Every homeowner should be aware of several types of HOA documents. These documents contain important information concerning the association itself and the rights and obligations of the homeowners in the community.
What Are HOA Documents?
The HOA governing documents are a set of documents that provide information about the association, its operations and procedures, rules and restrictions, obligations, and powers. These documents also detail the rights and responsibilities of the association and its members.
Hierarchy of HOA Governing Documents
Every now and then, board members or homeowners might encounter a conflict within the HOA documents. One set of documents may say something that contradicts another. When this happens, figuring out how to proceed and which document is correct can be tricky. Fortunately, members can refer to the hierarchy of HOA documents for clarification.
The hierarchy of governing documents dictates which documents take precedence over the others. Generally, the higher the rank on the hierarchy, the more authority it has. For instance, given the position of these documents on the hierarchy, if the bylaws contain a rule that contradicts the CC&Rs, the latter will naturally take precedence.
Here is the hierarchy of homeowners association documents in descending order.
1. Federal, State, and Local Laws
Federal, state, and local laws are top in the list. While these laws are not technically part of the documents of an HOA, they do take precedence over everything else. Therefore, if a provision in an association’s CC&Rs or bylaws is prohibited by law, it becomes unenforceable and void.
Several federal laws can apply to community associations, including but not limited to:
- Fair Housing Act
- Americans With Disabilities Act
- Freedom to Display the American Flag Act
- Fair Debt Collection Practices Act
- Over-the-Air Reception Devices Rule
- United States Bankruptcy Code
- Servicemembers Civil Relief Act
State and local laws can differ depending on where the association is located. As such, board members should review the laws in their area to determine which ones apply to HOAs. Many states have their own statutes that govern homeowners associations and condominiums. State-level nonprofit corporation acts can also apply to associations that incorporate as nonprofits, which is often the case.
That said, in Texas, the following laws come into play:
Most states also have fair housing laws and debt collection laws that are specific to them. In addition to state laws, local governments may also have city ordinances and codes that apply locally.
Because laws can shift over time, HOA boards must keep up with legislative changes. This way, they can remain compliant with the law and update their documents as necessary.
2. Community Plat
The community plat, also known as the recorded map or plan, is a document that displays the exact locations of various units, structures, and components. This plat also shows the common areas and elements of an association. Community maps are crucial in determining boundary lines, easements, and maintenance obligations.
3. Declaration of Covenants, Conditions, and Restrictions (CC&R)
The CC&Rs are the meat of an association’s governing documents. Also known as a recorded declaration, this document contains the rules and restrictions that govern property use, maintenance responsibilities, and financial obligations. Essentially, the HOA covenants outline what the HOA and its members can and can’t do. The purpose of this document is to maintain curb appeal and preserve property values.
Some examples of the provisions that the CC&Rs may contain include:
- Property Use. The CC&Rs may prohibit or regulate using homes for commercial purposes or rental properties.
- Maintenance. The CC&Rs outline the maintenance responsibilities of the HOA and the homeowners, separating what each party is obligated to perform.
- Architectural Standards. Most HOAs have architectural rules that govern what homes can and should look like. More often than not, these standards require owners to seek approval from the HOA for any architectural improvements or modifications.
- Pets. An HOA may prohibit or restrict pets, such as requiring owners to keep them on a leash when in public spaces.
- Parking. An HOA may have parking rules that homeowners must follow, including rules for guest parking.
- Decorations. The CC&Rs may specify what decorations are permitted or not permitted and the time of year homeowners may display them.
- Trash. The CC&Rs may dictate the schedule for trash disposal and require owners to place their trash in specific areas.
4. Articles of Incorporation
This document, fourth place on the hierarchy of governing documents, contains pertinent details about the association. Such details include the association’s name, address, and purpose. This document establishes the association as a corporation and is typically filed with the Secretary of State.
5. Homeowners Association Bylaws
The HOA bylaws are often confused with the CC&Rs. However, whereas the CC&Rs contain the HOA’s and its members’ responsibilities, the bylaws govern how an association operates.
Some of the topics the bylaws tackle include:
- Frequency and protocol of HOA meetings
- Quorum requirements
- Board candidate qualifications
- Election procedures and requirements
- Voting rights and procedures
- Board member roles and responsibilities
- Board member terms of office
- Procedures and requirements for the removal of board members
6. Rules and Regulations
The HOA rules and regulations take the final place on the hierarchy of governing documents. As its name suggests, this document contains the association’s rules and regulations. It expounds on or clarifies the CC&Rs, providing more specific details.
Operating rules are more accessible to amend or enact because they typically only require a board resolution. In contrast, amending the CC&Rs usually mandates approval from a majority of the association’s members.
The Final Word
Both homeowners and board members must understand the contents and hierarchy of HOA documents. In doing so, they can learn their rights and responsibilities, avoiding disputes and violations. Similarly, potential homebuyers should review an HOA’s governing documents before purchasing a home in the community. If they dislike the association’s rules, they can back out of the sale and avoid further conflict.
Dissecting and amending HOA documents can be hard without the help of an HOA management company. Let 88 Doors help you! Contact us online or call us today at (512) 348-8821 to get a quotation!