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FredO (California)
Posts: 198
Posted:
I have been looking at our governing documents and notice that our ACC guidelines are a section of the CC&R's. Been reading posts and threads on this forum for a few years now and have realized that:

1.) CC&R's are Deed restrictions telling you what you can and cannot do with your property.
2.) That to change the CC&R's requires a lot of effort (votes, money and filing the new or revised deed restrictions with the county).
3.) The Board of directors cannot change the CC&R's for anyone (without doing the things in item #2 above).

So why is it that the Board or in some cases the ACC Committee can issue a variance to the ACC guidelines?

If the Guidelines are in the CC&R's doesn't that mean that any variance has to be voted on? Has to be noted and filed for that lot owner with the County??
The owner in almost all cases is making a permanent change to his property. A change that will pass on down to subsequent owners and is therefore something that needs to be noted in the deed, if it is a variance of the CC&R's.

The law says that any on=wner can sue any other owner to come into compliance with the CC&R's. But if the board is issuing variances to the ACC guidelines that are found in the CC&R's how can that be legal? The variances are not noted for the other members of the HOA and are never filed with the county to attach them to the Deed for the lot.

To me it seems there is a hole in the process. Seems to me that Variances are not allowed nor are they legal if the ACC Guidelines are in the CC&R's.

The agreement one makes when moving into an HOA is that they agree to the CC&R's. This is an adhesion contract in that you do not get to negotiate any of the terms of that contract.

In some ways, a variance is nothing more than selective enforcement since the CC&R's are not changed to reflect something and the variance is basically then an agreement between the HOA and the owner to not fine the owner for the violation. Since many CC&R's have the boiler plate statement that we can issue a variance to owner "A" and deny the same thing to owner "B" it becomes nothing more than selective enforcement and a violations of owner "B"'s civil rights.

With the above stated, I am curious as to what your thoughts are on the subject. My HOA has no issues related to this pending, there are no lawsuits. I am Just pondering based on reading my CC&R's and the my understanding of the law.
RichardP13 (California)
Posts: 1,767
Posted:
This is from our CCRs as it refer to variances. As you can see, the ACC may allow reasonable variances with just a majority votes of the members of the Committee.

Section 7.5 Variances..Where circumstances such as topography, location of buildings, location of landscaping or other matters require, the Committee, by the vote or written assent of a majority of the members thereof, in its sole, absolute and subjective discretion, may allow reasonable variances as to any of the provisions contained in this Declaration or provisions under the guidelines and rules and regulations promulgated by the Committee, on such terms and conditions as it shall require; provided, however, that all such variances shall be in keeping with the general plan of development for the Project. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose, except as to
the particular Residential Unit and particular provision hereof covered by the variance, nor shall it affect in any way the obligation to comply with all governmental laws and regulations affecting the Owner's use of his Residential Unit, including but not limited to, zoning ordinances.

KerryL1 (California)
Posts: 14,550
Posted:
Though different wording than Richard's, the CC&R section that includes Variances in my HOA is in the larger section of the duties, etc. of the ACC. The ACC may approve variances with lot of caveats including very strong wording that a particular variance cannot be assumed to mean that such variance will be granted to other condos. Such variances must be recorded with the County Recorder.

We're twin tower high rises and no variances have been sought.

Is it possible, Fred, that a section on variances in your CC&Rs is in a different section than your ACC verbiage?
FredO (California)
Posts: 198
Posted:
I have gone back and read and found the section (hidden way in the back of the ACC section in the CC&R's) where they talk about variances.

Our section states the following:

Except for restrictions set forth in section 6.1, the ACC may authorize variance from compliance with any of the architectural provisions of this Declaration, including, without limitation, restrictions upon height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship or aesthetic or environmental consideration may require such variance. Such variance must be evidenced in writing, must be signed by at least two (2) members of the ACC, and shall become effective upon recordation in the official records of the county.

It goes on to say that if the above is done, then there is no violation of the CC&R's. However, if I read this correctly, *ALL* Variances need to be recorded to be valid.

Questions:
1.) Who is responsible for recording the Variance with the county?
2.) Is the individual lot owner responsible for recording this on their own lot deed?
3.) Should all variances then be recorded as amendments to the master CC&R recorded with the county?

