Homeowners associations (HOAs) are typically governed by legal documents defining the association’s purpose, structure, and governance. These legal documents are essential for HOA management and provide a framework for the association’s operation. Get in touch to discuss the most important legal documents required for HOA management.
Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) is the primary legal document that governs an HOA. A binding agreement between the HOA and its members outlines the association’s purpose, structure, and rules. The CC&Rs typically address issues such as property use, maintenance, architectural standards, and common areas. The CC&Rs also provide the legal authority for the HOA to collect dues and assessments from its members.
Articles of Incorporation
Articles of Incorporation are legal documents that establish the HOA as a corporation. This document is filed with the state and provides essential information about the association, including its name, purpose, and structure. The Articles of Incorporation also outline the HOA’s powers and limitations, as well as the rights and responsibilities of its members.
The Bylaws are the HOA’s internal operating rules and regulations. They provide more detailed information about the association’s governance, such as the roles and responsibilities of board members, meeting procedures, and voting procedures. The Bylaws are typically more flexible than the CC&Rs and can be amended more easily. However, any amendments to the Bylaws must be consistent with the CC&Rs and state law.
Rules and Regulations
The HOA’s Rules and Regulations are typically created by the board of directors and provide more detailed guidance on issues not covered by the CC&Rs or Bylaws. The Rules and Regulations may address pet restrictions, noise limits, and parking regulations. The Rules and Regulations are essential for maintaining order and consistency within the community but must be consistent with the CC&Rs and state law.
Meeting minutes are legal documents that record the HOA’s meetings. The minutes should include a summary of the topics discussed, decisions, and actions taken. Meeting minutes are important for maintaining transparency and accountability within the HOA. They also provide a historical record of the association’s decisions and actions.
The HOA’s financial statements are legal documents that summarize the association’s financial activities. The financial statements should include a balance sheet, income, and cash flow statement. Financial statements are essential for ensuring that the association operates within its budget and that funds are used appropriately.
Resolutions are legal documents that record a decision made by the board of directors. resolutions are typically used for issues. That require immediate action or for issues that are not covered by the HOA’s other legal documents. Resolutions should be consistent with the CC&Rs, Bylaws, and state law.