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LouH1 (Michigan)
Posts: 214
Posted:
What is the difference between an HOA and a Conco Association?
DouglasK1 (Florida)
Posts: 2,046
Posted:
It depends on your state and local laws. In Florida there are completely different statutes governing HOAs (FS 720) vs. Condos (FS 718), not sure about MI.

Escaped former treasurer and director of a self managed association.
GenoS (Florida)
Posts: 4,276
Posted:
One difference, in Florida at least, is subtle but important. In a condo association all the unit owners own an undivided share of all common property (building, roads, landsape, etc.). But in an HOA the Corporation (in FL all HOAs must be incorporated entities) owns the common areas by itself.
JohnC77 (California)
Posts: 562
Posted:
This might help.

https://www.kdisonline.com/breaking-down-the-differences-between-a-condo-association-ca-and-homeowners-association-hoa/#:~:text=Usually%2C%20an%20HOA%20oversees%20single,much%20like%20apartments%20and%20townhomes.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouH1 on 08/01/2020 8:47 PM
What is the difference between an HOA and a Conco Association?
Elsewhere you posted that your community is a "site condo" and explained that it is a condo with "separate, single family houses."

In Michigan, by my reading and when it comes to condos/hoas, a community is either subject to:

-- the Michigan Condominium Act; simultaneously the Michigan Nonprofit Corporation Act; and the community covenants.

or

-- the Michigan Nonprofit Corporation Act and the community covenants.

or

-- solely the community covenants.

Do your community's Bylaws or Declaration of Covenants say your community is subject to the Michigan condominium act? Do they say the community is a corporation?
LouH1 (Michigan)
Posts: 214
Posted:
Our Master Deed says we are subject to the Condominium Act (Act 59 of the public Acts of Michigan of 1978). It also says we are a non-profit corporation.
AugustinD
Posts: 5,144
Posted:
Thank you. For the folks here at hoatalk who read the statutes, knowing your community is subject to the Michigan Condo Act and Michigan Nonprofit Corporation Act helps enormously in answering questions you have in other threads you start.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lou

Typical association docs fall into 3 categories:

1. Covenants, Declaration, Deed Restrictions, etc. which are all the same. It is generally the largest doc and pretty well covers everything including restrictions on things like out buildings, architectural restrictions, parking restrictions, etc. Pretty much everything to do with the association. It is the "bible" on how an association must be operate. Generally this doc will say nothing about BOD makeup, elections, etc. To make a change, it will typically take a 2/3rds of all owners agreeing to any changes.

2. Bylaws typically deal with association governance, elections, BOD positions/size, etc. It is the "bible' on how the association is to be governed. Bylaws would generally not say anything about out buildings, architectural restrictions. etc. To make a change, it will typically take 51% of all owners agreeing to any changes.

3 Rules & Regulations are made by the BOD and the BOD alone. They typically are used to clarify and control but they cannot override and Covenant now Bylaw. R&R's could control pool hours but it could not have a pool removed.

It helps all to know what one is specifically referring to.

Associations can be stricter than local laws but they cannot override local laws. One classic example is local law says fences can be 8ft tall. Association says 4ft tall max. Because owners agreed to the association restriction, the association wins. Now the association cannot say fences over 8ft tall are allowed as that would be against the law.

Hope this is helping.
AugustinD
Posts: 5,144
Posted:
From the Michigan Condo Act:

559.156 Bylaws; permissible provisions.
Sec. 56. The bylaws may contain provisions:

(a) As are deemed appropriate for the administration of the condominium project not inconsistent with this act or any other applicable laws.

(b) For restrictions on the sale, lease, license to use, or occupancy of condominium units.

(c) For insuring the co-owners against risks affecting the condominium project, without prejudice to the right of each co-owner to insure his condominium unit or condominium units on his own account and for his own benefit.

