HOA CC&R: What Is It And Why It’s Important In A Community

The HOA CC&R serves an important purpose in preserving peace and order and property values in the community. Many homeowners don’t quite understand what a CC&R is and how it can affect them. While associations can have varying restrictions, most carry penalties for noncompliance.

HOA CC&R Defined: What Is CC&R in HOAs?

A homeowners association is established and regulated by its governing documents. One of these governing documents is none other than the CC&Rs. But, what is a CCR? How do you define this term?

What Is CC and R? What Does CC&R Mean?

Short for Covenants, Conditions, and Restrictions, the CC&Rs are foundational guidelines that govern homeowners’ behavior and property use in an HOA. In other words, the CC & R’s definition is that they dictate what homeowners can and can’t do. These legally binding rules help maintain consistency and harmony in a community.

Most homeowners associations come with a set of CC&Rs. When a person buys a home in an HOA or planned development, they are most likely joining an association. By doing this, they agree to follow the covenants and restrictions in the community. Since the objective of a CC&R in real estate is to preserve property values, homeowners are the ones who stand to benefit from them in the long run.

More often than not, HOA CC&Rs are reasonable and easy to follow. The HOA may require homeowners to keep their lawns mowed, which most owners would do without CC&Rs.

Other times, owners may find that an HOA’s rules interfere with their plans. For example, an owner may want to install a fence, but the HOA’s rules don’t allow it. Violating the CC&Rs can result in several penalties, including monetary ones. In some cases, an HOA may even take legal action. As such, potential buyers should review an association’s CC&R first before finalizing the purchase.

Why Is an HOA CC&R Important?

The primary objective of an HOA’s CC&Rs is to preserve and improve property values within the community. This document outlines the rights and obligations of both owners and the association itself. These obligations contribute to the enhancement of the association and maintain a high standard of living in the neighborhood.

The purpose of the rules is to keep everything and everyone in order. Architectural guidelines help maintain a consistent and uniform aesthetic, thereby ensuring character and visual appeal. Other rules, such as noise rules and pet restrictions, aim to maintain peace and a high quality of life. All of these things work together to attract potential buyers, raise curb appeal, and protect property values.

What Are CC&Rs in Real Estate?

CC&R stands for Covenants, Conditions, and Restrictions. In real estate, CC&Rs refer to the same thing — this is a document outlining all of the covenants, conditions, and restrictions governing a piece of property or real estate. You typically find them in HOA communities or common interest developments.

Associations must normally file and record their HOA CC&Rs with their county recorder’s office. This makes them valid and enforceable. If an HOA wishes to amend its CC&Rs, it must do so using the proper procedures. This usually involves securing a majority vote of approval from the membership and recordation of the amendment with the county.

How Are HOA CC&Rs Created?

For most associations, the creation of CC&Rs begins with the developer. Builders or developers of planned communities must craft and record community documents, including CC&Rs, to establish an HOA. Later on, when the HOA passes to the hands of homeowners, the HOA board can make amendments to the CC&Rs.

CCNR Meaning

To break it down even further, here is a definition of each element in the CC&R’s:

Covenants

These are the promises that a buyer or homeowner makes to the association or common interest development. For example, a buyer promises to follow the governing documents and pay their dues regularly. While a buyer does not formally sign a promise with the HOA, the promise is made inherently when they purchase the home. This is because the promise or covenant runs with the property itself, and the owner of the property should adhere to it.

Neighborhood covenants come in two forms: a positive covenant and a restrictive covenant. A positive covenant or affirmative covenant is a promise the buyer makes to do something, whereas a restrictive covenant is a promise the buyer makes not to do something.

Conditions

Conditions are things that must happen before a party to an agreement must fulfill their obligation. While all associations have CCR’s, very few have real conditions outlined within them. Technically, though, paying regular dues is a condition to retaining ownership of a home. This is because nonpayment can lead to foreclosure.

Restrictions

These are limitations on the use of a property. These typically come in the form of restrictive covenants, which tell owners what they can’t do. Common restrictions include architectural restrictions, pet restrictions, and parking restrictions.

Some restrictions also protect the rights of homeowners. For instance, an HOA may restrict the height of trees to protect the views of other owners or neighbors. These are called conferred rights.

