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DebbyK1 (Georgia)
Posts: 21
Posted:
Our CCR's say we can only have wooden fences. However, 100% of the privacy fences are in hideous condition. Even when treated they only last appx. 2-3 years which replacement costs can become enormous over time. Me personally I think once they turn grey they look like siding off an old shack or barn in addition to the warping.

We are considering allowing PVC, well taking a vote at the annual. Based on my reading we need 40% to make that change.

Do any of you out there have any experience with the PVC type fencing? Do you think they look better than the wood?

I guess I'm looking for any downsides to allowing this.

Thanks,

Debby
MaryA1 (Arizona)
Posts: 7,043
Posted:
Debbie,

I'm surprised only a 40% vote is required to amend your CCRs. Are you certain about this? The vote requirement is usually 75% or more.

Regarding your fences, actually it seems to me wood would look a lot nicer than PVC. If taken care of properly it should hold up. Of course I would recommend using pressure treated wood. An application of linseed oil every few years usually keeps the wood looking nice.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Debby,

PVC fencing now comes in designer colors and looks so neat all of the time. Here in this part of the country---Georgia, Tennessee and the Carolinas, wood molds and turns black within a year even with a sealant on it. Termites love it, even the treated stuff warps, twists and pops screws and nails.

Google PVC fencing, look at some of the awesome examples and print them out for the members to see. Chances are, the PVC will be accepted. Cost for this material is almost the same as treated wood. Of course there is always that new expensive TREX material which lasts forever.
DebbyK1 (Georgia)
Posts: 21
Posted:
It states in our CCR's Under Notice & Quorum for any action:

At any meeting the presence of Members or their proxies entitled to cast 40% of all the votes of each class of Membership shall constitute a quorum.

There are places where 75% is required - raising dues over 10%, any special assessments, any special expenditures out of the ordinary & changing the the board(AOC).

We just upped the board from 3-5 & that required 75% - if you can believe we actually got 84 votes!

Of course I could missing something in the verbiage as I'm not a lawyer.

DebbyK1 (Georgia)
Posts: 21
Posted:
Ditto that DonnaS - being in Georgia the wood fences look hideous after 1 year - treated or not. As you said, they are warped, grey, rusty nails, have green slime mold and most of the fences have some type of insect boring stripe all over. Some of these "trails" are completely see thru now where something has eaten into them.
BrianB (California)
Posts: 2,820
Posted:
a quorum is the number needed to hold an official business/meeting. that number is NOT necessarily the amount needed to create a majority to pass proposals.

you need 40% of the members at the meeting, just to have the meeting. You probably have to have some other number in order to amend the CC&R's, typically a very high number. Otherwise, 21% of your membership could drastically change the CC&R's in a single meeting.
EllenS1 (Florida)
Posts: 1,148
Posted:
I know nothing about PVC fencing but will say wooden fences are a pain in you know what. We had a new home built with a large wooden fence (pressure treated) and it really needed to be replaced after 7 years. I would explore the newer options before making a decision. Ditto for decks..who wants to calendar putting on linseed oil every so often.
EllenS1 (Florida)
Posts: 1,148
Posted:
Donna,

I am simply amazed at how much we think alike. I'm in Florida and know carpenter ants and termites love wood..it's their favorite food. I say to the OP explore your options. We had a new home built with a wooden fence and learned later that carpenter ants ran along the fence and entered the side of our home causing interior damage. This would not have happened if we had chosen another material.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Ellen,

Once you experience the constant humidity and it's effect on anything wood, one looks for alternative materials. In the sandy, windy desert , Marys wood might stay nicer--sort of like sand blasting but we avoid anything wood in the south. That's one reason that new homes are built with cbs.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By DebbyK1 on 07/31/2009 3:16 PM
It states in our CCR's Under Notice & Quorum for any action:

At any meeting the presence of Members or their proxies entitled to cast 40% of all the votes of each class of Membership shall constitute a quorum.

There are places where 75% is required - raising dues over 10%, any special assessments, any special expenditures out of the ordinary & changing the the board(AOC).

We just upped the board from 3-5 & that required 75% - if you can believe we actually got 84 votes!

Of course I could missing something in the verbiage as I'm not a lawyer.


Debbie,

I guess I just like a wood fence! We lived in Baton Rouge, LA for 6 years; our house had a porch across the front of the house and the railings were stained wood. We never had a problem with the wood and you'd be hard pressed to find a more humid climate. I googled PVC fences and came up with alot of info. There is a Cambrium vinyl fence that looks like wood. And I saw an ornamental aluminum fence that looks like wrought iron. I have to concede that a vinyl fence could look just as nice as wood. When amending the CCRs you may consider allowing both unless the board and member feel all fences should look exactly alike.

The required quorum for a meeting should not be confused with the required vote % to amend the CCRs. If you look at the "amendment" article in the CCRs the required vote % should be stated. Usually it is very high -- perhaps 75% or more. The meeting at which the vote will be taken may only require a quorum of 40% but for the amendment to pass a vote of 75% may be needed.
DebbyK1 (Georgia)
Posts: 21
Posted:
Mary I stand corrected, it is 75%.

