Many people are familiar with homeowners associations (HOAs) as these types of communities make up the majority of neighborhoods in Arizona and have grown in exponential popularity over the past few decades. Yet even with homeowners associations as ubiquitous as ever, many homeowners still aren’t familiar with their HOA governing documents, which can lead to confusion and frustration.
Understanding the HOA governing documents that govern your community is valuable for harmonious HOA living, but can often require the assistance of an HOA management company to better comprehend and enforce these legal documents. There is a hierarchy to the numerous documents and much legal complexity to sift through, but that doesn’t mean they can’t be easily explained to homeowners willing to learn more about the HOA that governs their home.
HOA Governing Documents Hierarchy
Although there are several types of HOA governing documents, there is a legal order of importance regarding how they should be recognized. Not only can this dictate which rules the community observes, but also how the courts may rule on governing issues that can arise. If one of these documents contradicts the other, the higher-ranking document should be followed.
The hierarchy of the governing documents can be easily remembered by the acronym PCAB. This stands for plat map, CC&Rs, articles of incorporation, and bylaws.
Plat Map
It may seem odd that a map of the community is part of the governing documents, especially the highest in the hierarchy. However, the plat map is a vital community document for an HOA because it delineates property lines, which the association owns, as well as common areas and more.
The plat map is a legally recorded document that can be reviewed through the county assessor and is usually available online for easy access. In all matters related to the HOA governing documents, the plat map is the most important, although it is frequently overlooked.
Covenants, Conditions & Restrictions (CC&Rs)
Unlike the plat map, most homeowners are familiar with the CC&Rs for their HOA, as this is the document that provides use restrictions for owners and from which many community rules are derived. However, these governing documents can also contain so much more and are often seen as the backbone of the community.
Besides providing guidelines on community appearance and homeowner responsibility, the CC&Rs often include other guidelines such as budget requirements and transfer fees when a home is sold. They can define conflict resolution for community or neighbor disputes.
This is a legally recorded document through the respective community’s county. Therefore, if the board of directors or the community wishes to amend any part of the document, a vote of the membership must approve it, and the amendment must be legally changed in accordance with the county’s requirements as well.
Articles of Incorporation
When a homeowners association is first established, the articles of incorporation are the document that incorporates the community and establishes it as an HOA. This document is typically very brief, with only a dozen pages or so, and governs the corporate entity of the HOA, as homeowners associations are often non-profit organizations.
Bylaws
The bylaws are another document that governs the corporate entity of the HOA, rather than its homeowners. However, the bylaws do set forth guidelines for the board of directors, like term limits, meeting requirements, and officer positions.
The bylaws typically also include information on how members will vote during annual membership meetings, which are essential to understand due to quorum requirements. If there isn’t enough community participation in accordance with the bylaw requirement, annual meeting voting cannot be conducted, which can seriously delay new board member elections or even CC&R amendments. The better-educated homeowners are about their community’s rules, the more involved they can be.
Rules & Regulations
If a community chooses, they can adopt rules and regulations, separate from the CC&Rs, that add more specifications to the governing documents. These rules and regulations should embellish the already established rules of the community, but cannot contradict the governing documents.
The board can also add architectural guidelines to solidify a community’s aesthetic direction or uniformity. This is where the community can create guidelines, such as paint color palettes for homes or landscaping requirements, as long as they do not conflict with any restrictions already established in the CC&Rs.
Rules and regulations, as well as architectural guidelines, are not legally binding documents and can be amended or revised by a vote of the board of directors, allowing them to be a more flexible community document that can be easily updated as the community’s needs evolve and change.
Familiarizing yourself with your community’s governing documents can make you a more involved homeowner who understands how the community is supposed to function. Understanding the hierarchy of documents and their respective roles within the association can help alleviate confusion homeowners may have about the association’s authority. With all homeowners educated about their community’s governance, a cohesive community can be easily cultivated.