History: 1978, Act 59, Eff. July 1, 1978.
LouH1 (Michigan)
Posts: 214
Posted:
Thanks for all your help. But I am confused with what Agustus said in his last response. Does it mean the bylaws supercede law? am confused. thaks so much!!
LouH1 (Michigan)
Posts: 214
Posted:
Sorry Augustin D....not Agustus....my bad.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouH1 on 08/02/2020 10:22 AM
Thanks for all your help. But I am confused with what Agustus said in his last response. Does it mean the bylaws supercede law?
I think "supercede" is not the right word. In the Michigan Condo Act, one will see statements like:

"The boundaries between adjoining condominium units shall not be relocated unless the condominium documents expressly permit it."

"A condominium unit shall not be subdivided unless the condominium documents expressly permit it."

What these statements in the Michigan Condo Act mean is that the statute (meaning the Michigan Condo Act) is still the controlling authority in a court of law. But in the scenarios to which the two examples above refer, the statute explicitly states that the condominium documents will control. This does not mean the Condo Act has any less power. It just means the Condo Act is giving this power, in these two instances, to the condominium documents.

Hypothetical example:
A condo's Master Deed states that "The boundaries between adjoining condominium units may be relocated with the express permission of the owners of the two units." The owners of the two units both give permission to relocate said boundaries. Does the Michigan Condo Act allow this? Yes.

Perhaps in particular, the following wording is what you are questioning:
"The Bylaws may contain provisions: (a) As are deemed appropriate for the administration of the condominium project not inconsistent with this act or any other applicable laws."

Hypothetical example
A Condo's Bylaws state that, for an election, "A member may designate a proxy by filing a suitable written instrument with the condominium association no more than 30 days before the election date. Said proxy will expire immediately after the election." Does the Michigan Condominium Act allow this? The Michigan Condo Act says nothing about appointing a proxy for an election. Hence the Condominium Act allows this.

For what it is worth, I think your questions are good.
LouH1 (Michigan)
Posts: 214
Posted:
Our booklet, dated and register in 2003, says SUPERSEDING AN CONSOLIDATING MASTER DEED. (15 PAGES) Legal descriptions, common elements, Use of Premises, condo unit descriptions, easements, amendments amenities, storm water drainage easements,etc. EXHIBIT "A-2" TO SUPERSEDING AND CONSOLIDATING MASTER DEED. which we refer to as the bylaws, covers Association of Co-owners, Article 1, Assessments, Article 2, and so on, Insurance Article 6 covers Restrictions, including fences, temporary structures, garages, leasing and rental, architectural control, vehicles, rules and regulations, mortgages, voting, meetings, board of directors, finance remedies for default and so on. We have been told our CC&R etc. are unique. So guess we aren't a tpical association. Right? So I guess we are closer to a condo association than a HOA? Confusing to me as I thought they were one and the same.
LouH1 (Michigan)
Posts: 214
Posted:
We are described as a site condo, meaning we are separate single family dwelling units. We have separate bylaws than do the adjoining actual condominium units.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouH1 on 08/02/2020 10:51 AM
Our booklet, dated and register in 2003, says SUPERSEDING AN CONSOLIDATING MASTER DEED. (15 PAGES) Legal descriptions, common elements, Use of Premises, condo unit descriptions, easements, amendments amenities, storm water drainage easements,etc. EXHIBIT "A-2" TO SUPERSEDING AND CONSOLIDATING MASTER DEED. which we refer to as the bylaws, covers Association of Co-owners, Article 1, Assessments, Article 2, and so on, Insurance Article 6 covers Restrictions, including fences, temporary structures, garages, leasing and rental, architectural control, vehicles, rules and regulations, mortgages, voting, meetings, board of directors, finance remedies for default and so on. We have been told our CC&R etc. are unique. So guess we aren't a typical association. Right? So I guess we are closer to a condo association than a HOA? Confusing to me as I thought they were one and the same.
I would not say your community is not typical without knowing a lot more. I can say that "HOA," "homeowners' association," "townhome community," and "condominium" are loose terms used by laypeople that, by themselves, have little meaning legally. What does have meaning is the statutes that apply to the community. In your community's case, under Michigan law, your community is a condominium and it is also a corporation.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouH1 on 08/02/2020 11:00 AM
We are described as a site condo, meaning we are separate single family dwelling units. We have separate bylaws than do the adjoining actual condominium units.
The single family dwelling units may very well be separate. But if the Bylaws for the separate single family dwelling units indicate this "site condo" is subject to the Michigan Condominium Act, then the separate single family dwelling units are subject to the Michigan Condominium Act (sic).