The main goal of these restrictions is to maintain curb appeal and preserve property values. Additionally, restrictions help govern the behavior of homeowners, which keeps peace and order in the community.

Like covenants, restrictions also come in two categories:

• Equitable Servitudes. These are restrictions found in the CC&Rs. Changing such restrictions usually calls for a membership vote.
• Rules & Regulations. These are restrictions that the HOA board enacts or adopts, also known as operating rules. Changing the rules usually only requires the board’s vote.

HOA CC&R: Covenants vs Zoning Laws

While some owners may confuse covenants for zoning laws, the two legal terms have several differences. For one thing, covenants are agreements or promises between private parties. Typically, this agreement happens between an HOA and homeowners.

In contrast, zoning laws happen between homeowners and a government body. The state or local government is in charge of zoning laws, which makes them the only body able to enforce them against a private citizen.

Moreover, you record covenants in private deeds or the county recorder’s office. In comparison, zoning laws are laws, which means they are codified.

Finally, covenants are voluntary. This means a buyer has the option not to purchase the property in question if they dislike the covenants that come with it. Due to this, covenants tend to be more restrictive compared to zoning ordinances.

Common CC&R Examples in HOAs

Specific covenants and restrictions tend to vary from community to community. This is because what may work for one association may not necessarily suit the needs of another. That said, HOA and condo CC&Rs tend to fall under more general and common categories, including but not limited to:

• Architectural Rules. Most associations have architectural guidelines that dictate the architectural modifications, improvements, or additions that homeowners can make. For example, an HOA may not allow the installation of above-ground pools or sheds. An HOA may require owners to submit architectural requests before starting any project.
• Property Maintenance. An HOA’s CC&Rs may require homeowners to keep their lawns clean and mowed, keep exterior paint from peeling, and maintain their driveways. Sometimes, an association will provide lawn maintenance or landscaping services. Other times, this obligation is left in the hands of owners.
• Property Use. An HOA may have rules governing the use of homes in the community. For example, an HOA may not allow owners to use their properties commercially. Many associations also prohibit or limit rentals.
• Pets. Pet rules are very common among HOA communities. Some restrict the type, number, or breed of pets owners may keep. Others ban pets altogether, though this may be illegal, depending on the state. For instance, California law dictates that HOAs may not prohibit owners from keeping at least one pet.
• Parking. An HOA may restrict parking in specific spaces, such as private roads, or prohibit overnight parking for guests.
• Home Decorations. An HOA may regulate how owners can decorate their homes, including dictating the time and placement of decorations.
• Trash or Unsightly Items. An HOA may require owners to cover trash containers and utility meters or keep them hidden completely.
• Noise or Nuisance. Associations often prohibit owners from making too much noise, as it will interfere with other residents’ quiet enjoyment.
• Use of Common Spaces and Amenities. An HOA may enact rules that dictate the behavior of residents in common areas and amenities. For example, no running or no drinks in the pool area.

Other common HOA CC&R examples include restrictions on fence heights, smoking, the display of political signs, parties, noise, and basketball hoops. The exact nature, character, and needs of an association will generally influence the types of covenants and restrictions it has.

What Happens If You Violate CCRs?

Buying a home in an HOA means accepting the covenants and restrictions of the community. Homeowners even sign documents upon closing on a home. Sometimes, they will sign a document stating that they have read the homeowners association CC&R and agree to comply with them. Thus, owners should not be surprised when they receive a violation notice after breaking a rule.

Depending on state laws and the CC&Rs, an HOA can enforce several penalties for violations. These include the following:

• Monetary fines;
• Temporary suspension of member privileges, such as the right to use common areas and facilities;
• Forced compliance; and,
• Legal action.

An HOA usually serves the owner with a violation notice and allows them to correct the violation, especially if it’s their first offense. If the violation isn’t cured, the HOA will take further action. Owners typically get to appear before the board at a disciplinary hearing. Since procedures and requirements can vary, it is important to check state laws and the HOA’s governing documents.

Where to Find HOA CC&R

Buyers typically receive a copy of the HOA’s CC&Rs, along with other documents, when they first purchase a home in the community. However, residents can also secure a copy through other ways, including but not limited to the following.