Can we add to the ARC that PVC is OK via resolution or do we have to take a vote to allow it?
GlenL (Ohio)
Posts: 5,491
Posted:
You would need to amend the documents unless they are worded something like all fences must be constructed of wood or other material approved by the BOD/ACC. You can't write a rule to get around a covenant.

Studies show that 5 out of 4 people have problems with fractions
DebbyK1 (Georgia)
Posts: 21
Posted:
A vote it is then.
JudyM5 (Ohio)
Posts: 36
Posted:
Debby - If the vote at the annual meeting supports wooden fences, I'd suggest that you propose amending the documents to include PVC fencing. Of the 40% required for a quorum at the annual meeting, several, if not most, of that 40% may be in the form of proxies. That means that someone else is voting for each proxy that they hold. So, the vote at the annual meeting may be skewed. When you have to get 75% of the actual owners signatures in order to amend the documents, it's much harder for one or two proxy holders to control the results. If you decide to tackle an amendment, you should consider going door-to-door to campaign for your position. Take some generic pictures of the condition of the wood fences. For example, a picture of a section of the fence where the house cannot be identified. Be sure to have some pictures of what the vinyl privacy fences look like. Call a local fencing company and ask them where they have installed these types of fences that are at least 4 or 5 years old. Then go take the same kind of generic picture of those fences. It's always advisable to knock on the homeowner's door and ask permission to photograph a section of their fence. Then they won't think you're just a pervert! I'm assuming that these fences are at single family homes covered by a HOA. And, don't let the BOD tell you that you can't amend the documents. Anyone who can obtain 75% of the owners signatures can amend the documents. An attorney needs to draft the actual amendment to the CC&R's. But, maybe you've got a qualified attorney in your neighborhood who will volunteer their time to draft the amendment.
KirkW1 (Texas)
Posts: 1,665
Posted:
A close reading of your documents is in order before you decide what is needed. In many HOAs in this area the CC&Rs state that things such as fences must conform to the building standards. Then the CC&Rs give the Board of Directors the right to amend the building standards.

I will say that you should probably set some sort of standard though. When moving away from wood, what you get varies quite dramatically. Some of the stuff out there would leave you hard pressed to know it isn't wood without very close examination. On the flip side some you can tell it isn't wood from a quarter mile away.

I would at a minimum state that it shall have a wood like appearance and must be approved by the ARC. You might even state that it shall be "indistinguishable from wood when viewed from the sidewalk along the street." You might also consider restriction in color, though I would hesitate to have the CC&R give exact colors. Instead allow the ARC to choose a color palette with board approval. (I would opt to make it such that neither can make the choice alone.)
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By DebbyK1 on 08/01/2009 1:29 PM
Mary I stand corrected, it is 75%.

Can we add to the ARC that PVC is OK via resolution or do we have to take a vote to allow it?

Debbie,

I don't think it would be legal to add something to the ARC that would be in violation of the CCRs. IMO, the only way to make this change is by amending the CCRs. Sorry!
SusanW1 (Michigan)
Posts: 5,202
Posted:
Why on earth would CCRs be worded so specifically? Will they stand the test of time in 5, 10 years?

How about a more general statement that all fences should appear uniform in size, color and appearance and have to go thru the ARC committee or board for final approval.

(Heck the entire HOa may want a change to white picket in 5 years.)
SusanW1 (Michigan)
Posts: 5,202
Posted:
Why on earth would CCRs be worded so specifically? Will they stand the test of time in 5, 10 years?

How about a more general statement that all fences should appear uniform in size, color and appearance and have to go thru the ARC committee or board for final approval.

(Heck the entire HOa may want a change to white picket in 5 years.)
DebbyK1 (Georgia)
Posts: 21
Posted:
I have no idea why the builder said wood only. I've heard various tales as to why, but no factual evidence to support what I've heard. Granted, I do thinks it's totally stupid. In the ARC section that is the only limitation specified to that extent, other areas leave room for adjustments.
JudyM5 (Ohio)
Posts: 36
Posted:
Debby - Don't know how old your CC&R's are, but "obsolescence" (did I spell that right?)can be used as a basis for amending the original documents. Check with the HOA's attorney.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By JudyM5 on 08/03/2009 7:21 PM
Debby - Don't know how old your CC&R's are, but "obsolescence" (did I spell that right?)can be used as a basis for amending the original documents. Check with the HOA's attorney.

Judy,

Regardless, IMO, the members would still be required to vote on the amendment. Are you saying that if the CCRs are rendered obsolete they automatically become null and void w/o an amendment? Also, who renders them obsolete?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By MaryA1 on 08/04/2009 8:20 AM
Posted By JudyM5 on 08/03/2009 7:21 PM
Debby - Don't know how old your CC&R's are, but "obsolescence" (did I spell that right?)can be used as a basis for amending the original documents. Check with the HOA's attorney.


Judy,

Regardless, IMO, the members would still be required to vote on the amendment. Are you saying that if the CCRs are rendered obsolete they automatically become null and void w/o an amendment? Also, who renders them obsolete?

Absolutely, Mary. The board just can't simply say, "well, it's 'obsolete,' we don't have to enforce that one anymore! Phew!"

