What becomes of rules once sponsor is sold out and leaves

There is a debate among homeowners and board members in our community as to what becomes of the rules written in our 480+ page Offering Plan once the builder has sold out and leaves. Some are suggesting that only the By-Laws which were filed with the State are legally binding and everything else is now up to management to administer policy as they see fit.

For instance, there was a rule in The Declaration of Covenants, Restrictions, Easements, Charges, and Liens section of the Offering plan that forbids more than two cars per household in the community, but that was not part of the By-Laws. What does this mean now? Can homeowners bring in as many cars as they please? If the board has said nothing about all of these rules that were not in the By-Laws, what becomes of them?

Thanks,
Steve
New York

HOA 101:

The Declaration of Covenants, Conditions, and Restrictions - Filed with County Records are attached to your Property Title ... this is the Supreme document to be followed by the homeowners with regards to your association. This can sometimes supercede your State Law if your State Laws give precedence. Other times your State Law can supercede this document. It is the document that will contain items such as home construction, parking, fences, etc.

The Bylaws are the regulations governing your Board of Directors.

Articles of Incorporation - Filed with the State is the document incorporating your Non-Profit HOA.

You just continue as you were when Developer leaves. The exception is the Homeowners will control the HOA Board of Directors vs Developer Controlling. If you let us know whether or not you are Single Family Homes or Condo ... we can provide links to your State Statutes for some light reading

I really appreciate the prompt responses. I have forwarded them to our community, and two additional questions have arisen...

1) If a 2/3 vote is required to alter a by-law, what is required to alter a provision of a covenant?

2) If the terms of a covenant are breached, what remedy exists for residents obligated by such Covenants?

Steve
New York

1. The majority needed to change a Bylaw and/or Covenant can vary and will be part of the document itself.

2. Typically the association can fine for a Covenant violation. In some states, unpaid fines can lead to a foreclosure on the unit/home by the association. One must have a published fining schedule before they start fining.