Sunday, January 12, 2014

HOA Adoption Of Rules


HOA ADOPTING RULES


QUESTION: Our board sent a notice of rule change without giving the text of the change. They simply stated the parking rules were reworded. It is my understanding the board must provide every homeowner with the exact wording of the new rule.

ANSWER
Your understanding is correct; the board must provide the exact wording.

CC&Rs. Although you asked about rule changes, let's start with CC&Rs. Unlike Congress where they have to pass it first to find out what's in it, common sense dictates that members receive and read what they vote on. Under the Davis-Stirling Act, the text of any proposed CC&R amendment must be included with the ballot so people can see what they're voting for. (Civ. Code §5115(e).)

Rules. When it comes to rule changes, the Davis-Stirling Act requires the text of any proposed change be distributed to the membership at least 30 days prior to their adoption by the board. (Civ. Code §4360(a).) "Text of the proposed change" means exact wording, not a general statement that changes were made.
Possible Exception. In addition to the exception for emergencies
(Civ. Code §4360(a)), if the board is doing nothing more than correcting grammar or renumbering provisions, I don't believe the 30-day notice period is triggered since the rules are not being changed. Even so, the board must distribute a copy of the "cleaned-up" set along with an explanation of what was done and that no changes were made to the rules.