Understanding Governing Documents: CC&Rs, Bylaws, and Rules Explained
Homeowners Associations (HOAs) and Condominium Associations are governed by a set of legal documents that outline the community’s structure, management, and member obligations. Understanding the hierarchy and function of these governing documents is essential for board members, homeowners, and community managers to ensure compliance and effective governance.
The Hierarchy of Governing Documents
The governing documents of an HOA follow a legal hierarchy, with federal and state laws at the top and community-specific rules and regulations trickling down from there. The order of precedence is as follows:
Federal and State Laws – These laws, including the Fair Housing Act, Americans with Disabilities Act (ADA), and state-specific condominium and HOA statutes, take precedence over all community governing documents. These laws ensure compliance with overarching legal protections and requirements for housing, accessibility, and fair treatment.
Public Offering Statement (POS) / Disclosure Documents – Provided to initial buyers in new developments at their time of purchase, these outline important details about the association, including financials and key governing provisions. Buyers have a chance to review these prior to closing to determine if the community’s operations and financial health meet their expectations.
Plat – A recorded map or plan of the community that defines property boundaries, common areas, and easements. It is legally binding and dictates the physical layout of the development. The plat defines unit boundaries, common areas, easements, road maintenance responsibilities, and more.
Declaration of Covenants, Conditions, and Restrictions (CC&Rs) – Also known as the Declaration, this is the foundational document that establishes land-use restrictions, property maintenance obligations, and the rights and responsibilities of homeowners and the association. If your community does not have Rules & Regulations, this document dictates permitted use.
Articles of Incorporation – These establish the association as a legal entity, typically as a nonprofit corporation, and define its basic purpose and authority.
Bylaws – These set forth the internal governance of the association, including board structure and officer terms, elections, quorums, meeting frequency and requirements, and financial management.
Rules and Regulations – Specific policies that further define and clarify provisions in the CC&Rs and Bylaws. They help guide day-to-day operations and ensure community standards are upheld. These policies are where collection policies and fine schedules are outlined.
Creating and Enforcing Rules and Resolutions
Rules and regulations must always be drafted in alignment with higher-level documents. They cannot contradict state laws, the CC&Rs, or the Bylaws but can elaborate on them. For example, if CC&Rs allow for pet restrictions but do not specify details, the board may adopt rules outlining leash requirements or designated pet areas.
When drafting rules:
Follow proper procedures for board approval and homeowner notification.
Maintain fairness, enforceability, and reasonableness to avoid legal disputes.
Where to Find Key Information
Board member roles and meeting procedures? Review the Bylaws.
Operational policies on parking, pets, and amenities? Look at the Rules and Regulations.
Legal entity status and purpose? Refer to the Articles of Incorporation.
Financial disclosures for prospective buyers? Read the Public Offering Statement (POS).
Understanding and adhering to these governing documents helps maintain a well-managed, legally compliant, and harmonious community. Whether you’re a homeowner, board member, or community manager, staying informed about your HOA or COA’s governing structure is key to ensuring smooth operations and avoiding legal pitfalls.
