The governing documents of a homeowners association play a crucial role in the operation and management of a community. Both homeowners and board members should understand what each document is for and how they fit into the hierarchy.
What are HOA Governing Documents?
Every homeowners association has governing documents, including the community map, CC&Rs, and bylaws.
The HOA governing documents establish the community’s standards and procedures. They dictate the rules and restrictions, duties and responsibilities, and powers and authority of the association. Similarly, they define the obligations and rights of homeowners.
What is the Hierarchy of HOA Governing Documents?
Board members are responsible for upholding and adhering to the association’s governing documents. These documents were written by people, and they are not without flaws.
Conflicts between provisions are common, and board members may interpret rules and regulations differently. In such cases, it is essential to determine the appropriate course of action.
Here is the hierarchy of homeowners association documents.
1. Federal, State, and Local Laws
Federal, state, and local laws are the highest authorities governing HOAs. These laws override any HOA documents.
Federal laws such as the Fair Housing Act and Americans with Disabilities Act protect homeowner rights. State laws also regulate HOA operations, including board powers, voting procedures, and financial disclosures. In Texas, the Texas Property Code comes into play. Finally, local ordinances typically address zoning, building codes, and property use.
An HOA cannot enforce rules that conflict with these laws. For example, if state law prohibits specific fees, the HOA can’t charge them. Board members must stay informed about legal updates to ensure compliance.
2. Recorded Plat or Map
The recorded plat or map provides a visual layout of the community. It includes lot boundaries, easements, roads, and common areas. The local government records this document upon the development of the community.
This document is essential because it defines property ownership and usage rights. The plat clarifies those details if a homeowner questions their lot boundaries or shared spaces. It also impacts decisions regarding maintenance responsibilities and property modifications.
3. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
The CC&Rs establish the community’s primary rules and restrictions. This document outlines homeowner obligations, architectural guidelines, and property use limitations. It details the HOA’s authority, dues obligations, and enforcement procedures.
The CC&Rs are legally binding and recorded with the county. Homeowners agree to follow these rules upon buying into the community. If a rule in the CC&Rs conflicts with bylaws or HOA regulations, the CC&Rs take precedence.
For example, if the CC&Rs prohibit short-term rentals but HOA rules allow them, the restriction in the CC&Rs will apply. Amending the CC&Rs often requires a membership vote.
4. Articles of Incorporation
The Articles of Incorporation establish the HOA as a legal entity. The association typically files this document with the Secretary of State upon creation of the community. It provides basic information about the HOA, including its name, purpose, and structure.
The Articles of Incorporation give the HOA the legal power to operate, collect dues, and enforce rules. While this document is crucial, it’s usually short. It doesn’t include detailed community regulations but serves as a foundation for governance.
5. Bylaws
The bylaws outline how the HOA must operate. They establish board roles, term limits, voting rights, meeting requirements, and election procedures.
Unlike the CC&Rs, the bylaws govern internal HOA operations rather than homeowner obligations and rules. They must align with documents higher on the hierarchy list, such as state laws and the CC&Rs.
For example, if state law requires open board meetings, the bylaws can’t keep all board meetings exclusive. If a conflict arises between bylaws and the CC&Rs, the CC&Rs prevail.
6. Rules and Regulations
Rules and regulations provide additional details on community guidelines. They are the easiest documents to amend, usually only requiring the board’s approval. These rules clarify, expound, and enforce the rules from the CC&Rs.
Common examples include parking restrictions, pet policies, and pool usage guidelines. Rules and regulations must not contradict higher-level documents.
If a new rule conflicts with the CC&Rs, the CC&Rs take precedence. For instance, if CC&Rs allow fences up to 6 feet high, the HOA cannot create a rule lowering the limit to 5 feet.
Where to Find HOA Documents
Homeowners can obtain a copy of their governing documents through various ways. They can ask their HOA board or manager. Many associations also provide a homeowner portal or HOA website where owners can access these documents.
Many governing documents, such as CC&Rs and plats, are recorded with the county. These can be accessed through the local recorder’s office or online property records. State business registries often have copies of Articles of Incorporation.
New homeowners typically receive a copy of the governing documents at closing, too.
Do You Need to Record Governing Documents for HOA?
Yes, an HOA must typically record its governing documents. The developer usually does this upon the creation of the association.
The CC&Rs must be recorded with the county recorder’s office. On the other hand, the Articles of Incorporation must be filed with the state.
Recording the bylaws and operating rules is not always necessary. That said, it will depend on the area. Additionally, HOAs should make a habit of maintaining proper records to ensure clarity and compliance.
Other HOA Documents to Know
Beyond the governing documents, HOAs also maintain various official records. While these do not directly dictate the association’s operations, they are essential records of its activities.
Below are some key documents:
- Board Meeting Records. These include notices, agendas, minutes, and committee reports.
- Membership Directory. This is a list of HOA members, which may include contact details.
- Insurance Records. Documentation of the association’s insurance policies and coverage details.
- Financial Documents. These include account ledgers, budgets, financial statements, annual audits, invoices, reserve studies, tax returns, and bank statements.
- Vendor and Contract Records. These include bid proposals, signed contracts, and agreements with third-party service providers.
- Legal Records. These consist of judgments, liens, and other legal documents not protected by confidentiality agreements.
Good Practice
Homeowners should understand their HOA’s governing documents. In doing so, they can avoid violating the rules, know their rights, and fulfill their obligations. Similarly, board members should understand these documents to perform their responsibilities, follow proper procedures, and ensure compliance in operations.
Graham Management offers exceptional HOA management services, including assistance with governing documents, to Houston communities. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.