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DanaA (Florida)
Posts: 117
Posted:
We are a 30+ year old community and have had many ammendments through the years, and need many more. Our HOA President (720) is chair of our CCR rewrite committee, and I recently joined committee. Committee is planning a total CCR rewrite, not ammendments to existing CCRs. When is a complete rewrite absolutely necessary, and why? President says it will make our CCRs easier to read, though committee is discussing many restrictive changes to CCRs. If we proceed with a total rewrite, does our BOD have to approve each individual proposed change recommended by the committee prior to deciding it is going to the membership for a vote? And, then, does a rewrite get voted on "in total" by the membership, or by each line item that "changes from the existing CCRs"? And, if we change a CCR, are all current owners exempt from more restrictive changes that would be in the rewrite? Need to get some guidance other than the President's viewpoint. Thanks.
LindaC3 (Florida)
Posts: 526
Posted:
DanaA...........Great question.... Would you happen to be my neighbor ?? LOL..... Can't wait to see the replies as our HOA has "basically" the same problem........Thanks for the post LindaC3( Fla)
JosephW (Michigan)
Posts: 882
Posted:
Unless the minimum number of owners (in your docs) petitions for the amendment, then yes, the amendments would have to be approved by the board first, either individually or as a package. As to whether the amendments have to be passed individually or as a package, that will depend on how the voting is arranged. You can opt to have a separate vote on each amendment, or you can have a vote on all of them as a group. There are pros and cons to both ways. If you put them together as a package, an owner who disagrees with one part would be forced to vote against the whole thing or accept a part that they disliked. If you run them separately, you stand the chance of only some of them passing, and often this causes problems because the new amendments were probably designed to interact with the other new ones, not the older docs. To me, this is a political decision - which has the best chance of passing?

As for the current owners, the wording of the amendment would, or should, be specific in grandfathering them or not. And any grandfathering should only extend until there is a change of ownership in the unit. If you're not specific, you will likely run into some hard feelings down the road from new owners who are wondering why rules are being enforced against them, and not the other owners. It's a touchy area, and should only be used for things that will change over time into something all owners will face equally. Try very hard not to create two classes of owners.

Joe


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DonnaS (Tennessee)
Posts: 5,671
Posted:

Hi Dana,
A condo association where I own a rental unit has just spent a good deal of money to rewrite their entire set of documents. You must realize that a 30 year old set is more than likely outdated. Unless it has been done already, your Covenants and ByLaws now must be registered under Fl. State Statutes 718. I'll bet you still were under 618, which is the Not for Profit Corp. Many communities have not filed that paperwork with their Counties.

The statutes have changed greatly and to make it easier to operate, your current documents will need some word changing and perhaps you will need to add or delete some requirements and perhaps address some issues that your community has had to address. This is not a bad thing.And just because you are redoing the entire book, doesn't mean that you have to make major changes. If you are current with statutes and laws, the just clean up all of the excess. I'll bet you a good dollar that there is still all of the wording about the Developer. That can be removed.

Yes, it will need a membership approval IF you add amendments or change anything in the Covenants and ByLaws that restricts or deletes items. I believe that any changes that would alter an owners rights would have to be "vested" as you cannot change their rights after 30 years . Our association just rewrote the entire book with no major changes and had everyone sign off on receipt of the new book.

JC3
Posts: 290
Posted:
We are rewriting ours because they are older, too, and with the many legal and technological changes, it's time. We are using a homeowner committee, and hope to have revisions ready for board review soon.
BarbaraM7 (Virginia)
Posts: 86
Posted:
Dana, We are a 20 year old community and the original builders/developers are still listed on the paperwork. Our management company just keeps copying these old forms and charging prospective owners $100 for the disclosure packet. I have asked about updating the CCR's and was told it would be too expensive to do by the management company. They look unprofessional to me, but then as some people, even people on the board have said, "I never read the thing until an issue came up." So, perhaps it doesn't really matter what I think.

