The HOA CC&R is a document integral to the operation and organization of a homeowners association. Both board members and homeowners must understand the function and importance of this document, as well as how to find it and amend it.
CC&R Meaning Explained
The CC&Rs are short for “Covenants, Conditions, and Restrictions.” This is a legal document that outlines the rights and responsibilities of homeowners regarding their properties or units.
To better define CC&R in real estate, it is important to describe its three components:
- Covenant. A covenant is an agreement between the homeowner and the HOA. For example, homeowners agree to abide by the association’s rules.
- Condition. Conditions outline how homeowners should use, maintain, and present their properties. They cover standards for appearance and upkeep.
- Restriction. Restrictions set limits on what owners can do with their property. They may control landscaping choices or prohibit certain structures.
Every HOA and condo association has a set of CC&Rs. Other names include covenants, CCRs, and the declaration.
The Importance of the CC&Rs
The purpose of the HOA CC&R is to establish a unified framework for community operations and aesthetics. They are legally binding rules that homeowners agree to when they purchase property within an HOA or condo association.
The main objectives of these covenants and restrictions include:
- Preserving Property Values. By setting standards for maintenance, appearance, and use of homes, CC&Rs help keep the community attractive and desirable.
- Ensuring Uniformity. Rules on landscaping, exterior paint colors, building additions, and similar items create a cohesive neighborhood look.
- Promoting Harmony. Restrictions on nuisances, noise, and activities reduce conflicts among neighbors.
- Protecting Shared Resources. CC&Rs outline responsibilities for maintaining common areas, utilities, or amenities.
- Defining Owner Rights and Limits. They explain what homeowners can and cannot do, ensuring fairness across the community.
In short, CC&Rs act as the rulebook for the community. They balance individual property rights with the collective interests of all residents.
Common Examples of CCRs
While no two associations are exactly alike, many CC&Rs share similarities. These include:
- Property Maintenance. The HOA CC&R might require owners to maintain their homes, specifically the exterior appearance. This can include patios and yards.
- Architectural Standards. Many associations have strict architectural rules that homeowners must follow. Examples include what paint color to use for home exteriors and materials for fences.
- Rental Restrictions. It is common for HOAs to restrict or completely prohibit rentals, specifically short-term rentals, within the community.
- Pet Policies. Some communities ban pets altogether, while others limit the breed, number, and type of pets owners can keep.
- Decoration Rules. These rules typically dictate what types of decorations homeowners can use and when they should be taken down.
- Parking Regulations. Associations might regulate where owners can park and prohibit overnight parking for guests.
A Guide to Amending CC&Rs
Homeowners associations can amend their CC&Rs, but it takes more than a simple board decision and resolution. In Maryland, there are certain requirements that the HOA must meet in accordance with Section 11B-116.
Voting Participants
Only homeowners in good standing can participate in the vote. This means they can’t be more than 90 days behind on dues or charges owed to the HOA.
Voting Requirement
An amendment requires the affirmative vote of at least 60% of lot owners in good standing, unless the governing documents themselves require a lower percentage.
For condominiums, Section 11-103 requires the written consent of 66 ⅔ percent of the unit owners to amend the declaration.
Mortgage Holder Consent
If the governing documents state that mortgage holders or deed of trust holders must consent:
- The HOA must send them a copy of the proposed amendment.
- If they do not object in writing within 60 days of receiving it, their consent is assumed.
Exceptions
This “deemed consent” rule does not apply if the amendment would:
- Change the priority of the lender’s lien.
- Significantly reduce the property’s value as collateral.
- Interfere with the lender’s legal rights under the mortgage or deed of trust.
What Happens When Homeowners Violate HOA Covenants?
Homeowners have a responsibility to abide by the association’s CC&Rs. When they commit a violation, they can face several potential consequences.
Notice and Hearing
When a homeowner violates a rule, the HOA must send a letter or notice. This notice should specify the violation, explain how the homeowner can remedy it, and provide a deadline for compliance. Section 11B-111.10 (for HOAs) and Section 11-113 (for condos) state that homeowners must have at least 15 days to remedy the violation.
If the homeowner doesn’t remedy the violation by the deadline, the association must notify the owner of their right to a hearing. This notice must be delivered within 12 months of the original notice.
If the homeowner requests a hearing, the board must provide notice of the time and place. This hearing must occur no sooner than 10 days after submitting the request for a hearing.
Monetary Fines
If the board determines that a homeowner has violated the HOA CC&R, it can issue fines. Of course, the governing documents should clearly state the authority to do so.
Suspension of Privileges
Following notice and a hearing, an HOA can temporarily suspend a homeowner’s privileges. This includes access to amenities and services as well as voting rights.
Forced Compliance
An HOA can ask the circuit court to require a homeowner to stop or fix a violation. They are not obligated to complete the entire hearing process before filing the lawsuit.
Under Section 11B-111.10 of the HOA Act and Section 11-113 of the Condo Act, the court has the authority to issue an injunction compelling compliance. For instance, a judge may order a homeowner to remove an unapproved structure or exterior change.
How to Find HOA CC&R
There are several ways homeowners can access an association’s CC&Rs. These include the following:
Upon Purchase
Associations typically provide disclosure documents to buyers. These documents include the CC&Rs, among other things. Buyers get the chance to review these documents and determine if they wish to continue with the purchase.
In Public Records
Associations must file their CC&Rs with the county clerk’s office. If an HOA amends its documents, it must record the amendment with the county as well. Thus, homeowners can access the HOA CC&R through this agency.
Records Inspection Request
Homeowners can submit a written request to their HOA to review or copy the governing documents, including the CC&Rs. This right is reflected under Section 11B-112 of the Maryland HOA Act and Section 11-116 of the Condominium Act.
HOA Website
Some associations maintain a website where they publish essential information, including the governing documents. Homeowners can then access these documents easily by checking the website or logging into the owner portal.
The Final Word
The HOA CC&R plays a vital role in preserving property values. Homeowners should understand this document to avoid penalties. Meanwhile, board members should do the same to avoid potential liability for the association.
Majerle Management, Inc. provides enforcement assistance to HOAs and condo associations in Maryland. Call us today at (301) 220-1850 or contact us online to get started!
RELATED ARTICLES:
- How To Request HOA Documents For Maryland HOAs
- HOA Board Responsibilities And Duties
- HOA Late Fees: Are They Lawful And Upto How Much Can Be Charged?