December 26, 2011

Statement of Rights Summary

2011 December 26
See History for brief descriptions of changes and updates. 

__ Another post, Statement of Rights, provide the Statement of Rights with background and explanation/support for each of the listed 26 rights.  Since some readers may be interested only in the rights but not the detail, this post provides only the rights with minimal introduction and explanation. 

__ The continuation of this post is a Statement of Rights Summary for owners/members in a CID/POA.  Your suggestions, recommendations and concerns are requested and are welcome.  Just add a comment.  Thanks.

Don Nordeen
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Continue reading the Statement of Rights Summary.
  • Key Words:  Legislation, CID & POA Model & Content; Legislative Issues & Proposals; POA Governance; POA Board of Directors Issues; POA Members' Rights; Private Government; access to records; ADR; alternate dispute resolution; alternative dispute resolution; annual meeting; arbitrary; arbitrary and capricious; Armand Arabian; attorney; attorney client privilege; attorney general; attorney obligation; audit; bill of rights; board of directors; board of trustees; board of stewards; CC&R; CC&Rs; closed meeting; closed session; common interest community; common interest development; community association; Covenants Conditions and Restrictions; democracy; democratic; dispute; dispute resolution; executive session; fair election; freedom of information; GAAP; governance; governing documents; Homeowner Bill of Rights; homeowners associations; land development; Legislation, CID & POA Model & Content; legislative issues & proposals; meeting; members' meeting; members' rights; model act; nonprofit corporation; non-profit corporation; obligation; ombudsman; open meetings; planned communities; planned unit development; POA governance; POA members' rights; POA problems; POAs, general; preservation; preservation fund; private government; property owners association; property rights; proxies; proxy; proxy vote; proxy voting; public policy; reference materials & papers; reserve; reserve fund; special meeting; statement of rights; transparency; trustee; vote; voting
Read the continuation of this Post and any Comments.  Or Click Show All for the Above Introduction and the Continuation of this Post and any Comments.

Summary — Statement of Rights for Owners in Common Interest Developments and Members in Property Owners Associations (continued)

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Statement of Rights

    Preamble and Fundamental Purpose — All political power is inherent in the owners/members, and a property owners association derives its just powers from the consent of the governed, and is established to protect and maintain their individual rights, and instituted for their equal benefit and protection.  

1.  Rights under Federal and State Constitutions.  The rights of each owner/member under the Federal and State Constitutions and under federal and state laws shall not be abridged.

2.  Superior Rights.  Each owner in a common interest development and member of a property owners association shall enjoy these rights as superior rights.  Only those laws, restrictive covenants and other governing documents not inconsistent with these superior rights shall be valid.

3.  Limitations on Restrictive Covenants.  Restrictive Covenants, and more generally, Covenants, Conditions and Restrictions (CC&Rs), shall be operative upon use of the land by any owner having notice of it and are not personal to the owner, except for mandatory membership of the owner in the owners association and personal conduct on common properties of the association that trespass on the rights of other owners/members. 

4.  Right of Membership.  Each owner/member who owns property subject to covenants, conditions and restrictions (CC&Rs) shall be a member with full members' rights of any Association to which the member must make mandatory payments or that has the authority to enforce the CC&Rs as defined therein.  Voting rights shall not be abridged.

5.  Right to a Property Owners Association with Limited Purposes and Devoted to Those Purposes.   The purposes of the Association shall be specific and limited and shall only be (1) to provide stewardship for the common interests as defined in the CC&Rs, (2) to protect the rights of the owners/members, and (3) to provide those functions required by law.  The Association shall be of the members, by the members and for the members.

6.  Right to Democratic Governance.  Each owner/member shall have to right to governance based on democratic principles, as defined in law for towns and villages adapted to the unique aspects of CIDs/POAs.

7.  Right to Limited Powers for the Board of Stewards.   Each owner/member has the right that powers of the Board of Stewards shall be limited to those required for the Board to manage the purposes of the Association and to facilitate administration of matters reserved to the owners/members.
Memo:  The word "stewards" rather than "directors" is used to emphasize stewardship for the members and the POA, as opposed to directing. 

8.  Right to Fairness and Civility in Governance.  Each owner/member shall have the right to fairness and civility in all governance and interactions between each owner/member and directors, officers, agents, and staff.

9.  Right to Control and Amend the Governing Documents.   Owners/members shall have the right to propose changes, and the exclusive right to approve changes, to any or all provisions in the governing documents.   Amendments (improve, correct, modify,alter, adjust, fix, remedy, and refine excluding drastic change,terminate, and/or rescind) to existing provisions shall require approval of a majority or higher percentage of owners and then shall be binding on all owners.   New provisions, drastic changes, terminations, rescissions and/or nonuniform provisions shall require approval of all owners.

10.  Right of Notice and Stability in Rules and Charges.    Each owner/member shall have the right of use and enjoyment of the common property of the Association.  Rules and charges for services and benefits enacted by the Association shall be limited to administration and implementation of the provisions in the CC&Rs.  No rule or charge is valid until properly noticed to each owner/member.  Where the Board of Stewards has power to change operating rules and charges, the owners/members shall have notice and an opportunity, by majority vote, to override new and/or revised rules and charges.  No fine or other remedy can be assessed except by the court of jurisdiction.

