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WendyA (Florida)
Posts: 2
Posted:
Last year I was President (I currently do not hold any position on the Board or as Officer) and noticed the Articles of Inc. stated in Section X "The first Bylaws of the Association shall be adopted by the BOD and may be altered, amended, rescinded in the manner provided in the Bylaws and the Declaration." The definition of “shall” is mandatory. In our Declaration of Covenants is states "in accordance with the bylaws" all through-out the document. Last year the Board worked on and creating bylaws. To date the BOD has yet to adopt our first bylaws.

Some of our owners believe we do not need bylaws as a third governing document, and we already have bylaws outlined inside of our Declaration and Articles of Inc. They feel the Association can be in compliance with the State by amending the Declaration to include protections given in the newly created bylaws and add the word "bylaws" to the title of the Declaration. No adoption of a third governing document needed.

Under FL Statue 617.0206 says in part "Bylaws-The initial bylaws of a corporation shall be adopted by its board of directors." and FL Statue 617.1601:5b says in part "A corporation shall keep a copy of the following records: (b) Its bylaws or restated bylaws and all amendments to them currently in effect." Also, under FL Statue 720.301.8 says “”Governing documents” means: (a) The recorded declaration of covenants for a community and all duly adopted and recorded amendments, supplements, and recorded exhibits thereto; and (b) The articles of incorporation and bylaws of the homeowners’ association and any duly adopted amendments thereto.” I along with other owners believe our Articles of Inc. and FL Statues require bylaws as a third governing document outside of the Declaration of Covenants. It is easier to amend bylaws than to chance the Declaration.

Should we adopt a separate document named bylaws, as a third governing document? Or change our Declaration to incorporate bylaws & change the name?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WendyA on 07/07/2023 10:32 AM
To date the BOD has yet to adopt our first bylaws.

Some of our owners believe we do not need bylaws as a third governing document, and we already have bylaws outlined inside of our Declaration and Articles of Inc.
That's nice. And it's nice that the Board asked for owner input. But at the end of the day, it's also wholly irrelevant. As you noted FS 617 requires the board to adopt bylaws, not the owners. As I think you are aware, the board by itself does not have the power to amend the Declaration such that the Declaration incorporates the bylaws into its body. Do keep all of the latter in mind as you read the following.

My response below is based on over a decade of experience reading Declarations, Articles of Incorporation, Bylaws and case law for HOAs and observing court cases about the same.

To be blunt, what you describe sounds more like the thoughts of a group of busybodies with a poor foundation in the legal structure of HOAs and corporations. For example, can you please have your owners explain exactly what "outlined" means? Exactly what does your HOA's Declaration say that some might argue is really a "bylaw"?

The reasons for bylaws to be adopted as a separate document are good. More below.

Quote:
Posted By WendyA on 07/07/2023 10:32 AM
They feel the Association can be in compliance with the State by amending the Declaration to include protections given in the newly created bylaws and add the word "bylaws" to the title of the Declaration. No adoption of a third governing document needed.
Go to FS 720 at http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html. It's not quite up to date, but it will do for the moment. Search FS 720 for every mention of "bylaws." Do the same for FS 617 here: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0617/0617.html Write down everything that FS 720 indicates the bylaws are supposed to accomplish. Repeat for FS 617. Take note of how FS 720 and FS 617 address how bylaws speak to the procedural aspects of running the HOA, from how many directors there are, to how elections are run, to how board and owners' meetings are called and so on.

Declarations are also known as "Covenants, Conditions and Restrictions," ("CC&Rs" for short). The law sees these as contractual terms for how the property is used. This is different from the procedural aspects of running the HOA.

According to your Declaration, what percentage does it currently take to amend your HOA's Declaration?

As you seem to be aware: Do the owners there really want to include the Bylaws within the Declaration, and so the percentage for amending the Declaration and the Bylaws will be the same?

