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KarlA1 (Florida)
Posts: 84
Posted:
Good morning everybody.

Once again I do have a question.

Our governing documents consist of following components
Article of Incorporation
Bylaws
Declaration of Restriction
and Rules & Regulations

I would like to know if Rules & Regulations are enforceable in Court. Our Rules & Regulations are recorded with the court of Broward County, FL.

In this specific case, we have a rule that states that the property cannot be rented for the first year of ownership. Our attorney keeps telling us that we can't enforce our Rules & Regulations, because the Declaration of Restriction is silent about this subject and therefore we cannot have anything in our Rules & Regulations regarding restricted renting.

Now I know that the Board of Directors can setup Rules & Regulations, but my question now is ... can they be enforced?

Thanks for your help

Cheers
-= Karl =-

Cheers
Karl
DonnaS (Tennessee)
Posts: 5,671
Posted:

Karl,

The 1 year ownership prior to the ability to rent must be in the restrictive covenants before it can go into rules and regs. It probably should not be in the R.& Rs to begin with.

Under Florida Statutes 720 (is that what you follow or are you a condo) Any change in USE must be adopted by a vote of the membership, which is what a restriction on renting is.

As for Rules and Regs, of course they can be enforced. That is why they are written but R.& R.s may not conflict with your Covenants and Bylaws. Your Board has put the cart before the horse.

The 1 year prior to renting is another way for an association to protect the association from realtors and speculators from buying up properties now that they are devalued and then renting them out en masse. Mt Florida association has a 2 year prior to renting, which we passed last year as AN AMENDMENT to the CC&Rs. (I have a rental unit there. It's a 55+ community)
DeeS1 (Michigan)
Posts: 223
Posted:
Donna,

Let me make sure I understand ... I was aware that Rule/Regs can not conflict with CCRs and that the may further qualify or clarify a CCR rule, but if the CCR is silent on an issue, and Rule/Reg can not be adopted?

For example, our Rules/Regs say no statues, birdbaths, etc. However, this is not mentioned anywhere in our CCRs. Would this rule, then not be valid? Or, is a clause in our CCRs that says something like the exterior of the unit /dwelling must acceptable to the association and harmonious to the community enough to justify the statue rule?

Another example that jump to mind is the concept of exterior garage alterations/conversions to accommodate living space. Our CCRs are silent on this specific issue. We were considering adopting something in our Rule/Regs on the matter (mostly because obtaining a quorum for community voting is difficult in our community) ... would our existing CCR statement be enough to support such a rule?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Dee,

The matter that we are addressing is according to Florida Statutes, "USE of a Parcel", which is required to be in the CC&Rs and cannot be written as a Rule & Reg.

Every association has architectural issues, your being the interior alterations and use. You had posted your CC&R statement on this problem and I feel that your association needed to clarify the use allowence prior to letting anyone do or not do the changes. You need to address that IMHO.
GlenL (Ohio)
Posts: 5,491
Posted:
Karl is he telling you that all of your rules are unenforceable or just that one? If so I would heed his advice and remove the rule or ask him how to make it enforceable. Think about it, attorneys are in it to make money just like anyone else and he stands to make money enforcing this rule through litigation win or lose. Sounds like he knows what he is talking about; of course you could pay another attorney and perhaps get a different view point.

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Dee if there are no restrictions on renting in the Covenants you can't do and end run around them with a rule.

Studies show that 5 out of 4 people have problems with fractions
MaryA1 (Arizona)
Posts: 7,043
Posted:
Karl,

The BOD cannot just make up a rule addressing a topic that is not covered by the CCRs. Therefore, if there is nothing in the CCRs covering rental restrictions, they cannot make a rule addressing this issue. The CCRs would have to be amended, which I'm sure would require a vote of the members.

The Rules and Regs do not need to be recorded with the Co (unless so stipulated in your gov docs) however they do hold the same weight as the CCRs simply because the BOD is given the power to adopt rules and regs by the CCRs.

