An enforceable rule must meet the minimum requirements of the law and the HOA’s governing documents. However, HOAs need more than just an enforceable rule, it needs to be a “good” one. In other words, it must meet the needs of the community and benefit the residents. While the goal is to create a decorum for the neighborhood, they must also be enforced in a court of law. Therefore, the following components apply to all enforceable rules within an HOA. In addition to becoming familiar with these, protect your association with a comprehensive and custom-tailored LA HOA Insurance policy, crafted specifically to meet your unique exposures.
According to Echo, the following make for an enforceable rule.
- The rule must be reasonable and sensible without being too punitive or controlling.
- It must be clear and specific.
- The rule must reasonably relate to the operation and purpose of the association, e.g., a rule should protect, preserve, or enhance the properties within the community.
- The rule must be consistent with applicable federal, state and local statutes (such as the Fair Housing Administration Act, the Americans With Disabilities Act, the Civil Rights Act).
- The rule must be in compliance with the law and with the HOA’s governing documents, also known as the CC&R’s.
- It must be enforced consistently. There should be no such thing as a “sporadically enforced” rule.
Stay tuned for the next part of this article as we will discuss what components are required for the rule to be considered a “good” one.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.