Homeowner’s Associations, a brief explanation

In light of the recent happenings with a local homeowners association (HOA) in Driggs, I thought I would write this week’s article about HOA’s purpose, and their ability to control certain situations – and why. Some feel certain HOAs have entirely too much control. However, the board of directors who represent the HOA, as well as each individual owner must abide by governing documents of the development that typically include; Articles of Incorporation, Bylaws, CC&R’s, and Rules and Regulations. The articles are usually simple documents to get the HOA up and running initially, and include non-profit filings with the Secretary of State. The bylaws dictate how the association is run. The CC&R’s are the bulk of these documents that include everything about the operation of the HOA, restrictions, requirements, etc. If written, the Rules and Regulations are typically a simplified version of the CC&R’s that include specific rules that will directly effect owners and residents. All of these documents can typically be found in the record, or provided by a county, real estate agency or title company.
When considering a purchase, it is imperative that you review these in their entirety, though they can certainly be comprehensive. For you, tenants or other residents, it might not be a bad idea to review (at least) the CC&R’s and/or rules and regulations as they most directly impact the residents. All of the above said, the problems with homeowners associations usually arise when someone hasn’t reviewed, or there is a misunderstanding. Regarding the issues I was recently involved with, it was a matter of interpretation. Honestly, the largest problem is lack of participation by the homeowners. Understandingly so, it’s usually a thankless job performed voluntarily. In this latest circumstance, I’m not convinced the majority of the owners didn’t disagree with the interpretation of the board of directors, but without enough participation from those that feel that way, nothing can change. Further, it takes initiative. If none of the Board of Directors take that initiative, oftentimes a member not directly involved with the board will know how to get that ball rolling. It’s all about questions, knowledge, and involvement. In this latest circumstance the entirety of the HOA took the brunt, even though it was only the decision of the board of directors that the residents didn’t agree with. Despite how all of these tenants and residents feel, all of this interpretation can be clarified exactly how the majority rule intends, but the majority must participate in the next meeting, ask those questions, and make their own personal decision, not leaving the decision to the board.
Next time you receive a proxy in the mail for your local HOA, forget about the proxy and set aside time for the meeting to cast your own vote. You will be enlightened and help the better cause that YOU believe in!