Why Your Governing Documents Matter

Have you ever felt stuck with neighborhood rules that no longer make sense? Were your governing documents written in the last century and haven’t been updated in decades? 

It’s helpful to think of your governing documents as a neighborhood constitution that helps keep things fair. Just as with any set of laws, these documents sometimes need updating to remain useful. Utah law provides clear paths for boards and homeowners to reclaim control of their communities. You have the power to fix your playbook and make it work for your neighborhood as it functions today, not just how it functioned 30 years ago.

Know Your Paperwork: The Five Pieces of the HOA Puzzle

Under Section 57-8a-102 of the Community Association Act, your neighborhood is run by governing documents. These are the written tools the association uses to manage the property and run the community. There are five main pieces to this puzzle:

• Articles of Incorporation
• Bylaws
• CC&Rs (Declaration)
• Plats
• Rules

Breaking the Impossible Vote Barrier

In the past, there was no cap on the voting threshold required to amend governing documents, which meant that very high thresholds often made it impossible to amend outdated documents. Section 57-8a-104 addresses this by setting a 67% voting limit on amendments to any governing document. The minimum requirement to pass an amendment is 51%, but the cap can be no more than 67%. This law applies to an HOA regardless of when it was created, thereby overruling any old document with a higher threshold.

There is an exception to this 67% cap. Section 57-8a-104(1)(b) allows a higher threshold for one of two instances:

• The amendment affects only lot boundaries; or
• The amendment affects many owners’ voting rights.

Section 57-8a-104 doesn’t address only voting thresholds for amendments. In addition to the threshold cap, the governing documents cannot require:

• The approval of any specific lot owner;
• The vote or approval of lien holders holding more than 67% of the first position security interests secured by a mortgage or trust deed in the association;
• A prohibition or approval during a particular time period; or
• That the board alone has the right to amend the CC&Rs.

It’s important to note that these requirements only exist after the period of administrative control. This period of administrative control is just a legal term for the time when the developer is still in charge of the neighborhood. During the period of administrative control, the Community Association Act defers to the governing documents, which often grant the developer sole discretion to amend them. After the association has been handed over to the community, the thresholds above would apply.

These requirements ensure that neighborhoods can respond to new issues as soon as they occur, that homeowners have a say in the process, and that no single person has the right to single-handedly torpedo it.

Amendment Logistics: How Does the Amendment Process Actually Work?

Each type of governing document will contain requirements as to how to amend that particular document, so you should always refer to each document for specifics. From a state law perspective, to hold an official meeting for an amendment vote, at least 51% of the owners must be present under Section 57-8a-104(1)(a)(ii). This is called a quorum under Section 16-6a-714 of the Utah Revised Nonprofit Corporation Act. Once you have a quorum, a majority of those voters can usually pass the amendment. Your specific rules might require a slightly higher number, but again, that requirement can never go above 67%.

Some documents, such as the CC&Rs and Bylaws, must be recorded with the county to become binding on all homeowners. If your community amends these documents, they must be re-recorded with the county Recorder’s office. Even if a document is approved by member vote, it does not become binding on all homeowners until it is recorded with the county. Be sure to check with your county Recorder for any filing requirements. 

Rules are different. They do not need to be recorded with the county and are usually adopted by the board, with members thereafter having the right to disapprove. For more on how this works, see the Rules section.

Looking Forward: A Better Neighborhood Starts with You

Utah law is designed to make updating your community rules achievable. You have the right to help shape how your neighborhood is run and managed. Participating in the amendment process is an important way to ensure your voice is heard and the character of your community is preserved.

When neighbors work together to update their playbook, everyone wins. A fair and modern set of rules leads to a much higher quality of life. Your community’s future is in your hands.