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JamesC
(Maryland)

Posts:282

07/25/2010 8:08 PM
I have been doing research to see why Amendments to the Declarations require seventy-five percent(75%) of lot owners to amend the Declarations. Googled, but did not find much at all. At what point does the BOD have sole authority to change things like Rules/Regulations, Bylaws, or Amendments? I ask the question because (example) if monthly dues are going to be raised, the lot owners would be notified to attend a special meeting for their input, but in the end the BOD are the only one's who get to vote. Is it because the lot owners would not vote to increase their monthly fees (crazy if they do), or does it spell out somewhere the difference between Changing Amendments/Rules Regulations, etc.? Who is required to vote on making such changes the BOD, or the Lot Owners. Thanks: Jim

RichardD
(North Carolina)

Posts:25

07/26/2010 5:35 AM
Jim Just some thoughts. The Declaration is the governing document in most associations. As such a high percentage of owners are required to make changes. In my ass'n 2/3 membership votes are required to change. The importance of this document cannot be overly stressed. The BOD alone cannot amend the Declaration. In my Ass'n, the Declaration and Articles of Inc can only be amended by 2/3 membership vote. The bylaws and rules and regs can be amended by the BOD, but only after notice and comment to all owners. The proposed budget should be distributed yearly to the entire membership (usually 30 days prior to the annual meeting). The membership then votes to adopt or reject. The BOD cannot do this alone. Lastly, your documents should spell out the answers to all of your questions. If not, your Board needs to take action to bring them up to date.

GlenL
(Ohio)

Posts:3526

07/26/2010 5:40 AM
James, there is no "one size fits all" answer here; each HOA is a little different and different State's HOA laws range from nonexistent to micro-managing every aspect. As a general rule the methods to change Covenants, By-Laws and rules are in the CC&R's, however they are usually not all in one place so you have to hunt them down. The reason that the threshold is so high to change the Covenants is to prevent mob rule, homeowners or BOD's wanting to change things really need to gather support and not rely on knee-jerk responses.

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

GlenL
(Ohio)

Posts:3526

07/26/2010 5:45 AM
Posted By RichardD on 07/26/2010 5:35 AM The proposed budget should be distributed yearly to the entire membership (usually 30 days prior to the annual meeting). The membership then votes to adopt or reject. The BOD cannot do this alone. Richard, while this might be true of your HOA, it doesn't hold for all HOA's. In mine the BOD has cart blanche to set the budget and assessments; in other States the BOD is limited to a certain percentage that the BOD can raise assessments without homeowner approval.

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

JeanneK3
(Maryland)

Posts:348

07/26/2010 5:52 AM
James: I agree with the other posters regarding amendments to your documents. It appears any change requires 75% of your owners to say yes to the change. There is a Maryland law for adopting rules and regulations in condominiums which will probably be expanded to include HOAs in the future. Are you a condo or an HOA? If a condo see 11-111 of the Condominium Act for rule-making. Most attorneys urge HOAs to follow the procedure outlined in the condo act. Jeanne

JamesC
(Maryland)

Posts:282

07/26/2010 7:13 AM
Thanks: Interesting reads. We are townhomes,(167) located on Private Property, and at present do not have assigned parking. Many, many problems, because some folks have multiple vehicles. One having a motorcycle, company van, large truck, and four cars (seven). Others having five vehicles, and so on. The common area including parking lot facilities belong to the Association, which I understand the BOD, and MC maintain. It is prohibited to park a commercial vehicle in the community unless the lettering is covered, because it is private property, and controlled by the BOD, homeowner with such vehicles, can and have been fined for non compliance. The board passed a motion last month to have assigned parking. We have more then enough places for everyone to park, but some have to walk pretty far from their homes, because their neighbors who have all their vehicles parked in front of their own homes, and everyone elses. Now some homeowners are up in arms,(not hard to guess which ones) because they think 2/3 of the lot owners should have to vote. I wonder if the BOD controls the common ares why this could be true, and back to my first question, if the lot owners have a say in something like this, then why could they not vote against raising the assessement fees in the same manner? Again: Thanks Jim

JeanneK3
(Maryland)

Posts:348

07/26/2010 7:37 AM
Hi Jim: I still don't know if you are a condominium association or an HOA. For example, I live in a townhouse condominium. It makes a difference as to whether the Maryland Condominium Act or Homeowner Association Act applies. The reason the board can raise assessments is because your documents give the board that authority. But as of October, 2010, both HOAs and condos must follow the same procedure for submitting yearly budgets to the community. They must hold an announced open meeting and receive comments before the board votes. Any increase during the year of more than 15% must have another open meeting before being implemented. See www.marylandhomeownersassociation.info and pick News for more info. Jeanne

MaryA1

Posts:0

07/26/2010 8:02 AM
James, The CCRs are written by the attorney of the declarant. Although most CCRs contain pretty much the same provisions and there are some similiarities, the declarant state anything he choose therein. It's not uncommon for the % to amend the declaration to be very high. Once the declarant is no longer in control of the assn, the BOD has the authority to amend the rules/regulation and in some instances the bylaws. However, only the members may amend the declaration. With regard to the assessments, generally speaking the BOD sets the rate of assessment. The members may be required to vote only if the increase is a certain percentage. In AZ the members must vote on an increase that is 20% above the previous years assessment; however that only applies to planned communities -- there is no such requirement for condos. Some assn docs require the members to ratify the budget which would indicate whether or not the assessments were to be raised. BTW, not all assn's are required to hold a meeting of the members to discuss a proposed assessment increase. The answers to your questions should be in your gov docs. Also, many states have HOA specific laws which the assn must also abide by. And, if your assn is inc as a nonprofit the state nonprofit corp statutes will also apply. Your BOD should be familiar with the state laws governing HOAs, together with the gov docs, in order to effectively manage the assn.

GloriaM
(North Carolina)

Posts:829

07/27/2010 3:44 PM
CCR's are a recorded document so they must be approved by a percentage of homeowners. You would have to check in your state; but Bylaws are sometimes not recorded and you would need to check if this too requires a percentage to amend. However Rules and Regulations are policy that are given authority to the board to implement rules and regs for the Associations. Most time rules and regs have to correspond with the governing documents. Example CCR's read "No for Sale signs allowed, no signs allowed on the property" (this is just an example: The board may use this to state in the rules and regs, no for rent signs to go along with this section.

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