I have completed updating our Archtiectural Guidelines, went from 1 page to 10, basically because people have not been told of any new approved changes, like extending their railing from thier front step to the bottom of the steps for safety reasons (we have quite a few elderly folks in the neighborhood). I am hoping to get this reviewed by the Board of Directors for any corrections, additions, deletions, and get it out to the community as soon as possible.

Of course since I did the work getting the guidlines updated, the other Board Members asked if I wanted to do the CCR's. I may be nuts but I'm not crazy.
RonaldW (South Carolina)
Posts: 901
Posted:
Amending our CC&Rs requires approval of 75% of the members. That's 101 members out of 134. A couple people own two lots and are entitled to two votes.

We currently have a vote out on liberalizing the time trash can be placed out for collection and the number of cars that may be parked in the driveways overnight.

The first week we received about fifty "yes" votes on each amendment. The next week we received about six. Several are defective because the signatures don't match the signatures on the deeds. On some, one owner out of two signed. On others, they didn't include their middle initial or signed a nickname, not their legal name. On one, three people signed even though only two of them are owners.

I doubt we will ever reach the required 101 "yes" votes on these two issues that have been the subject of much whining and fussing at past membership meetings.

Our former board president got up at the last meeting and said we should re-write the CC&Rs. If we can't get 75% of the members to pass these two amendments, I believe the chances of getting a complete re-write passed are somewhere between slim and none. Closer to "none".

If your new CC&Rs are to have any hope of withstanding a legal challenge in the future, they will have to be written or at least checked by a competent attorney. This will cost quite a bit of money and if the re-write is not passed by the membership, this will be association funds wasted by the BOD.

Would I like to re-write the CC&Rs? Yes I would. There's a lot of excess language pertaining to the developer, model homes, etc. Is it practical? I don't think so.

Ron
SC
PaulM (Pennsylvania)
Posts: 1,347
Posted:
RonaldW: I wondered where you have been lately...! Glad to read that you/Board are working on rewriting the CC&Rs specifically-- ..."We currently have a vote out on liberalizing the time trash can be placed out for collection and the number of cars that may be parked in the driveways overnight."

In view of the many posts you have placed here previously on these two issues, it is well to rework the CC&Rs to fit the majority of 'your own community's needs'.

DanaA (Florida)
Posts: 117
Posted:
Ron, and others, I have no idea how we should proceed. We interviewed a new attorney on Friday, who said we have a lot of outdated line items in our CCRs due to the ancient history of our assoiation. I can see how we can eliminate the obsolete language with no problem, as well as take out nonenforceable language in our CCRs, Put this to a vote and pass it easily. Then, there is a second set of NEW CCRs that BOD wants to ADD that are more restrictive, ie., a rental policy, ability to fine for violations, that may not pass. Should we do this in two phases? This is why I wanted to know how others out there vote on a rewrite, each item separately?
LindaC3 (Florida)
Posts: 526
Posted:
DanaA...... I belong to an HOA in Florida also.....FIRST I would recommend that you check to see if your HOA filed the MRTA Act according to the Statutes to preserve your Deed Restrictions.... I do belive it is FSS Chapter 712 ? Your attorney should know this....If you are 30 yrs PLUS and did not file these than your Deed Restrictions may no longer be in effect...Your attorney should know this also...... We did ours in 2003 just in time ...
Our DR'S had an original time frame of 25 yrs then automatic renewal every 10 years UNLESS an instrument signed by the majority of the THEN OWNERS have agreed to consent to change in whole or part.....We are battling now about the wording of the then owners.... My personal attorney has told me that means all owners listed on the Deed MUST sign or the consent is not valid.....Our BOD seems to think it means majority of the lots which there are 299..... BUT this year we are working on rewording our DR'S and it has finally hit one of the BOD Members that the wording of the then owners means exactly what my attorney told me...He now is in a mixed state of mind as he was the author for our DR'S back in 1998 and they only had 154 signatures NT the majority of then owners....UH OH !!!! What a mess.... We are also asking for clarification on the whole or in part.......Are we allowed to consent to parts or the whole thing? With some of the revisions they have done they will NOT be agreed upon by the majority....... I sit on the commitee and have explained that we are a rural equestrian community made up of dirt roads and 3 acre lots...not a tree lined subdivision from Coral gables area.......... TOO MANY CITY REGS they want to put in.... I say if it aint broke dont fix it....But heh what do i know....I am just a member.........
Let me know what you find out about MRTA and if you need any further info feel free to drop me an email at my HOA email [email protected]
I use this for all HOA business....LindaC3
MaryN (Virginia)
Posts: 125
Posted:
We have been going thru some of these same issues. Then owners means the individual owners of each lot. I don't like the way this works, but according to our lawyer..if 1 person owns 3 lots..1 signature..if 6 people own 1 lot..6 signatures. It really isn't fair.
On the 10 year thing...if all of the covenants can be changed with a majority vote..why put the 10 year thing in? Our attorneys are challenging that..also when the paperwork was sent out with the covenant changes(no meeting)it was never stated that they were new covenants and would replace the old ones. However, when they were filed at the courthouse,..that's the wording. Also, words and sentences were changed from what was sent out to what was filed...
Also..in researching..our HOA has no declaration and is legally considered a voluntary association...we were always told it was a mandatory one..go figure?
Talk about a mess...
The HOA stated they used 2 attorneys who volunteered their time..once the covenants were challenged..those 2 attorneys are MIA...they have hired someone new..
Please be very, very careful.
We are involved in a court case that has cost us(challenging property owners)close to $15,000. We have a very good case. If the BOD had worked with all the property owners and hired an attorney..things would be so much better.
MaryN
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By PaulM on 11/17/2007 5:28 AM
RonaldW: I wondered where you have been lately...! Glad to read that you/Board are working on rewriting the CC&Rs specifically-- ..."We currently have a vote out on liberalizing the time trash can be placed out for collection and the number of cars that may be parked in the driveways overnight."