11.  Right to Assemble.  Owners/members shall have the right to assemble including the use of the Association's facilities and the Association's communication tools for giving notice and provided related information to other owners/members.

12.  Right to Vote and to Fair Elections.  Each owner/member shall have the right to self-nominate or nominate another owner/member to serve on the association's governing bodies and to vote by secret ballot in elections with fair voting procedures neither controlled nor administered by the Board of Stewards.

13.  Right to Vote on Other Matters at Members' Meetings.  Owners/members shall have the right to vote with fair voting procedures neither controlled nor administered by the Board of Stewards at members' meetings on all matters that materially affect their rights, benefits, current and future obligations, loans, bonds and _________, and before voting receive information from the Association that is full, accurate, timely and unbiased and also includes the members' dialogue at a deliberative members' meeting.

14.  Right to Approve Operating Plans and Budget.  Owners/members shall have the right annually to consider, amend and approve the long-range plans including financial implications, annual operating plan, annual budget, and annual assessment.  The Association shall provide the opportunity for owners/members to participate in their development.

15.  Right to be Informed and to Communicate with Other Owners/Members.  Owners/members shall have the right to receive full, accurate, timely and unbiased communications and notices from the Association, and the right to communicate with all members in the Association's publications and communication tools at no cost.

16.  Right to Open Meetings.  Owners/members shall have the same right to open meetings that citizens have to governmental meetings under the the Open Meetings Act.

17.  Right of Access to the Board of Stewards and its Proceedings.  Each owner/member shall have the right to a timely response from a petition to the board on any subject, and to speak at a board meeting on any subject under consideration before a vote is taken. The Board of Stewards shall provide a full, accurate, timely and unbiased accounting in writing of all Association actions.

18.  Right of Annual Members' Meetings.  Owners/Members shall have a right to an annual meeting of the members (1) to elect directors, (2) to be presented a full, accurate, timely and unbiased report by the board of its stewardship, and (3) for the consideration of and voting on other duly-noticed matters.  A written annual report shall be included in the notice of the annual meeting.

19.  Right of Special Members' Meetings.  Property owners shall have the right to petition for a special members' meeting to (1) recall a director or dismiss an officer appointed by the directors, (2) propose a resolution that would require the association to implement a specific course of action, or (3) propose a veto or rescission referendum to prevent a measure enacted by the board of stewards from going into effect.

20.  Right of Access to Association's Books and Records.  Each owner/member shall have the right to inspect and copy all books and records of the Association, with cost not to exceed the cost of copying, except:  (1) records that must be kept confidential by law; and (2) records on matters in progress for which the release can be delayed until completion but only if immediate release would cause material harm to the Association.  The provisions in the Freedom of Information Act shall apply where not inconsistent with the stated Right.

21.   Right to Certified Financial Reports.  The Board of Stewards of the Association shall certify to the owners/members that the books, records and financial reports are kept and published according to Generally Accepted Accounting Principles (GAAP) certified by a credentialed independent public accountant.

22.  Right to Ratify Transfers of Common Property.  Owners/members have the right to consider, amend and approve any proposed sales, leases, donations, easements, rights-of-way, and licenses of association-owned real property.  The Association shall annually certify to the owners/members that all assets are owned by the Association.

23.  Right to Fair Collection Methods and Takings.  No owner/member shall be subject to foreclosure by an Association unless unpaid assessments are two years in arrears, a reasonable payment plan has been offered, and effective notice of pending foreclosure has been provided.  Any foreclosure shall require judicial review.  The Association may not assess attorney fees unless approved by the court.  No private property may be taken without due process and just compensation.

24.  Right to Resolve Disputes Without Litigation.  Each owner/member shall have the right to a public dispute resolution process without litigation paid by the Association that provides due process, and is effective and timely.  Such process shall be before an impartial body not selected by the Board of Stewards.  Use of any alternative dispute resolution does not cancel the rights of appeal by the owner/member in the courts.

25.  Right to State Oversight and Fairness in Litigation.  Each owner/member shall have a right to oversight by the state similar to the oversight over towns and villages.  The oversight shall include an Office of Ombudsman which shall be a champion for the rights of owners/members.  There shall be fundamental fairness in funding of litigation between the Association and an individual owner/member.  If the owner/member prevails, the Association shall pay reasonable attorney fees.

26.  Right of Disclosure Prior to Purchase.  Prospective buyers have the right to a disclosure package that defines owners'/members' rights and obligations, governance of the association, financial condition, and current operating plan and budget.  Buyers shall designate in writing that the governing documents comprise a contract between the Association and the owner/member and among owners/members. 
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Please read the Statement of Rights for explanation and supporting documentation for the Statement of Rights described above. 

  • History:_ Changes are usually identified in the text with the date which facilitates searching by date. Edits are usually noted by add and delete changes. 
    • 2011 Dec 26 — Initial Post
  • Links:  Statement of Rights at [http://govpoa.blogspot.com/2011/12/statement-of-rights.html]


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Copyright © 2011
Donald L. Nordeen. All Rights Reserved.  See Copying Posts on This Weblog.
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