2011 ORS § 94.572¹
Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities

(1)(a) A Class I or Class II planned community created before January 1, 2002, that was not created under ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply) is subject to this section and ORS 94.550 (Definitions for ORS 94.550 to 94.783), 94.590 (Amendment of declaration by owners), 94.595 (Reserve account for maintaining, repairing and replacing common property) (5) to (9), 94.625 (Formation of homeowners association), 94.626 (Corporate dissolution of association), 94.630 (Powers of association) (1), (3) and (4), 94.639 (Criteria for board of directors membership), 94.640 (Association board of directors), 94.641 (Assent of director to board action), 94.642 (Receivership for failure of homeowners association to fill vacancies on board of directors), 94.645 (Adoption of annual budget), 94.647 (Use of written ballot for approving or rejecting matters subject to meeting of association members), 94.650 (Meetings of lot owners), 94.652 (Electronic notice to owner or director), 94.655 (Quorum for association meetings), 94.657 (Rules of order), 94.658 (Voting or granting consent), 94.660 (Method of voting or consenting), 94.661 (Electronic ballot), 94.662 (Notice to lot owners of intent of association to commence judicial or administrative proceeding), 94.665 (Authority of association to sell, transfer, convey or encumber common property), 94.670 (Association duty to keep documents and records), 94.675 (Insurance for common property), 94.676 (Insurance deductible for certain planned communities), 94.680 (Blanket all-risk insurance), 94.690 (Terms of insurance under ORS 94.680), 94.695 (Authority to delegate association powers to master association), 94.704 (Assessment and payment of common expenses), 94.709 (Liens against lots), 94.712 (Lot owner personally liable for assessment), 94.716 (Lien against two or more lots), 94.719 (Lien foreclosure), 94.723 (Common expenses), 94.728 (Taxation of lots and common property), 94.733 (Easements held by owner of lot and by declarant), 94.770 (Application of rule against perpetuities), 94.775 (Judicial partition prohibited), 94.777 (Compliance with bylaws and other restrictions required) and 94.780 (Remedies) to the extent that those statutes are consistent with any governing documents. If the governing documents do not provide for the formation of an association, the requirements of this subsection are not effective until the formation of an association in accordance with paragraph (b) of this subsection. If a provision of the governing documents is inconsistent with this subsection, the owners may amend the governing documents using the procedures in this subsection:

(A) In accordance with the procedures for the adoption of amendments in the governing documents and subject to any limitations in the governing documents, the owners may amend the inconsistent provisions of the governing documents to conform to the extent feasible with this section and ORS 94.550 (Definitions for ORS 94.550 to 94.783), 94.590 (Amendment of declaration by owners), 94.595 (Reserve account for maintaining, repairing and replacing common property) (5) to (9), 94.625 (Formation of homeowners association), 94.626 (Corporate dissolution of association), 94.630 (Powers of association) (1), (3) and (4), 94.639 (Criteria for board of directors membership), 94.640 (Association board of directors), 94.641 (Assent of director to board action), 94.642 (Receivership for failure of homeowners association to fill vacancies on board of directors), 94.645 (Adoption of annual budget), 94.647 (Use of written ballot for approving or rejecting matters subject to meeting of association members), 94.650 (Meetings of lot owners), 94.652 (Electronic notice to owner or director), 94.655 (Quorum for association meetings), 94.657 (Rules of order), 94.658 (Voting or granting consent), 94.660 (Method of voting or consenting), 94.661 (Electronic ballot), 94.662 (Notice to lot owners of intent of association to commence judicial or administrative proceeding), 94.665 (Authority of association to sell, transfer, convey or encumber common property), 94.670 (Association duty to keep documents and records), 94.675 (Insurance for common property), 94.676 (Insurance deductible for certain planned communities), 94.680 (Blanket all-risk insurance), 94.690 (Terms of insurance under ORS 94.680), 94.695 (Authority to delegate association powers to master association), 94.704 (Assessment and payment of common expenses), 94.709 (Liens against lots), 94.712 (Lot owner personally liable for assessment), 94.716 (Lien against two or more lots), 94.719 (Lien foreclosure), 94.723 (Common expenses), 94.728 (Taxation of lots and common property), 94.733 (Easements held by owner of lot and by declarant), 94.770 (Application of rule against perpetuities), 94.775 (Judicial partition prohibited), 94.777 (Compliance with bylaws and other restrictions required) and 94.780 (Remedies). Nothing in this paragraph requires the owners to amend a declaration or bylaws to include the information required by ORS 94.580 (Declaration) or 94.635 (Association bylaws).

