For many Associations, a basic set of Rules and Regulations already exists in the Governing Documents (usually the Declaration, Master Deed, or CC & R’s). These rules were created by the Developer (or Declarant) in the beginning, before anyone actually lived in the Community. The purpose of these Rules being created were to create a sense of harmony amongst Homeowners, as well as to maintain and enhance property values.
The Governing Documents typically also provide the Board of Directors with the ability to create Rules and Regulations. Boards are cautioned and reminded that a rule cannot contradict a document that is higher on the hierarchy chain, however.
For example, if your Community’s Declaration says two pets are permitted, the Board cannot create a rule saying no pets are permitted. Rules and Regulations CANNOT change the Declaration and Bylaws, but they can elaborate.
Taking our pet example, if the Declaration says two pets are permitted per home, the Board could say one dog and one cat, two dogs, or two cats are permitted.
So, how do these Rules get formed by the Board of Directors?
Ask for feedback from the Community. If you are considering a new rule (or rules), it is good to solicit feedback from the Community to ensure that the Community wants this rule to exist. If one person wants to leave their trash out two days early, it doesn’t mean that the entire Community wants this to happen. A survey is a great way to receive feedback from the Community on a newly proposed rule.
Form a Committee. A committee could be charged with reviewing the existing Rules and Regulations as well as potential new Rules to be formed. Receiving their feedback, creates a larger opinion base for the Board and to ensure that fair representation occurs throughout the Community. It is very difficult for a Community to enforce a rule that an Association does not want.
Ask for Examples. If your Association is managed by a managing agent, the managing agent can review Rules and Regulations from other Community Associations and provide examples or copies to you. If the Board is a part of the Community Association Institute, they may also be able to provide resources. Board or Committee members can also ask neighboring communities what their rules look like.
Check Federal, State, and Local Laws. Before creating a rule, you have to ensure that you are not breaking any laws. Common laws include the right to display the American Flag and the right to have a satellite dish of a certain size. Communities frequently try to ban flags and to ban satellite dishes due to a bulky, non-uniform look. The connections to the house, can also create problems. But there are laws protecting homeowners to enable the right to have these items. A Community Association is at the bottom of the hierarchy of Government – rules cannot supersede Federal, State, and Local Laws. To be sure that your Rules are in compliance, legal counsel for the Association should be retained to review any new rule or rule change, before it is adopted and passed by the Board.
Review your Governing Documents. Sometimes, Homeowners (Board Members, and Managers too) forget that there may be rules listed in the Declaration, or in a document like the “Rules and Regulations” as created by the Declarant and/or initial boards. Before adding a rule, you want to ensure a rule does not already exist AND it does not contradict against the Governing Documents.
Use a Resolution Format. It is good to record things like rule changes in a formal resolution. The resolution will site the Governing Documents that provide permission to create the rule, to enforce the rule, etc. This document can be scanned/uploaded to Community Websites and included in resale packages. It is easy to track for Community Managers or Community Leaders, too. Your Association’s attorney can provide a template or create the resolution for your community. If your community requires new rules to be mailed, this resolution should be mailed to all Homeowners on record.
Record Changes in the Minutes. When the Board does adopt a new rule, please be sure that it is included in the Minutes of the Association. The Minutes should include any action taken by the Board, as a way of public record to the members as to what has occurred.
Don’t Enforce the Rule until Proper Notice has been provided. The Association’s Governing Documents will indicate how to provide notice to all owners. Unless your Governing Documents or attorney recommend otherwise, provide at least thirty (30) days before enforcement of the new rule.
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Summary: Some Rules and Regulations can be found in the Governing Documents of the Association. The Board may adopt additional Rules and Regulations, as long as they do not contradict any local, state, or federal laws, AND as long as they do not contradict a rule that already exists in the Governing Documents. Receiving feedback from the Community on a new rule is suggested prior to imposing the rule. Lean on your Association’s attorney to review all Rules and Regulations.
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