Court Says HOA Lost the Ability to Enforce its Restrictive Covenants by Failing to Timely Renew Its Declaration

This case involved a dispute between a homeowner (“Owner”) and its homeowners association (“Association”) over the enforceability of Association’s restrictive covenants. The original Declaration of Protective Covenants, recorded in 1992, stated that the covenants would be in effect for 25 years and could be extended by a two-thirds majority vote of the owners. In 2015, Association attempted to adopt a Fourth Amended Declaration, which included changes such as allowing metal roofs and backyard chicken coops. Of the 24 owners, 15 voted in favor, one voted against, and eight abstained.

Owner filed an action for declaratory relief asserting that Association’s restrictive covenants that governed the subdivision had expired and were no longer enforceable. The trial court granted summary judgment in favor of Owner, concluding that the covenants had expired on October 22, 2017, as the Fourth Amended Declaration did not receive the required two-thirds majority vote of all owners. Association appealed, arguing that the 2015 vote either properly adopted the Fourth Amended Declaration, modified the covenants, or that the covenants were: