bylaws, deed restrictions & Regulations

 HOA bylaws are legal documents that revolve around operational issues, mainly pertaining to the board of directors. They’re the specific rules that explain how an HOA runs on a daily basis. Within the bylaws, you’ll find information about:

• Board member election processes.
• Board member term restrictions.
• Quorum details.
• Meeting protocols.
• Board member duties.
• Voting methods.

HOA bylaws are like the rulebook that states how the HOA operates behind the scenes. They provide communities with communication on how exactly the board members that preside over them function and hold members accountable in their positions.

Without HOA bylaws, an HOA risks a lack of structure, hindering clear communication between board members and residents and undermining board member accountability, which is essential for a well-organized community.

In larger communities, organizing an HOA without bylaws offers little benefit, making bylaws an integral component of any efficiently run HOA.

Because HOAs are legally seen as non-profit corporations, it's necessary to have bylaws in place.  Bylaws are created after a development is completed, and the developer forms the HOA by submitting a Articles of Incorporation to their state’s Secretary of State.  Once the legal status of an HOA is registered, bylaws are established, along with other documents like covenants, conditions, & and restrictions (CC&Rs) and rules and regulations.  Without bylaws, an HOA can be prone to a structureless system with no accountability.

Typically, the board of directors oversees the enforcement of HOA bylaws and CC&Rs, with potential delegation to committees for specific tasks.  Alternatively, HOA management companies can offer a neutral third-party approach, taking direction on behalf of the board.

Restrictive covenants (sometimes called deed restrictions, covenants, conditions & restrictions) are contractual limits imposed on the use or occupancy of real property. Restrictions may affect a single tract of land or an entire subdivision. These restrictions can substantially limit the use and development of property.

The term deed restriction references restrictions imposed by a Homeowners' Association (HOA). However, DEED RESTRICTIONS also refer to restrictions found in the conveyance instrument, General Warranty Deed, Special Warranty Deed, etc. Developers place restrictions on land to maintain a certain amount of uniformity in a subdivision or development.

Deed Restrictions included in the conveyance will follow the land unless the restriction instrument provides otherwise. This is not conditioned on a formal association. The deed restrictions in the conveyance may not be voted on or amended.

Some restrictions are a form of contractual agreement, and they may be modified. Often the restrictions themselves will provide a mechanism for modification with the consent of a specified percentage of the affected landowners or a designated committee. The restrictions generally have a set time period and automatically renew for another set time period if there has not been a majority or unanimous vote.

A deed restricted community is a development where a homeowners' association (HOA) has restrictions in place that prohibit certain actions. These rules are established & enforced by a private entity (the community HOA), not a local government. The goal of these bylaws is to maintain a neighborhood’s aesthetic and support property values. 

Part of the annual fees that are paid to your HOA go towards the enforcement of their deed restrictions. The rules operate much like a “social contract” amongst residents, where each homeowner sacrifices certain uses of their land in order to guarantee the beauty of the neighborhood as a whole.

BENEFITS OF A DEED RESTRICTED COMMUNITY

Deed restricted communities tend to work best when the rules are fair and enforcement is proactive. Deed restrictions can ensure that your neighborhood stays beautiful & prevent property values from falling.

DEED RESTRICTED COMMUNITY RISKS

The most obvious risk of buying a home in a deed restricted community is that the rules could be more oppressive than they are beneficial. This can occur within older communities where the rules were established a long time ago, recently constructed communities tend to have few strict rules. Deed restrictions are not easily changed, so it’s quite likely any strict rules will stay in effect for future owners as well.  Since a homeowners association is considered a private entity & not a government agency, they can override certain Constitutional protections.  You’re also obligated to pay community HOA fees & can face consequences if you don’t. The HOA can place a lien against your home. 

An Association Regulation is a rule or order that governs or controls conduct within a specific jurisdiction. (gives detail to an already legally binding rule and\or covenant).   An HOA can pass additional regulations to help enforce and clarify the rules outlined within their CC&Rs.  These regulations often can be adopted by the board without a vote from all the homeowners if they aren’t more restrictive than existing guidelines unless otherwise defined in the Declaration or Bylaws.