To reiterate, YES the rules and regs can be enforced, but only if they have been legally enacted. The BOD should thoroughly read the CCRs and know exactly what issues are specificaly covered b/4 enacting any rules and regs. Also, any rules and regs enacted that do cover items addressed by the CCRs cannot be inconsistent with the CCRs; in other words the rules & regs cannot change the meaning of the CCRs. This also applies to the BOD's ability to interpret the CCRs; the interpretation cannot change the meaning of the CCR rule.
KarlA1 (Florida)
Posts: 84
Posted:
I want to thank Donna, Mary and Glen for their input. You comments are great and I see your points. Actually our association is in process of re-writing our governing docs. Our docs haven't been amended in almost 30 years. Yes we did renew them, but they have not been changed at that time.

Our R&R have been put in place about 10 or 15 years ago by a BoD who obviously didn't know what they were doing (unless laws changed in this matter since then, which they probably did).

So basically anything that has to do with the use of the owners property has to be voted and amended into the docs. If I'm wrong here, please correct me.

I just have one more question for Mary. You said that the BoD cannot make up rules which are not covered by the CC&R's. Now one of our R&R's is that you are not allowed to back your car into your assigned parking space. Our CC&R's do not say anything about how you can park your car. Does that mean this rule can not be enforced either?

I was under the impression that R&R's are supposed to regulate things like that. In Chapter 720 (we are a HOA) it even says that the BoD is allowed to make reasonable R&R's. But if I have to amend my CC&R's every time and I cover everything in my CC&R's, what do I need the R&R's for?

Thanks again.

Regards
Karl

Cheers
Karl
MaryA1 (Arizona)
Posts: 7,043
Posted:
Karl,

If your CCRs cover parking, then the rule on how cars are to be parked may be OK. I say this w/o having read the parking rule! However, if there is no CCR restriction pertaining to parking, then the BOD has no authority to make a rule addressing parking. Guess I should amend my statement to say they cannot make a rule pertaining to a topic (instead of issue) that is not addressed in the CCRs. My question is, why did the BOD make such a rule -- why would they care if you back the car in or pull it in?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Karl,
Figuring the differences in your HOA documents sometimes is confusing and after a while, it will all make sense if you just keep learning as you seem to be.

An example. IF your documents(CC&Rs) would say--maybe--- "PETS--Residents may own 2 dogs", The Board has the right to create a rule and regulation stating that dogs may not exceed 30 pounds or must be leashed or dogs may not leave a lot without a 10 foot leash or whatever. The docs address pets but the R.&Rs. now specifically govern pets. This might be a slight stretch but it has been done.

Because you are Florida Statutes, any change in the property's use must be approved by the membership. That would be to go to or from renting, which changes how an owner uses his property.

The Board has the right to require all cars to be front parked or rear parked as that is a stricter requirement of what is already exhisting in your having a parking space.

Mary, It could be that they want the vehicle tags in view or an I.D of the vehicle for security identification purposes.
DennisT (Ohio)
Posts: 109
Posted:
Quote:
Posted By DonnaS on 12/04/2009 9:49 AM

Mary, It could be that they want the vehicle tags in view or an I.D of the vehicle for security identification purposes.

And hopefully the minutes concerning the adoption of the rule reflect that. My personal opinion is that a rule that gets to the level of how one may pull into a parking spot is borderline arbitrary and capricious absent something in the record to establish the need for such a rule. The key here is "reasonable" and I could see someone making an argument that such a rule isn't reasonable because it serves no real purpose other than to satisfy some control freak. I jest, but the allegation is plausible.

Whenever we discussed a rule we made sure that the essence of the discussion was recorded in the minutes. This wasn't paragraphs or even necessarily statements attributed to any specific person but we did try to capture the highlights, both pro and con. A court is not going to substitute its business judgment for that of a BOD, however where there's nothing in the record to suggest that the board exercised any judgment towards the matter you run the risk of them saying "we have no idea why they came up with this and there's nothing in the record to guide us ... therefore it seems rather arbitrary."