If a prospective owner was looking at buying a home and went to the county to look at the recorded documents that should be there, is this something that is expected to be there as part of the parcel deed for the lot or part of the master CC&R's.

Our governing documents give no indication as to who records the variance. I know that the ACC has not recorded anything with the county since before I moved in (since 2001). The only thing recorded at the county was our restated CC&R's back in 1998. (The HOA /Sub-division has been around since 1981)
RichardP13 (California)
Posts: 1,767
Posted:
Fred

I haven't come across this as a PM, but I will tell you what I would do.

The variance should be recorded by the HOA, maybe through the PM and recorded against the individual property, not as an amendment. The cost to record must be borne by the homeowner and should be stated as such in the Architectural Application.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
excellent
FredO (California)
Posts: 198
Posted:
Richard,

I agree with all you said. I would say that one of the things for us is that the ACC Application is of local design and does not include anything about recording any variances.

Same with our governing documents, the section I quoted from is still the original language from when the governing documents were first created. Granted, it was probably an oversight back in 1981.

One of the issues I have seen in my HOA (can't speak for others) is that someone may have gotten a variance a long time ago. Then, as time goes on, newer Boards get seated and appoint new ACC members. Along comes one of these newer folks who have no idea about a person's prior variance and lo and behold, they write them up for something that the owner has a variance on.

It has happened a number of times in the last 13 years I have lived here. I see it as a problem that there is no master list of Variances that have been approved so that the MC can check any complaint about any address and determine whether there is a variance approved and on the books to curtail a non-compliance letter and create bad blood.

Seen it happen a where the Board attempted to fine someone for something that the person had a variance on. The person showed up at a meeting with his original documents transferred to him by the previous owner (very lucky that happened in this case) and he showed the Board the Signed copy of the variance. The matter was closed and no apology from the board for putting the Homeowner through the hell they put him through.

This points to other internal process problems we have in the HOA. Namely, that there is not a clear process where they check to verify if a complaint is truly a violation of the CC&R's.

Thanks,
LarryB13 (Arizona)
Posts: 4,099
Posted:
Either party may record the variance and there is nothing preventing the property owner from recording it. He would be wise to do so as he is the one who benefits from the variance. Regardless of who records it, the document will be indexed to show the association as the grantor and the property owner as the grantee. Whether the document can be found by searching for lot number and subdivision will depend on how sophisticated the recorder is. (My personal experience has been that secondary information of this nature is inconsistent within the county recorder's database.)

I do not know if an owner can do this, but if possible he should amend his deed to indicate that there is a variance. Before the variance his deed may contain verbiage similar to:
"subject to restrictions recorded on Page 1234 of Book 5678."
After amending, it would state,
"subject to restrictions recorded on Page 1234 of Book 5678 and variance recorded on Page 4321 of Book 8765."
The reason for doing this would be to ensure that a future buyer has explicit notice of the variance as opposed to hoping that the title company will find the recorded variance fifty years from now.

DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By FredO on 09/02/2014 1:48 PM
Richard,

I agree with all you said. I would say that one of the things for us is that the ACC Application is of local design and does not include anything about recording any variances.

If the application doesn't include verbiage about recording variances, you could include it on the approval. Include the fact that the recording is for their (and future owners of their property) protection.

I think your record keeping issues are very common among associations. I'm treasurer of my association and inherited a file box of records, some financial, some not. Some I feel are permanent, some not. For example, old power and water bills don't need to be kept forever. The secretary also has a box of records, but I don't know how far back. Hopefully we have minutes going way back. Someone else keeps the ARC records, but again, I don't know how far back. I would assume any approvals, and especially any variances, would be kept permanently, but I haven't looked.

I'd be interested to know how other associations with no office or storage space handle that issue.

Escaped former treasurer and director of a self managed association.
FredO (California)
Posts: 198
Posted:
LarryB13,

I really appreciate your advice on this issue. Thank you for your time & effort to give us this knowledge. You make perfect sense on the issue.
Our CC&R's are vague on the issue and I think it may be some small can of worms to rectify this and make up for at least 13 years of no one doing anything about this (from what I can tell) and maybe as far back as the HOA goes.

I definitely agree it would benefit all owners to make sure their lot references all variances the lot has been issued (regardless of who owned the property at the time).

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