What is a Homeowners Association?
A homeowners association is typically comprised of a volunteer board of directors responsible for the oversight, maintenance and management of a condo or housing community. Often organized as non-profit corporations, homeowners associations are responsible for the creation of covenants, conditions, and restrictions (CC&Rs) and bylaws which provide guidelines for governing the community.
How to Create Homeowners Association Bylaws
The most common homeowners association bylaws planning include the following sections or articles:
Definitions
Purpose
Boundaries
Membership
Meeting guidelines for members
Directors
Duties of members
Miscellaneous
Definitions
Definitions are used to clarify the terms contained within the homeowners association’s bylaws. This section of the bylaws will often define such terms as homeowner association, board, common areas, properties, owner, member, residence or any other terms referenced in the official bylaws.
Providing a section dedicated to defining the terms used throughout the bylaws is essential to avoid misinterpretation of commonly used terms that may have different connotations in a different context.
Purpose
The Purpose section of the bylaws simply defines why the bylaws were created and outlines the goals of the homeowners association.
Boundaries
The Boundaries section of the bylaws defines the geographical area that is included within the homeowners association.
Membership
The Membership section of the bylaws clearly defines the class of members – if there is more than one – and includes information on such topics as the privileges of members, membership charges and assessments, suspension of membership and the transfer of membership.
Paying close attention to the membership charges and assessments is essential when budgeting for monthly or annual dues. This section also provides information on any special assessments that might arise due to unplanned expenditures by the homeowners association and how the special assessments will be collected.
Meeting guidelines for members
Most homeowners associations meet either annually or quarterly, and the frequency of meetings is outlined in this section. This section also includes procedures and notice requirements for special meetings called by the board of directors and outlines how members can call a special meeting. Members can usually call a special meeting by obtaining signatures from a designated percentage of the membership.
Directors
This section of the bylaws outlines the qualifications necessary to become a board member of the homeowners association, the term of each board member, the responsibilities expected of the board, election procedures and the procedure for forming committees.
Standing (permanent) committees may be outlined in this section and oversee definitive areas of operation within the association such as: roads, assessments, covenants, parks, common areas, long-range planning and property maintenance. Each committee reports directly to the board and additional committees may be formed at the board’s discretion.
Duties of members
This section of the bylaws often contains information about the financial responsibility of each member and the consequences that may ensue from non-payment of dues. Homeowners associations have broad legal authority in regards to non-payment of dues and can place liens on a member’s property and, if unpaid, often include a provision for foreclosure.
Miscellaneous
The miscellaneous section enables the homeowners association to include any additional provisions that may not be specifically covered within the other sections of the bylaws.
Although these bylaws are common to almost every homeowners association, it is not comprehensive.
Prospective purchasers of properties that are governed by a homeowners association are encouraged to carefully review the bylaws in place in the community and have a competent attorney clarify any clauses that may seem confusing.
Overall, homeowner associations are created to set certain standards within a neighborhood and ensure the members an enhanced quality of life.
We work with homeowners Associations everyday. Contact us today if you are looking for property management services.
