Monday, January 9, 2012

Intro to Community Association CC&R Amendments

It's the New Year and it's time to make some changes! And just like any new resolution or change - you need a game plan. Fortunately you don't have to jump on some weird diet, give up your favorite sweets, or find yourself in a sweaty gym for this one. All you have to do is cut a check to an attorney, put a phone call into your property manager, and vote the amendment in ... I'm making this sound easy because this is the 101 crash course, but the truth is this process can be horrendous; especially if you're trying to amend the percentage share an owner has to pay in association dues.

Examples of Reasons to Amend CC&R's:
  1. Laws in California are always changing, and after about fifteen years, governing documents should be amended or restated to keep current.
  2. Allowing exclusive use of certain common areas.
  3. Amending percentage share of association dues.
  4. Controlling smoke in common areas and/or the interior of units.
  5. Reducing exposure to the association.
  6. Adding parcels/units into the association.
  7. Prohibiting pets.
  8. Eliminate cumulative voting.
  9. Amending a condo plan that's an exhibit to the CC&R's.
The list goes on but I think I've painted the picture.

Steps to Take to Amend CC&R's:
  • Look to Civil Code Section's 1355 and 1356. Section 1355 outlines that you need approval from the ownership representing more than 50%.
  • Review your CC&R's. I often see CC&R's outline needing approval of more than 75% of the membership.
  • Send out the meeting notifications, ballots, and proposed amendment for vote. This should go out 15 days in advance of the meeting and not more than 60 days in advance.
  • Hire an attorney.
  • Be fair and consider all owners that this amendment could affect. Keep in mind that if a lawsuit arises from a CC&R amendment - all owners are responsible to pay the expenses through the association.
  • I'm a big believer in "polling" the membership before moving forward with these types of projects. Hiring a lawyer, starting the process, and then having the amendment not pass is just a waste of money.
Conclusion:

CC&R amendments happen all the time. If your New Year has this project in store, feel at ease knowing you can check this one off your list, and not even break a sweat doing it! I'm always available if you're looking for a highly recommended attorney. Good luck!

1 comment:

  1. Thanks for share this valuable information regarding Intro to Community Association CC&R Amendments. I really appreciate this all information because its such a useful for each and every person.
    HOA Management

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