Have your Association documents been amended in the past decade? If your answer to this question is “NO”, now is the time to act! Almost every year over the past two decades, the Arizona legislature passed new laws regarding HOAs and condos. It is very possible your association’s documents are in conflict with many of the new laws. Your association should seriously consider spending time over the summer months planning and strategizing about amendments to your association’s documents.
As a starting point, the most common reasons for amending association documents are the following: to delete or modify restrictions that are outdated, ambiguous or unreasonable; to comply with changes in federal, state and local laws or ordinances; to delete or modify provisions inconsistent with the management and operation of the association; to delete provisions regarding the rights of the developer after the developer is no longer in control; and to correct provisions that conflict with other governing documents (bylaws, articles of incorporation and rules and regulations).
Because there are several requirements which must be met prior to amending an association’s documents, an association’s board should consult with Mulcahy Law Firm, P.C. to prepare a strategy for amending the documents to assure that they meet the needs of the association and are enforceable.
- Step One: Determine what is required to amend the documents
- Step Two: Review the documents for changes and draft the proposed changes.
- Step Three: Educate and solicit community support of the proposed changes.
- Step Four: Develop a plan and a reasonable time frame for obtaining approval of the proposed amendments.
- Step Five: Finalize and record the CC&Rs.
The cost range in terms of legal fees to amend association documents is between $800-$5,000. The cost will depend on how many changes there are and also how many drafts of the document are needed.
The Mulcahy Law Firm, P.C. has successfully assisted hundreds of associations in the process of amending documents using this tested five step plan. We have many great resources for associations regarding this topic including our Mulcahy Cheat Sheet entitled, Amending Association Documents & Implementing Rental Restrictions. Our firm offers a free 15-minute review of association documents to give suggestions on what needs to be amended and the amendment process. Please contact Beth Mulcahy, Esq. at bmulcahy@mulcahylawfirm.com for more information on the amendment process and the free 15 minute document review.