IF, repeat, IF the board and the requisite number of members believe a particular restriction is "obsolete," then they most likely have the ability to change it through the proper steps required in the CC&Rs or other governing documents.

Also, some governing documents are not "amendable" at all for a number of years, regardless of whether 100% of the membership feels about any particular restriction and whether it's "obsolete" or not.

I've seen some require as many as 30 years before any amendments can be made.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MaryA1 on 08/04/2009 8:20 AM
Posted By JudyM5 on 08/03/2009 7:21 PM
Debby - Don't know how old your CC&R's are, but "obsolescence" (did I spell that right?)can be used as a basis for amending the original documents. Check with the HOA's attorney.


Judy,

Regardless, IMO, the members would still be required to vote on the amendment. Are you saying that if the CCRs are rendered obsolete they automatically become null and void w/o an amendment? Also, who renders them obsolete?

By most state's not-for-profit corporation law all CC&Rs must be 'reasonable' .... if they are very old and new (better) modern materials not available at the time of original writing are now requested would it be reasonable to deny them?

Remember ... involuntary servitude was once legal.

Civilly yours,
JohB26
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JohnB26 on 08/04/2009 4:00 PM
By most state's not-for-profit corporation law all CC&Rs must be 'reasonable' .... if they are very old and new (better) modern materials not available at the time of original writing are now requested would it be reasonable to deny them?

Um, the answer to that? "Yes, I would consider it highly reasonable."

Especially IF you don't have the requisite number of member votes to AMEND the documents.

For one thing, I don't find it at all "unreasonable" to require wood only. Someone else might, but I don't. It's sort of an arbitrary and subjective standard, don't you think? In other words, I would make you "prove" in a court that allowing wood-only fences is "unreasonable."

And with all "civil" respect, the below comment is just a really stupid and irrelevant statement to tack onto the discussion. It's a logical fallacy to even compare involuntary servitude with wood-only fences.

Nice try though.

Quote:
Posted By JohnB26 on 08/04/2009 4:00 PM
Remember ... involuntary servitude was once legal.

Civilly yours,
JohB26

JudyM5 (Ohio)
Posts: 36
Posted:
Geez! Sorry that I didn't make it clear that obsolete portions of the CC&R's would have to be amended!! But, it made for some lively comments!! You guys can be brutal! Duh . . . I ain't never heard of amending . . . what do that mean?
JudyM5 (Ohio)
Posts: 36
Posted:
Don't "scare" us newbies off! Someday we might have the information, knowledge, or experience that you need! Duh . . . amending? I ain't never heerd of this here amending thing that yall are talkin' about! Does it come in different colors?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Judy, my comments were intended for JohnB26.

But I was actually just expanding on your "obsolete" comment to be sure that others (who might be newbies) understood that even if something is more or less "obsolete" (and that's not an easy term to define for purposes of CC&Rs), that it would still require amending.

Not to edumacate you, since I'm pretty sure you are already aware of that, just to provide clarification for some others who are just dropping by. Like JohnB26. Who apparently thinks wood-only fencing is on par with involuntary servitude.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MicheleD on 08/04/2009 9:11 PM
Judy, my comments were intended for JohnB26.

But I was actually just expanding on your "obsolete" comment to be sure that others (who might be newbies) understood that even if something is more or less "obsolete" (and that's not an easy term to define for purposes of CC&Rs), that it would still require amending.

Not to edumacate you, since I'm pretty sure you are already aware of that, just to provide clarification for some others who are just dropping by. Like JohnB26. Who apparently thinks wood-only fencing is on par with involuntary servitude.

I used the (poor) example to show how laws and rules can become obsolete.

eg. 'siding shall be cedar wood only'

-hardi-plank- (a modern cement based product) is visually identical (unless checked from 1-2') and lasts 50+ years, yet my HOA still will not permit
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By JohnB26 on 08/05/2009 5:31 AM

I used the (poor) example to show how laws and rules can become obsolete.

eg. 'siding shall be cedar wood only'

-hardi-plank- (a modern cement based product) is visually identical (unless checked from 1-2') and lasts 50+ years, yet my HOA still will not permit

At least you admitted it was a poor example.

Totally inappropriate, too.

I don't understand your pain. I really don't.

If you can obtain the requisite number of "progressive" homeowners who agree that some of the newer materials can be used, then go for it.

Unless your governing documents are frozen, as some are (they can't amend for 10, 15, or even 30 years from inception), then bring your HOA restrictions into the 21st century by leading a committee to change (amend) the backwards sections.

If you can't garner enough support throughout the membership, then, well, maybe they just aren't "ready" for all that new-fangled non-obsolete stuff.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By JohnB26 on 08/04/2009 4:00 PM


By most state's not-for-profit corporation law all CC&Rs must be 'reasonable' .... if they are very old and new (better) modern materials not available at the time of original writing are now requested would it be reasonable to deny them?

Remember ... involuntary servitude was once legal.

Civilly yours,
JohB26

JohnB,

Only HOA nonprofit corps have CCRs. Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs.

