Web-N-Learn: Hold Everything! New Case Law Re: CC&Rs Amendments (Kalway v. Calabria Ranch HOA)

Last month, the Arizona Supreme Court issued a decision and opinion that has significant ramifications for Amendments to CC&Rs – past, present, and future. A copy of the Court’s opinion can be found here.

Briefly, the Court determined that mere compliance with the general amendment provision currently in the CC&Rs is not sufficient to amend the CC&Rs. In order for the general amendment provision in the CC&Rs to apply, the original CC&Rs “must give sufficient notice of the possibility of a future amendment”. A general statement of purpose is insufficient. Instead, the CC&Rs must provide notice that the particular covenant or restriction in question can be amended to “refine it, correct an error, fill in a gap, or change it in a particular way…, but cannot be ‘entirely new and different in character’, untethered to an original covenant”.

The reasonable conclusion from this decision is that, for a vast majority of amendments to the CC&Rs, unanimous approval of all Owners is necessary. Furthermore, the Court failed to establish any limitations as to the reach of its decision, calling into serious question any amendments to CC&Rs that received less than unanimous approval since the recording of the original CC&Rs.

Given the gravity of the decision on Community Associations of all types, sizes, and ages, you are invited to join Michael Shupe for a Webinar focused on an in-depth analysis of this case and the impact of the Court’s decision on your communities. If your community has recently amended your CC&Rs, or if you are currently considering any amendments now, or in the future, your attendance at one of the offered sessions is strongly encouraged.

When: Friday, April 8, 2022 at 12:00pm and Wednesday, April 13, 2022 at 10:00am

Registration: REGISTRATION NOW CLOSED

Contact: Feel free to contact us at office@gshoalaw.com if you have any questions or trouble registering.