Rule Changes 101 – Article by Barry A Ross, APC

Barry A Ross, APC

What are the correct procedures for the association to change its rules?

 Notice must be provided to the members at least thirty (30) days before the rule change. The notice must include the text of the rule change and a description of the purpose and effect of the rule change. Such advance notice is not required if the board of directors determines that an immediate rule change is necessary to address an imminent threat to public safety or imminent risk of substantial economic loss to the association. The decision on the proposed rule change must be made at a meeting of the board of directors after consideration of any comments made by association members. As soon as possible after making a rule change, but not more than fifteen (15) days after making the rule change, the board of directors must deliver notice of the rule change to the association members. An emergency rule change is effective for a maximum time period of 120 days. 

Web Lookup: Rule change procedures are governed by Civil Code sec 1357.130

Can the members of an association reverse a rule change by theassociation?

 The members of an association owning 5% or more of the ownership may call a special meeting of the members to reverse a rule change. The rule change may be reversed by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present or if the CC&R’s or the bylaws require more than a majority vote, by the affirmative vote or written ballot of the percentage required. Instead of calling the meeting, the board may distribute a written ballot to every member of the association. As soon as possible after the close of voting, but not more than fifteen (15) days after the close of voting, the board of directors shall provide notice of the results  of the vote to every association member. 

Web Lookup: Rule reversal is governed by Civil Code sec 1357.140

What are the requirements for the rules of the association to be valid and enforceable?

 

(a) The rule must be in writing.

(b) The rule must be within the authority of the board of directors of the association.

(c) The rule must not be inconsistent with the governing law or the governing documents.

(d) The rule must be adopted in good faith and in substantial compliance with these requirements.

(e) The rule must be reasonable.

 

Web Lookup: Rule requirements are governed by Civil Code sec 1357.110

 -Article written by Barry A Ross, APC. To find out more information about Barry A Ross and his firm, click here

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