Learn how an HOA's Declaration of Covenants, Conditions, and Restrictions and bylaws differ.
By Amy Loftsgordon, Attorney (University of Denver Sturm College of Law)
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.
- CC&Rs. 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.
- Bylaws. 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?
Again, 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. 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 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 meetings
- how the meetings are conducted
- the duties of the various offices of the board of directors
- how many people are on the board, and
- membership voting rights.
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
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.
