Written policies, procedures, rules, regulations and resolutions are indispensable to having a well-run and responsibly governed homeowners association. With the enactment of SB 100, their significance has become more important and even required in some instances. But what exactly are policies, procedures, rules, regulations and resolutions? Each plays a separate and important role in association operations and these functions are explained below.

Policy: A policy is a standard or statement of general applicability adopted by the Board of Directors that sets out the beliefs, values and objectives of the association that causes the association to act. (i.e. a collections policy, an enforcement policy, or a conduct of meetings policy). An association’s policies communicate, organize, and focus the resources of the association.

Procedure: A procedure is a process, or series of steps, that is followed to accomplish a particular function or attain a particular policy objective. For example, an association may have a policy to collect assessments from its membership in a timely manner. How this policy is achieved -- from when and how to provide monthly statements to how to apply the collected funds and what amount of late fees to impose -- comprises the procedure of collecting assessments.

Rule or Regulation: An association’s board of directors adopt rules or regulations to define expected behaviors and identify limitations regarding such issues as allowable uses of an association’s common elements and homeowners’ individual units, architectural changes and improvements, and the general behavior of owners, tenants and guests. Some examples of issues that rules address: pets, parking, noise/nuisance, and use of association facilities. Rules may also be called regulations or guidelines.

Resolutions: A resolution is a method of formalizing a decision made by an association’s board of directors. Resolutions are used to adopt an association’s policies, procedures, rules and regulations, to clarify ambiguous terms in an association’s governing documents, or to state the board’s intention to proceed by amendment. Resolutions should include four sections: 1) authority; 2) purpose; 3) scope and intent; and 4) specifications. For example, a resolution adopting a rule should contain 1) the primary source(s) of the board’s authority to make a rule on the topic (authority); 2) why the rule is being adopted (purpose); 3) who will be affected, the reach and range and extent of the rule (scope and intent); and 4) a clear and complete statement on what those bound by the rule are expect to do (specifications).