Tag: Business Judgment Rule

Set Procedure for Making HOA Rule Exceptions

Every planned community has homeowners association rules, tailored specifically to the nature of the community, its members, and its board of directors. For example, an age-restricted community will have different rules than a condo building. It's important that, as the community manager, you strike a balance between making sure that the agreed-upon rules designed to keep the community operating successfully and its members happy are appropriately, but not overzealously, enforced.

Zoning Ordinance Didn’t Trump Day Care Business Covenant

Facts: A planned unit development (PUD) zoning ordinance established a residential community with a homeowners association. The association's declaration had a restrictive covenant banning members from operating businesses from their homes. The association later discovered that two members were running day care businesses in their homes, which violated the restrictive covenant in the declaration.