(B) If there are no procedures for amendment in the governing documents:

(i) For an amendment to a recorded governing document other than bylaws, the owners may amend the inconsistent provisions of the document to conform to this section and ORS 94.550 (Definitions for ORS 94.550 to 94.783), 94.590 (Amendment of declaration by owners), 94.595 (Reserve account for maintaining, repairing and replacing common property) (5) to (9), 94.625 (Formation of homeowners association), 94.626 (Corporate dissolution of association), 94.630 (Powers of association) (1), (3) and (4), 94.639 (Criteria for board of directors membership), 94.640 (Association board of directors), 94.641 (Assent of director to board action), 94.642 (Receivership for failure of homeowners association to fill vacancies on board of directors), 94.645 (Adoption of annual budget), 94.647 (Use of written ballot for approving or rejecting matters subject to meeting of association members), 94.650 (Meetings of lot owners), 94.652 (Electronic notice to owner or director), 94.655 (Quorum for association meetings), 94.657 (Rules of order), 94.658 (Voting or granting consent), 94.660 (Method of voting or consenting), 94.661 (Electronic ballot), 94.662 (Notice to lot owners of intent of association to commence judicial or administrative proceeding), 94.665 (Authority of association to sell, transfer, convey or encumber common property), 94.670 (Association duty to keep documents and records), 94.675 (Insurance for common property), 94.676 (Insurance deductible for certain planned communities), 94.680 (Blanket all-risk insurance), 94.690 (Terms of insurance under ORS 94.680), 94.695 (Authority to delegate association powers to master association), 94.704 (Assessment and payment of common expenses), 94.709 (Liens against lots), 94.712 (Lot owner personally liable for assessment), 94.716 (Lien against two or more lots), 94.719 (Lien foreclosure), 94.723 (Common expenses), 94.728 (Taxation of lots and common property), 94.733 (Easements held by owner of lot and by declarant), 94.770 (Application of rule against perpetuities), 94.775 (Judicial partition prohibited), 94.777 (Compliance with bylaws and other restrictions required) and 94.780 (Remedies) by a vote of at least 75 percent of the owners in the planned community.

(ii) For an amendment to the bylaws, the owners may amend the inconsistent provisions of the bylaws to conform to this section and ORS 94.550 (Definitions for ORS 94.550 to 94.783), 94.590 (Amendment of declaration by owners), 94.595 (Reserve account for maintaining, repairing and replacing common property) (5) to (9), 94.625 (Formation of homeowners association), 94.626 (Corporate dissolution of association), 94.630 (Powers of association) (1), (3) and (4), 94.639 (Criteria for board of directors membership), 94.640 (Association board of directors), 94.641 (Assent of director to board action), 94.642 (Receivership for failure of homeowners association to fill vacancies on board of directors), 94.645 (Adoption of annual budget), 94.647 (Use of written ballot for approving or rejecting matters subject to meeting of association members), 94.650 (Meetings of lot owners), 94.652 (Electronic notice to owner or director), 94.655 (Quorum for association meetings), 94.657 (Rules of order), 94.658 (Voting or granting consent), 94.660 (Method of voting or consenting), 94.661 (Electronic ballot), 94.662 (Notice to lot owners of intent of association to commence judicial or administrative proceeding), 94.665 (Authority of association to sell, transfer, convey or encumber common property), 94.670 (Association duty to keep documents and records), 94.675 (Insurance for common property), 94.676 (Insurance deductible for certain planned communities), 94.680 (Blanket all-risk insurance), 94.690 (Terms of insurance under ORS 94.680), 94.695 (Authority to delegate association powers to master association), 94.704 (Assessment and payment of common expenses), 94.709 (Liens against lots), 94.712 (Lot owner personally liable for assessment), 94.716 (Lien against two or more lots), 94.719 (Lien foreclosure), 94.723 (Common expenses), 94.728 (Taxation of lots and common property), 94.733 (Easements held by owner of lot and by declarant), 94.770 (Application of rule against perpetuities), 94.775 (Judicial partition prohibited), 94.777 (Compliance with bylaws and other restrictions required) and 94.780 (Remedies) by a vote of at least a majority of the owners in the planned community.

