HOA FOUNDATIONS

When you purchase a home in Meridale, you become part‐owner of Meridale Community Association. The advantage of becoming part owner of the Association is that all Neighbors have obligated themselves to you – and you to them ‐ to live according to certain rules and standards. Those mutual obligations are the basis on which many Neighbors invest their life savings to live in Meridale. So, all homeowners and renters have a responsibility to live up to their agreements, and Community Leaders have a responsibility to enforce them. Those rules and standards are spelled out in the Association’s governing documents. What are those governing documents, and how do they relate to each other?

FEDERAL, STATE, AND LOCAL LAW

In addition to the federal Fair Housing Act and other federal laws and codes, almost every state has statutes governing homeowner associations. In addition, most associationsaresubjecttothestatecorporations’code.

DECLARATION OF CODES, COVENANTS, AND RESTRICTIONS

Planned communities are created by declarations (also known as master deeds). These contain the restrictions that regulate residents’ behavior, define owner’s rights and obligations, and establish the association’s responsibilities.

ARTICLES OF INCORPORATION

Most associations, including Meridale Community Association, incorporate and have articles of incorporation that define their purposes and powers. They may specify such things as the number of directors andtheirtermsofoffice.

BYLAWS

Bylaws address association operations such as procedures for meetings and elections and specifying thegeneraldutiesoftheboard.

RULESANDREGULATIONS

Boardmembersadoptrulesandregulations,whichmust be consistent with the bylaws, declaration, and local, state,andfederallaws.

The Association’s governing documents are almost always trumped by federal, state, and local laws. When the Association’s documents conflict with each other, the Declaration carries the greatest weight, followed by the Bylaws, then the Rules and Regulations. All of these are legally enforceable; owners can be fined by the Association and—in extreme cases—sued for violating the governing documents. On the more positive side, they help ensure the Association can thrive and that membersaretreatedfairlyandequally.

Owners are also empowered when they understand the governing documents and the procedures for changing or amending them when they are no longer applicable or relevant to the community. Amendments to the Declaration and the Bylaws are difficult, requiring approval of 67% of the “voting power” of Association members – i.e., one vote per home owned – which is roughly 190 Meridale homeowners. Changes to the Rules and Regulations require approval of a majority vote of the Board of Directors. As recommended by the Community Associations Institute’s Best Practices, Rules and Regulations should be reviewed every two‐three yearsratherthanpiecemeal.

Don’t be left in the dark—check out the Association’s governingdocumentstoday!

HOA Foundations is a permanent column in Meridale’s monthly newsletter intended to help Neighbors and Leaders more clearly understand the nature, benefits, and best practices of an effective, helpful homeowners association, and especially our own Meridale CommunityAssociation.