The bylaws are broken into sections that offer clarity on critical operating and governing issues, including detail on the following:

• Number of board members and term limits

  There will be at least three board members required to govern the association or cooperative affairs.

• Board roles + responsibilities and officers

  Typically there is a president, treasurer, vice president, and secretary. In some cases, one owner may hold two offices. In most bylaws (but not all), not every officer needs to be a board member.

• Quorum for board meeting and annual meetings

  Board meeting quorum is typically determined by the number of voters present at a meeting (one vote per board member). For the annual member meeting quorum, this can vary quite a bit, so it’s important to determine how many owners must attend an annual meeting in order for quorum to be met. Proxies can be submitted by owners that cannot attend. With a proxy, the member assigns their vote to another attending owner or to the board. Typically, PAR value determines the share of each vote, so those with the largest units have a larger percentage of votes.

• Management requirements

  Some bylaws require professional management. Most leave the decision regarding management up to the board of directors.

• House rules

  Typically, a board may draft house rules that apply to all owners and residents. Things like rental ratios, use of units, quorum, and governance may not be changed via house rules but would require a revision and amendment to the bylaws. Changing association bylaws is a significant undertaking and the bar for ratifying an amendment is high, meaning you need a ⅔ majority of votes and legal counsel to manage the filing and drafting. This is very often out of reach, unless a change is universally welcome by voting members.

• Budgeting and fiscal year

  Typically, the fiscal year is a calendar year, but since we are in Washington, DC, it can occasionally be based on the government calendar (Oct 1 - Sept 30th.) Budgeting for nearly all associations must be completed 15 days before the end of the fiscal year, but if one has not been adopted by the board by that time, the budget from the current year continues until a new budget is approved. Check the bylaws carefully to be sure there is compliance.

• General governance + communications

  Overview of notice required, decision-making parameters, and more are outlined in the governing instruments (another way to say “bylaws.”)

• Annual meeting dates

  Some bylaws require professional management. Most leave the decision regarding management up to the board of directors.

• Financial responsibility

  Boards act in a fiduciary capacity and on behalf of the association. As such, they have a particular role to play in the financial affairs of the association. The bylaws typically clarify/define the following:

  • Setting spending thresholds for expenses and their approval
  • Annual budgeting
  • Day-to-day financial expenses
  • Reserve funds
  • Audit requirements, if any
  • Special assessments
  • Utilities and pass-through expenses
  • Taxes
• Maintenance

  The bylaws typically will clearly outline what maintenance and upkeep responsibilities lie with the owner and that which are the responsibility of the association. Pay special attention to things like unit doors and windows and damages to individual units from a common element (e.g. roof). There is often a clause limiting liability when related to utilities services and water (ice, snow, rain, etc.). The responsibility varies quite a bit from building to building and is an area where there may be the most conflict and confusion among owners.

• Use of units

  Many buildings set limits on how a unit may be used. This includes rental restrictions and commercial vs. residential use. Look to the bylaws for clarity on:

  • Parameters for residential/commercial or home office
  • Rental ratios (# of units that may be rented out)
  • Rental terms (minimum number of months/lease requirements and board approval)
• Insurance

  Many buildings set limits on how a unit may be used. This includes rental restrictions and commercial vs. residential use. Look to the bylaws for clarity on:

  The board is responsible for getting insurance to cover the association in the event of a physical loss, as well as a fidelity bond to cover those who handle funds for the building. It is also important for the association to have Directors & Officers insurance to cover any exposure the board members have in governing the association. The bylaws may also require unit owners to get their own H06 Policy, but associations, under the DC Condo Act of 2014, require it.