If you look at the definitions sections in the Michigan Condominium Act at http://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-59-of-1978.pdf, the definition of "condominium unit" is quite broad:

=== Start Definitions Excerpt from Michigan Condo Act ====
559.104 Definitions; C.
Sec. 4. (1) “Condominium project” or “project” means a plan or project consisting of not less than 2 condominium units established in conformance with this act.
(2) “Condominium subdivision plan” means the drawings and information prepared pursuant to section 66.
(3) “Condominium unit” means that portion of the condominium project designed and intended for
separate ownership and use, as described in the master deed, regardless of whether it is intended for residential, office, industrial, business, recreational, use as a time-share unit, or any other type of use.
...
=== End Definitions Excerpt ===

In Michigan, the fact that each home is separated by air space from all other homes has no bearing on whether the homes are "condominiums" under the Michigan Condominium Act.

Michigan condo law strikes me as quite a-typical. But whether the OP's community is not typical within the state boundaries of Michigan is not something I could judge.
LouH1 (Michigan)
Posts: 214
Posted:
So, I guess that makes it really complicated, right? Our board does nothing, afraid of any litigation, so we have an entrenched board with more and more co-owners issuing alleged violations on co-owners. Boards says we can't issue any violation letters (which is untrue as I have learned here, we can issue letters even though atttorneys have said they are weak bylaws. Is this correct? We might not be successful in obtaining the sought after correction, but we can issue the letter. We do have fees we can begin if the co-owner does not comply or at least agree to negotiate (preferred, of course) with their neighbor. I think the bylaws are pretty specific and as a director am alone in this conversation. But the community, it seems is on board with much of my thinking and tired of a secretive, scared, somewhat self serving board. Got any other suggestions for me. The community is already upset at the money spent on and Attorney who said the same things as another attorney 8 years ago. Only difference is this time, is a board member has committed all the alleged violations. thoughts?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AugustinD on 08/02/2020 11:01 AM
Posted By LouH1 on 08/02/2020 10:51 AM
Our booklet, dated and register in 2003, says SUPERSEDING AN CONSOLIDATING MASTER DEED. (15 PAGES) Legal descriptions, common elements, Use of Premises, condo unit descriptions, easements, amendments amenities, storm water drainage easements,etc. EXHIBIT "A-2" TO SUPERSEDING AND CONSOLIDATING MASTER DEED. which we refer to as the bylaws, covers Association of Co-owners, Article 1, Assessments, Article 2, and so on, Insurance Article 6 covers Restrictions, including fences, temporary structures, garages, leasing and rental, architectural control, vehicles, rules and regulations, mortgages, voting, meetings, board of directors, finance remedies for default and so on. We have been told our CC&R etc. are unique. So guess we aren't a typical association. Right? So I guess we are closer to a condo association than a HOA? Confusing to me as I thought they were one and the same.
I would not say your community is not typical without knowing a lot more. I can say that "HOA," "homeowners' association," "townhome community," and "condominium" are loose terms used by laypeople that, by themselves, have little meaning legally. What does have meaning is the statutes that apply to the community. In your community's case, under Michigan law, your community is a condominium and it is also a corporation.

I agree. I know of one other state that any "owner controlling association" regardless of construction type (single family homes to high rise units), is called a Condo Association.

