making changes to bylaws

MarshaF (Oregon)
Posts: 36

Posted:

What is the correct way to make changes to bylaws?
Do you draw up a separate document of the changes to be made and make references to sections of the original document, or do you change the original document ?

Also, does Oregon have an automatic lien on property for past due assessments, like Arizona does ?

Thank you,
Marsha Flak, President
Indian Rock HOA

RogerB (Colorado)
Posts: 5,067

Posted:

Marsha, to amend the By-laws follow the requirements in the By-laws for amending. You can draft a list of the amendments with reference to each paragraph being amended and vote on all or on each independent item if all are not approved. Or you can create a new document of the entire By-laws with the deletions crossed out and the additions in color. Using this method you can easily create the finally approved amendments into a whole new document. I find this to be more understandable than listing the approved changes in a separate amendment.

Your Declaration should specify when there is an automatic lien for delinquent accounts. I am not familiar with Oregon statutes.

MarshaF (Oregon)
Posts: 36

Posted:

Thank you Roger. I knew there had to be someway you would want to track changes. As always, you're input is appreciated.
Regards,
Marsha

JM2 (Oregon)
Posts: 439

Posted:

Hi Marsha:

Oregon Law does provide for an automatic lien on properties for assessments. However, when going through the collections process, most HOA's I know do go ahead and file a formal lien on the property - usually they use the law firm that's going to handle the collections process, or their managing agent, to file the lien.

J. Patrick Moore, CMCA

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I've done some changes to both our By-laws and CC&R's. In my state, ONLY the CC&R's have to be filed at the County with the deed. By-laws are optional to be filed. They mainly stay with the HOA. CC&R's supercede By-laws if in conflict. So it's good to do both at the same time.
We got a lawyer to assist us. With the filing fees and drafts, the cost was about $1500 - $2K. That didn't include the cost of copies and distribution. It also took us about 2 1/2 years to complete. Those changes were simple like separate water meters, eliminating builder references, two-class voting system eliminated, and the HOA main address.
We were to have a "Special meeting" to address these issues and make the changes. However, try getting 107 homeowners to show up in one clubhouse once a year for a huge undertaking and you can see the impossible. A special meeting is required for our rules to be changed. Not an easy task.
However, there is a way around this "special meeting" if it is so required. Our attorney drafted 2 sets of petitions. The FIRST petition referenced the changes. The changes were listed (paraphrased) on the first sheets of paper. (Depending how many changes). Next there was 4 columns. One for the name of the OWNER (NO Renters!!!)on the deed next to their lot number. There was a signature line of the owner. The address of the owner. The last column additional contact information. (Phone/email).
The SECOND petition had on it an AGREEMENT to NOT have a special meeting to hold this vote on the changes. The owner's had to GIVE UP their right to have a special meeting so that the HOA could go door to door to collect votes. Essentially you had to give up your right to attend a special meetins so that you could vote on your own schedule.
We could still have the special meeting if we chose. It was just easier NOT to do it. You may or may not need an attorney. It just makes it easier. Especially the drafting and the filing part of the changes. Gathering the votes and discussing the proprosed changes, you may NOT need a lawyer at those points. Limit the need for the lawyer as much as possible I say. Plus get a good CONTRACTUAL lawyer and NOT a Real Estate attorney. You want someone familiar with corporate/business laws. The HOA is a corporation.
It's good to update/change the rules of the HOA every 5 years or so. Make sure to review the rules to make sure there aren't any conflicts with current state/local laws. Satellite dishes used to be "illegal" for an HOA. I believe a Federal law was passed that HOA's can't discriminate against satellite dishes. They can limit where they are placed but NOT ownership. Just small details to overview as you update/change.

Former HOA President