(iii) An amendment may be adopted at a meeting held in accordance with the governing documents or by another procedure permitted by the governing documents following the procedures prescribed in ORS 94.647 (Use of written ballot for approving or rejecting matters subject to meeting of association members), 94.650 (Meetings of lot owners) or 94.660 (Method of voting or consenting).

(iv) An amendment to a recorded declaration shall be executed, certified and recorded as provided in ORS 94.590 (Amendment of declaration by owners) (2) and (3) and shall be subject to ORS 94.590 (Amendment of declaration by owners) (5). An amendment to the bylaws and any other governing document shall be executed and certified as provided in ORS 94.590 (Amendment of declaration by owners) (3) and shall be recorded in the office of the recording officer of every county in which the planned community is located if the bylaws or other governing document to which the amendment relates were recorded.

(C) An amendment adopted pursuant to this paragraph shall include:

(i) A reference to the recording index numbers and date of recording of the declaration or other governing document, if recorded, to which the amendment relates; and

(ii) A statement that the amendment is adopted pursuant to the applicable subparagraph of this paragraph.

(b)(A) If the governing documents do not provide for the formation of an association of owners, at least 10 percent of the owners in the planned community or any governing entity may initiate the formation of an association as provided in this paragraph. The owners or the governing entity initiating the association formation shall call an organizational meeting for the purpose of voting whether to form an association described in ORS 94.625 (Formation of homeowners association). The notice of the meeting shall:

(i) Name the initiating owners or governing entity;

(ii) State that the organizational meeting is for the purpose of voting whether to form an association in accordance with the proposed articles of incorporation;

(iii) State that if the owners vote to form an association, the owners may elect the initial board of directors provided for in the articles of incorporation and may adopt the initial bylaws;

(iv) State that to form an association requires an affirmative vote of at least a majority of the owners in the planned community, or, if a larger percentage is specified in the applicable governing document, the larger percentage;

(v) State that to adopt articles of incorporation, to elect the initial board of directors pursuant to the articles of incorporation or to adopt the initial bylaws requires an affirmative vote of at least a majority of the owners present;

(vi) State that if the initial board of directors is not elected, an interim board of directors shall be elected pursuant to bylaws adopted as provided in subparagraph (C) of this paragraph;

(vii) State that a copy of the proposed articles of incorporation and bylaws will be available at least five business days before the meeting and state the method of requesting a copy; and

(viii) Be delivered in accordance with the declaration and bylaws. If there is no governing document or the document does not include applicable provisions, the owners or governing entity shall follow the procedures prescribed in ORS 94.650 (Meetings of lot owners) (4).

(B) At least five business days before the organizational meeting, the initiating owners or governing entity shall cause articles of incorporation and bylaws to be drafted. The bylaws shall include, to the extent applicable, the information required by ORS 94.635 (Association bylaws).

(C) At the organizational meeting:

(i) Representatives of the initiating owners or governing entity shall, to the extent not inconsistent with the governing documents, conduct the meeting according to Roberts Rules of Order as provided in ORS 94.657 (Rules of order).

(ii) The initiating owners or governing entity shall make available copies of the proposed articles of incorporation and the proposed bylaws.

(iii) The affirmative vote of at least a majority of the owners of a planned community, or, if a larger percentage is specified in the applicable governing document, the larger percentage, is required to form an association under this paragraph.

(iv) If the owners vote to form an association, the owners shall adopt articles of incorporation and may elect the initial board of directors as provided in the articles of incorporation, adopt bylaws and conduct any other authorized business by an affirmative vote of at least a majority of the owners present. If the owners do not elect the initial board of directors, owners shall elect an interim board of directors by an affirmative vote of at least a majority of the owners present to serve until the initial board of directors is elected.

(v) An owner may vote by proxy, or by written ballot, if approved, in the discretion of a majority of the initiating owners or governing entity.

