Covenant modification "All or Nothing Only" ?

Started by DavidN12 • 9 replies • 517 views

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DavidN12 (Colorado)
Posts: 3

Posted:

Here in Colorado I am curious if someone has knowledge with CCIOA rules with regard to the following;

When attempting to complete an overhaul of a Covenant Master Document;

1. Can you present a "New Document" with highlighted changes and a yes or no selection per line item" ?
This should result in a New Document with only changes that were approved on a line by line basis.

2. Must it be an "All or Nothing" scenario applicable to the entire document where all changes are added ?

Our legal advice is saying it must be an all or nothing which to me seems like just escaping the additional work. I don't think such an approach will be approved by the Community since plenty of folks will not be in favor of certain aspects of the new Covenants.

Any knowledge on this would be appreciated !

Thanks,

Dave

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By DavidN12 on 01/29/2021 9:55 AM
Our legal advice is saying it must be an all or nothing which to me seems like just escaping the additional work.

-- I think otherwise. Your attorney has likely thought through the possibility of legal challenges to a piecemeal amendment of the covenants, along with how complex defending the Board's position in court subsequently will be. It will take years to settle. You can go against the attorney's advice, but in this case, I think this would be a mistake.

-- Even if you obtain support from a few posters here, I can almost guarantee the posters will not cite any statute or case law to support their position. Subsequently the best you will be able to do is present the gossip you read here to your board and your attorney.

-- I saw one 2000 home HOA successfully amend its Bylaws by the required affirmative vote of 3/4 of owners. But I'd say Bylaws are not as hard to amend.

-- I saw another 300 home HOA fail to amend its Bylaws and covenants, despite extending the deadline for submitting votes and despite ultimately paying members to cast their ballot. The effort failed. I think this was because one or two of the proposed amendments were so obviously designed to keep the current board entrenched that what the other amendments would have accomplished would not have a bearing on owners' decision-making.

-- If possible, I would focus in on the areas that most need change, and then present it as all or nothing.

SheliaH (Indiana)
Posts: 6,964

Posted:

I concur in part with AugustinD. It's better to present amendments that need changing sooner rather than later than to have people wade through dozens at once. People are lazy and won't read beyond the first or second paragraph. Better to give one of two items to read in full (hopefully) and then vote.

However, I'm not a fan of all of nothing unless the amendments are so dependent upon each other, it wouldn't make sense to approve one but not the others. Determine that also requires reading the amendment closely so you make an informed decision.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

CathyA3 (Ohio)
Posts: 6,299

Posted:

I agree with Augustin and Shelia, and for exactly the reason the OP cites: a single unpopular change can result in the whole shebang being voted down.

I don't know of any legal requirement to bundle all of the changes together.

However, doing the changes one at a time will almost certainly result in higher legal expenses, and that's not something to ignore.

DavidN12 (Colorado)
Posts: 3

Posted:

Thanks for all the input and advice;

We have maybe 4-5 hot button covenant changes within the overall update on a document that is 30 years old.

My fear is that if we don't break them out separately for a y/n vote they will cause the whole document to fail.

Issues such as STR's, RV's etc.

I guess we could simply do the overall y/n but I have my doubts.

DavidN12 (Colorado)
Posts: 3

Posted:

Thanks for the information;

I should have specified the following:

We have maybe 4-5 hot button covenant changes within the overall update on a document that is 30 years old. Not advocating significant changes separately.

My fear is that if we don't break them out separately for a y/n vote they will cause the whole document to fail.

Issues such as STR's, RV's etc.

thoughts still the same ?

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By DavidN12 on 01/29/2021 12:27 PM
thoughts still the same ?

Yup. Your question concerns the minutiae of amending covenants. By design, amending is usually a hard, lengthy and often expensive process. In my experience, your question is not a question this forum can answer competently. Use your attorney.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By DavidN12 on 01/29/2021 12:27 PM
Issues such as STR's

Regulating short-term rentals is so important that in my opinion this should be a whole separate vote. Nationwide STR problems are arising regularly at HOAs and condos.

TimB4 (Tennessee)
Posts: 21,059

Posted:

As others have pointed out, your answer is yes - you can vote for each section vs. the whole document. I wouldn't do it by highlighting. Provide the before and after.

Although you can vote for each section, I would not provide more then one choice for each section as this may prevent you from obtaining the number of votes required to amend.

JeanI (Louisiana)
Posts: 112

Posted:

Are your Covenants silent as to how to how to amend them? If so, check your Colorado HOA state laws regarding amending Covenants.

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