Can we change the CC&R’s or Bylaws?

The CCRs outline the amendment process in Article XIII, Section 13.2 (Pages 52–53)

  • Requirements to change (Section 13.2.1, Page 52):

    • Approval: At least 67% of the voting power of the Association, meaning 131 of 194 lot owners (each lot has one vote, Section 2.5, Page 17).

    • Notice: The amendment’s subject matter must be detailed in the notice of the meeting or election where it’s considered.

    • Process: Approval can occur at a meeting (in-person or virtual) or via written consent (e.g., ballots/proxies), per NRS 116 and the bylaws.

  • Recording (Section 13.2.3, Page 53):

    • Effective upon recording a Certificate of Amendment with the Washoe County Recorder, signed and sworn by two Association officers.

  • Declarant Restrictions (Section 13.3, Page 53):

    • Until the tenth anniversary of the first Close of Escrow (likely August 2027, assuming ~August 2017), amendments impairing the declarant’s rights (e.g., completing/selling lots) require declarant approval. If the declarant no longer owns lots (post-2021 departure), this may not apply, but confirmation is needed.

  • City of Reno (Section 13.4, Page 53):

    • Amendments affecting maintenance obligations (e.g., common elements, landscaping, per Section 2.7, Page 18) require prior written City of Reno approval.

Why Amending the CCRs is complicated:

  • High Threshold: Securing 131 votes is difficult, especially for controversial changes (e.g., assessment increases or use restrictions), risking failure and community tension.

  • Costs: Legal, administrative, and recording fees (~$3,000–$7,000, potentially $10,000+) may require a special assessment ($15–$60 per lot), upsetting homeowners already paying $840/year.

  • Complexity: City involvement for maintenance-related changes add delays and costs.

What Do the Bylaws Say About Amendments?

The Bylaws address amendments in Article VIII, Section 8 (Page 19):

  • By Members (Section 8(b)):

    • Requires affirmative vote or written consent of over 50% of total votes (at least 98 of 194 votes, as each unit has one vote, Article II, Section 2, Page 1).

    • Must meet any approval requirements in the CCRs (e.g., 67% for certain changes, Section 13.2, Page 52).

  • Validity and Effective Date (Section 8(c)):

    • Effective upon recording with the Washoe County Recorder, unless a later date is specified.

    • The Secretary prepares, executes, certifies, and records amendments.

    • Challenges to amendments must be made within one year of recording, or they’re presumed valid.

    • No amendment can remove declarant rights without their consent while they own property in Legacy Pointe (Exhibits A or B of the CCRs).

  • Notice of Amendments (Section 9, Page 20):

    • Within 30 days of a change to the bylaws (or CCRs), the Secretary must deliver or mail a copy to each unit owner.

Why It’s difficult in amending the Bylaws:

  • Still Significant Threshold: While 50%+ (98 votes) is lower than the CCRs’ 67%, it’s still challenging to achieve, especially if the change is divisive (e.g., altering voting or meeting rules).

  • Costs: Similar to CCRs, legal and administrative costs (~$2,000–$5,000) may require a special assessment ($10–$26 per lot), risking homeowner pushback.

  • Limited Impact: Bylaws govern internal operations (e.g., meetings, board elections). Many desired changes (e.g., community rules) can be handled via board-adopted Rules and Regulations (Article V, Section 2(h), Page 9), avoiding the amendment process.

Can the CC&R’s be changed?

  • CCRs: Yes, with 67% approval (131 votes), but it’s a steep hurdle, requiring significant coordination, legal costs, and potential City/declarant approval. Lean Against: The high threshold and costs outweigh benefits for most changes; consider board rules instead.

  • Bylaws: Yes, with >50% approval (98 votes), but still challenging. Lean Against: Easier than CCRs but still costly and divisive; board policies are simpler.

2. How much would it cost for all 194 homes to get the necessary votes?

  • CCRs: ~$3,000–$7,000 (legal, mailing, voting, recording, City review), possibly $10,000+ if disputes arise. Special assessment: $15–$60/lot. Lean Against: High cost for uncertain outcome; reserves may be better spent on maintenance.

  • Bylaws: ~$2,000–$5,000 (lower due to no City involvement). Special assessment: $10–$26/lot. Lean Against: Still costly for governance tweaks achievable via board action.

3. Is changing the CCRs/bylaws a pain for each homeowner?

  • CCRs: Minimal effort (voting, ~1–2 hours), but controversial changes spark disputes, and the added cost to each homowner can add a financial sting.

  • Bylaws: Similar effort, less financial impact, but still divisive if governance changes are unpopular.

4. How expensive would it be?

  • See question 5. Both are costly to change (CCRs more so), and special assessments risk homeowner backlash.

5. Does the City of Reno need to get involved?

  • CCRs: Yes, for maintenance obligation changes (Section 13.4, Page 53), adding delays/costs. City bureaucracy makes amendments less appealing.

  • Bylaws: No, as bylaws don’t cover maintenance. Still not worth the effort for internal governance changes.

9. Does the State of Nevada need to get involved?

  • Both: No direct involvement if NRS 116 is followed (CCRs: NRS 116.2117; Bylaws: NRS 116.3106). The Nevada Real Estate Division (NRED) only acts on complaints. Lean Against: Legal compliance adds cost; avoid amendments to bypass scrutiny.

Recommendation

Amending the CCRs or bylaws is feasible but not advisable unless the change is critical (e.g., legal compliance, major community need). Reasons to avoid:

  • CCRs: 67% approval, City/declarant involvement, and high costs make it a tough sell. Rules and Regulations (CCRs, Section 1.69) can address many issues (e.g., pet rules) via board action.

  • Bylaws: 50%+ approval is easier, but costs and potential disputes still outweigh benefits for governance tweaks achievable through board policies (Bylaws, Article V, Section 2(h)).