The Importance of Regularly Reviewing Your HOA’s CC&R as a Board of Directors

The board of directors of a homeowners’ association (HOA) is tasked with many essential duties, from everyday management issues, to special considerations, and annual compliance. The Board is also empowered to address potential amendments to bylaws or the Covenants, Conditions, and Restrictions, also known as the CC&Rs.  The CC&Rs are one of the most critical governing documents for a planned community, next to the Arizona regulations and federal laws regarding HOAs. While you may not think that a periodic evaluation of your CC&Rs is necessary, it can be critical to smooth operations. Chandler HOA property management services can offer guidance on regular review of CC&Rs, but some background information may be useful.

Address Current Needs and Issues

Circumstances may have changed considerably since your CC&Rs were first executed and recorded, so you may need to update them to reflect your existing situation and needs of the community. It is true that some issues can be covered by less formal operating rules, but there are other matters where this approach is not appropriate. If you want a rule to have a lasting impact, it is better to make it part of your CC&Rs if possible.

Align with Changes in Arizona Laws and Regulations in Chandler

Lawmakers at the federal, state, and local level often implement changes in the statutes governing HOAs. If your CC&Rs are no longer in compliance with the latest regulations, you could put members of your board, officers, and/or homeowners in a challenging position. For instance, there are often changes to assessment payments and statements. The board may face issues for failing to amend the CC&Rs to cover such a situation if needed though state statute always trumps the CC&Rs.

Remove Developer-Related Provisions

If your community is not under the control of the developer, you may need to update related CC&Rs. When the HOA was originally formed, it is likely that the developer retained an attorney to draft the initial CC&Rs. Due to this, the provisions may greatly benefit the developer, at the expense of individual homeowners. You could consider removing irrelevant CC&R terms and reallocating legal rights and obligations.

Adjust Meeting Quorum, Approval, and Voting Policies

When the CC&Rs were first drafted, they may have included provisions on what constitutes a quorum and requirements for voting. Years later, these sections may lead to unexpected approval and voting issues. In addition, there may be terms regarding the calling of meetings, which are now outdated, inconvenient, and do not reflect the reality of the HOA.

Chandler HOA Property Management Services Can Help with CC&Rs

As a member of the Board of Directors, you should note that amending your CC&Rs can be a time-consuming, expensive process. Even after you review them and resolve to make changes, there may be considerable challenges in getting the necessary approvals. Homeowner members of the HOA may disagree with proposals or may simply be apathetic about the process and not vote.

If you would like more information about the importance of regularly reviewing your CC&Rs, please contact City Property Management Company at 602.437.4777. You can also visit our website to request a proposal and learn about our services for HOA Boards of Directors in Chandler.

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