The Governing Documents Pyramid

Each governing document of a community association is an essential piece that holds the association together. The governing documents create a legally binding relationship between the owner and the association, allow for a well-defined operation of the community and promote harmonious living.

One of the most important things to understand when dealing with a community association’s governing documents is the hierarchy of authority for these documents. Understanding this hierarchy is essential when enforcing rules, drafting resolutions or dealing with already existing conflicts between documents. The hierarchy of documents is best summarized by the Governing Documents Pyramid.

Documents that fall lower on the hierarchy cannot or change any of the documents that are above them. It is critical that boards check the documents that fall higher on the hierarchy before amending documents or writing resolutions.

For example, if a board decides to increase the association’s late fee, they should first check the declaration. If the declaration explicitly states that a $10 late fee be imposed, then the board cannot raise the late fee without first amending the declaration, which will require a vote by the owners.

By doing their due diligence, the board will minimize the headache that inevitably comes along when dealing with conflicts between documents. Case law, federal law and state law should also be taken into consideration, as they trump all of the governing documents of a community association.

Conflicts between documents often already exist. In this case, the higher document will take precedence. It is important that boards seek legal counsel, or the counsel of their Community Manager, if they discover a discrepancy between their documents, or if their documents conflict with case, federal or state law.

For further reading on this topic please refer to: M100 Participant Guide: The Essentials of Community Association Management by Community Associations Institute