An HOA board resolution helps clarify and refine certain parts of community policies. It helps the board eliminate ambiguity and limit the number of accidental violations. Board members should utilize them to keep the community orderly and harmonious.
What is an HOA Board Resolution?
Every homeowners association comes with a set of HOA governing documents. These outline the community’s overall internal processes and restrictive covenants. However, they are often vague and left to interpretation. Developers rarely craft detailed CC&Rs or bylaws from the get-go because they might not fit the community’s demographic needs or wants.
This is where an HOA board resolution comes in. The board members make decisions on certain rules and memorialize those decisions through board resolutions. Thus, HOA resolutions exist to clarify or address specific issues within the governing documents. Resolutions can include additional rules, procedures, and guidelines.
Types of HOA Board Resolutions
There are three basic types of HOA board resolutions.
1. Administrative Resolutions
Administrative or procedural resolutions tackle the community’s internal procedures and processes. The board may release these resolutions to clarify or revise the HOA’s board meetings, elections, or architectural approval process guidelines.
2. Policy Resolutions
Policy resolutions, also called interpretive resolutions, directly alter or affect the community members’ rights and responsibilities. The HOA board often enacts these resolutions to clarify ambiguities in the governing documents. They may also use these resolutions to create new policies in line with the governing documents, like a collection policy or fine schedule.
Policy resolutions can come in many different forms. A typical example of a policy resolution is a change in the architectural guidelines. The community might specify certain materials or paint colors allowed for homeowner improvement projects. Other examples include rules regarding facility use, pet restrictions, and rent restrictions.
3. Special Resolutions
Special or rule resolutions tackle individual circumstances. They often arise from a specific incident within the community. Board members use this resolution to introduce new regulations not covered by the governing documents to address particular situations. For example, the board might release a resolution to create a new Code of Conduct for HOA meetings. This rule might have occurred because one of the homeowners acted out during a recent board meeting.
However, remember that special resolutions cannot contradict the governing documents. They must be reasonable and within the board’s scope of authority. It is recommended that a lawyer be consulted before enacting these changes.
What to Include in HOA Board Resolutions
HOA resolutions often differ based on the topic they address. Thus, crafting a one-size-fits-all HOA resolution template for communities might be difficult. Nonetheless, every HOA board resolution should include at least the following basic information:
- Purpose of the resolution
- A clear statement of the decision or policy
- Actions the board is taking to address the concern
- Where the board draws its authority to make such decisions
- The resolution’s effective date
HOA Resolution vs Amendment: What’s the Difference?
Many homeowners confuse HOA board resolutions with amendments. However, these two are entirely different. Board resolutions exist only to clarify the governing documents or expound on them. In some cases, they may also add to the rules, but they can never contradict the HOA’s CC&Rs and bylaws.
In contrast, HOA amendments are changes to the governing documents. Amendments are used to update the governing documents or do away with outdated or unnecessary community guidelines. Additionally, amendments are much harder to implement than resolutions. Amendments often require a majority vote from the community members, whereas HOA resolutions only need a vote from the board.
When to Use Resolutions and Amendments
Both HOA board resolutions and HOA amendments have their place. While releasing a board resolution for all rule changes is tempting, the board should understand the difference between the two and when to use either. Here are some rough guidelines to help boards decide when to use resolutions and amendments.
Resolutions
Board members should enact resolutions when:
- Clarifying unclear policies within the governing documents
- Creating new processes or rules outside of (but not contradictory to) the governing documents
- Addressing specific member issues
- Memorializing board decisions such as annual budget changes, fee increases, and procedural modifications
Amendments
Board members should amend the governing documents when:
- Changing the Articles of Incorporation, CC&Rs, or bylaws
- Updating the community’s governing documents to comply with new regulations
- Modernizing the community’s existing rules
- Removing outdated or unnecessary restrictions
- Altering the HOA’s current rules regarding property rights
How to Create an HOA Board Resolution
Creating a new HOA board resolution is much easier than amending the governing documents. However, it still requires careful consideration and planning. Here are some steps to take to create a resolution:
1. Review Laws
Review the local, state, and federal laws first. You do not want to enact a rule that goes against regulations. Otherwise, the rule may become unenforceable. Homeowners may also make complaints or, worse, file a lawsuit.
For instance, homeowners associations must be careful not to violate any regulation of the Fair Housing Act. They cannot discriminate against potential buyers or renters based on specific characteristics like race, religion, sex, familial status, disability, ethnicity, or national origin.
2. Review the Governing Documents
No resolution is enforceable if it goes against the HOA’s governing documents. Review the rules and understand them thoroughly before enacting a resolution. This will eliminate confusion and ensure the resolution remains valid. If there is any conflict, the governing documents will take precedence.
3. Discuss With the Board
All of the board members must be involved when crafting HOA resolutions. Doing so will eliminate conflict within the board and create a united front. Moreover, involving all the board members will introduce varying perspectives. This helps the community refine the resolution and cover all bases.
4. Ask for Feedback
The board should be open to feedback from the community members. After all, their lives will be affected by the resolution one way or another. They should have a say in the new rules. Consider passing a draft resolution to the community and ask for feedback during a meeting.
5. Vote
The board must take an official vote at a board meeting to formalize the resolution. Make sure you have a quorum beforehand.
6. Provide Notice
Homeowners must receive word of the new resolution to ensure compliance. It reduces the potential for accidental violations. Moreover, it is part of the board’s duty to ensure all homeowners remain in the loop. Consider updating the residents by sending the resolution via mail, email, text, or social media post.
The Bottom Line
An HOA board resolution is essential for all planned communities. Without them, the board will have difficulty enforcing the rules consistently. There may be more complaints regarding selective enforcement, especially if the homeowners interpret the governing documents differently.
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