Article V: The Right to Stability in Rules and Charges

Homeowners shall have rights to vote to create, amend, or terminate deed restrictions and other important documents. Where an association’s directors have power to change operating rules, the homeowners shall have notice and an opportunity, by majority vote, to override new rules and charges.

Seniority of Documents:

If there is any conflict among governing documents then the senior document is the controller. Seniority is a declaration over articles of incorporation or association over bylaws over operating rules.

Homeowner Powers to Amend Governing Documents:

If not limited by the governing document, a senior document, or statute, then homeowners have the power to amend subject to some requirements. Unless any of the main documents specifies a different number, the amendment adopted by homeowners holding the majority of the vote can extend the term of the governing document, make any administrative changes reasonably necessary or prohibit/restrict uses of individually owned homes that threaten or harm reasonable use and enjoyment of community property. Amendments that do not apply to similar homes would violate association duties and are not effective without homeowner’s approval. There must be at least 60 days before voting on an amendment and all homeowner’s will be made aware of the specific text and description of the amendment. Directors only have the power to amend a governing document if they have expressed authority.

Limits on Operating Rule Changes by Directors:

Directors can adopt, amend, or even repealing operating rules if they meet the follow requirements. All operating rules must be in writing, not inconsistent with laws and corporate documents, reasonable, and adopted/amended/repealed in good faith and in substantial compliance with the statute.

Required Notice for Homeowner Votes on Assessment:

Homeowner votes to impose or increase regular or special assessments require at least 30 days in advance notice. Governing documents can require a longer period if need be.

The reason this article was set out was so that there would be some stability. Stability is so important to impose when there are expectations in buying a home. You need to know how conflicts will be handled and you must know about the rules of seniority. The least this rule does is require that there be advance notice so that homeowners are allowed a good amount of time to know whether or not they will support increased charges. Homeowners deserve stability in assessments, because if there is not stability then that is how they can be taken advantage of. This is also why the operating rules that are set forth must be reasonable and stated in terms that make sure they cannot be misrepresented by any homeowner.