If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MaryA1 on 08/05/2009 7:43 AM
Posted By JohnB26 on 08/04/2009 4:00 PM


By most state's not-for-profit corporation law all CC&Rs must be 'reasonable' .... if they are very old and new (better) modern materials not available at the time of original writing are now requested would it be reasonable to deny them?

Remember ... involuntary servitude was once legal.

Civilly yours,
JohB26


JohnB,

Only HOA nonprofit corps have CCRs. Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs.

If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced.

Correct as written, but misleading.

Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS) they MUST ABIDE by any state not-for-profit corporate law(s). The contents of these laws would probably surprise you, since they GREATLY limit the BOD power. Many sub-divisions have CC&Rs without a HOA. Most HOAs are incorporated to limit individual the developer's and HO's liability. An unincorporated HOA opena all members to personal liability. A corporation only has corporate liability ... hence the necessity for corporate laws.

One can not have one's cake and eat it also .... if you wish to limit your personal HOA liability by incorporation (not required) then be prepared to follow the (corporate) laws of the land.

ps. not to split hairs, but:

a nonprofit is NOT the same as a not-for-profit corporation
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Any practising attorney out there wish to correct me?
RogerB (Colorado)
Posts: 5,067
Posted:
JohnB,
While your intented meaning may be correct when analysed independently these broad statements are not correct.
I'm not an attorney but I offer the following responses on your statements.

"Only HOA nonprofit corps have CCRs."
HOA's have controlling documents. Many HOAs have Declarations of Covenants, Conditions and Restrictions which are often referred to as CC&Rs.

"Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs."
Nonprofit corporatiion statutes apply only to nonprofit corporations but not necessarily other types of corporations.
I agree with you that the CC&RS are not part of a State's nonprofit corporation act; they are a separate entity.

"If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced."
Wrong, when later laws supercede the CC&Rs. Those portions of the CC&Rs which become outdated by conflicting with a higher controlling law should not be enforced. The CC&Rs may be amended to come into compliance but until such time as they are those sections which conflict with higher laws need to be ignorned since enforcement would not stand up in court. Examples, of which I am aware are satellite dishes (OTARD), solar panels, energy saving devices such as new laws allowing clothes lines, etc.
PatrickH (California)
Posts: 204
Posted:
Hi Debbie,

My HOA replaced about 5,000 feet of wood fencing about five years ago with vinyl. We went with a tan color because the white color fencing looked too "plastic".

I don't think vinyl fencing looks as nice as real wood, but it is so much easier to have vinyl than wood. We had a four year installation guarantee from the company that installed it. We had a few gates that needed adjustments over the first few months and that was it.

The fences themselves have a 25 year warrantee from the manufacturer. The warrantee is in the name of the HOA so no matter how many owners a particular unit has during thta time, the HOA holds the original warrantee.

We're in Southern California, so we gets lots of sun and heat. There hasn't been any fading, discoloration or warping of the fences yet, so we've been very happy with them.

Probably the biggest benefit is the lack of time, money and effort spent on repairing, replacing and repainting the wood fences. The old wood fences were constantly needing repairs, they were over 20 years old when replaced, and it was impossible to make an annual budget with a line item for fence repairs and replacements since we had no idea how much they would cost each year.

If you can go with vinyl fencing, I would recommend it. As with any big purchase, just do a lot of research first.

MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By RogerB on 08/05/2009 10:00 AM

"If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced."
Wrong, when later laws supercede the CC&Rs. Those portions of the CC&Rs which become outdated by conflicting with a higher controlling law should not be enforced. The CC&Rs may be amended to come into compliance but until such time as they are those sections which conflict with higher laws need to be ignorned since enforcement would not stand up in court. Examples, of which I am aware are satellite dishes (OTARD), solar panels, energy saving devices such as new laws allowing clothes lines, etc.

Roger, with all due respect, this discussion is not necessarily about state laws that render various sections of any particular CC&Rs "obsolete," or rather, essentially make them impotent.

The obsolescence was in regards to a particular and specific issue, wood-only fencing vs. newer materials.

It's not likely that state laws would require HOAs to include modern materials as acceptable, therefore "over-riding" the HOA's CC&Rs.

Your examples are excellent, satellite dishes, solar panels, etc., but short of that, other so-called "obsolete" sections of CC&Rs or other governing documents (those not addressed specifically in local, federal or state laws or statutes) in most HOAs will not be able to be changed without the requisite amendment procedures being followed.

All this other discussion, and hair splitting, takes us further away from the fact that, while wood-only fencing may not be "progressive," a board cannot simply make a rule adding other materials as acceptable if the CC&Rs specify "wood only," regardless of how backwards that might seem to some.

Just sayin'.
RogerB (Colorado)
Posts: 5,067
Posted:
MicheleD,
I totally agree with your statement "while wood-only fencing may not be "progressive," a board cannot simply make a rule adding other materials as acceptable if the CC&Rs specify "wood only," regardless of how backwards that might seem to some." Boards should always obey those sections of the CC&R which are not made obsolete by higher order laws; they should amend the CC&Rs at times deemed necessary by the association.

The discussion on fencing materials illustrates why it is not wise to totally lockin what type material can be use. We have helped many HOAs amend their CC&Rs on roofing materials while maintaining the option to add new materials without amending the CC&Rs as new and better materials become available in the future.

