When to Amend Your Governing Documents
Maintenance isn’t limited to buildings and common areas – it also applies to your homeowners' association (HOA) governing documents.
Laws, technologies, and responsibilities are always changing, and discrepancies between these and your governing documents can arise over time. It's crucial to update your governing documents periodically and ensure they remain relevant and enforceable.
Since amending your governing documents takes significant effort, it can be difficult to determine which adjustments should be prioritized. Wondering when to amend your governing documents? Here are five signs that it's time.
1. Lack of proxy voting rights.
Between jobs, kids, and everyday life, homeowners today are busier than ever. Unfortunately, that means they might not have time to cast their ballots in person for an HOA election.
Voter participation is critical to the success of any HOA. Everyone should have a voice in the community's governance. If your governing documents don’t give residents the ability to vote by proxy, it’s time to consider an amendment.
What's a proxy?
A proxy is a document that a homeowner signs to designate another person to act on their behalf. This document allows someone to vote for them if they're unable to attend the meeting or cast their vote themselves.
2. Outdated communication requirements.
With the technology we have at our disposal, there’s no reason to hand-deliver meeting minutes, send packets via snail mail, and keep homeowners from voting digitally.
If your communication requirements haven't been modernized, revise them. Changing the communication methods in your governing documents will improve efficiency and reduce costs for your association, as well as provide added convenience for your homeowners.
Popular HOA Communication Tools
- Community website
- Newsletter
- Welcome packets
- Community app
- Bulletin boards
RELATED: 6 Ways to Ramp Up Your Board's Communication Efforts
3. Ambiguous or missing information.
Unclear information leads to unclear responsibilities. If your board ensures that owners know which maintenance tasks fall on them and defines the boundaries of each unit, you can prevent disputes before they start. And if your documents are silent on any items that need clarification, that’s another reason to make an update.
4. Old developer declarant rights.
In most governing documents, there are many declarant rights from a developer’s standpoint. If your community has transitioned to self-governance, these are likely no longer relevant or needed. Work with experts to remove these old rights and clean up your documents to prevent confusion and excess language.
5. Misalignment with state laws.
It’s very common for governing documents to contradict state laws. For example, the Minnesota Common Interest Ownership Act is the main law governing HOAs in Minnesota, and many older communities don’t have documents referencing that act – even though it was created to protect them and they would benefit from mentioning that they’ve opted into it.
If your governing documents are outdated, you could be missing out on the full benefits of your own state’s regulations or risk legal issues with non-compliance. Be sure to stay up to date on legal news in your area. If you have questions or need guidance, don't hesitate to connect with a local lawyer who has experience with community associations.
"Do your due diligence and double-check that the proposed [change] doesn’t violate local, state, or federal laws or other community policies. I also recommend having your association’s legal counsel review any rule changes." - Michele Nadeau, CMCA®, AMS®, PCAM®, Legum & Norman
More: How to Amend Governing Documents
Amending your governing documents can take considerable effort, so knowing where to focus first can help you and your homeowners reap the greatest rewards. Seeing the difference these updates make in your community will also help your board prioritize future changes.
If you've decided it's time to update your governing documents, read our article: 10 Steps For Amending Your HOA Documents.
Amending Governing Documents FAQs
What is the difference between amending and revising bylaws?
Typically, a bylaw amendment is a specific or small change to an existing rule. When you revise bylaws, you make significant changes and completely overhaul the document.
How often do you update bylaws?
Governing documents should typically be amended every 3 to 5 years.
Do you need a lawyer to change bylaws?
While a lawyer isn't required to change bylaws, getting their oversight and sign-off is recommended to ensure legal compliance.