The South Carolina Horizontal Property Act defines a “condominium” as the individual ownership of a portion of a building with the right to share with other co-owners the common elements of the property thus a COA (Condo Owner Assoc.). Single family home associations are not defined as condominiums and called HOA's (Home Owners Assoc.) but many refer to them as condos.

Yes it can get confusing.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouH1 on 08/02/2020 11:12 AM
So, I guess that makes it really complicated, right?
My take: You are trying to process and absorb a lot of law quickly. It's going to take awhile to get a half-decent grip on some of these concepts.

One could say every state's hoa laws, condo laws, and covenant case law are complicated. They are. Hence attorneys need, for starters, three years of law school just to maybe be able to think about the law with any kind of competence.

For hoatalk purposes, I think it's best to home in on what the exact concerns are. Folks here are pretty good about saying when they feel they are over their heads; go see an attorney; or similar.

Even attorneys will often disagree on what the law says.

Quote:
Posted By LouH1 on 08/02/2020 11:12 AM
we have an entrenched board
Which I believe translates to the owners being happy with the status quo.

Quote:
Posted By LouH1 on 08/02/2020 11:12 AM
Boards says we can't issue any violation letters (which is untrue as I have learned here, we can issue letters even though attorneys have said they are weak bylaws. Is this correct?
Before opining further, I would prefer to see what your Bylaws and Master Deed say before opining further. I bet I am not alone.

Disclosure: I am not an attorney. I read. There are about five people here at hoatalk (none of whom are attorneys) who I think know as much as, or more than, many condo attorneys. Not that I would ask these five people to represent me in court. It is more that I trust their opinion as much as an attorney's on most topics that arise here at hoatalk.
LouH1 (Michigan)
Posts: 214
Posted:
Yes! I love your responses! But my take is, the owners have been happy until about 6 months ago,then the you know what hit the fan. A co-owner started a rumor that he was going to rent out his house to university students. I am being very careful in what I say, I am not discriminating against students or anyone. I am repeating what he said. That incensed the community who bought her (as we did) because there were rules and bylaws in place protecting our investment. or so we thought. That has triggered an avalanche of drama and upset co-owners wanting the rental bylaws strengthened or enforced. Get the picture? Again, a board director rents....
SueW6 (Michigan)
Posts: 814
Posted:
All power is in the bylaws. If rentals are permissible then a homeowner can rent out his/her unit. If the bylaws are silent about rentals, then homeowners cannot create rentals.

Sounds like your bylaws are outdated and not speaking to the modern times. There are many HOA consultants and lawyers who will do more than tell you your bylaws are “weak”

I have a feeling that the board is the weak factor here.
KerryL1 (California)
Posts: 14,550
Posted:
Based on all off your many question, Lou, including this rental one, I think you Board needs to spend a few bucks to have at least an hour - long meeting with your HOA attorney. S/he should be able to explain to you all the language of HOAs and powers of the Board.

Do you have the earlier supposed kinins form the attorney in writing? Is s/he an HOA attorney? Or some other kind?

I also keep wondering if it's really your Bylaws that you keep referring to or some other documents. Bylaws don't typically have things in them like rental limits, whether or not you can fine violators, etc. I think that usually there'd be referenced first in your master deed. Specifics about them would be in your rules----usually.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SueW6 on 08/02/2020 4:14 PM
If the bylaws are silent about rentals, then homeowners cannot create rentals.
No, it is just the opposite. If these condo's Michigan Bylaws and Master Deed are silent about rentals, then owners may rent to their hearts' desire.
SueW6 (Michigan)
Posts: 814
Posted:
“Owner- occupied” would probably be the default
MarshallT (New York)
Posts: 414
Posted:
Depending on where you live, there may be very different laws for condo associations and HOAs. Generally, HOAs are single-family homes or town homes, while condos are multi-residential buildings. Condos may deal with some different issues than HOA communities, which is why there can be different rules.

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