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MikeS1
Posts: 668
Posted:
Ok folks, - Jog my memory. What's the pecking order? Do the Bylaws take precendent over the Articles or Incorporation or is it the other way around? When there is a conflict, which document rules over of the other?
TracyT (Maryland)
Posts: 228
Posted:
Do you seriously have a conflict between these two documents? What could it possibly be?
RogerB (Colorado)
Posts: 5,067
Posted:
Mike the hierarchy is: Federal laws, State statutes, County/City ordinances, Plat, CC&Rs, Articles of Incorporation, By-Laws, and finally Rules and Regulations.
BradD2 (Florida)
Posts: 418
Posted:
The order is what Roger said with one caveat; sometimes your governing documents will say which takes precedence. Ours for example are Covenants, By-Laws and then Articles of Incorporation.
MikeS1
Posts: 668
Posted:
Absolutely, The Articles of Inc read as follows " "Section 6.4 - Vacancies. A vacancy if any office may be filled by appointment by the board of Directors. The person appointed to fill a vacancy shall serve for the remainder of the term of the Officer such person replaces".

While the Bylaws read as follows "Vacancies on the Board of Directors caused by any reason other than the removal of a director by the members shall be filled by a Majority Vote of the remaining directors at the meeting of the Board held for such purpose promptly after the occurrence of such vacancy. EACH PERSON SO ELECTED SHALL BE A DIRECTOR UNTIL A SUCCESSOR SHALL BE ELECTED AT THE NEXT ANNUAL MEETING OF THE ASSOCIATION".

So in other words, if someone resigns, then their term is for the remaining part of the original 3 term. If someone resigns with two years left, then the appointee's term is for the remaining 2 years. The Bylaws which a weaker document, say that the vacancy is only good until the next Annual Meeting/Election.

RogerB (Colorado)
Posts: 5,067
Posted:
Mike, the Articles refer to a vacancy in an OFFICE. The By-laws refer to a vacancy on the BOARD. So if officers are elected every year there is no conflict.

I would suggest you consider amending the By-laws to "The member appointed to fill a vacancy on the Board of Directors shall serve for the remainder of the term of said vacancy." This would maintain staggered expiration of term for the Board members.
MikeS1
Posts: 668
Posted:
Thanks Roger - Great suggestion.
Jadedone4 (Virginia)
Posts: 495
Posted:
OK... APOLOGIES for bring a "dead" topic back to the front, but I used the search feature for "order of precedence" and these posts came up - along with additional questions from me, on a current issue.

From the posts this is the order widely accepted as correct...

Federal Law
State Law
Local Law/codes, etc

Plat's
Declaration/CC&R's
Articles of Incorporation
By-laws
Rules and Regulations

I have Art's of Inc, which were drafted and filed two months before the Declartion/CC&R's. Now, the timeline does not really worry or concern me - it is the actions which trigger the creation of the above.

Example, obviously you need to actually "have" a created and recognzed "corporation." Question - is the trigger point here, the collection of the first set of monies from the sale of a unit? In other words can decisions impacting upon the HOA be done during this period, in the name of the HOA, by developer's agents, as appointed directors, which alter (reversing the position), the original documents?

The issue that I am facing is that under our Declaration it was put forth to the County that one set of terms and conditions would be in place - these terms and conditions were approved by the County, and properly filed as the Declaration. Then once the developer's agents were appointed as directors, about six months later, an amendment was submitted to the County, which changed the Declaration's terms and conditions, and did so in a manner that was not conducive (face value, and also cited as "unusual" by attorneys), to the HOA - and more than likely would only benefit the Developer. Then an additional year later (fall 2003 to spring 2005 no HOA meeting, just developer appointed directors making decisions, with no record of minutes/meetings), the first HOA meeting took place with election of directors to Officers, hiring of MC, etc.

My "assumption" is that during that period prior to actually having official meetings of the HOA (under whose name the directors were appointed), there should have ONLY been decisions made in "open meetings" when it addressed HOA matters. If the developer needed to alter a valid and filed agreement with the County, as it affected the HOA, then this was an action required to scrutiny by guidelines of the letter/spirit of "open meeting" laws. As it stands now, there are "question marks" into why this developer, and his appointed agents would enter into an agreement which was lop-sided to the HOA. And because the first meeting did not take place until almost a year after Declaration filed, the "questionable" Amendment filed, to the time of the first official meeting of the HOA - there is little "evidence" or rational which can be explored or answered to shed light on additional information. And while the County has not released bonds, the developer, and developr agents on the first HOA board, are "ghosts."
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It should be your Convenants and Restriction take precedents over your By-laws. Although they can BOTH be filed at the courthouse. The Articles of Incorporation are filed at the State level. CC&R's are filed at the County level. By-laws filed within the HOA itself or at the County Level. CC&R's go with the deed and by-laws are more the everyday rules of the HOA.