In view of the many posts you have placed here previously on these two issues, it is well to rework the CC&Rs to fit the majority of 'your own community's needs'.


Paul, go back and re-read my post that you responded to.

We mailed out individual packages with explanations, the proposed language, and individual, pre-printed approval sheets that only had to be signed, dated, and mailed back to us in pre-addressed, pre-stamped envelopes. We're not going to visit each house, hand them a fruit basket, and beg them to approve the amendments.

We don't yet have even a simple majority and we need 75%. It is beginning to look like our community already has CC&Rs to fit the needs of the community members . The only ones to make a fuss are the ones that don't think they should have to adide by the original covenants (the ones that were in place when they bought their properties).

If we don't get the 75%, then the "members have spoken"; it's back to enforcing the original restrictions.

Do you have a better idea?

Ron
SC
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By MaryN on 11/18/2007 3:50 PM
We have been going thru some of these same issues. Then owners means the individual owners of each lot. I don't like the way this works, but according to our lawyer..if 1 person owns 3 lots..1 signature..if 6 people own 1 lot..6 signatures. .................

If I were you, I would re-check that, even with a different attorney if necessary. Ours is one vote per lot and I suspect most are that way. Anything else just wouldn't make sense.

We have a few people or couples who own two lots. They get two votes and must decide among themselves how to vote for each lot. In some cases, the couple ownes one lot and one member of the couple own the other. Some lots are owned by a trust and at least one is owned by three people. We had a lot that was owned by an LLC but it was sold to a couple.

One lot = one vote.

Ron
SC
DonnaS (Tennessee)
Posts: 5,671
Posted:
Mary,
I have never heard of 6 owners-6 signatures, 3 owners, 3 signatures required, etc. Every property that I own has on record, the signature of the "Voter of record" My husband and I are joint owners but I am the designated vote holder of the properties which is registered in the association office. I am required to sign ballots and any official papers because of the designation
.
A person owning mulitple lots is entitled to 1 vote for every parcel that they own as they are paying dues for each of those lots, therefore entitled to a vote per lot.

