What to Include: The official name of the HOA and a brief description of its purpose. This could include maintaining property values, regulating common areas, and fostering a sense of community.

• What to Include: Define who qualifies as a member (typically property owners) and specify their rights, including voting rights. Outline procedures for meetings, voting, and the quorum needed to conduct official business.

• Proxy Voting: If allowed, specify how owners can vote via proxy.

What to Include: The structure of the HOA board, including officer roles (e.g., president, treasurer), term lengths, duties, and election processes. Ensure the process for removing or recalling board members is also outlined.

What to Include: How often meetings will occur (annual, regular, or special), who can attend, and the notice period required for meetings. Clarify what constitutes a quorum for decision-making.

• What to Include: Guidelines for calculating and collecting monthly or annual HOA dues, special assessments, and any penalties for late payments. Also, outline the process for collecting unpaid dues, including penalties and interest.

• Online Payment Systems: It is highly recommended to adopt an online payment system like Buildium for convenience, accuracy, and transparency in managing fees and payments.

What to Include: Define the responsibilities for maintaining common areas (e.g., landscaping, recreational spaces). Outline any rules governing the use of these areas, such as restrictions on pets, noise levels, or guest access.

• What to Include: The types of penalties that can be imposed for violating community rules, including fines, suspension of privileges, or legal action. Clear guidelines on the enforcement process should be laid out.

• Recommended Penalties:

  • Late payment fee: E.g., $50 for overdue payments.

  • Violation fee: E.g., $100 for improper use of common areas.

  • Sanctions: Temporary suspension of access to community amenities (e.g., pool, gym).

What to Include: The HOA’s insurance policies, including coverage for common areas and liability, as well as the owner’s responsibility to insure their units.

What to Include: Outline any design or modification guidelines for individual units to ensure community consistency and property value maintenance. Also, include the approval process for exterior changes.

What to Include: A clear process for resolving disputes between owners and the board, including steps like mediation, arbitration, or legal action, if necessary.

What to Include: Guidelines for amending the by-laws, including how amendments can be proposed and the voting requirements for approval.

Pros:

• Clarity and Structure: By-laws establish clear guidelines for everyone, reducing misunderstandings and conflicts.

• Enforcement: Well-defined penalties ensure rule compliance, which helps maintain the community's order and property value.

• Fair Governance: By-laws give equal weight to each member's voice, creating a fair and democratic process.

Cons:

• Time-Consuming: Drafting and updating by-laws can be a lengthy process.

• Cost: Legal consultation may be required to ensure by-laws comply with state laws.

• Resistance: Some members may oppose certain rules or restrictions, leading to potential tension within the community.

Ensure your by-laws comply with local, state, and federal regulations, including fair housing laws and condominium statutes. It’s highly recommended to consult an attorney when drafting or amending by-laws to avoid potential legal issues later.

In Massachusetts, condo associations are legally required to maintain adequate insurance coverage for the common areas of the property. By-laws should address the following types of insurance:

• Master Insurance Policy: The HOA must carry a comprehensive master insurance policy that covers the common areas of the property, including building structures and shared facilities.

  • What to Include: The by-laws should specify that the HOA will maintain this insurance, detailing what it covers and how claims will be handled.

• Liability Insurance: Condo associations must also maintain liability insurance to cover any accidents or injuries that occur in common areas.

  • What to Include: Define the limits of liability coverage and the process for making claims if an injury occurs in a common area.

• Owner Responsibilities: By-laws should clarify that individual unit owners are responsible for maintaining their own homeowners’ insurance, specifically for the interior of their units and personal belongings.

Massachusetts law requires HOAs to establish a reserve fund for major repairs and improvements to the property’s common areas. This fund is vital for maintaining the property without relying solely on special assessments or unexpected large payments from unit owners.

• What to Include: By-laws should specify the minimum reserve fund contribution, how the fund will be managed, and when it can be used. Many Massachusetts condo associations set a percentage of HOA dues to be allocated to the reserve fund.

In Massachusetts, there is no state-imposed owner occupancy requirement for condominiums, but individual HOAs may impose restrictions to ensure a stable, community-focused environment. These requirements can help the condo association maintain a majority of owner-occupied units.

• What to Include: If the association wishes to set owner occupancy requirements, the by-laws should specify:

  • Percentage of Owner-Occupied Units: Define a minimum percentage of units that must be owner-occupied (e.g., 70%).

  • Rental Restrictions: Specify restrictions on leasing units, such as limiting the number of units that can be rented out at any given time.

  • Exceptions: Outline exceptions to the rule, such as temporary rental allowances for owners who need to relocate temporarily.

Massachusetts law requires that the HOA’s by-laws define the voting rights of members, including how many votes each unit is entitled to (typically proportional to the size or value of the unit). It also mandates that the election and duties of board members be clearly defined.

• Board of Directors: By-laws should outline the structure of the HOA’s board, including how many directors are required and how they are elected.

  • What to Include: Specify the term lengths for board members, the election process, and how vacancies will be filled.

• Quorum and Voting: By-laws must establish quorum requirements for conducting business at meetings and approving major decisions, such as amendments to the by-laws or special assessments.

  • What to Include: Define what constitutes a quorum (e.g., a majority of unit owners or their proxies) and how votes will be cast and counted.

Massachusetts HOAs are allowed to levy regular fees and special assessments to cover the maintenance of common areas and shared services. The by-laws must outline how these fees will be assessed, collected, and enforced.

• Late Fees and Interest: State law allows condo associations to charge late fees and interest on overdue assessments.

  • What to Include: Specify the amount of late fees, interest rates, and the process for collecting delinquent payments.

• Special Assessments: By-laws should describe the process for imposing special assessments to cover significant, unexpected expenses such as major repairs or legal fees.

  • What to Include: Define how special assessments are approved (typically by a majority vote of unit owners) and the payment schedule for these assessments.

Massachusetts law encourages HOAs to have a clear process for resolving disputes between unit owners and the HOA. Many associations include mediation or arbitration clauses to settle disagreements without resorting to costly litigation.

• What to Include: By-laws should outline the process for resolving disputes, including:

  • Mediation: A step-by-step guide for mediation between the HOA and owners.

  • Legal Action: Guidelines on when legal action may be pursued, including notice requirements and opportunities for dispute resolution.

Massachusetts General Law Chapter 183A requires that the process for amending by-laws be clearly outlined. Typically, a certain percentage of unit owners must approve any changes.

• What to Include: Specify the percentage of unit owners required to approve amendments (e.g., two-thirds or 75%) and the process for proposing changes.