You’ve, no doubt, heard the terms “policies, procedures, rules, regulations” and “resolutions” used many times in the industry. But have you ever wondered what all these different terms mean and whether there is a difference as to which term you use? Despite popular belief, there are subtle differences in these terms, which are outlined in the below checklist. As you will see from the checklist, there are also several similarities between and overlap of the terms.
Readin’, ritin’ and rithmatic. That just about covers the learning that someone needs to know (as long as you live in the “holler”). But homeowner associations have their own version of the Three Rs called Rules, Regulations and Resolutions. These are the policies and procedures that define the standards of the community. They must comply with state and federal law. For example, the board cannot enact a rule that violates the Fair Housing Act.
Rarely if ever are the Three Rs clearly or fully defined in the governing documents. That is by design to allow flexibility and customization. Amending bylaws is tedious and difficult. The Three Rs can usually be modified as needed by the board. The board may use either rules and regulations or resolutions to accomplish this goal. So what’s the difference? Rules and Regulations are used to address rules of conduct.