Post back if you want to know what some typical numbers are for amending HOA bylaws in Florida.

Quote:
Posted By WendyA on 07/07/2023 10:32 AM
FL Statue 617.1601:5b
If per chance in the future you want to be as persuasive as possible, then the correct citation is "617.1601(5)(b)".

Quote:
Posted By WendyA on 07/07/2023 10:32 AM
I along with other owners believe our Articles of Inc. and FL Statues require bylaws as a third governing document outside of the Declaration of Covenants. It is easier to amend bylaws than to chance the Declaration.

Should we adopt a separate document named bylaws, as a third governing document?
Yes, for the reasons given above. Notably: FS 617 says the board adopts the bylaws, period. Go ahead and take input. Encourage owners to look at other HOA's bylaws and not speak (what will undoubtedly be ego-driven and bullsh-t) off the top of their heads. Have a town hall meeting where owners comment on the bylaws the board is proposed. But remind the owners that by law (FS 617) the Board has the final say.
KerryL1 (California)
Posts: 14,550
Posted:
Wonderful info for you, Wendy, from ElleN.

I'd only add what does this sentence mean? "Some of our owners believe we do not need bylaws as a third governing document, and we already have bylaws outlined inside of our Declaration and Articles of Inc." What in the world does an "outline" of bylaws look like? And there's an outline in the Articles too? I'm sorry if I'm misreading something. Some examples of sentences in these outline and under what heading in your CC&Rs they are found would really help me.

Over the years, we've seen on this forum many owners and even directors who confuse bylaws with rules. Are you certain your Owners know exactly what Bylaws should contain?? This citation from ElleN says it all: "...bylaws speak to the procedural aspects of running the HOA, from how many directors there are, to how elections are run, to how board and owners' meetings are called and so on."

So they are totally distinct from the declaration or from Rules & Regulations (which often elaborate on or clarify the CC&Rs). And in my experience, having gone though a restatement of our Bylaws last year, generally owners are not very interested in them. So I'm curious about why some of your Owners ARE???

Another reason to have the bylaws separate from the declaration is that the % approval to amend bylaws usually is a lot lower than to amend CC&Rs.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I have seen CC&R's that contained the procedural aspects of running the HOA thus no need for a separate Bylaw document.
KerryL1 (California)
Posts: 14,550
Posted:
Also wonder, Wendy, why some owners do not want bylaws to be a separate document?
WendyM5 (North Carolina)
Posts: 1,522
Posted:
I would agree with Ellen. You need seperate bylaws document. Make sure you give input to the board that allows the membership to EASILY or automatically fire any director that does not follow bylaws. Most bylaws contain something to the effect that if any director missees 2 consecutive meetings their seat becomes vacant. But I am surprised to never see the same type of language apply to directors that fail to hold elections or do other mandatory things like mail an annual budget or mail a list of all members as required by some state laws for non profits.

Given the number of crazy hoa stories coming out of Florida, the state seems to be unable to protect membership from rogue boards, do your best to make the documents work for the hoa membership, not just the directors.

Here is a sample rewritten bylaws to protect owner rights
https://www.dropbox.com/scl/fo/sexnsc7ufdu7pvq8x4xze/h/Draft%20Rewritten%20Bylaws?dl=0&subfolder_nav_tracking=1

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By KerryL1 on 07/07/2023 5:44 PM
Also wonder, Wendy, why some owners do not want bylaws to be a separate document?

some people just don't like change is my guess. Same reason why it's easier to get an amended bylaws passed than it is to get an entire new sset of bylaws passes. The paranoid types, think an entirely new bylaws , must have some sort of sneakly legal language that would screw them over in the future.

vis ta vie
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Typically when they Bylaws have verbiage about missed meetings they say non-excused missed meetings. Just give an excuse for missing the meeting and you are good.
KerryL1 (California)
Posts: 14,550
Posted:
That's a good point, WendyM. When we sent out 77 pages of restated CC&Rs for owners to vote on, I found that reluctance to vote was almost always based on an owner's concern that something import was hidden in all of those pages that s/he'd miss even if they read every page. It wasn't the "apathy" cliche.

