Amending CC&Rs

Tracie,

Each gov. docs. has it's own article addressing amending that particular gov. doc. Therefore, the procedure for amending the CCRs will only be contained in the CCRs document.

The 75% is based upon the number of lots not the number of lot owners. I say this because a member who owns 2 lots has 2 votes; therefore, the total number of lots should be included in the equation. The required number of votes is 14.25 or 15 to amend. And, yes, the amendment will have to be recorded at the Co. Recorder's Office of the Co. in which the HOA is located.

Also, since the only way to amend is by signing an instrument (I'm guessing the formal amendment), do the owners who own more than one unit need to sign more than once? That's the only way I can get to that 15 (75%). It's not by VOTING, but by SIGNING.

Thanks again!

Tracie,

I'm curious to know exactly what your bylaws say about amending the articles. What I was saying is that the procedure to amend would only be contained in the document that is to be amended. For ex, the procedure to amend the bylaws would not be stated in the articles.

Tracie,

I hate to bud in but the article (section) you cite is very similar to our covenants articles 'Termination of Covenants' and 'Miscellaneous'. As Mary said there ought to be a section on Amendments. But, may be there is not.

Susan,

There is something called ‘Marketable Record Title Act - known as 30 year act in Florida. Based on this act – which prevails - our Declaration will expire in 2011 even though it also has a 10 year automatic extensions.
We could probably argue that our covenants do not expire but do we really want to take that risk? I do not think so. This is why I asked Tracy when her covenants were recorded.

OOPS, sorry I did not see Mary already answered the question regarding the #of votes required.

One should be extremely careful when considering amending governing documents. The Maryland Homeowners' Association (MHA) had the following alert in its newsletter:

MHA Alert!

MHA recommends that before homeowners vote for any amendment to HOA/Condo governing documents, homeowners should make a thorough review of the new wording, comparing it to the existing wording. If the language is not clear, have the Board explain the reasons for making the change and explain the new wording to your satisfaction. This should ensure a clear understanding of the amendment and homeowners can vote appropriately.

Homeowners should be especially wary of language that says homeowners should pay "all attorney fees actually incurred by the Board of Directors." This wording obligates homeowners to pay for their own attorney’s fees as well as the Board’s attorney’s fees, even if the judgment is in favor of the homeowner. Certainly, this is a no-win situation for homeowners and could lead to homeowner bankruptcy and/or foreclosure.

Tracie writes:

>>>It says "75% of the lot owners."

This wording is unambiguous. Don't read it as what was meant, or what might have been meant, or what could have been meant, or if it could have been written better. These are simple words. They MEAN something. They mean "75% of the lot owners." They do not mean anything else.

Tracie and Susan are correct. Count the # of persons who own lots. If 75% (or more) agree, that's the threshhold amount required.

Gee, I hate it when I do this -- accidentaly click "post" when I'm not finished.

I wanted to add that the provision could be interpreted another way. Any lot owner who owns more than one lot should be counted for each lot he owns. The provision says each lot ower, if I own 2 lots I'm a lot owner twice therefore I should be counted twice and am allowed 2 votes. If you only count that member once you are effective erasing his right for a vote on the additional lot(s) he owns. But, if you are giving him additional votes then those additional lots must be counted when computing the %'s.

Jon,

That's right, the CCRs say 75% of lot owners. If you own 2 lots you are a lot owner twice. That's why (in my infinite wisdom! ) I say that means it's 75% of the 19 lots. It doesn't matter who's charged with interpreting the US Constitution, I believe the BOD is most likely authorized to interpret these CCRs. If they're doing all in their power to get this amendment passed they most likely will go with Tracie's interpretation as it results in less votes being required. On the other hand if it's an amendment being proposed by a group of members and not favorable to the BOD they most likely would go with my interpretation which requires a larger number of votes.

If you own 4 shares in a coporationa and I have only one share do we have equal voting rights?

Eva,

A stockholder in a corp does get one vote for every share owned. However, an HOA is not the same as a stock holding corp. HOAs do not issue stock and members are not stockholders. Your CCRs will state how many votes you are entitled to.

Eva,

No!

Eva,

If you agree with my interpretation, you're right 14.25 or 15 votes would be required.

Eva,

Good to hear someone agree with me. Thx! :-)

Mary,
You are always very helpful and your messages are very articulate and accurate. I am impressed with both your knowledge and honesty. If I make a wrong conclusion do fuss at me. I do not mind. I am not here to play a ‘house lawyer’ and I know you are not either. I just want to learn and may be help if I can.
But sometimes the e-mail communication can get a little heated even though we are saying the same thing but in different ways.

Eva,

You are way to kind, but thank you very much for the compliment. I'm always happy to help in any way I can.

I agree we sometimes misinterpret and I, too, blame it on the email communication. Facial expressions and tone of voice are a big plus in communication and of course that is absent when using email. I always try to preface my responses with "IMO" so everyone will know it's only my opinion and use smilies and grins ( ) so my tone of voice will come across.

Cute!

Tracie,

IMV Mary's right..........but pretty much when isn't she?!

Tracie, once you decide that you will have enough votes; will you be using an attorney anywhere in your amendment process?

Whewww...I'm glad I asked! I thought it was an easy question, but as I have come to discover, there is NO SUCH THING!

For the record - our documents were originally recorded in 1984. Nothing has ever been "re-recorded", so I "assume" (dangerous) than our CC&Rs are still valid.

I don't have any amendments ready, and I will be using an attorney. I'm just getting ready for a big CC&R update.

This is in my ARTICLES - give detail for amending BYLAWS
ARTICLE VIII
The By-Laws may be amended, at a regular or special meeting of the members, by a vote of a majority of a quorum of members present in person or by proxy, except that the Federal Housing Administration or the Veterans Administration shall have the right to veto amendments while there is Class B membership.

This is in my ARTICLES - give detail for amending ARTICLES
ARTICLE X
The Corporation reserves the right to amend, alter, change or repeal any provision contained in, or to add any provision to its Articles of Incorporation from time to time in any manner now or hereafter prescribed or permitted by the laws of the State of Colorado. Amendment, alteration, change or repeal shall require the assent of 75 percent (75%) of the entire membership and while developer controls the association, the approval of the Federal Housing Administration.

I hope this helps! I'm still lost, but that's normal for me! I'm fighting my way to the map, though!