HOAleader.com - Tip of the Week - August 26, 2011
Published: Tue, 08/23/11
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HOA Rules? We Don't Need Notice to Revise Our Stinking Rules!
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Considering revising your HOA's rules? In this week's tip,
we discuss when you need to consult with owners and when you
can go forward without notice.
"Rules are funny," says J. Roger Wood, an attorney with
Carpenter, Hazlewood, Delgado & Wood PLC in Tucson, Ariz.,
who specializes in representing community associations.
"Some associations are too rule heavy when they have pretty
robust CC&Rs to cover many things. HOAs have to use rules to
help owners understand CC&R provisions or regulate things
like the common area, which isn't included in the CC&Rs. The
governing documents don't say when the pools will be open,
so you have to make those kinds of rules."
So start with determining whether you need to revise your rule
in the first place. If you do, then figure out the process
to follow. In some states, HOAs must get members' approval
for rule changes. That's true in California, says Robert M.
DeNichilo, an attorney at DeNichilo & Lindsley LLP in Irvine,
Calif., who specializes in representing community associations.
"Rules that apply generally to the association have to be
published to the membership, and members have to be given 30
days to comment on the rules and provide input. After that
30-day time period, the board has to meet and consider comments
and whether to adopt the rule or not. But it may not have to
change anything. The exception is an emergency."
In Minnesota, there are no such notice requirements. "The
statute authorizing boards to pass rules in Minnesota doesn't
contain a notice requirement," according to Matthew A. Drewes,
a partner at Thomsen & Nybeck PA in Edina, Minn., who
represents associations. "Boards are authorized to change
rules so as long as those rules aren't inconsistent with the
declaration and they were passed in a manner consistent with
the declaration and the bylaws. You're left to reviewing those
documents to determine the minimum requirements for your
rulemaking process."
There's also no state law in Arizona that sets forth HOA
rulemaking, which also leaves boards to look to their governing
documents to determine how to revise their rules. "A lot of
governing documents don't require prior notice to owners," says
Wood. "But they would require notice of a rule change to go out
to owners."
To learn best practices on How to Revise Your HOA's Rules,
see our new article: http://www.hoaleader.com/members/616.cfm
Best regards,
Matt Humphrey
President
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