And how did your association get so screwed up? I think that you need much better counsil in the future. One thing that you need to do is to check your State (hopefully they have some)to see what kind of laws that you obviously have not been following.
LindaC3 (Florida)
Posts: 526
Posted:
DonnaS and RonaldW....Our Deed Restrictions state the same thing......Majority of the THEN OWNERS.... I have asked FOUR Attorneys and they all agree....Because our DR'S do not state that it is a VOTE....then it is that- all owners must sign ...Our DR'S say that we need to consent to agree to change the DR'S..... So if we have 6 owners on the Deed then all 6 must sign for it to be valid... Our other "votes" are just the opposite...One vote for one lot...Till we amend our Bylaws this coming January our BL'S state and I kid you not....if a lot is jointly owned by a husband and a wife ONLY the Husband shall have the right to vote....Oh yea...written way back in the early 70"s...... And I still cant the BOD to amend our Articles of Incorporation written in 1973..... Both the oringinal signers are deceased...They ( BOD ) dont think its a big deal to not have them amemded.......It is to the point here where every Nov 2 months beofre the general elections the BOD goes DEAF...... So we have been real busy this year n our BLOG trying again to educate the owners here.... My New Years wish is that our HOA comes into compliance with ALL the Fla State Statutes and the Laws of the state... I can only wish.........LindaC3
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By LindaC3 on 11/23/2007 3:32 PM
DonnaS and RonaldW....Our Deed Restrictions state the same thing......Majority of the THEN OWNERS.... I have asked FOUR Attorneys and they all agree....Because our DR'S do not state that it is a VOTE....then it is that- all owners must sign ...Our DR'S say that we need to consent to agree to change the DR'S..... So if we have 6 owners on the Deed then all 6 must sign for it to be valid... Our other "votes" are just the opposite...One vote for one lot...Till we amend our Bylaws this coming January our BL'S state and I kid you not....if a lot is jointly owned by a husband and a wife ONLY the Husband shall have the right to vote....Oh yea...written way back in the early 70"s...... And I still cant the BOD to amend our Articles of Incorporation written in 1973..... Both the oringinal signers are deceased...They ( BOD ) dont think its a big deal to not have them amemded.......It is to the point here where every Nov 2 months beofre the general elections the BOD goes DEAF...... So we have been real busy this year n our BLOG trying again to educate the owners here.... My New Years wish is that our HOA comes into compliance with ALL the Fla State Statutes and the Laws of the state... I can only wish.........LindaC3

It's true that everyone listed on the deed of a lot must sign, but as a group, they are "an owner" (one owner) for the purpose of approving an amendment. Unless you have some really strange wording.

Consider that a person could purchase one lot, sell or give joint ownership to 100 of his closest friends, and push through any amendment he wished. And I'm not talking parking on the streets, I'm takling business use, multifamily use, mining, etc. There has to be a mistake somewhere.

Ron
SC
LindaC3 (Florida)
Posts: 526
Posted:
RonaldW.....You sre correct...We have some strange wording and until a member here challenged the DR'S the BOD did not realize the erors of their ways..... So until the DR'S are amended even the HOA attorney says they are stuck with all owners must sign to agree to change the DR'S...... Back in 1998 I TRIED to bring it to their attention but was poo pooed by them-- they said I was stirring the pot and if i didnt like it i could move...Whoops....them are words i dont like to hear... I stayed and have a benefit to the community because of perserverance to correct some damaging things on our documents...

Back in October 2006 I questioned at an open meeting the validity of 3 amendments to our By Laws and why could I not find them certified and filed with clerk of courts like the documents state they must be... Once again the shrugged me off... WELL....the Hoa was taken to mediation by a member and lo and behold the by laws were brought up...... He asked for copies of the certified filed ones....Well imagine their shock and horror when they discovered they indeed HAD NOT BEEN FILED.... So the amendments that were alleged to have been approved by the members on Oct 29 1979..yes 1979 were filed on May 11 2007 yes 2007 how many years later ????

We have discovered more stuff that they have been sluffing off on for years and they dont like it... But I am sure we will see a changing of the guard this year...Wish us luck......LindaC3
DonnaS (Tennessee)
Posts: 5,671
Posted:

Linda,
Good Luck to you all. It sounds like you are long overdue for a change.
DonN (Michigan)
Posts: 357
Posted:
First, I recommend checking the laws in your state for amendment requirements.

