By: Elina B. Gilbert-HindmanSanchez

You’ve, no doubt, heard the terms “policies, procedures, rules, regulations” and “resolutions” used many times in the industry.  But have you ever wondered what all these different terms mean and whether there is a difference as to which term you use?  Despite popular belief, there are subtle differences in these terms, which are outlined in the below checklist.  As you will see from the checklist, there are also several similarities between and overlap of the terms.

Resolution

·         Memorializes decisions of the board;

·         Adopts association’s policies and procedures (Example: Resolution Adopting a Policy Addressing Guest Parking);

·         Clarifies ambiguous terms in the governing documents (Example:  Resolution Adopting Policy Defining Household Pets);

·         Adopted by the board;

·         May not contradict anything in the governing documents;

·         Enforceable in court;

Policy

·         Oftentimes, a policy is part of a Resolution (See above example);

·         Statement of beliefs, values, and objectives of the association that causes the association to act (Examples:  Collections Policy; Enforcement Policy; Conducts of Meeting Policy);

·         Adopted by the board;

·         May not contradict anything in the governing documents;

·         Enforceable in court;

Procedure

·         Most often, Procedures are set forth in Resolutions and Policies;

·         Process to be followed to accomplish Policy/Resolution objectives;

·         Example:  The procedures to be followed for collecting delinquent assessments are set forth in the Collections Policy, which is adopted by Resolution;

·         Adopted by the board;

·         May not contradict anything in the governing documents;

·         Enforceable in court;

Rules & Regulations

·         Defines expected behaviors of residents/guests in the community;

·         Identifies limitations of actions for residents/guests in the community;

·         May also be referred to as “guidelines”;

·         CCIOA defines “rules and regulations” as any instrument used for regulation and management of the association;

·         Adopted by the board;

·         May not contradict anything in the governing documents;

·         Enforceable in court;