So, based on your complaints which are the resolubility of the entire board, what is it about 2 or so directors that bothers owners?

The Bylaws at 15 pages also were completely rewritten, but our law firm's new set, containing our HOA' odd exceptions, still was simpler to read. In addition, there just isn't much in bylaws that causes controversy or confusion. This is partly due to the fact that much of the content comes from the state's corporation codes for nonprofits. And much of the rest from a state's codes about HOAs and their variations.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By JohnC46 on 07/08/2023 9:36 AM
Typically when they Bylaws have verbiage about missed meetings they say non-excused missed meetings. Just give an excuse for missing the meeting and you are good.

ours don't say that and I've never come across any that do, maybe it varies from state to state and lawyer to lawyer.

vis ta vie
KerryL1 (California)
Posts: 14,550
Posted:
Here's ours: "Fails (unless excused by the Board) to attend either (i) three (3) consecutive regularly scheduled meetings of the Board or (ii) five (5) regularly scheduled meetings of the Board within any twelve (12) consecutive month period."

Our rewrite, '22, complies with CA law, i.e., we cannot say if they miss two meetings...

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Here is ours:

Any director elected by the Voting Members who has three (3) consecutive unexcused absences from Board meetings or who is delinquent in the payment of any assessment or other charge due the Association for more than thirty (30) days may be removed by a majority of the directors present at a regular or special meeting at which a quorum is present, and a successor may be appointed by the Board to fill the vacancy for the remainder of the term. In the event of the death, disability, or resignation of a director, a vacancy may be declared by the Board, and it may appoint a successor. Any director appointed by the Board shall be selected from the Voting Members of the Association and shall serve for the remainder of the term of such director.

ElleN (Idaho)
Posts: 4,420
Posted:
I too have lived in associations where the bylaws have a provision about three sequential unexcused absences resulting in a director being automatically removed. If one googles as follows, one will see many sets of bylaws that have such a provision:

"unexcused" "absences" "homeowners' association" "director" filetype:pdf

I believe I have seen at least one state's statutes also having such a provision.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Our hoa only has 4 board meetings a year. allowing anyone to miss 3 would be basically saying hey, have fun while everyone else works.
Im going to petition to reduce it to 2 meetings and I"m also gonna motion to make several changes where board members would have thier seat automatically revoked, no need to have to go through a vote. Like embezzlement, failure to pay insurance, hiring relatives, etc.

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Declare the office of a member of the Board of Directors to be vacant in the event such member shall be absent from three (3) consecutive regular meetings of the Board of Directors;

is what our bylaws state

vis ta vie
WendyA (Florida)
Posts: 2
Posted:
When I asked other members how exactly bylaws are already "outlined" in the CC&R, the answer is always "the definition for Covenants is essentially bylaws. So hence, our Covenants are our bylaws and we don't need a third governing document, everything is in the Covenants." I believe they just don't know what they are talking about and agree with you they have a poor foundation in the legal structure of HOA and corporations. I have done research, and you (along with others here) have helped me confirm that bylaws should be a separate document. Bylaws are easier to make changes than the CC&R, they are the procedural document for day-to-day management. I don't have a vote this year, but hopefully next year will get back on the Board and adopt bylaws as we should have done last year. Thanks again for your input and greatly appreciated.
SheliaH (Indiana)
Posts: 6,964
Posted:
If you get elected (and even if you don't), your community might benefit from a few articles from the association attorney or someone else who knows the subject and can explain the differences between CCRs, Bylaws, Rules and whatever else make up your documents, so these people can read it and hopefully, understand it. If the writer does a really good job, this could be something that can go in an owner's handbook that can be distributed to new and current homeowners for quick reference.

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

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