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" typically outlines the covenants, conditions, and restrictions that apply to the land and bind all property owners in the PUD. Other documents, such as bylaws and rules, define members' rights and obligations, as well as the administration of the PUD. These governing documents usually establish the rules for using common areas and amenities.
If the governing documents do not address this situation, local zoning and land use ordinances may apply. For example, a PUD may be required to include amenities like a swimming pool and associated parking.
The governing documents also set forth voting procedures and how funds from PUD operations should be used. The fiduciary duty to manage these funds is determined by the terms outlined in the rules. I recommend reviewing the PUD's regulations for procedures on amendments to address these uncovered issues.
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.