There are three phrases that are often used interchangeably when discussing HOAs and those are: the covenants, conditions & restrictions (CC&Rs), the bylaws, and the rules and regulations. Each document has its own function and importance in properly managing a successful homeowners association. Let’s take a look at the differences and what each document entails.
Covenants, Conditions & Restrictions (CC&Rs)
The CC&Rs is a legally binding document that is filed with the state and outlines the rights and obligations of the HOA to the homeowners and the homeowners’ rights and obligations to the HOA. It requires a vote by the membership to make any changes to the CC&Rs, and when changes are made, the new copy has to be filed with the state.
Things often outlined in the CC&Rs:
- Restrictions to property use
- Homeowner maintenance obligations
- HOA maintenance obligations
- How rules are enforced and how disputes are resolved
- Lender protection provisions
- Assessment obligations
- Insurance obligations
Bylaws
The bylaws establish how your HOA will be governed and outline the overall structure. Bylaws also require a vote by the membership to make any changes.
Things often outlined in the Bylaws:
- How often HOA board elections are held
- How to nominate and elect new board members
- How many members serve on the board at one time
- How long members can serve on the board during a term
- How often meetings are held and the number of residents needed to attend to meet quorum
- Duties and responsibilities of board members
Rules and Regulations
The rules and regulations cover the rules that might need revising over time due to changes in the community. They often cover the day-to-day and seasonal rules and can be easily changed by an HOA board vote with review by the members of the community.
It’s important to remember that an HOA has a responsibility to make sure all rules, regulations, bylaws, CC&Rs, and policies are in writing, distributed to all owners and residents, and easily accessible when needed. If your community needs more tips or help managing an HOA, contact Prism Realty Management. Give us a call at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.