Adopting, Amending and Repealing “Operating Rules” in Homeowners Associations

In homeowners’ associations, general regulations that pertain to the conduct of members and/or the operations of the association are described by such names as regulations, procedures, policies, standards, guidelines, and rules. Regardless of the descriptive name that is used, such general regulations are all considered “operating rules” and such rules must meet applicable state statutory requirements and be adopted in accordance with the provisions relative to rules that are contained in the association’s governing documents.

Operating rules apply to the management and operation of a common interest development or the conduct of its business and affairs and include such things as:

• The use of common area or exclusive use common area.
• The use of a separate interest, including aesthetic or architectural standards that govern the alteration of a separate interest.
• Member discipline, including any schedule of monetary penalties for violating an association’s governing documents and any procedure for the imposition of penalties.
• Delinquent assessment payment plans.
• Resolution of assessment disputes.
• Reviewing and approving or disapproving a proposed physical change to a member’s separate interest or to the common area.
• Election rules.

Requirements for Operating Rules.

To be enforceable, operating rules must meet certain criteria and must be “reasonable.” A determination of whether a rule is reasonable is: