HOA UNLIMITED

HU 264 Governing Document Amendments

HOA UNLIMITED Season 26 Episode 4

The Importance of HOA Amending Governing Documents in Compliance with CC&Rs and Applicable Laws
Homeowners Associations (HOAs) must periodically amend their governing documents to reflect changes in state laws, address evolving community needs, and ensure effective governance. However, these amendments must not conflict with the association’s Covenants, Conditions, and Restrictions (CC&Rs) or other legally binding regulations. Properly updating governing documents is essential to maintaining legal compliance, protecting homeowners' rights, and fostering a well-managed community.

1. Understanding Governing Documents
HOAs operate under a set of governing documents that outline rules, responsibilities, and operational procedures. These documents typically include:

CC&Rs (Covenants, Conditions, & Restrictions) – The legal framework that establishes property use, homeowner obligations, and restrictions within the community.
Bylaws – Rules governing the HOA’s board structure, elections, and operational procedures.
Rules & Regulations – Detailed policies that supplement the CC&Rs and bylaws, providing guidelines for daily community living.
2. Why Amending Governing Documents is Necessary
Compliance with New Laws: State and federal regulations affecting HOAs change over time. Amendments ensure compliance with updated legislation, such as California’s Davis-Stirling Act.
Addressing Ambiguities & Outdated Provisions: Older documents may contain unclear language, outdated restrictions, or provisions that no longer align with modern community needs.
Improving Governance & Board Efficiency: Updates can clarify board responsibilities, streamline decision-making, and enhance operational effectiveness.
Enhancing Homeowner Rights & Responsibilities: Amendments may provide better protections for homeowners while ensuring fair enforcement of rules.
Adapting to Community Growth & Changes: As the HOA grows or evolves, governing documents must reflect new developments, architectural standards, or property use changes.
3. The Amendment Process
Amending governing documents requires careful planning and adherence to legal procedures:

Review Current CC&Rs & Legal Compliance: The board, along with legal counsel, must assess whether proposed amendments align with CC&Rs, state laws, and federal regulations.
Board Approval & Drafting the Amendment: The board must agree on proposed changes before formally drafting an amendment. Legal review is crucial to prevent conflicts with existing laws.
Homeowner Notification & Voting Requirements: Many amendments require approval from a majority of homeowners. The HOA must follow voting procedures outlined in the governing documents.
Recording & Implementation: Once approved, amendments must be recorded with the county, officially adopted, and communicated to homeowners.
4. Ensuring Amendments Do Not Conflict with CC&Rs or Laws
State Law Supersedes HOA Rules: Governing documents cannot override state or federal laws. Amendments must align with regulations such as the Davis-Stirling Act in California.
Consistency with CC&Rs: Any rule changes must be consistent with the association’s original CC&Rs unless a supermajority vote approves a CC&R amendment.
Fair & Enforceable Provisions: New rules must be legally enforceable, clear, and applied fairly to all homeowners.

Conclusion
Amending HOA governing documents is a crucial process that ensures the association remains legally compliant, effectively governed, and aligned with homeowner needs. However, amendments must be carefully crafted to avoid conflicts with CC&Rs, state, and federal laws. By following proper procedures, consulting legal experts, and maintaining transparency with homeowners, HOAs can implement amendments that strengthen community management and enhance overall livability.