CC&Rs – What Are They and Why Should I Care?

In the past, while discussing Homeowners Associations and Reserve Studies, we’ve often mentioned CC&Rs or “Covenants, Conditions and Restrictions”. But what are they exactly?


This week we thought it would be a good idea to demystify this intimidating acronym. The good news is that it’s not quite as complicated as you might think.

Let’s take a look at what you need to know.

Covenants, Conditions and Restrictions (CC&Rs) are rules and limitations that govern on a group of homes (aka a community). Typically they are established by the developer, neighborhood association and / or homeowner association (aka HOA) to protect, preserve and/or enhance property values within the community. CC&Rs govern all town homes and condos; and most planned unit developments. They might, for example, prohibit owners from parking their cars on the street, watering the yard on certain days or even painting their house certain colors.

While much of the CC&Rs dictate aesthetics and promote conformity, you can also find important information regarding the homeowner’s financial obligations. For example, HOAs typically require to pay monthly dues and assessments. The types of dues, assessments, and penalties for non-payment (such as interest and late charges) can be found in.. you guessed it, the CC&Rs. If an owner falls behind on dues and/or assessments, the HOA may have the authority to file a lien on the home, which could lead to foreclosure.

To recap – The seemingly daunting CC&Rs simply boil down to the rules of your community. It’s easy to see why all homeowners and HOA board members should know this document inside and out. So make sure to take the time to familiarize yourself early and check back often.

Read More: 6 Ways to Prevent Board Member Fatigue

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