A Framework for Developing Reasona
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rafting reasonable and enforceable operating rules can be one of the most challenging tasks for a board. If done properly, it promotes a harmonious and enjoyable community, where expectations and consequences are clearly understood and respected. If rules are unreasonable and/or unclear and are not consistently and equitably enforced, resentment, distrust and discontent can build up in a community, not to mention legal fees. Rules should reflect the needs and best interests of a community at a given point in time. While boards have significant discretion in the content of rules, there is a legal framework that must be respected. The purpose of this article is to help boards develop rules within that legal framework. 34
DECEMBER 2022 | ECHO journal
Is This a Rule? The first question a board should answer before it starts down the road of implementing a new restriction, requirement, or procedure is whether it is an operating rule, a provision of the declaration of covenants, conditions, and restrictions (CC&Rs), or a provision of the corporation’s bylaws. Rules (sometimes called “Rules & Regulations,” “HOA Rules,” “House Rules,” or simply “Rules”) are called “operating rules” by the Davis-Stirling Act and are defined as “a regulation adopted by the board that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of the association” (Civ. Code § 4340). Rules are distinct from CC&Rs and