I like some of the manufactured materials for fences (and decks) better than wood. One HOA we manage put up a 6' high solid trex fence this spring. It was twice the cost of a 6' high solid cedar fence but it will have less maintenance cost, a longer life, higher wind resistance, and looks better. Over its life the cost of the two choices would be approximately the same.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Posted By MaryA1 on 08/05/2009 7:43 AM
Quote:
Posted By JohnB26 on 08/04/2009 4:00 PM


JohnB,

Only HOA nonprofit corps have CCRs. Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs.

If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced.


Correct as written, but misleading.

Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS) they MUST ABIDE by any state not-for-profit corporate law(s). The contents of these laws would probably surprise you, since they GREATLY limit the BOD power. Many sub-divisions have CC&Rs without a HOA. Most HOAs are incorporated to limit individual the developer's and HO's liability. An unincorporated HOA opena all members to personal liability. A corporation only has corporate liability ... hence the necessity for corporate laws.

One can not have one's cake and eat it also .... if you wish to limit your personal HOA liability by incorporation (not required) then be prepared to follow the (corporate) laws of the land.

ps. not to split hairs, but:

a nonprofit is NOT the same as a not-for-profit corporation

John,

Misleading in what way?

I never said HOAs do not have to abide by the state nonprofit corp statutes. What I said is that the nonprofit corp statutes do not address CCRs because corporations do not have CCRs. HOAs are the only type of nonprofit corp's. that have CCRs.

The IRS considers nonprofits as tax exempt charitable orgs. In the eyes of the IRS an incorporated HOA is treated as a Corp. Show me an IRS rule to substantiate your remark: "Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS".

Not splitting hairs at all; the terms "not-for-profit" and "nonprofit" are used interchangeably; in other words they mean the same. If you don't believe me, google it and see what you come up with.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By RogerB on 08/05/2009 10:00 AM
JohnB,
While your intented meaning may be correct when analysed independently these broad statements are not correct.
I'm not an attorney but I offer the following responses on your statements.

"Only HOA nonprofit corps have CCRs."
HOA's have controlling documents. Many HOAs have Declarations of Covenants, Conditions and Restrictions which are often referred to as CC&Rs.

"Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs."
Nonprofit corporatiion statutes apply only to nonprofit corporations but not necessarily other types of corporations.
I agree with you that the CC&RS are not part of a State's nonprofit corporation act; they are a separate entity.

"If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced."
Wrong, when later laws supercede the CC&Rs. Those portions of the CC&Rs which become outdated by conflicting with a higher controlling law should not be enforced. The CC&Rs may be amended to come into compliance but until such time as they are those sections which conflict with higher laws need to be ignorned since enforcement would not stand up in court. Examples, of which I am aware are satellite dishes (OTARD), solar panels, energy saving devices such as new laws allowing clothes lines, etc.

You are quoting from my quotes of what someone else has said. (and with whom i disagree)
This board format can be confusing.
Actually you and I seem to be in perfect agreement.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MaryA1 on 08/05/2009 12:02 PM
Posted By MaryA1 on 08/05/2009 7:43 AM
Posted By JohnB26 on 08/04/2009 4:00 PM


JohnB,

Only HOA nonprofit corps have CCRs. Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs.

If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced.


Correct as written, but misleading.

Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS) they MUST ABIDE by any state not-for-profit corporate law(s). The contents of these laws would probably surprise you, since they GREATLY limit the BOD power. Many sub-divisions have CC&Rs without a HOA. Most HOAs are incorporated to limit individual the developer's and HO's liability. An unincorporated HOA opena all members to personal liability. A corporation only has corporate liability ... hence the necessity for corporate laws.

One can not have one's cake and eat it also .... if you wish to limit your personal HOA liability by incorporation (not required) then be prepared to follow the (corporate) laws of the land.

ps. not to split hairs, but:

a nonprofit is NOT the same as a not-for-profit corporation


John,

Misleading in what way?

I never said HOAs do not have to abide by the state nonprofit corp statutes. What I said is that the nonprofit corp statutes do not address CCRs because corporations do not have CCRs. HOAs are the only type of nonprofit corp's. that have CCRs.

The IRS considers nonprofits as tax exempt charitable orgs. In the eyes of the IRS an incorporated HOA is treated as a Corp. Show me an IRS rule to substantiate your remark: "Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS".

Not splitting hairs at all; the terms "not-for-profit" and "nonprofit" are used interchangeably; in other words they mean the same. If you don't believe me, google it and see what you come up with.


Oh, I see, you worship the great GOD Google .......................... just kidding

My point exactly concerning language,

"the terms "not-for-profit" and "nonprofit" are used interchangeably; in other words they mean the same" - NOT BY THE IRS

A non-profit is federal tax exempt
A not-for-profit PAYS FEDERAL TAXES but gets many state 'breaks' including reduced property taxes as a 'public benefit' not-for-profic co.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By RogerB on 08/05/2009 10:00 AM
JohnB,
While your intented meaning may be correct when analysed independently these broad statements are not correct.
I'm not an attorney but I offer the following responses on your statements.

