What Would It Take To Make HOA CC&R Changes?
When a homeowner’s association (HOA) is first established, governing documents, including covenants, conditions, and restrictions (CC&Rs) are drafted and put into place. These vital documents outline how a board should govern the association, along with what is expected of community members. Occasionally, boards may consider if they should make HOA CC&R changes to improve the association and its future.
Five Questions to Ask About HOA CC&R Changes
These documents are arguably the most critical in an association. Making changes to them is a lengthy and involved process. Before a board decides to make HOA CC&R changes, there are some important things to consider.
Is the change necessary?
Like most things, the community, local government, and laws change over time. How the CC&R’s were initially laid out, may no longer work for the association. The change should positively impact the community as a whole. If its impact is limited to a small number of members or isn’t in the best interest of the association, the change should not be pursued.
What will it cost?
The CC&R’s are legal documents and require a lawyer to make changes, which is typically a costly venture. In addition to the actual changes, it is best practice for the board to discuss the potential change and its impact with the lawyer first. Before moving forward, the board should also review whether or not there is enough money to continue with the process.
How long will it take?
HOA CC&R changes don’t happen overnight. Before the change can be made, the board has to notify homeowners of the proposed amendment, hold a special meeting, and distribute ballots to collect votes. If community members are engaged, these steps can move along quickly. However, if they are not, the process can drag out over time.
What is the process?
The first step in the process is to request a proposal for the HOA CC&R change. Once the board has this, they can schedule the special meeting and notify members of the potential change. The benefits, why it is being proposed, and what the process looks like should be discussed at the meeting.
After members are properly notified, they get to vote . If the change is approved, the legal team will make the changes, and a copy should be sent to all homeowners. The by-laws should also be amended to reflect the change and recorded by the local government if necessary.
Is an expert third-party necessary?
Making changes to the CC&R’s is a long process. An experienced community manager can help simplify the process and move things along while keeping communication lines open with members.
If your HOA board is considering making changes to the CC&R’s, contact AR Management Company. We can help organize and streamline the process, strengthening community relationships along the way.