(D) Not later than 10 business days after the organizational meeting, the board of directors shall:

(i) Cause the articles of incorporation to be filed with the Secretary of State under ORS chapter 65;

(ii) Cause the notice of planned community described in subsection (4) of this section to be prepared, executed and recorded in accordance with subsection (4) of this section;

(iii) Provide a copy of the notice of planned community to each owner, together with a copy of the adopted articles of incorporation and bylaws, if any, or a statement of the procedure and method for adoption of bylaws described in subparagraph (C) of this paragraph. The copies and any statement shall be delivered to each lot, mailed to the mailing address of each lot or mailed to the mailing addresses designated by the owners in writing; and

(iv) Cause a statement of association information to be prepared, executed and recorded in accordance with ORS 94.667 (Recording association information with county clerk).

(E) If the owners vote to form an association, all costs incurred under this paragraph, including but not limited to the preparation and filing of the articles of incorporation, drafting of bylaws, preparation of notice of meeting and the drafting, delivery and recording of all notices and statements shall be a common expense of the owners and shall be allocated as provided in the appropriate governing document or any amendment thereto.

(2)(a) The owners of lots in a Class I or Class II planned community that are subject to the provisions of ORS chapter 94 specified in subsection (1) of this section may elect to be subject to any other provisions of ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply) upon compliance with the procedures prescribed in subsection (1) of this section.

(b) If the owners of lots in a Class I or Class II planned community elect to be subject to additional provisions of ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply), unless the notice of planned community otherwise required or permitted under subsection (4) of this section includes a statement of the election pursuant to this paragraph, the board of directors of the association shall cause the notice of planned community described in subsection (4) of this section to be prepared, executed and recorded in accordance with subsection (4) of this section.

(3)(a) The owners of lots in a Class III planned community created before January 1, 2002, may elect to be subject to provisions of ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply) upon compliance with the applicable procedures in subsection (1) of this section.

(b) If the owners of lots in a Class III planned community elect to be subject to provisions of ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply), the board of directors of the association shall cause the notice of planned community described in subsection (4) of this section to be prepared, executed and recorded in accordance with subsection (4) of this section.

(4) The notice of planned community required or permitted by this section shall be:

(a) Titled Notice of Planned Community under ORS 94.572 (Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities);

(b) Executed by the president and secretary of the association; and

(c) Recorded in the office of the recording officer of every county in which the property is located.

(5) The notice of planned community shall include:

(a) The name of the planned community and association as identified in the recorded declaration, conditions, covenants and restrictions or other governing document and, if different, the current name of the association;

(b) A list of the properties, described as required for recordation in ORS 93.600 (Description of real property for purposes of recordation), within the jurisdiction of the association;

(c) Information identifying the recorded declaration, conditions, covenants and restrictions or other governing documents and a reference to the recording index numbers and date of recording of the governing documents;

(d) A statement that the property described in accordance with paragraph (b) of this subsection is subject to specific provisions of the Oregon Planned Community Act;

(e) A reference to the specific provisions of the Oregon Planned Community Act that apply to the subject property and a reference to the subsection of this section under which the application is made; and

(f) If an association is formed under subsection (1)(b)(A) of this section, a statement to that effect.

(6) An amended statement shall include a reference to the recording index numbers and the date of recording of prior statements.

(7) The county clerk may charge a fee for recording a statement under this section according to the provisions of ORS 205.320 (Fees collected by county clerk) (4).

(8) The board of directors of an association not otherwise required to cause a notice of planned community described in subsection (4) of this section to be prepared and recorded under this section may cause a notice of planned community to be prepared, executed and recorded as provided in subsection (4) of this section.

(9) Title to a unit, lot or common property in a Class I or Class II planned community created before January 1, 2002, may not be rendered unmarketable or otherwise affected by a failure of the planned community to be in compliance with a requirement of this section.

(10) As used in this section:

(a) Governing entity means an incorporated or unincorporated association, committee, person or any other entity that has authority, under a governing document, to maintain commonly maintained property, impose assessments on lots or to act on behalf of lot owners within the planned community on matters of common concern.

(b) Recorded declaration means an instrument recorded with the county recording officer of the county in which the planned community is located that contains conditions, covenants and restrictions binding lots in the planned community or imposes servitudes upon the real property. [2001 c.756 §3; 2003 c.569 §5; 2005 c.543 §3; 2007 c.409 §33; 2009 c.641 §3a]