Re: Where to put the rules and regulations?
From: Sharon Villines (sharonsharonvillines.com)
Date: Wed, 20 Oct 2004 07:36:20 -0700 (PDT)

On Oct 20, 2004, at 12:57 AM, David Heimann wrote:

        We have been in touch with a couple of lawyers who have suggested
that the more important rules and regulations (creating and managing a
waiting list, requiring that a new purchaser of a unit go through an
information process and acknowledge that they understand what they've been presented, etc.) be a part of the Master Deed and/or Bylaws by reference,
while the other rules and regulations (smoking, pets, noise, etc.) be a
separate more-easily-changed document. This is the first time that we've
heard of two separate kinds of Rules and Regulations.

It isn't two separate sets of rules and regulations -- just terminology. Your Bylaws should include the more important rules and regulations because they are harder to change. If they are included in the Bylaws, they are Bylaws.

Rules and regulations, "community rules", "community agreements" cover things that can be changed by the community without consulting lenders.

Bylaws are important for banks and purchaser's lawyers so they can see a stable well-run property. The Bylaws cannot be changed without consent of a percentage of the owners AND their lenders. Mortgage lenders have to approve Bylaws changes. They will want to see procedures for buying and selling, noise, responsibility for damages, etc. in the Bylaws. Anything that will affect property values and the desirability of purchasing property in the community.

"Weird" or suspect Bylaws that are unusually vague or restrictive can upset lawyers and banks when it comes time to approve mortgages or purchases. BUT you don't have to be hysterical about this. Most people who buy into cohousing have made their decision before they get to the lawyer reviewing papers and do not have many choices. It isn't as if they are comparing 2-3 communities and choosing the one with the best Bylaws -- as may be the case with a standard condo purchase.

Much more important is to have clearly written and organized bylaws. Put all information pertaining to the election of the board in one place. We have really well-written bylaws (I think) but we have circular discussions over whether we have to have at large members or not because if you read one section, you do but if you also read another, it's up the the membership. The whole document as to be read in its entirety to be understood correctly. Often members don't do that.

We now have web version so we can search "election" and "votes" or "common elements" and find all the related sections easily.

Writing Bylaws is an art. I haven't looked lately but try NOLO press and see what they have. They usually have excellent, people friendly books on all things legal.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org


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