed changes
This required printing of the new documents (we again show the old and the new) and mailing them to the membership for review prior to the vote.

8. Once approved, the new documents were sent to the Attorney for recording with the county and the new documents were officially published and distributed to all owners.

If you notice, an attorney was brought into the picture to review and advice on what the Association had already completed. This minimized attorney costs, as it could have been much much more had they been used in the beginning.

Please note: this process took over two years.

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