Amending your Governing Documents
Source: https://www.callbp.com/wp-content/uploads/2024/10/Becker-Legislative-Guide-2024.pdf
Proposed outline can be viewed here.
Century Village has changed since its construction in the 1970’s, unfortunately, the same cannot be said for the Governing Documents of the Associations. The Board Directors find themselves bound to antiquated covenants and rules that no longer function with the modern expectations and lifestyles of the Century Village residents.
When an Association wants to change their Documents, the process can seem daunting and not worthwhile. Amendments require the approval of the owners, Drafting of new legal language from the Association’s attorney, mailings, proxies, meetings, and expense. Association’s may find amending the Documents cost prohibitive to pursue, especially if the proposed amendments don’t seem likely to pass.
Associations who have properly budgeted to make these modernizations to their Governing Documents, the process is fairly straightforward. The Board consults the Association’s attorney concerning the proposed changes. The Attorney will draft the language and the meeting notice to be sent to all the unit owners.
The Statutes require that the meeting notice be sent a minimum of fourteen (14) days prior to the date of the meeting. We recommend that the letter be sent prior to the deadline. Allowing additional time to ensure the collection of proxies for the vote. On the day of the meeting, if enough proxies/votes to either pass or reject the amendment have not been collected, the meeting can be recessed the meeting and continue to collect proxies for up to ninety (90) days after the date of the meeting.
If the Amendment is passed, the Board will send the documentation to the Attorney recording the amendment with the county to formally change the documents. The Board will retain the votes and other documentation as part of the Association records.
When considering amending the documents, there is a caveat to be kept in mind. Should an amendment pass, those unit owners who vote against the amendment will not be held to the change. The Association will need to keep track of those owners who are exempt from the change until the unit is transferred. The new owner will be subject to the new amendments.
Step by step process for amending the Documents:
- Discuss with the Board and unit owners what amendments may be desired.
- Contact the Association attorney to draft legal language.
- Mail the notice, proposed amendments, and proxy to all unit owners at least fourteen (14) days prior to the meeting date, preferably more.
- Collect and count the votes/proxies on the day of the meeting; if there are not enough votes, recess the meeting and continue to collect for up to ninety (90) days after the day of the meeting.
- If approved, submit the documentation to the Association attorney to file the amendment with the county.
- Send a copy of the amendment to each unit owner to add to their copy of the Governing Documents.
- Track those who are exempt from the change as needed.
Examples of worthwhile amendments:
- Rental Restrictions; including but now limited to, rental moratorium, minimum lease length, maximum lease length, maximum number of rented units at a single time.
- Pet restrictions; maximum weight, maximum number of pets, breed restrictions.
- Electronic voting; allow unit owners to cast votes electronically.
For more information, please visit the links below:
If you have the 1999 UCO Model Documents, Article VII, states that "this Declaration may not be amended without the written approval of the Lessor under the Long-Term Lease, which said approval shall not be unreasonably withheld."