My homeowners association wants to amend its Declaration of Covenants, Conditions, and Restrictions.
February 26, 2008

Q: My homeowners association wants to amend its Declaration of Covenants, Conditions, and Restrictions. Do we need the approval of all of the homeowners' lenders?

A: First, review the current Declaration. It may permit certain amendments to be made without lender approval. Otherwise, the HOA should obtain lender approval for the amendment. This could, however, prove to be a very laborious process. There may be numerous homes in the subdivision covered by the Declaration. Moreover, it is common for a residential property to be encumbered by two mortgages - a purchase money mortgage and a home equity line of credit - and sometimes more. For this reason, some HOAs elect to amend the Declaration without going through the time and expense of obtaining the approval of each homeowner's lender(s).

If you have questions, please contact:
John Wise, Esquire

jwise@tandllaw.com
(410) 752-2468