A common question from HOA Boards and Members is regarding the difference of Bylaws and Covenants, Conditions and Restrictions or (CC&Rs). We found an excellent explanation on NOLO.com
What’s the Difference Between Homeowners’ Association (HOA) Bylaws and CC&Rs?
Learn the difference between the HOA Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and the HOA bylaws.
Covenants, Conditions, and Restrictions (CC&Rs)
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 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. For example, the CC&Rs may require you to keep your garage door closed or prohibit certain types of landscaping. It is also typical for the CC&Rs to regulate things such as:
- basketball hoops
- clotheslines
- fences
- TV antennas/satellite dishes, and
- garbage cans.
(Learn more in Homeowners’ Associations (HOAs) and CC&Rs: Know What You’re Getting Into.)
If you don’t abide by the CC&Rs, the HOA may impose penalties for any violations. (Learn more about Covenants, Conditions & Restrictions in HOAs.)
Bylaws
An HOA, which is typically set up as a nonprofit 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 bylaws.
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.
If you are thinking of purchasing a home in an HOA community (or already live in one), you should take the time to familiarize yourself with both the CC&Rs and the bylaws, so that you are aware of any neighborhood restrictions and you fully understand how the community operates.
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