Covenants

Why are covenants important?

SCCE covenants are designed to help keep property values high and to ensure the most pleasant environment for all residents.

There are a number of benefits to living in a community with a strong HOA including: increased community engagement, financial and architectural controls, municipal code compliance support, access to amenities, well-maintained common areas, and coordination of community improvements.

What’s the purpose of the covenants?

The covenants are a set of written documents that cover the rights and expectations of the homeowners and the obligations of the homeowner’s association (HOA) to implement them.

They describe the requirements and limitations of what you can do with your property. Covenants are legally binding documents that are officially recorded and filed with the state. Covenants often cover issues such as:

  • Property use restrictions

  • Clearly defined maintenance obligations for the HOA and individual members

  • Mechanisms for rule enforcement and dispute resolution

  • Lender protection provisions

  • Assessment and insurance obligations

Because this record is kept on file with the state, it requires a vote by the membership to make any changes.

The covenants cover the “what” of the HOA and the by-laws describe the “how.”

Covenant Compliance

The Covenants Committee conducted a survey in the summer of 2022 to get input and feedback from residents on the covenants. A top concern was compliance. The Board’s goal in 2024 is to remind homeowners of their responsibility to comply with the covenants by identifying residents who are out of compliance and work with them to reach resolution. Your cooperation in this regard will protect property values and ensure the most pleasant environment for all residents. 

On January 26, 2024, a letter was mailed to all SCCE residents detailing the most common violations and the specific covenant to which they pertain. A copy of the letter can be downloaded below. The Board will be working with the Covenants Committee and residents to bring violations into compliance as soon as possible. Some of the most common violations the Board would like to address include:

  1. Recreational vehicles parked in front of homes

  2. Non-running/working vehicles on property

  3. Exterior work being done to homes or property without approval from the Architectural Committee (Hint: before starting any improvement project fill out the Architectural Change Form and contact the Architectural Committee)

  4. Unkempt homes and lots

  5. Dogs not on a leash or roaming free & chronic barking

The Board would like all residents to be in compliance with the covenants by March 1, 2024. Failure to comply by this time will result in further action by the Board.

Please note: the Board does not desire to be a policing or enforcing entity. We feel homeowners can (and should) be responsible for compliance. We ask that all residents do their part to refamiliarize themselves with and follow the covenants to keep our community looking great, our property values high, and to respect our friends and neighbors. If you have any questions, please reach out to a Board Member directly or Contact Us. Thank you in advance for your support and cooperation!

Hint: the covenants are listed in their entirety on this page ;)

What’s the process for amending the covenants?

Changes to the covenants must follow SD state laws and the HOA governing documents. Changes can be initiated by the HOA board or by individual members. Generally, 6 steps need to be followed.

There are many reasons an HOA may consider changing or updating the covenants. If residents wish to make changes, a proposal describing the desired changes must be submitted to the board. The board of directors will review proposals, ask questions, investigate, help refine, and prepare a proposed amendment. The approved proposal is then presented to all HOA members for discussion. And finally, the proposal is referred to a vote.

It’s important to note that SCCE covenants require half of the members to agree to changes. A signed amendment must then be recorded at the Pennington County Register of Deeds office before it can go into effect.

Generally, these are the 6 steps that need to be followed:

1. PROPOSAL OF AMENDMENT

The first step is to draft a proposal describing the changes to the covenant. The proposal can come from individual HOA members (lot owners) or the board. It should be presented in the form of an amendment with the proposed wording changes and appropriate legal description. The board will then submit the proposal for review by the HOA membership.

2. MEETING TO DISCUSS

The next step is for the board to notify HOA members of proposed changes and provide a forum for discussion. In some cases, the board may call a special meeting or series of meetings. Homeowners must be allowed input on the proposal. Typically, the community gets 30 days to review the proposed amendment, attend meetings, or submit input. Based on comments from members, the proposal may be accepted by the board as-is, revised at the meeting, or returned for further revision.

3. VOTING

Following final review and board acceptance, the proposed amendment goes to an official vote. There are 140 lot owners in our development. Each lot owner gets 1 vote which is recorded by signature. Our covenants state the proposal must be accepted by at least half of the lot owners. Thus, a majority would be met at 71 lot owner signatures. Signatures can be obtained at the meeting accepting the proposal or by members canvassing the neighborhood for the required signatures.

4. COUNTING OF VOTES

Next, the board validates the signature process and reviews the documents to ensure they meet the standards outlined in the covenants. They count and verify the number of signatures to determine if a majority of the lot owners are in agreement or opposed to the proposal. To ensure transparency and give members peace of mind, the tally of the signatures usually takes place during an open meeting where homeowners can witness the process.

5. APPROVAL OF THE AMENDMENT

SCCE covenants require a majority vote (71 of the 140 lot owners) to approve the amendment. If the amendment has sufficient signatures approving the wording of the change, the board will vote to approve and record the amendment.

6. RECORDING AND EFFECTIVITY

When half of the members approve and the required signatures are recorded, the board will work with our lawyer to ensure the amendment complies with all legal requirements. After approval, the amendment to the Declarations of Restrictions and Covenants to Run with the Land must be submitted to the Register of Deeds and officially recorded to be in effect.

What do the covenants say?

SCCE Covenants were established in 1978. An outline of the covenants is shown in this section. The third amendment is detailed in the section below and describes modifications made to the covenants in 2005. The full covenants (Articles I through VII) are also included on this page.

Third Amendment
Background
Purpose
Construction Materials
Execution & Effective Date

Covenants Article 1:
Purpose of the Covenants

Covenants Article II:
Purpose
Residential Area Covenants
Execution and Effective Date

Covenants Article III:
Well Lot

Covenants Article IV:
Owner’s Association
Officers & Meetings
Rules & Regulations

Covenants Article V:
Terms

Covenants Article VI:
Enforcement

Covenants Article VII:
Amendments or Changes of Covenants

Archive

Third Amendment

Certified September 27, 2005

This amendment modified the list of acceptable roofing materials to include architectural asphalt singles.

Article I.
Purpose

Article II.
Residential Area Covenants

Article III.
Well Lot

Article IV.
Owner’s Association

Article V.
Terms

Article VI.
Enforcement

Article VII.
Amendments

Archive

The SCCE covenants were originally executed on September 5, 1978, and were recorded with the Pennington County Register of Deeds. The First Amendment was recorded on September 24, 1991. The Second Amendment was filed and registered on April 28, 1999. The Third Amendment was recorded on September 27, 2005.

Original documents were submitted to the SCCE Homeowners Association for approval and execution. Official documents have been archived and are available upon request.