Prioity of Documents????

Started by JanetS • 5 replies • 2695 views

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JanetS (Arizona)
Posts: 14

Posted:

Our Board and Management Company are in disagreement about what documents take priority over the others....We our an HOA that has been established over 30 years ago. We have four (4) documents...Our CC&R's, Bylaws, Articles of Incorporation and the Rules and Regulations....We are in Arizona....For over 30 years, the homeowners used the CC&R's as our top priority document to take presidence over the others....Is this right or wrong?..Please reply...

Thanks,
JanetS

RogerB (Colorado)
Posts: 5,067

Posted:

You are right Janet. The order decending order of HOA docs is:
1. CC&Rs (also known as Declaration or Covenants)
2. Articles of Incorporation
3. Bylaws
4. Rules and Regulations

And above these are:
1. U. S. Constitution
2. Federal laws
3. State Statues
4. County and Municipal ordinaces and codes

Roger

JanetS (Arizona)
Posts: 14

Posted:

Hi Roger....Thanks so much for answering the question of the order of priority for the documents and MORE!...It was very much appreciated.

Our complex is under a dictatorship and might face financial disaster, simple because our president wants to take our an outragious loan ($600,000) plus and then add points and interest, which amounts to a lot of money for a president who is against special assessments.

Two homeowners hired an attorney and now its a war. The board installed water meters and the stockholders did NOT get to vote on it.....We feel she did this to show the financial institutions we had the montly HOA income to afford the loan. Several items have been done that way and its a real dictatorship and I fear our complex is headed for real disaster. We have 104 homeowners and we have a Regime/partnership CC&R's. The oldest around, which I like very much and she wants to change it, but does realize this constitutes a vote of the eligible voters.

She did send out ballots to vote on the loan, but included the owners in arears of their dues. This Monday is our monthly board meeting (1/9th) and the board and the HOA attorney are going to go over the votes. How can this HOA attorney say that 70 homeowners pass the vote, eligible or not??? for this outragious loan.

We need our roofs to be repaired so I know the allowable loan amount the board can take out should cover this plus taking out some money from our reserve account. And then do a small special assessment for the painting of the units. She added cosmetics to this loan she (president) wants to take out.

Our president has stated we HAVE to use a certain pest control company to keep up the warranty of 5 years.....and wants to incorporate that in the CC&R's which she plans on having them updated if she gets the 2/3rd vote in.

HELP!
JanetS

SamuelB (North Carolina)
Posts: 83

Posted:

Janet,

Check your CC&R’s. There may be a regulation which states something like, “for any special assessment over (say) $25,000, the Board will need a super majority (67%) or more to permit”. It will also probably state what items can have a “special assessment” placed against them. Remember, your condominium act at the state level, are “enabling” documents. If they don’t say something can be done, it can’t be done.

It would be ridiculous to have your CC&R’s dictate which vendor to use, for any item. Doing that will surely come back to bite you in the back side. The responsibilities of the Board include specifying which vendors to use and usually sign an agreement or contract to that affect. You should always, IMHO, if signing a contract, sign one for 3 or less years with a “kick-out clause” that is fair to both sides.

Also, owners in arrears in all condos I know of are prevented from voting, however, this is a function of your CC&R’s. As for 2 homeowner’s hiring an attorney, sometimes that’s the only way to bring an out of control Board back to reality.

Samuel

I fly because it releases my mind from the tyranny of petty things . . . - Antoine de St-Exupéry

SamuelB (North Carolina)
Posts: 83

Posted:

Janet,

I would also like to add that if your Board is requesting permission to take out a $600,000 loan, there is something drastically wrong with your budget and you do, indeed, have every reason to worry. Your reserves should be financed so that special assessments are non-existent, or very small at the most. I would think your dues will be astronomical for the next few years.

Samuel

I fly because it releases my mind from the tyranny of petty things . . . - Antoine de St-Exupéry

WalterB (California)
Posts: 6

Posted:

I am one (1) person of 66 whom are owners of Condominium's which is called Circle R Homeowner's Association #1 located in thr state of Ca., city of Escondido, County of San Diego. One week ago we received a package from Lindsay Management Services which contained the following: A. A two (2) page cover letter Dated Dec. 21, 2005 from Peters & Freedman,L.L.P. Attorneys At Law. Titled:IMPORTANT- PLEASE READ AND RESPOND.
B. One 28 page document titled: RIRST RESTATED BYLAWS OF CIRCLE R HOMEOWNERS ASSOCIATION #1 A CALIFORNIA NON-PROFIT MUTUAL BENIFIT CORPORATION.
C. One 47 page document titled: SECOND RESTATED DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS OF CIRCLE R.HOMEOWNERS ASSOCIATION NO.1
D. One Ballot form to vote either Yes or No on above noted Item B and a second yes or no vote for Item C.

In the above noted Item A (the 2 page cover sheet)the following reason is given for these changes

Quoted from par 2)
The Accociation's governing documents were restated in 1987. Since such time, many of the laws pertaining to the Association have changed, the developer9also known as thew Declarant) is no longer involved in the Project, and certain provisions, such as maintenance responsibilities shared between the Association and owners, are not as clear as desired. (RUNNING OUT OF SPACE)

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