August 19, 2021 - BY Admin
Governing Documents are the rules set in place to maintain balance and order
within a community. These Governing Documents consist of articles of
incorporation creating the homeowners' association, the bylaws, the CC&Rs,
and the rules and regulations. These items exist to establish responsibilities
and authority of the HOA board members.
Governing Documents will typically contain an "executive summary"
near the top to help explain the attorney jargon in plain english. If there
isn't an "executive summary" at the top of your community's
Governing Documents, then it would be wise to look into having an attorney
draft one for you.
I'm sure you're wondering how these community rules have come to
be. There are a few places the rules have been drawn from:
State Laws typically set the ground rules for condominium communities
and will vary from state to state. Compared to the State Laws for
single-family homes, the condo communities are relatively short: NRC 117.
There is a trend with states looking into regulatory laws for
single-family home communities as well; Nevada is one of the most highly
regulated states in the country. The governing statutes for Nevada
single-family homes are NRS
116.
When it comes to single-family homes, the developer sets these rules
in what is known as “the deed of the developer” and the rules are commonly
referred to as “CC&Rs” (Covenants, Conditions, & Restrictions). The initial
rules of a community are typically set by the developer in coherence with
state and federal laws -- which the homeowners then assume through the
purchase of property.
The board of directors of a HOA typically has the power to pass new rules
and regulations governing the community. Oftentimes board members will
find that their practices aren't necessarily inline with the governing
documents and will need to determine if the governing documents will be
amended, or if the HOA practices will need to be fixed to fit the governing
documents.
The governing documents give board members the power to amend by
allowing the board to create new rules and giving them the proper steps to do
so. Oftentimes the board will have to give the community notice and call for a
vote before anything can be set in stone. The only limitations to new rules a
board can implement are that the rules do not violate any State or Federal
Laws.
If a new rule is created that bans something previously allowed, practicing
members that were around prior to the new rule passing are typically
grandfathered in. For example, if you are a dog owner and all of a sudden your
HOA votes to ban pets, you would be allowed to keep your dog since you
owned your dog when it wasn't an issue.
---
We understand that these statutes are long and complex. As a result, we
offer a course to help HOA board members navigate these laws, as well as
their governing documents. Should you have any questions or concerns
please feel free to contact us at 702-655-7064 and we'll be
happy to answer any questions on Condominium and Single Family Home State Laws.