HOA's usually don't fall under "Federal laws". They are mostly governed by State and Local. The issues that would involve Federal law are usually with an individual's rights as a homeowner not as a group as a HOA is.

Former HOA President
TracyT (Maryland)
Posts: 228
Posted:
Hi Jadedone,

It's strange that they didn't issue the revision to HOA at the time. However, I would double check your declaration. Ours actually says that developer CAN make changes to the CC&R, without an HOA vote, for up to 7 seven years after the date of the original filing.

It sounds like the change is material to your HOA dedication so maybe your assoc. could vote to change it back to the original wording.

Tracy

RogerB (Colorado)
Posts: 5,067
Posted:
Jaded one,
Regarding the timing of incorporation I'm not positive but think the organization can be corporated at such time as they apply. Obviously the name of the organization must be created prior to incorporating. One would think filing the CC&rs would be first in the case of an HOA; but I'm not sure that is required. In the initial phase of development the Declarant can and often does file amendments to the CC&R's. Often they ignore having a meeting since they own adequate votes to do so. They should have a record (minutes) to substantiate these actions but often don't.

Your choice at this time is to amend the CC&Rs in the manner desired by the owners. If you want to remove the Declarant's amendment it can probably be done most easily in this manner. However, if it is an Agreement rather than part of the CC&Rs that is another matter.
EdieL (Virginia)
Posts: 86
Posted:
Our HOA uses the BOD's proceedures and policies to circumvent what the
CCR'S state. What's up with that?? The BOD and HOA attorney think that's
legal!!
RogerB (Colorado)
Posts: 5,067
Posted:
Edie, the Rules and Regulations (policies and procedures) can amplify and clarify the CC&Rs but can not conflict with them and be legally binding. As long as the Rules are reasonable and do not directly conflict with the CC&Rs they are binding but have a lower weight when considered by a judge.

For example when the CC&Rs state RVs are not allowed; a Rule and Regulation which state no RVs are allowed except when totally screened are in conflict and can not be legally enforced. Contrastingly, if the CC&Rs state RVs are allowed; the Rules and Regulations which state RVs must be totally screened are not in conflict and can be legally enforced.
LindaC3 (Florida)
Posts: 526
Posted:
RogerB.........Thanks for this post...........Thats why a Member of our HOA has filed for mediation with the State here in Florida....Our CC&R states NO RV'S are allowed on the property........then it has a seperate restriction that states the BOD can allow them by a rule of general application subject to local laws and ordinances...PERIOD........So what the BOD did was expand on that and made the RULE that they had to be wholly enclosed in a building....Well a majority of us feel that if the RULE is subject to local laws and ordinances and THEY ALLOW them without being wholly enclosed then OUR RULE is invalid and not enforceable....I feel it is in conflict.... So that why both my neighbors have been found to be in violation of the Rules and are being fined $ 5.00 per day for having the RV'S / Private motor coaches on their 3 acre lots-- which you cant even see them parked there from our yard.............LINDAC
EdieL (Virginia)
Posts: 86
Posted:
Rodger, Thanks for your reply. Our CCR's, Bylaws and Articles read that all lots have
appurtenant rights to the common area (tennis courts, BB court, Boat Slips etc) Our BOD has decided
through it's BOD Policy and Proceedures to "Lease the Boat Slips" and anyone who does not pay
the lease fee will have a lien put against their property. In looking at the term appurtenant, means
runs with the land . Give me your take.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
If the member agreed to pay the lease and sign a contract to do so, the HOA can lien of they do NOT pay. However, if the member must sign the lease no matter if they have a boat or not then that may be a more gray area.

Former HOA President
RogerB (Colorado)
Posts: 5,067
Posted:
Edie, all owners may use the common area including the boat slips. This appears to be an extra charge which is paid by only those who elect to use it. However if all owners are charged this fee because it benefits all owners, it would be more appropriate to increase the assessment.

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