Policies vs. Rules

Source: Adrian J. Adams Esq.

QUESTION: What is the difference between a policy and a rule? When we create a policy, do we need to send it to the membership for thirty days for review and comment?

ANSWER: The difference confuses a lot of folks, so much so that rules are sometimes mislabeled as policies and vice versa. Rules tell residents what they can and cannot do, a violation of which can result in penalties. A policy or procedure describes how things are done. For example,

It is the policy of the Architectural Committee to only review signed, written applications submitted through the management office. The procedure, for submitting a written application is to obtain a form from the management office, fill it out completely, sign it, and return the application to the management office so it can be logged in. As part of our architectural rules, no work may commence without the prior written approval of the Architectural Committee. Violation of thisrule may result in a $500 fine.

Adopting Policies & Procedures. Unlike proposed rules, the adoption of policies and procedures, whether by management, committees or boards, does not require a 30-day waiting period for member input. The reason for the difference is that rules have penalties attached to them, whereas policies and procedures do not.

RECOMMENDATION: If you’re not sure, have legal counsel review your rules, policies and procedures.