HOA covenants, formally known as Covenants, Conditions, and Restrictions (CC&Rs), are legally binding rules that govern properties within a homeowners association (HOA) community. They are recorded with the county and define the standards, rights, and obligations for both the HOA and the residents.
Purpose of HOA Covenants
Protect property values: By ensuring a certain standard of upkeep and appearance, covenants help maintain curb appeal and prevent property values from declining.
Maintain aesthetic standards: They regulate the look and feel of the neighborhood, which can include architectural styles, paint colors, and landscaping.
Promote harmonious living: Rules on noise, parking, and pet ownership help maintain a peaceful environment for all residents.
What Happens If You Violate a Covenant?
If a homeowner violates a covenant, the HOA board has the authority to enforce the rules, which can include:
Warning letters
Fines or monetary penalties
Legal action or placing a lien on the property
HOA bylaws are the legal documents that govern the internal operations of a homeowner's association, providing a rulebook for how the HOA functions on a day-to-day basis. They detail the roles and responsibilities of board members, procedures for meetings and elections, and membership voting rights. These bylaws are legally binding, and in case of conflict, state laws take precedence.
What is Typically Included in HOA Bylaws?
Bylaws provide the structure necessary for a functional HOA and generally contain provisions for the following:
Board of Directors: This covers the roles, duties, term limits, and election procedures for board members.
Meetings: It establishes the frequency and notice requirements for both board and homeowner meetings, as well as the number of attendees needed for a quorum.
Voting Rights: The bylaws define the voting powers of individual members.
Finances: This section details procedures for budgeting, collecting assessments, and managing the association's funds.
Committees: They outline how committees are formed, their purpose, and how members are selected.
Amendments: The process for how the bylaws themselves can be changed is explicitly defined.