Rules are a Necessary Component of HOA Living

A significant portion of disputes between homeowners and homeowners associations relates to the enforcement of rules and regulations that have been adopted by an association’s board of directors (“rules”). Such disputes frequently result from the fact that many people purchase properties that are part of a common interest development without reading the association’s governing documents, which include the rules that apply to the homeowners. As a result, they first learn about rules that they are opposed to and resist complying with after the association commences some action against them for violating the rules (i.e. rules concerning the color a house can be painted). They then become embroiled in adversarial proceedings with their homeowners association and the individual directors and management personnel who seek to enforce the rules. The proceedings, which tend to become very divisive and costly to both sides, could possibly have been avoided if the homeowner(s) understood the content of the association’s rules before they purchased their property.

Authority for Adopting and Enforcing Rules                                         

The authority for adopting rules is found in state and federal laws and the governing documents that are created for a homeowners association by the original developers such as the Articles of Incorporation, Bylaws, and/or the Declaration of CC&Rs. The authorization grants a homeowners association the power, acting through its board of directors to enact rules. In some instances, an association’s board of directors is required to adopt certain types of rules such as election rules, or rules relating to the resolution of disputes. The process of adopting rules includes procedures for enforcing the rules through the imposition of fines and/or discipline on violators of the rules. Associations that have governing documents that do not include the authority to adopt rules will typically take action to amend their governing documents to incorporate the necessary language that authorizes the association’s board of directors to adopt rules.

Procedure for Adopting Rules