"Only HOA nonprofit corps have CCRs."
HOA's have controlling documents. Many HOAs have Declarations of Covenants, Conditions and Restrictions which are often referred to as CC&Rs.

"Nonprofit corp statutes are written for ALL types of corps and you won't find anything in them regarding CCRs."
Nonprofit corporatiion statutes apply only to nonprofit corporations but not necessarily other types of corporations.
I agree with you that the CC&RS are not part of a State's nonprofit corporation act; they are a separate entity.

"If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced."
Wrong, when later laws supercede the CC&Rs. Those portions of the CC&Rs which become outdated by conflicting with a higher controlling law should not be enforced. The CC&Rs may be amended to come into compliance but until such time as they are those sections which conflict with higher laws need to be ignorned since enforcement would not stand up in court. Examples, of which I am aware are satellite dishes (OTARD), solar panels, energy saving devices such as new laws allowing clothes lines, etc.

Roger,

Some of the statements you attribute to John B were actually made by me:

"Only HOA nonprofit corps have CCRs" and "If the CCRs are outdated, the only remedy is to amend them; but in the meantime they must be enforced."

Both of those statements were made in response to the following statement made by John: "By most state's not-for-profit corporation law all CC&Rs must be 'reasonable' .... if they are very old and new (better) modern materials not available at the time of original writing are now requested would it be reasonable to deny them?"

The first statement was made to let John know that nonprofit corp statutes do not address CCRs and that HOAs are the only type of nonprofits that have CCRs. THis was not a discussion about what an HOAs controlling documents are called.
My statement was made to let him know that the only nonprofits that have CCRs are HOAs. My response was not made in answer to a discussion on what HOA gov docs are called.

John's statement was made in regard to the OP's question about the CCR restriction for fencing materials. My reply was giving my opinion regarding enforcement of this one rule only, not enforcement of the CCRs as a whole.
MaryA1 (Arizona)
Posts: 7,043
Posted:
How can you say you are "in perfect agreement" with Roger when he said the same thing I said that you apparently disagree with.

You said: "By most state's not-for-profit corporation law all CC&Rs"

To which I said: "only HOA nonprofit corps have CCRs and "nonprofit corp statutes are written for all types of corps and you won't find anything in them regarding CCRs".

And Roger said: "I agree with you that the CC&RS are not part of a State's nonprofit corporation act; they are a separate entity."

MaryA1 (Arizona)
Posts: 7,043
Posted:
What are you talking about when you say: "A not-for-profit PAYS FEDERAL TAXES but gets many state 'breaks' including reduced property taxes as a 'public benefit' not-for-profic co."

IMO, the IRS does not differentiate between nonprofits and not-for-profits. They are regarded as charitable, tax-exempt orgs. They file as a tax exempt org on Form 990. HOAs are not regarded as nonprofits (or not-for-profits) they are regarded as corporations. A nonprofit org that is not tax-exempt (such as an HOA) files a corp. tax return on the Form 1120. An HOA can also file on the tax form specific to HOAs -- 1120H, which is also a corporate tax return.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Please do not misquote me ! What I said was:

>>>Since a HOA is a not-for-profit (which may or not be a nonprofit per IRS) they MUST ABIDE by any state not-for-profit corporate law(s). The contents of these laws would probably surprise you, since they GREATLY limit the BOD power. Many sub-divisions have CC&Rs without a HOA. Most HOAs are incorporated to limit individual the developer's and HO's liability. An unincorporated HOA opena all members to personal liability. A corporation only has corporate liability ... hence the necessity for corporate laws.<<<
MaryA1 (Arizona)
Posts: 7,043
Posted:
Except for the part that says: "(which may or not be a nonprofit per IRS)", I agree with what you say. I just don't agree with your thinking that the IRS distinguishes between nonprofit and not-for-profit. The two terms mean the same!!!
JohnB26 (South Carolina)
Posts: 1,569
Posted:
In fact, they do NOT mean the same even if they are colloquially used in an interchangeable manner.

Check the IRS web site - they do not even acknowledge the existance of not-for-profit.

If the two terms are identical why are HOAs paying federal income tax on the interest earned in their accounts?

nonprofit under the IRS (basically a chitable institution):

Federal tax law provides tax benefits to nonprofit organizations recognized as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (IRC). It requires that most organizations apply to the Internal Revenue Service (IRS) for that status.
This IRS Publication 4220 presents general guidelines for organizations that seek tax-exempt status from federal income tax under section 501(c)(3) of the IRC. Content includes references to the statute, Treasury regulations, other IRS publications that explain the requirements for tax-exempt status, and IRS forms with instructions. Publication 4220 is neither comprehensive nor intended to address every situation. As an alternative to applying for exemption, an organization may obtain many of the benefits of 501(c)(3) status by affiliating with an existing
charity that acts as its agent. It is important to note that the existing charity must be given full control and authority over the program.
To learn more about the rules and procedures that pertain to organizations applying for exemption from federal income tax under section 501(c)(3) of the IRC, see Publication 557, Tax-Exempt Status for Your Organization For assistance on 501(c)(3) status, you may also want to consult a tax adviser.

NONPROFITS ARE FEDERALLY TAX EXEMPT

not-for-profits receive state level benefits and/or special property tax rates
JohnB26 (South Carolina)
Posts: 1,569
Posted:
A typical set of by-laws for a not-for-profit corporation as governed by standard legal practices (compliant with most state's corporate law:

BY-LAWS OF [NAME], A NOT-FOR-PROFIT CORPORATION

ARTICLE I ORGANIZATION

1. The name of the organization shall be [NAME].

2. The organization shall have a seal which shall be in the following
form: [DESCRIBE]

3. The organization may at its pleasure by a vote of the membership body
change its name.

ARTICLE II PURPOSES

The following are the purposes for which this organization has been
organized: [DESCRIBE]

ARTICLE III MEMBERSHIP

Membership in this organization shall be open to all who [DESCRIBE].

ARTICLE IV MEETINGS

The annual membership meeting of this organization shall be held on the
__________ day of [MONTH] each and every year except if such day be a
legal holiday, then and in that event, the Board of Directors shall fix
the day but it shall not be more than two weeks from the date fixed by
these By-Laws.

The Secretary shall cause to be mailed to every member in good standing
at his address as it appears in the membership roll book in this
organization a notice telling the time and place of such annual meeting.

Regular meetings of this organization shall be held [LOCATION].

The presence of not less than _________ ( ____%) percent of the members
shall constitute a quorum and shall be necessary to conduct the business
of this organization; but a lesser percentage may adjourn the meeting
for a period of not more than _________ weeks from the date scheduled by
these By-Laws and the secretary shall cause a notice of this scheduled
meeting to be sent to all those members who were not present at the
meeting originally called. A quorum as herein before set forth shall be
required at any adjourned meeting.

Special meetings of this organization may be called by the president
when he deems it for the best interest of the organization. Notices of
such meeting shall be mailed to all members at their addresses as they
appear in the membership roll book at least ten (10) days before the
scheduled date set for such special meeting. Such notice shall state the
reasons that such meeting has been called, the business to be transacted
at such meeting and by whom it was called. At the request of ___________
( _____%) percent of the members of the Board of Directors or
___________ ( _____%) percent of the members of the organization, the
president shall cause a special meeting to be called but such request
must be made in writing at least ten (10) days before the requested
scheduled date.

No other business but that specified in the notice may be transacted at
such special meeting without the unanimous consent of all present at
such meeting.

ARTICLE V VOTING

At all meetings, except for the election of officers and directors, all
votes shall be by voice. For election of officers, ballots shall be
provided and there shall not appear any place on such ballot that might
tend to indicate the person who cast such ballot.

At any regular or special meeting, if a majority so requires, any
question may be voted upon in the manner and style provided for election
of officers and directors.
At all votes by ballot the chairman of such meeting shall,
prior to the commencement of balloting, appoint a committee of three who
shall act as "Inspectors of Election" and who shall, at the conclusion
of such balloting, certify in writing to the Chairman the results and
the certified copy shall be physically affixed in the minute book to the
minutes of that meeting.

No inspector of election shall be a candidate for office or shall be
personally interested in the question voted upon.

ARTICLE VI ORDER OF BUSINESS

1. Roll Call.
2. Reading of the Minutes of the preceding meeting.
3. Reports of Committees.
4. Reports of Officers.
5. Old and Unfinished Business.
6. New Business.
7. Adjournments.

ARTICLE VII BOARD OF DIRECTORS

The business of this organization shall be managed by a Board of
Directors consisting of [#] members, together with the officers of this
organization. At least one of the directors elected shall be a resident
of the State of __________ and a citizen of the United States.

The directors to be chosen for the ensuing year shall be chosen at the
annual meeting of this organization in the same manner and style as the
officers of this organization and they shall serve for a term of _______
years.

The Board of Directors shall have the control and management of the
affairs and business of this organization. Such Board of Directors shall
only act in the name of the organization when it shall be regularly
convened by its chairman after due notice to all the directors of such
meeting.

___________ ( ____%) percent of the members of the Board of Directors
shall constitute a quorum and the meetings of the Board of Directors
shall be held regularly on the [DATE].

Each director shall have one vote and such voting may not be done by
proxy.

The Board of Directors may make such rules and regulations covering its
meetings as it may in its discretion determine necessary.

Vacancies in the Board of Directors shall be filled by a vote of the
majority of the remaining members of the Board of Directors for the
balance of the year.

The President of the organization by virtue of his office shall be
Chairman of the Board of Directors.

The Board of Directors shall select from one of their members a
secretary.

A director may be removed when sufficient cause exists for such removal.
The Board of Directors may entertain charges against any director. A
director may be represented by counsel upon any removal hearing. The
Board of Directors shall adopt such rules for this hearing as it may in
its discretion consider necessary for the best interests of the
organization.

ARTICLE VIII OFFICERS

The initial officers of the organization shall be as follows:
President:
Vice President:
Secretary:
Treasurer:

The President shall preside at all membership meetings.
He shall by virtue of his office be Chairman of the Board of
Directors.
He shall present at each annual meeting of the organization an annual
report of the work of the organization.
He shall appoint all committees, temporary or permanent.
He shall see all books, reports and certificates required by law are
properly kept or filed.
He shall be one of the officers who may sign the checks or drafts of
the organization.
He shall have such powers as may be reasonably construed as belonging
to the chief executive of any organization.

The Vice President shall in the event of the absence or inability of the
President to exercise his office become acting president of the
organization with all the rights, privileges and powers as if he had
been the duly elected president.

The Secretary shall keep the minutes and records of the organization in
appropriate books.
It shall be his duty to file any certificate required by any statute,
federal or state.
He shall give and serve all notices to members of this organization.
He shall be the official custodian of the records and seal of this
organization.
He may be one of the officers required to sign the checks and drafts
of the organization.
He shall present to the membership at any meetings any communication
addressed to him as Secretary of the organization.
He shall submit to the Board of Directors any communications which
shall be addressed to him as Secretary of the organization.
He shall attend to all correspondence of the organization and shall
exercise all duties incident to the office of Secretary.

The Treasurer shall have the care and custody of all monies belonging to
the organization and shall be solely responsible for such monies or
securities of the organization. He shall cause to be deposited in a
regular business bank or trust company a sum not exceeding $ ________
and the balance of the funds of the organization shall be deposited in a
savings bank except that the Board of Directors may cause such funds to
be invested in such investments as shall be legal for a non-profit
corporation in this state.
He must be one of the officers who shall sign checks or drafts of the
organization. No special fund may be set aside that shall make it
unnecessary for the Treasurer to sign the checks issued upon it.
He shall render at stated periods as the Board of Directors shall
determine a written account of the finances of the organization and such
report shall be physically affixed to the minutes of the Board of
Directors of such meeting.
He shall exercise all duties incident to the office of Treasurer.

Officers shall by virtue of their office be members of the Board of
Directors.

No officer shall for reason of his office be entitled to receive any
salary or compensation, but nothing herein shall be construed to prevent
an officer or director for receiving any compensation from the
organization for duties other than as a director or officer.

ARTICLE IX SALARIES

The Board of Directors shall hire and fix the compensation of any and
all employees which they in their discretion may determine to be
necessary for the conduct of the business of the organization.

ARTICLE X COMMITTEES

All committees of this organization shall be appointed by the Board of
Directors and their term of office shall be for a period of one year or
less if sooner terminated by the action of the Board of Directors.

The permanent committees shall be: [DESCRIBE]

ARTICLE XI DUES

The dues of this organization shall be $ _______per annum and shall be
payable on [DATE].

ARTICLE XII AMENDMENTS

These By-Laws may be altered, amended, repealed or added to by an
affirmative vote of not less than ________________ (_____%) percent of
the members.

_____________________________________________________________________________________

You will find that YOUR documents are virtually identical to this 'template', if not they are probably at odds with your state statutes.
MaryA1 (Arizona)
Posts: 7,043
Posted:
John,

The reason HOAs pay income tax on interest earned is because that income is not characterized as exempt function income. It's not because the HOA is a nonprofit corp or a not-for-profit corp as you want to call them. If an HOA files Form 1120 all their income is taxed, the same as any other corp.

Nonprofits are federally tax exempt if they fall under the 501(c) category.

Not-for-profits (nonprofits) may recieve "state level benefits and/or special property tax rates" in your state but they do not in AZ. HOAs do now receive special property tax rates -- not because they are nonprofits, but simply because they are HOAs.

If the IRS considers HOAs as "not-for-profits" as you claim then why don't they acknowledge not-for-profits?

Thanks for the suggestion but I don't need to learn more about the 501(c) rules, etc.; I've read through them many times.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By MaryA1 on 08/05/2009 3:30 PM
John,

The reason HOAs pay income tax on interest earned is because that income is not characterized as exempt function income. It's not because the HOA is a nonprofit corp or a not-for-profit corp as you want to call them. If an HOA files Form 1120 all their income is taxed, the same as any other corp.

Nonprofits are federally tax exempt if they fall under the 501(c) category.

Not-for-profits (nonprofits) may recieve "state level benefits and/or special property tax rates" in your state but they do not in AZ. HOAs do now receive special property tax rates -- not because they are nonprofits, but simply because they are HOAs.

If the IRS considers HOAs as "not-for-profits" as you claim then why don't they acknowledge not-for-profits?

Thanks for the suggestion but I don't need to learn more about the 501(c) rules, etc.; I've read through them many times.

The IRS does NOT recognize HOAs as not-for-profit (there is NO IRS not-for-profit
nor do they accept them as 501(c)(3) - non-profit
MaryA1 (Arizona)
Posts: 7,043
Posted:
John,

I thought YOU said the IRS calls HOAs "not-for-profits"! I certainly never said it. I said the two terms mean the same. I also said the IRS recognizes HOAs as corporations -- nonprofit does not enter into it. The IRS regards nonprofits as tax exempt orgs. You're wrong in saying they do not accept them as 501(C) -- there are many HOAs that are classified as 501(c), whether it's (3) or something else. In fact my HOA is a 501(c)(3)!
EllenS1 (Florida)
Posts: 1,148
Posted:
What is it with all these posts showing no names or states of the posters?

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