Why An HOA Needs To Have Bylaws

Homeowners associations are known to maintain property values and protect homeowners from external threats.  An HOA also safeguards a community’s quality of life.  Board members are responsible for deciding what is in the best interest of the community, but they have guidelines and specific governing documents that provide direction on how to make those decisions.

 

Homeowners that visit the community website know that bylaws are one such document which explains how an HOA operates under certain circumstances and who can vote at board meetings.  Here are the reasons why an HOA needs to have bylaws.

 

A corresponding set of rules can help avoid situations that could escalate into something more serious.  HOA members must follow the rules if bylaws are implemented, otherwise, there could be no guidelines to follow.  You could have neighbors arguing over a fence or not being allowed to have pets.  If there’s no rule stating that someone isn’t allowed to put up a fence or have a pet, what would stop them from doing so?

 

An HOA needs to have bylaws since they state the general duties of the board.  That includes decisions about how members are accepted and what happens if someone doesn’t pay their dues on time.  On the community website, you might find a copy of the bylaws where it explains that someone who is accused of breaking a rule could end up in court.  If this doesn’t work, they might be evicted from the community.

 

Board members also have a fiduciary responsibility to their community and the financial well-being of its residents; they can’t use their position as a board member to act contrary to the interests of the community or its residents.  Furthermore, directors have a fiduciary duty to act on behalf of other members concerning issues that have been entrusted to them.  In other words, they should act with care and loyalty in undertaking their duties and avoid prioritizing their own interests.

 

Without bylaws, HOA’s may be able to take any action they want.  However, bylaws allow HOA’s to clearly discuss their expectations of a property owner and their responsibilities for the upkeep of an area.  Though an HOA has many rights over homeowners, these regulations only help the community stay organized and ensure everyone follows the rules.