Helpful info for those people will live under a homeowner's association or people who are on the board of directors of a community association.
Thursday, June 16, 2016
Where does an HOA get their authority?
Representatives on our community association board hold considerable obligations, and they are given legal right to execute their part. What is the source of this right?
To start with, a majority of states have ordinances — for example, a condominium act or homeowner association act that legally grants elected volunteer community association boards the ability to act in the name of all owners taken as a group. Additionally, our association is constrained by to the state’s nonprofit corporation code, which bestows on the board the power to take action in the name of the corporation.
Secondly, the association’s guiding document including the declaration; bylaws; and covenants, conditions and restrictions — which are held by the state to be binding documents, give legal authority to the board and delineate the breadth of that authority.
In contrast, though, the identical ordinances and documents that grant boards legal authority to impose fines and set guidelines also engender the requirement that elected board members act diligently.
Labels:
authority,
board,
HOA,
regulations
Location:
Denton, TX, USA
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