Homeowner association bylaws play a crucial role in the operation of an HOA community. Board members must understand the purpose of the bylaws in addition to other governing documents. In doing so, they can run the association smoothly and avoid potential liability.
The Importance of Homeowner Association Bylaws
The HOA bylaws govern the internal operations of a homeowners association. Without these bylaws, board members would have no guidance regarding meetings, voting, elections, and other matters.
The bylaws are not the only governing document to understand. Both homeowners and board members must also familiarize themselves with the CC&Rs and the operating rules, among other things. By doing this, the HOA can ensure compliance with its governing documents, and homeowners can keep the association in check.
Hierarchy of HOA Governing Documents
A handful of governing documents dictate the operation and management of homeowners associations. Each of these documents serves an essential purpose. Let’s break down the homeowners association governing documents in order of precedence.
1. Federal, State, and Local Laws
These laws are at the very top. Federal laws include the Fair Housing Act, the Americans With Disabilities Act, the OTARD Rule, and the Freedom to Display the American Flag Act.
State laws will vary by location. In Texas, some of the most crucial ones include the Texas Uniform Condominium Act, the Texas Property Code, and the Texas Nonprofit Corporation Act.
When an HOA’s governing documents conflict with federal or state laws, the latter always takes precedence. It is vital that the governing documents align with the law, and HOAs should amend their records to ensure compliance.
2. Recorded Plat or Community Map
The community plat serves as the plan for the entire neighborhood or subdivision. It is recorded with the county recorder.
The recorded map tackles property locations, maintenance responsibilities, dimensions, easements, and setbacks. It also covers trash enclosure specifications, vehicular access restrictions, landscaping restrictions, and parking restrictions.
3. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
The CC&Rs, also known as the declaration, outline the rights, responsibilities, and obligations of the association and its members. It covers assessment obligations, maintenance obligations, and the HOA’s scope of authority. Examples of provisions homeowners might find here include enforcement procedures, architectural standards, and internal dispute resolution.
When homeowners violate the CC&Rs, they can face several potential penalties. These include fines, loss of privileges, legal action, and even liens. The CC&Rs take third place in the hierarchy of the governing documents.
4. Articles of Incorporation
The articles of incorporation contain basic information about the homeowners association. These include the association’s legal name, address, and corporate status. For some, this document also consists of the HOA’s basic functions.
Although the articles of incorporation are necessary to form an HOA, they usually don’t include much information. An HOA must file this document with the Secretary of State.
5. Homeowner Association Bylaws
The HOA’s bylaws dictate the internal operations of the homeowners association. Like a business, an HOA board manages the community, and the bylaws are essential in guiding the board in this endeavor.
The homeowner association bylaws contain information about board and annual meetings, voting rights and procedures, the election process, quorums, term limits, and more. They also dictate the number of board members and their responsibilities.
6. Rules and Regulations
Finally, the HOA operating rules are the community’s day-to-day rules. These rules clarify and expand on the CC&Rs, often being more specific than the latter.
Common rules include restrictions on amenity use, operating hours, pet policies, parking restrictions, and holiday decoration rules. Unlike most other governing documents, it is not required to file or record the rules and regulations.
Given that the operating rules are in sixth place, all other governing documents take precedence over it. The HOA rules and regulations must align with the CC&Rs and bylaws, as well as the law.
How to Amend Homeowner Association Bylaws
The need to amend an HOA’s governing documents, including the bylaws, may arise at one point or another. The amendment process differs depending on the document involved. It could be to update outdated provisions, ensure compliance with laws, or introduce a new rule.
Bylaws and CC&Rs
Most associations require a vote from the membership to amend the CC&Rs and bylaws. This is to avoid giving the board too much power in changing the association’s ways.
As per Section 209.0041 of the Texas Property Code, amending the declaration requires a vote of 67 percent of the voting membership unless otherwise stated in the CC&Rs. The governing documents should contain the requirements and procedures for amendments.
The HOA board must record the amendments with the local county recorder. This will make the amendment/s effective.
Rules and Regulations
Unlike the CC&Rs and bylaws, amending the operating rules doesn’t require a membership vote. Typically, the HOA board can create new rules and amend existing ones through a board vote. Again, the exact procedures and requirements will depend on the governing documents.
Where to Find HOA Documents
There are a few ways homeowners can access and examine the governing documents. Let’s break them down below.
- Upon Request. Most HOAs are required to give homeowners access to the governing documents, among other records, upon request. The same applies to Texas HOAs (Section 209.005).
- HOA Website. Texas law requires that governing documents be accessible online through a website for HOAs with at least 60 lots or run by an HOA management company (Section 207.006).
- Upon Purchase. The HOA’s governing documents are typically included in the closing documents if buyers ask for them. Texas law (Section 207.003) requires this.
- County Clerk’s Records. Since HOAs must file their governing documents with the county clerk (Section 202.006), homeowners can access them by requesting a copy through the county.
- Secretary of State. Homeowners can access the articles of incorporation through the Secretary of State for nonprofit corporations.
The Final Word
Homeowner association bylaws and other governing documents are the foundation of any HOA community. Homeowners and board members alike must understand these documents, their purpose, and where to find them.
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