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Started by JerryS1 • 6 replies • 1730 views

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JerryS1 (< Not Specified >)
Posts: 8

Posted:

I am new to the HOA busines and if possiboewould like a few questions ansewred.

1. Who and how are CC&Rs done? Can they be changed

2. Is it against the law to restrict renters to the HOA? If not how can we do it?

3. Is there a difference in how board members and officers are elected?

4. Do the homowners have a say as to who they want the officers to be?

5. Does an HOA by law need an emergency fund? If so how much should be in it and can it be used for other items throughout the year rather than raising dues or not?

These might seem trivial but if someone could help me I would appreciate

Chuy

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By JerryS1 on 09/26/2006 8:07 PM
I am new to the HOA busines and if possiboewould like a few questions ansewred.
1. Who and how are CC&Rs done? Can they be changed

2. Is it against the law to restrict renters to the HOA? If not how can we do it?

3. Is there a difference in how board members and officers are elected?

4. Do the homowners have a say as to who they want the officers to be?

5. Does an HOA by law need an emergency fund? If so how much should be in it and can it be used for other items throughout the year rather than raising dues or not?

These might seem trivial but if someone could help me I would appreciate
Chuy

1. The Developer's attorney usually writes the Declaration of CC&Rs. They can be amended as defined in the Declaration.
2. Not in most situations. Read posts on this board for more info.
3. Yes. Usually Board members are elected by the members or else appointed by the existing Board members and officers are elected by the Board members. Also, in some assoications officers and Board members are elected by the members.
4. Only in those associations where the By-laws define that the officers are elected by the members.
5. No, but it is allways prudent to have a reserve fund. The reserve fund can have a line item for contingencies and can be used as needed in most situations.

CharlesW1 (Georgia)
Posts: 826

Posted:

Chuy,

I hope the information you received from Roger is useful. I don’t know all there is to know about HOA. I do know some. I know you don’t have to have money set a side for emergences, but it is a good idea to have money for any particular situation that would require large sums of money, instead of purposing a special assessment, which means you would be essentially asking the community for additional money. Setting a side a little bit from every assessment paid, should be set a side throughout the year (reserve).
In your CC&R’s it may state something about renters, leasers or tenants look here first. Mine says:
7.5 Leasing. Lots may be leased for residential purposes. Unless otherwise provided by the board of directors, all leases shall have a minimum term of at least six months. All leases shall require, without limitation, that the occupants acknowledge receipt of a copy of the Declaration, Bylaws use restrictions and rules and regulations of the association. The lease shall also obligate the occupants to comply with the foregoing.

I would assume this is would apply to renters? I’m thinking they are one in the same.

Best of luck to you.
Chuck W.

Charles E. Wafer Jr.

JamesC (Maryland)
Posts: 282

Posted:

Jerry:

You don't list what state you reside in.

Roger, is usually on the mark.

On the right side of this forum you can look up your states hoa site. Click and follow the menu.

On your #2 question I checked with our state of Maryland's, HOA site and was told if our community of 170 homes were to become 30% rentals that mortgage lenders would no longer be required to write any mortgages.
We now have a total of 17 homes in our community and have been advised by the attorney that we can put a stop gap in at some point.
Good luck:

Jim

JamesC (Maryland)
Posts: 282

Posted:

Jerry:
meant to say we have a total of 17 RENTERS in our community. (not homes)

Jim

JerryS1 (< Not Specified >)
Posts: 8

Posted:

Awesome

That is good info to know. Now you sya no longer required ot write mortgages what exactly does that mean?

JerryS1 (< Not Specified >)
Posts: 8

Posted:

Good info.

The resaon I asked is the current board doesn't set aside any money from out current dues for the fund so they are trying to build it from money left over after expenses are paid. They are afraid to use what money we already have for important maintenance isuues the community needs and would prefer to assess rather than use the money. I was told that by law we needed that fund, I just couldn't find anywhere that supports that.

We are in California

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