A record that simply says "Mr. Thomas made a motion to prohibit pink dogs was made and Mr. Smith seconded. The vote was unanimous in favor" is hardly dispositive when an owner alleges that the board was making rules just because they could. Better to have a few sentences in the record that capture the essence of the discussion to show that the board had a rational discussion to consider the situation and any possible alternatives before pronouncing the new rule.
KarlA1 (Florida)
Posts: 84
Posted:
Mary:
The docs only cover the parking so far that every homeowner has two assigned parking spaces. The docs do not give any location of those two parking spaces and do not say anything on how to park. It does limit the wait of the vehicle though. It also prohibits to park trailers on the property.
The reason why the association wants the cars to be front parked has two reasons. 1) our parking spaces are directly in front of the homes, which means if somebody has their doors or windows open, the exhaust would blow right in your house. Since your assigned parking space might be in front of somebody elses house, the association tries to prevent that a "friendly" neighbor has his car running in front of your house blowing the exhaust into your kitchen. 2) We have parking decals, which are on the rear window. If somebody would park his car in reverse, the decal would not be visible.

Donna:
As mentioned above, ID'ing a vehicle is one of the reasons why cars have to be parked front end first.

Dennis:
This rule has been in our R&R's for at least 15 years. So I can't definitely say if the board's decision to enact this rule is documented. As far as I know, these R&R's have been more or less been created by 2 members of the board only. The previous members of the board didn't really give a #$^%$#@ about laws and what the can do and what they can't. Thank God the current Board does and before they make a decision, they always contact our attorney to seek advice.

Donna again ;-)
Oh yeas I am learning every time I post a question here. It's good to have a source like HOATALK.COM. So thanks to you Donna and of course everybody else contributing to this forum. I am sure there are a lot of people appreciating your input.

Cheers
Karl

Cheers
Karl
MaryA1 (Arizona)
Posts: 7,043
Posted:
Karl,

Getting back to your original question about restricting rentals during the 1st year of ownership (I don't know how we got on the subt of parking!); as I said earlier, if rentals is not mentioned in your CCRs the board cannot adopt a rule addressing this topic. The proper course of action would be to propose an amendment to the CCRs that the members would be required to vote on. Do your CCRs mention renting?
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By MaryA1 on 12/07/2009 12:37 PM
Karl,

Getting back to your original question about restricting rentals during the 1st year of ownership (I don't know how we got on the subt of parking!); as I said earlier, if rentals is not mentioned in your CCRs the board cannot adopt a rule addressing this topic. The proper course of action would be to propose an amendment to the CCRs that the members would be required to vote on. Do your CCRs mention renting?

Quote:
Posted By MaryA1 on 12/04/2009 6:50 AM
Karl,

If your CCRs cover parking, then the rule on how cars are to be parked may be OK. I say this w/o having read the parking rule! However, if there is no CCR restriction pertaining to parking, then the BOD has no authority to make a rule addressing parking. Guess I should amend my statement to say they cannot make a rule pertaining to a topic (instead of issue) that is not addressed in the CCRs. My question is, why did the BOD make such a rule -- why would they care if you back the car in or pull it in?


Studies show that 5 out of 4 people have problems with fractions
DonnaS (Tennessee)
Posts: 5,671
Posted:

Mary,

Just to clarify how we got on the parking subject. From Karl's 2nd post--- Ya musta missed this

""I just have one more question for Mary. You said that the BoD cannot make up rules which are not covered by the CC&R's. Now one of our R&R's is that you are not allowed to back your car into your assigned parking space. Our CC&R's do not say anything about how you can park your car. Does that mean this rule can not be enforced either?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Donna,

Thx! I must have had a memory lapse -- age related of course! LOL

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