Hierarchy of Association Governing Documents

Association Governing Documents

One of the most important things is to understand the basic legal framework of an Association. This is comprised of three documents:

The Declaration
The Bylaws
The Rules and Regulations

They are listed 1-2-3 for a reason. Think of an Association's governing documents like a hierarchy of laws. They range from the "Constitution" at the top to the "Daily Policies" at the bottom. Understanding the difference helps you know which document to check when you have a question about your rights or responsibilities.

1. The Declaration (The "Constitution") Often called the Covenants, Conditions, and Restrictions (CC&Rs), this is the most powerful document. It is recorded with the county and "runs with the land," meaning it stays attached to the property regardless of who owns it. Purpose : Legally establishes the association and defines what you own versus what the association owns. Contains information on:

Legal descriptions
Maintenance responsibilities
Assessment obligations
Wide-reaching ("big picture") restrictions

Amendment : Changing this document is very difficult. Usually requires a supermajority vote (e.g., 1/3rd or 75%) of all homeowners.

2. The Bylaws (The "Operations Manual") While the Declaration focuses on the property, the Bylaws focus on the Corporation. They dictate how the association is run as a business. Purpose : To outline the "rules of engagement" for the Board of Directors and the members.

How often meetings are held
How many board members exist and how they are elected
Voting procedures and quorum requirements.
The duties of officers (President, Treasurer, etc.).

Amendment : Changing this document is easier than the Declaration, but usually still requires a vote from the general membership.

3. Rules and Regulations (The "House Rules") These are the specific, day-to-day guidelines that keep the community orderly. They must always be consistent with the Declaration and Bylaws and cannot contradict these higher documents. Purpose : To address evolving community issues and provide specific "do's and don'ts."

Pool hours and gym etiquette.
Parking restrictions.
Fine schedules for violations.
Pet weight limits or leash requirements.

Amendment : Changing this document is usually the easiest. In most Associations, the Board of Directors can vote to change these during a regular meeting without a full community vote. The Declaration is usually written with a clause to specifically grant the Association Board the ability to make and periodically amend these rules and regulations to maintain valid rules as times change.

About PMI Service Group

Buy / Sell - We can act as your agent to sell your home. We will already be familiar with the Community and amenities, so reach out if you are looking to buy or sell a property in the Association. We are a full-service real-estate brokerage company.

Investment Property Management - We specialize in property management for rental homes like single family, townhomes and condos.

Community Association Management - We also offer community management services for HOAs, Condominium Associations, commercial Associations.

Commercial Property Management - We offer full commercial or industrial building management.

We are going to put the same care and level of detail into any real-estate relationship for owners, boards and tenants as we do our own.

If you are in the suburbs of Chicago struggling to find a good broker or management company that cares about your property, please reach out. Every day we strive to elevate our services to be the best community management firm in the Chicago area for HOA. We serve Dupage County, Will County, Kane County and Kendall County in Illinois and our communities span from Sugar Grove to Burr Ridge, to Homer Glen to Elgin.

Share

Author