The by-laws of your HOA likely took a long time to formulate as you went through various “what-if” scenarios. By the time it was complete, it addressed a myriad of issues that are likely to come up when several people live in the same area.
Just because your HOA by-laws and other documentation are complete doesn’t mean your tasks are over. There are multiple reasons why you should review and update them regularly.
Legal compliance
The primary reason for keeping your HOA updated is so that it complies with federal, state and local laws. Environmental regulations, fair housing laws and zoning ordinances are continuously evolving. If your HOA documents don’t change along with them, they can quickly become obsolete or illegal.
Within your HOA, outdated rules can become areas of contention among the residents. Confusion regarding enforcement can lead to dissatisfaction in the community. HOA documents that typically require regular reviews include:
- By-laws: Your by-laws are the backbone of the HOA. They determine how the association operates, voting procedures, rules for board meetings and the officers and their duties.
- Covenants, Conditions and Restrictions (CC&Rs): The CC&Rs set the community standards and state what property owners can and can’t do on their property. CC&Rs that haven’t been updated may not consider modern trends and technology, such as chargers for electric vehicles.
- Rules and Regulations: Living harmoniously within a community requires certain rules, such as noise restrictions. If operations change or new amenities (community pool) are added, regulations will need to be updated.
- Financials: Documents regarding reserve studies, financial planning and dues collection should take inflation into consideration, along with updated cost estimates for maintenance.
Outdated references, new laws and frequent disputes may be signs that your HOA documents need an update. You will want them reviewed by someone who can identify sections that no longer comply with the law. Community engagement is crucial. Ensure everyone knows the reasons behind the update and gather their input. You will likely go through multiple drafts before the majority of homeowners accept a final version. Legal guidance can make the revision process much easier to get right.