Second, I recommend checking the case law in your state. Typically, proposed amendments that are approved by at a majority of all owners are adopted and are binding on all owners. Other case law indicates that amended requirements cannot be applied retroactively. Some may become binding with a new owner. However, amendments are not binding on the property if the property adhered to the CC&Rs at the time of construction or other improvement. For example, if the setback requirements are changed, owners don't have to move their homes to comply. Even though the courts among the states may attempt to create similar rulings, the rulings in your state apply if they exist.

Third, new CC&Rs may constitute a new agreement and require unanimous approval. Please read the definition of amend which means to adjust, correct, fix, etc., not to start all over. This definition of amend is reflected in some of the case law. Any amendment that creates nonuniform effects on the properties and/or owners will likely require unanimous approval.

Fourth, new CC&Rs may create unintended consequences. Understanding the problems with the existing CC&Rs is usually part of the reality. But new language may create unforeseen and adverse consequences. Better to build on the history and experience. But a review of CC&Rs by other associations may be very helpful.

Lastly, I favor individual proposed amendments for each change so that the issues can more easily be understood by the owners and voted thereon. Where interrelated changes are required, group the proposed language for the affected provisions into a single proposed amendment.

PaulM (Pennsylvania)
Posts: 1,347
Posted:
RonaldW: ..."Do you have a better idea?" Since you asked....

It is unfortunate that members were unable to follow clear directions, if given, since they did not sign off on the proposed amendments with their legal/given names to make their document legal and binding.

Now you are left with another situation...what do you do? Do you discount the
signed approval sheets of those who returned them using an invalid signature (nickname, etc.)? or do you go to them personally (without fruit basket or begging...) and request the correct signature just as they signed on the deed.

..."If we don't get the 75%, then the "members have spoken"; it's back to enforcing the original restrictions."
Ron, you are to be applauded for the effort you have put forth in this monumental task; it would be a great loss if it was not brought to fruition and 75% of members' signatures were not realized to allow the proposed changes to occur.

It sounds like the 'members have spoken'; they just didn't say their name correctly...Shame on them. Hopefully, this will be resolved with Kudos to YOU!

RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By PaulM on 11/25/2007 5:52 AM
RonaldW: ..."Do you have a better idea?" Since you asked....

It is unfortunate that members were unable to follow clear directions, if given, since they did not sign off on the proposed amendments with their legal/given names to make their document legal and binding.

Now you are left with another situation...what do you do? Do you discount the
signed approval sheets of those who returned them using an invalid signature (nickname, etc.)? or do you go to them personally (without fruit basket or begging...) and request the correct signature just as they signed on the deed.

..."If we don't get the 75%, then the "members have spoken"; it's back to enforcing the original restrictions."
Ron, you are to be applauded for the effort you have put forth in this monumental task; it would be a great loss if it was not brought to fruition and 75% of members' signatures were not realized to allow the proposed changes to occur.

It sounds like the 'members have spoken'; they just didn't say their name correctly...Shame on them. Hopefully, this will be resolved with Kudos to YOU!


Paul,

If it gets to the point where the invalid sheets make a difference, we will go visit and have them sign new ones. At this point, it doesn't matter, we don't even have a majority and it's been about three weeks. A newsletter will go out next week with a reminder. Give it a couple weeks after that and we'll close the issue one way or the other.

Ron
SC
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By MaryN on 11/18/2007 3:50 PM
We have been going thru some of these same issues. Then owners means the individual owners of each lot. I don't like the way this works, but according to our lawyer..if 1 person owns 3 lots..1 signature..if 6 people own 1 lot..6 signatures. It really isn't fair. ..............

From our CC&Rs and by-laws (it's in both places):

"Owner" means the record owner, whether one or more persons or entities of the fee simple title to any Lot as per recorded plat ..............


Ron
SC
SusanW1 (Michigan)
Posts: 5,202
Posted:
What's in the Articles of Incorporation that you want to amend?

Don't worry that some dead people's signatures are on that paper - In Michigan, the group is "current" as a corporation IF you file the Annual Report to the State - that $10 filing fee simply tells them the Corporation is still "active"

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