Adopting and Amending Rules

ADOPTING AND AMENDING RULES

"Operating Rules" are defined as any regulation adopted by the board of directors that applies to the management and operation of the association or the conduct of its business and affairs. Civil Code §1357.100 This includes pets, parking, use of the common areas, member discipline, architectural standards, election procedures, any schedule of monetary penalties, etc. Civil Code §1357.120(a)

Excluded are decisions relating to common area maintenance, a specific matter (as opposed to a general policy), assessment amounts, a nondiscretionary rule change required by law, or a rule that repeats existing law or the Association's Bylaws, CC&Rs or Articles of Incorporation. Civil Code §1357.120(b)

Enforceability. Civil Code §1357.110 An operating rule is enforceable if:

in writing,
within the board's authority,
consistent with governing law and the associations governing documents,
adopted in good faith, and
reasonable

Notice of Proposed Change. At least 30 days before a vote on adopting or amending an operating rule, the board must mail a copy of the proposed change to the members, along with an explanation of their purpose and effect.

Adoption in Open Meeting. After the 30-day period, the board may adopt the rules at a duly noticed open meeting of the board, taking into consideration of any comments made by association members. Civil Code §1357.130

Notice of Adoption. Within 15 days of voting on the rules, the board must notify the membership of the results of the vote. Civil Code §1357.130

Member Veto of Rule Change. Within 30 days of this notification, at least 5% of the members can request a special meeting to reverse the board vote. The board must give 10 to 90 days' notice of a special meeting, at which a majority of a quorum can reverse the board's decision. The board must notify the members of the results of this vote within 15 days. If an operating rule is reversed, it cannot be re-adopted by the board for at least one year. However, the board may vote on other "operating rules" covering the same subject. Civil Code §1357.140

Emergency Rule Change. If the board determines that an immediate rule change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the association, it may make an emergency rule change; and no notice is required. An emergency rule change is effective for 120 days. Civil Code §1357.130(d)

Updated by ADAMS KESSLER 6/30/2008