CC&Rs and Operating Rules (Rules and Regulations)
CC&Rs are enforceable equitable servitudes, unless unreasonable. Use restrictions contained in a recorded declaration are afforded a "presumption of validity" by courts and are enforceable unless found unreasonable under a deferential standard.
Whether CC&R are reasonable is determined not by reference to facts that are specific to the objecting homeowner but by reference to the common interest development as a whole. Restrictions contained in CC&Rs are presumed reasonable and will be enforced unless the restriction:
- Is arbitrary,
- Imposes burdens on the property that substantially outweigh the restriction's benefits to the association's residents, or
- It violates a fundamental public policy.
CC&R provisions are presumptively valid and the burden of proving otherwise rests on the challenging owner.
Operating Rules adopted by a board of directors are not given the same presumption of reasonableness as are CC&Rs. Whether a rule is reasonable is to be determined not by reference to facts that are specific to the objecting homeowner but by reference to the community as a whole. The same test of reasonableness used for CC&Rs is used for rules that are rules should be enforced unless they are arbitrary, violate a fundamental public policy, or impose a burden on the use of affected land that far outweighs any benefit. To be enforceable, operating rules must meet the following criteria:
- The rule is in writing;
- The rule is within the authority of the board established by law, by the CC&Rs or by the bylaws of the association;
- The rule is not in conflict with California law, the CC&Rs or the bylaws of the association;The rule is adopted, amended, or repealed in good faith and in substantial compliance with the requirements of California law; and
- The rule is reasonable.
OTC Insurance Services
a California Corporation
5737 Kanan Road, Suite 630
Agoura Hills, CA 91301
Isaac Ortiz 818-429-8022 (Direct)
Office: 818-991-9019
CAInsuranceAgents.com
License # 3013582
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