In the event of a conflict in any of the provisions of any such
documents, the documents shall govern or control in the following order or
preference: (a) this Declaration; (b) the Articles of Incorporation of the
Association; (c) the By-Laws of the Association; and (d) the Rules and
Regulations. (CC&Rs
13.1)
The Declaration=CC&Rs
The Articles=The Articles
of Incorporation
The By-Laws=The By-Laws
of the Association
Rules=Rules and
Regulations
Covenants, Conditions, and Restrictions
The Declaration of CC&Rs
is the legal document that lays out the guidelines for the planned community.
The CC&Rs are recorded in the county records in the county where the
property is located and are legally binding. This means that when you
purchase a lot or a home in a planned community, for example, you automatically
become a member of the homeowners association (HOA.)
Basically, the CC&Rs
are the rules of your neighborhood. They govern what you can, cannot, or must
do with respect to your home. If you don’t abide by the CC&Rs, the HOA may
impose penalties for any violations.
Articles of Incorporation
The Articles of
Incorporation or “Articles” are usually short and often contain only the name
of the homeowners association, the name of the association’s initial agent for
the service of process (the person authorized to receive legal notices), and a
statement that the association is a nonprofit mutual benefit corporation. Articles are prepared by the developer’s
attorney, reviewed by a government agency (unless the project has fewer than
five units or lots), and filed with the secretary of state.
By-Laws
An HOA, which is
generally set up as a non-profit corporation, is an organization established to
manage a private, planned community. Like other corporations, the HOA is
governed by a board of directors (who are elected by the members) and a set of
rules called by-laws.
The bylaws govern how the
HOA operates and contain the information needed to run the HOA as a business.
For example, the bylaws cover matters such as:
- · how often the HOA holds meetings
- · how the meetings are conducted
- · the duties of the various offices of the board of directors
- · how many people are on the board, and
- · membership voting rights.
Rules and Regulations
The Rules and Regulations is a list of things that HOA members are allowed and not allowed to do. They are created by the Board of Directors based on the CC&Rs. They can be as precise as the HOA’s members want it to be, but ultimately the HOA’s members must agree to these rules.
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