Sharper Management


Part 4 – Rules & Regulations – Understanding Governing Documents for HOAs

Living in a homeowners association, you’ve likely heard people use terms such as “Bylaws,” “Rules” or “CC&Rs.” What do they mean? An Association is actually a registered non-profit corporation in the state of Minnesota – and to be so, they have an important set of legal governing documents. Much like our country has a Declaration of Independence, Constitution, Bill of Rights, etc to function as a nation, an association has a similar document framework to act as a common interest community. The purpose of this article is to give you, as a member of a homeowner association, a basic understanding of this set of documents. Although all HOAs are slightly different, their governing documents will typically all contain the following: *    Articles of Incorporation *    Declaration of Covenants, Conditions and Restrictions *CC&Rs) *    Bylaws *    Rules and Regulations Rules & Regulations So now that the Articles have incorporated a community association, the Declarations created a framework for rights and responsibilities and a “contractual” obligation between parties, and the Bylaws empowered the Board to create policies – now comes the document that helps regulate the day-to-day issues in an effort to maintain harmony between neighbors and between owners and association. Examples of common Rules include the following: *         Pet regulations *         Parking restrictions *         Architectural guidelines and procedures *         Holiday decoration limitations *         Noise and nuisance parameters *         Rental requirements *         BBQ grill ordinance Each governing document serves a specific purpose, yet they all interact with one another to create and maintain a community homeowner association. By purchasing in an association, you created a legally binding contract between yourself and the association. That “contract” is the important documents listed above.  Hopefully this breakdown is helpful. You can access these documents on your association’s website through www.sharpermanagement.com