CHANGE WILL DO YOU GOOD. SOMETIMES.

June 29, 2017    Margo Crummack, CCAM, PCAM Co-Founder, Co-Principal, CEO    Education

Whatever your motivation is, be sure it is well thought out. Use common sense and consider the operational, legal, lifestyle and long-term pros and cons of taking this action.  Remember, you must have strong membership support to be successful.  It will require a well-thought out strategy and crystal clear understanding of the change or changes being proposed and their benefit.

Should you have any questions about the CC&Rs or any general questions, I’d be happy to answer them for you. But if you are considering making a change to your HOA governing documents, here are some insights to take into consideration.

 

A Few Reasons Why a Board Amends

  • Change in provisions that as an industry standard are obsolete or in conflict with Davis Stirling or current laws.
  • Clarify confusing or conflicting provisions.
  • If the documents are antiquated they may cause operational challenges exposing the board to increased liability.  
  • To eliminate or correct errors.

 

What is the Cost Associated with Amending the CC&Rs?

Know that the costs tend to mount up and can get expensive.  The expense is not limited to dollars and cents spent on attorney fees to discuss the merits of an amendment, draft the amendment, clarify the draft of the amendment, write the ballot, etc.  It will also cost in “time”. Plan for extra meetings, going door to door to encourage participation and increased time commitment of regularly scheduled board meetings as well.  Often gaining quorum is difficult; this causes the ballot to be sent out more than once, thus increasing other extra expenses as well. 

 

How Long Will it Take?

If the association is in favor of the changes the board is proposing, 6 to 12 months is a reasonable timeline. If there is apathy and a lack of support, it could take longer if it can be accomplished at all.    

 

Can the Issue be Addressed in a Rule?

A Board sometimes assumes the CC&Rs need to be amended to address their concern when the authority to make a rule to address the matter is already stated in the governing documents.  Before proceeding, check with legal counsel for clarification if an amendment is necessary.

 

How Can my Community Manager Help?     

Communication with the membership is critical to this process and its success. Your community manager is a conduit to the community and can provide insight on member concerns and opinion. They can also be very helpful to explain the challenge(s) in the governing documents, why they are being amended and the benefits of those changes.

The feedback they gather is also very helpful as the messaging will need to evolve through the process.

I hope you have found this information insightful should you ever consider amending your CC&Rs. We congratulate you on your volunteer spirit in strategizing better ways to make your community better. 

 


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Crummack Huseby utilizes a personal approach to create and develop one-of-a-kind property management programs for new and existing communities. Our award-winning talent would be honored to present their unparalleled methods in property management and builder services to your team or board. For more information, please visit ch-pm.com or call 888-399-9430 Toll-free

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California Associations of Community Managers
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