Full question:
I am president of a mutual benefit Corp. PUD estab. 1953. They have no clubhouse, just pool and 'cabana.' Just found out they have been renting out the pool/cabana in evening to one resident who 'sponsors' a group of nonresidents for a pool party. When they do this, they CLOSE THE FACILITY TO ALL OTHER RESIDENTS. No vote ever taken, not covered in CCYRs or bylaws (original 1953 docs). They allow use of facility to all residents in evening only if there is no paid party scheduled. No insurance, of course, but this is of no concern to them. Is it legal to grant exclusive use like this?
- Category: Zoning
- Date:
- State: California
Answer:
A recorded document titled “Declaration of Restrictions” is often filed that defines the covenants, conditions and restrictions that run with the land and are binding on all persons owning property in the PUD. Other documents further define the rights and obligations of members as well as the administration of the PUD and include the its bylaws, rules and regulations. The governing documents of the PUD are typically used to establish rules for the use of common areas and amnenities. If such matters aren't covered in the governing documents, they may be addressed by local zoning and land use or traffic ordinances. The following is an example of a local ordinance:
16. Community Amenities:
A PUD project may be required to include amenities such as an activity center, swimming pool, play areas and tot lots and should include associated parking to support such amenities.
The governing documents also establish voting procedures and the uses for the funds derived from PUD operations. The fiduciary duty to properly apply the funds is determined by the terms contained in the rules. I suggest consulting the PUDs regulations for the procedures regarding amendment to address the issues which are uncovered.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
