DavidC (North Carolina)
Posts: 5
Posts: 5
Posted:
Hello, All,
I am a member of a Cohousing community in North Carolina, where we assume that individual owners (24 total) and residents all participate in much of the decision-making. Our declaration and bylaws do not completely reflect the extent of decision-making authority many of us assume the Membership was intended to have. The bylaws state that the members (defined as all residents over 18 years old, not just owners) "shall be entitled to and shall each have a vote on matters relating to Rules and Regulations, regardless of the number of Members residing on Lot." However, the bylaws do not explicitly say that only the members can create Rules and Regs, leaving open the possibility that the Board independently has some legal authority (which it has never used) to create Rules and Regs. The Bylaws also state that "The Board shall have the powers and duties necessary for the administration of the affairs of the Association and may do all such acts and things as are not by law prohibited or by these Bylaws directed to be done by the Owners." This implies that the Board might have the authority to establish Rules and Regs.
Our main problem is that our governing documents are sufficiently vague that several interpretations are possible, and we have had disputes about the proper role of the Board. My question is whether any other HOA's have any provision for owners or members to participate in producing or approving Rules and regs, how this is written legally into the bylaws, and what others' experiences are. To make things more complicated, we make all decisions by consensus (with a voting provision as backup, which we have used only rarely).
As a secondary legal question, is there some legal reason or precedent or law in some states that prohibits owners in HOA meetings from taking actions which interfere with or limit the actions of the Board? I have seen that opinion on this forum and wonder what the legal authority for it is. One lawyer I consulted was not aware of such a requirement, but his is only one opinion.
I know from reading information from the Community Associations Institute and on this forum that most Boards allow only advisory votes or "straw polls" from owners and reserve the right to make all final decisions. I can hear the moaning as you all read about our arrangement.
FYI, we are a non-profit corporation. We were formed in 1997, before the NC Planned Community Act was passed, and are subject to only a limited number of its provisions.
Thanks for any thoughts. Feel free to browse our website (www.westwoodcohousing.com) for more info or to read our declaration and bylaws. I'd appreciate receiving any links to relevant sample or actual documents as well. (I hope this doesn't violate the prohibition on advertising on the forum-- if is any help, we have no lots for sale now.)
David Clements
I am a member of a Cohousing community in North Carolina, where we assume that individual owners (24 total) and residents all participate in much of the decision-making. Our declaration and bylaws do not completely reflect the extent of decision-making authority many of us assume the Membership was intended to have. The bylaws state that the members (defined as all residents over 18 years old, not just owners) "shall be entitled to and shall each have a vote on matters relating to Rules and Regulations, regardless of the number of Members residing on Lot." However, the bylaws do not explicitly say that only the members can create Rules and Regs, leaving open the possibility that the Board independently has some legal authority (which it has never used) to create Rules and Regs. The Bylaws also state that "The Board shall have the powers and duties necessary for the administration of the affairs of the Association and may do all such acts and things as are not by law prohibited or by these Bylaws directed to be done by the Owners." This implies that the Board might have the authority to establish Rules and Regs.
Our main problem is that our governing documents are sufficiently vague that several interpretations are possible, and we have had disputes about the proper role of the Board. My question is whether any other HOA's have any provision for owners or members to participate in producing or approving Rules and regs, how this is written legally into the bylaws, and what others' experiences are. To make things more complicated, we make all decisions by consensus (with a voting provision as backup, which we have used only rarely).
As a secondary legal question, is there some legal reason or precedent or law in some states that prohibits owners in HOA meetings from taking actions which interfere with or limit the actions of the Board? I have seen that opinion on this forum and wonder what the legal authority for it is. One lawyer I consulted was not aware of such a requirement, but his is only one opinion.
I know from reading information from the Community Associations Institute and on this forum that most Boards allow only advisory votes or "straw polls" from owners and reserve the right to make all final decisions. I can hear the moaning as you all read about our arrangement.
FYI, we are a non-profit corporation. We were formed in 1997, before the NC Planned Community Act was passed, and are subject to only a limited number of its provisions.
Thanks for any thoughts. Feel free to browse our website (www.westwoodcohousing.com) for more info or to read our declaration and bylaws. I'd appreciate receiving any links to relevant sample or actual documents as well. (I hope this doesn't violate the prohibition on advertising on the forum-- if is any help, we have no lots for sale now.)
David Clements