• HOA Board or Management. Owners can request HOA documents through the HOA board or community manager. Such a request may take time and cost money to produce copies.
• Website or Homeowner Portal. If an HOA maintains a website or portal, homeowners may be able to find the CC&Rs there.
• Public Records. In some states, homeowners can find an HOA’s CC&Rs in public records. Associations usually need to record their CC&Rs at the local county recorder’s office.

Variances and Exemption to HOA CC&R

While not very common, an HOA will sometimes grant or accommodate exemptions to the rules. A homeowner may attempt to ask their HOA for an exemption to an existing covenant. This is also known as a variance.

An HOA usually accommodates an exemption if a rule or restriction would result in undue hardship for the homeowner. For example, a homeowner with vision impairments may require added exterior lighting. The HOA may grant them permission to install extra lights even though the CC&Rs have a limit.

Of course, an HOA should carefully review each request for exemption. Even though the added lights would help a visually impaired resident, a neighbor may complain of its adverse effects on them.

Understanding the Obligation to Pay Dues

One CC&R that applies to most, if not all, HOAs is the obligation to pay regular dues. Homeowners pay dues monthly, quarterly, or annually to meet the community’s needs. The HOA uses these dues to pay for various expenses and keep the reserve fund at an appropriate level.

The HOA CCRs will usually outline the financial obligations of homeowners, including the fees they must pay, how these fees are calculated and collected, and any penalties for nonpayment. Penalties can range from charging a late fee or interest rate to placing a lien on the home.

Depending on the powers of the HOA, foreclosure proceedings can quickly follow. That means homeowners can lose their homes if they fail to pay their dues and assessments.

The Difference Between HOA CC&Rs and Bylaws

Many homeowners and board members use the terms CC&Rs and bylaws interchangeably. However, they are not one and the same. As a refresher, here is the CC&R meaning: CC&Rs are foundational guidelines that govern homeowners’ behavior and property use in an HOA.

In contrast, the bylaws of an HOA dictate how the association operates. They consist of important information required to run the association as a corporation. The bylaws typically consist of the following:

• Meetings. These include the frequency of HOA board and membership meetings, how meetings must take place, and the notice requirements for each meeting.
• Board Members. These include the number of members on the board, the term of each board member, and the various responsibilities of the board. They can also cover how to remove members from the board.
• Elections. These include candidate requirements, nomination procedures, and election procedures.
• Voting Rights. These explain the voting rights of members.

The Difference Between HOA CC&R and Rules

Homeowners may find that their association also has operating rules that are separate from the CC&Rs. These rules and regulations act as a way to expound on or clarify the CC&Rs, often being more specific in nature and language. In terms of amendments, CC&Rs typically require a vote from the membership. However, amending the rules only usually requires board approval. Of course, this may change depending on state laws and the HOA’s documents.

The Importance of Reviewing HOA CC&R

An HOA’s CC&Rs are recorded and run with the land, which means they are legally binding and enforceable. If a homeowner violates the CC&Rs, the HOA can take certain penalizing actions against them. As such, it is crucial to understand and review an HOA’s CC&Rs prior to buying a home in the community.

Without reviewing the CC&Rs, buyers run the risk of blindly agreeing to the rules of an association. Later on, they may discover that they dislike the restrictions in the community. Architectural standards and property use restrictions are very common among HOAs. Some homeowners don’t like being told what they can and can’t do with their homes.

By reviewing the CC&Rs, buyers can make an informed decision. They can choose to back out of the sale and look for a different property if they disagree with the HOA’s rules. However, if they push through with the purchase, they may find themselves battling the HOA and facing a multitude of violations.

HOA CC&R Definition Explained

The HOA CC&R is crucial for maintaining consistency and order in a community. They also help preserve curb appeal as well as property values. Homeowners who purchase properties in an HOA agree to abide by these regulations or else face certain penalties. As such, before purchasing a home, buyers should review the CC&Rs to understand what they are potentially getting into.

Navigating the ins and outs of an HOA’s governing documents can come as a challenge for an inexperienced or self-managed board. An HOA management company, though, can help. Start looking for one in your area using our online directory!

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