Realty Times December 8, 1999

Fixing Your Governing Documents In A Home Owner Association
by Richard Thompson

It's been said, "If you ever truly want to understand something, just try to change it." Making amendments to your governing documents fits this description to a "T". Making changes in one area often has significant ramifications in another area.

First of all, there are several reasons NOT to amend your documents:

Reason #1. To conform to current state statutes. Since the statutes prevail over the documents, there is no need to amend the documents. This would require an amendment every time there is a change in the statute. An this can happen frequently.

Reason #2. To eliminate developer language. After the developer has sold all of the homes in the association, the language becomes obsolete. It doesn't hurt for it to remain.

Reason #3. To beef up rules and regulations. The Board is empowered to make rules and this can be done apart from amending the governing documents. An accepted, easier and cheaper process for expanding the scope of rules can be handled through the "Resolution Process". Resolutions are designed to address issues like collections, pets, parking and architectural control that need a broader definition and enforcement policy. (For sample Resolutions, go to http://www.regenesis.net

The criteria for amending documents is normally found in the governing documents. Look for the following:

  • What percentage of the voting interest is required to amend the documents?
  • Is a meeting required to vote or can is a mail ballot sufficient?
  • If an owner does not vote, is it considered in favor of or against the amendment?

When amending the documents, work with a knowledgeable attorney. (They invented the process, right?) The board and attorney should agree on a fee prior to beginning the process. Things that will affect the cost are: Will the attorney only review the board's proposed amendments and make suggestions? Will the attorney draft and record the amendment?

Owners input should be included in the amendment through a meeting or survey. Involved owners are more likely to support it when they understand the goal.

Whether to consider single or multiple amendments simultaneously depends on the complexity of the issues. Too many complex amendments may be confusing. If the amendments are straight forward, include them all and vote on them individually.

Change can be good IF there is real need. But don't fix it if it ain't broke.

For more information on this subject, see www.Regenesis.net.



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