Owner Learns the ABCs of CC
QUESTION: As the proud owner of a townhouse in a new homeowners association, I find that I have a lot to learn about how my association operates and my obligations as an owner. I recently discovered your column and would like an answer to a basic question that you have probably covered previously. What are CC&Rs;?
ANSWER: CC&Rs; stands for covenants, conditions and restrictions. Community associations for condominiums, planned-unit developments, residential cooperatives or “own-your-own” community apartment projects, have unique legal documents that explain the common ownership of the property.
These legal documents explain the complex issues and responsibilities of the community association and the individual owners or members.
Condominiums and most other forms of community associations have legal documents including a declaration of the covenants, conditions and restrictions (CC&Rs;), or deed restrictions, that spell out the association’s powers and duties and the individual owner’s obligations.
Among other things, the CC&Rs; will state the owner’s obligation to pay a pro rata share of the costs of maintenance and operation of the association. Most CC&Rs; also include some aesthetic restrictions, such as against altering the exterior appearance of the structure without association permission.
In a residential cooperative, owners buy stock in the corporation and receive a proprietary lease or occupancy agreement that establishes the owner’s right to live in the cooperative. The lease or occupancy agreement will state the terms and conditions for occupancy, including the obligation to pay a pro rata share of the costs of maintenance, services, mortgage, taxes and other expenses of the corporation. The documents will also include use restrictions adopted by the board of directors of the cooperative.
The various forms of community associations have varied legal documents. The homeowner association’s declaration (CC&Rs;) serves the same purpose as the cooperative’s occupancy agreement or proprietary lease.
Can a Non-Resident Owner Serve on Board?
Q: I live in a planned community. I have read our CC&Rs; and cannot find an answer to the following questions. Is a homeowner who lives elsewhere and rents out his unit allowed to serve on the board of directors?
A: You should also read the association’s bylaws since the proper procedure for board operations and elections is often in the bylaws rather than the declaration. If the legal documents do not specifically forbid a non-resident owner from serving, then it would be permitted. Usually non-residents are allowed to serve on the board.
I have seen some association bylaws that allow non-owners to serve on the board, so renters could serve if they were interested and could win the election.
Owner Wants to Talk to Board’s Attorney
Q: I contacted the office manager of our condominium and asked for the name and phone number of the association’s attorney. I was told that if I call the attorney, I must pay for the attorney’s time even though the condominium association was the subject of my inquiry. There is nothing in our rules regarding this matter.
It would seem that through the monthly assessment, each owner is contributing to legal costs and would be entitled, within reason, to inquire regarding the legality and accuracy of procedures and information promulgated by the board.
To what extent can an individual owner seek legal clarification from the association’s attorney?
A: When you see the gardener working on the property, would you ask him to install a flower garden for all to admire and then expect the association to pay for it?
What if your neighbor wanted a hedge around the pool? And another owner might order more fertilizer or weed control. Expenditures of this type must be authorized by the board of directors.
Your dollars help to pay for legal services, but the board decides how those dollars are spent. If individuals call the attorney for advice on association matters, the bills could mount without the board or management being aware of the situation. Also, the board may have already asked for a legal opinion on the same subject.
If you have concerns about the legality of a board action then you should briefly explain this to the attorney’s secretary, state that your association is a client and ask what the fee would be for consultation. Perhaps your question could be answered very briefly and there would be no charge at all.
Proper Procedure to Challenge Vote Count
Q: What is the proper procedure to follow in challenging the results of votes cast in a board election or a board recall? Should a demand for a recount be stated immediately upon the announcement of the result of the vote? Who would have the duty to recount the votes?
A: If you question the announced result of any vote, you should speak up immediately and state your request for a recount. The president or person conducting the meeting should avoid the appearance of a conflict of interest, especially if his or her name is on the ballot for the election.
Additional election judges could be appointed to participate in the recount. It would probably be acceptable for the challenger to assist.
I would appreciate hearing from attorneys who have dealt with this type of situation. I will share attorneys’ ideas and advice with the readers in the coming weeks.
