What's the Difference Between Homeowners' Association (HOA) Bylaws and CC&Rs?

If you buy a home, like a single-family house, in a planned community, you'll most likely have to become part of a homeowners' association (HOA). An HOA's governing documents are usually in the form of a Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. The CC&Rs explain the rules of the HOA community, while the bylaws cover how the HOA operates.

What Are the Key Differences Between HOA CC&Rs and HOA Bylaws?

Again, the CC&Rs set out the rules of the HOA community. They describe the requirements and limitations of what you can do with your property. The goal of the CC&Rs is to protect, preserve, and enhance property values in the community.

The bylaws, on the other hand, govern how the HOA operates. They describe how to run the HOA as a business.

What Does "CC&Rs" Mean?

"CC&Rs" is an acronym for "Covenants, Conditions, and Restrictions." The Declaration of CC&Rs is the legal document that lays out the planned community guidelines. The CC&Rs are usually recorded in the land records in the county where the property is located and are legally binding. When you purchase a lot or a home in a planned community, in most cases, you'll automatically become a member of the HOA.

Basically, the CC&Rs are the rules of your neighborhood. They govern what you can, can't, or must do with respect to your home. For example, the CC&Rs might include:

• restrictions on how you can use your property
• restrictive covenants, such as restrictions on what kind of pets you can have or where you can park your car
• how rules will be enforced and the penalties for violations
• information about assessments
• lender protection provisions (such as saying that a first mortgage gets priority over an assessments lien)
• rules about how you must maintain your home and property, and
• insurance requirements.

If you don't abide by the CC&Rs, the HOA might impose penalties for violations, like fines and various other consequences.

What Is a Covenant and Restriction Example?

The CC&Rs might require you to keep your garage door closed or prohibit certain types of landscaping. It's also typical for the CC&Rs to regulate things like basketball hoops, clotheslines, fences, satellite dishes, and garbage cans.

What Happens If You Violate the CC&Rs?

The HOA board is in charge of enforcing the CC&Rs. If you violate the CC&Rs, you might:

• Have to pay fines. The HOA can impose fines against members of the community who violate the CC&Rs.
• Lose your privileges. The HOA might revoke your privileges, like by suspending your access to community amenities, such as a pool or tennis court.
• Be forced into compliance. The HOA might go on your property to fix a problem, such as removing trees you weren't allowed to plant. The HOA will then ask you to pay for the fix.
• Discover that the HOA has a lien on your home. In most cases, an HOA can get a lien on your home for unpaid assessments or, in some cases, fines for violations of CC&Rs.
• Get sued or face a foreclosure. If you don't pay overdue assessments or fines, the HOA might sue you for a money judgment or foreclose on your home. Some states limit the circumstances under which an HOA may foreclose. For example, state law might require the board to approve a foreclosure. Or state law might require the assessments to have reached a certain amount before a foreclosure can be initiated.

How to Find My HOA CC&Rs

Typically, the HOA will provide a copy of the governing documents, including the CC&Rs and bylaws, to new homeowners. Many HOAs also post their CC&Rs online. If not, contact your HOA to get a copy.

What Are Bylaws for an HOA?

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 elected by the members and a set of rules called "bylaws."

What Is the Purpose of Bylaws?

The bylaws govern how the HOA operates and contain the information needed to run the HOA as a business. The bylaws cover matters including:

• how often the HOA holds board meetings
• how the meetings are conducted
• the duties of the various offices of the board of directors
• how many people are on the board
• frequency of board elections
• board member duties and responsibilities, and
• membership voting rights.

How to Find My HOA Bylaws

Like CC&Rs, the HOA will usually provide you with a copy of the bylaws when you buy a home in the community. And, again, many HOAs put their bylaws on the internet. If you can't find them online, contact your HOA to get a copy.

Modifying an HOA's CC&Rs or Bylaws

It's usually challenging to amend an HOA's CC&Rs or bylaws. Generally, you'll first have to propose any changes to the board. Then, there's usually a meeting during which the other homeowners in the community can discuss the proposed change. Then, the homeowners vote on the proposed change.

Read Your HOA's CC&Rs and Bylaws

If you're thinking about buying a home in an HOA community or you already live in one, take the time to familiarize yourself with both the CC&Rs and the bylaws. That way, you'll be aware of any neighborhood restrictions, and you'll understand how the community operates.

You can also avoid violating any of the community rules.

Talk to a Lawyer About Your HOA's CC&Rs and Bylaws

If you have questions about the HOA's governing documents and your rights, consider talking to a real estate lawyer. If an HOA initiates a foreclosure against you for violating the community's rules, consider talking to a foreclosure attorney to learn about your options.