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JerryM3 (California)
Posts: 2
Posted:
Problem: Periodic updates are annually made by our State legislature that often impact our HOA governing documents. Items in our Bylaws, CCRs, or Rules may need to be added, deleted, or revised to reflect the most recent legislative change. Many of the legislative changes necessitate a two-thirds HOA member vote which is preceded by a lengthy revision process for any update to our governing documents (e.g., CCRs) to include this change. Our HOA would like to employ a simple approach, where possible, for updating our governing documents to respond directly to legislative changes. For example, a legislative update recently required that an agenda be issued for all announced meetings – which is a simple matter to actually implement; however, it is not a simple matter if we need to change our CCRs (this is just one of many legislative changes that seem to occur every year).
Solution?: Can you recommend any simple solutions to address this matter? It has been proposed that we change our governing documents (e.g. CCRs) to incorporate (by reference within a clause in the CCRs) any FUTURE APPLICABLE legislative changes to our HOA and then to have an appendix to the CCRs that continually expands to include applicable legislative change that we have identified – thereafter, our HOA would simply comply with the necessary change (this may not work in cases where the HOA must make decision/policy but it seems as if it would work on matters that did not require any HOA decisions). Would this work? Maybe we can just follow the legislative change and ignore (do not revise) the CCRs should they differ from the legislative change? Are we bound to follow our existing CCRs if they materially differ from the recently passed legislative change? Our state is California but I imagine that our issue could apply to other states. Thank you!
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Jerry,
Certainly is a valid question. I doubt there is anything simple when it come to keeping up with legislative changes. I have a sense that goodly numbers of HOA don't even bother with or know about state laws and in lots of states it is difficult to pin down what the legislation is doing regards Condo/and/or HOA. SC is that way. However you all sound like you are doing a good job out there and not to misguide you, I would turn to your lawyer if you have one. A lawyer under retainer might be expected to keep you up to date with legislative changes. If that don't work, then I really think it might be good to pose this question to some of your neighboring associations. It is possible some of this stuff could be county laws also. I certainly agree you should not have to change the documents every time a change is made and my quess would be that the change could be added to the documents as an exhibit and attach it to the document at the court house and list it as such. Of course, I suppose you would have to notify owners of the change and I would think that could be done with a statement in the minutes. If we ever get to where we are as far along on this documentation business , that would be my input for us. I do see us headed in that direction but we still have a lot of groundwork to do.

Donna will know or know how to get specifics.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Do yourself a favor and don't try to include STATE rules into YOUR documents.

Instead, simply reference in your bylaws that your HOA follows any state laws governing XYZ. (for example, noticing about meetings.)

KirkW1 (Texas)
Posts: 1,665
Posted:
If you must amend your CC&Rs because the legislature wrote a rule about an agenda, then your documents are in serious trouble.

Quite honestly, if your documents call for owners to be notified of the agenda 14 days in advance and a new law states it must by at least 30, then simply follow the new law. And if you would otherwise be amending your documents add a provision that notification shall be x number of days or greater as needed in compliance with state laws.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Jerry,

Since State law prevails in most instances, I see no need to amend the gov. docs each time a new state law contradicts your gov. docs. Same with Fed. law. This is why the BOD should always be aware of state and fed laws.

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