Association 101│ Who's who...

Community Manager

  • Advise and provide administrative, managerial, and operational counsel to the association governing body
  • Exhibit professionalism 
  • Exercise diligence in performing duties on the board's behalf
  • Account for financial activities covered by the Management Agreement
  • Perform onsite property inspections
  • Solicit and evaluate bids for association services
  • Supervise maintenance activities and contractor performance
  • Oversee and authorize payment for primary association services
  • Abide by and know Bylaws 

The Board of Directors Duties and Responsibilities

Depending on the management agreement, some of the following responsibilities can be turned over to a managing company: 


President

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees 


Vice President

  • Performs all of the duties of the president in his/her absence
  • Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
  • Usually assigned liaison responsibility to specific staff or contractors, and to specific committees  

Secretary

  • Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes        
  • Maintains minutes and book on all meetings
  • Maintains book of resolutions
  • Maintains all official records, including official correspondence, contracts, membership roster, etc.
  • Receives, verifies, and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents 

 Treasurer 

  • Works with appropriate staff, contractors, and committees to develop and submit annual   operating budget for approval
  • Maintains adequate records of all association financial transactions
  • Maintains roster of disbursement of funds, as authorized
  • Prepares period financial reports- Arranges, subject to board approval, an independent audit of financial affairs
  • Perspectives of Board, Homeowner, and Manager 

Board of Directors' Perspective

  • Maintaining the value of the property and a good quality of life for the residential community
  • Governing smoothly
  • Enforcing rules
  • Establishing and keeping budget 

Homeowner's Perspective

  • Most care a great deal about residences
  • Will want service from manager and decisions from Board that will provide a good quality of life
  • Problems may arise when expectations are too high or not realistic; this can occur when interests  are too specialized or unique   

Manager's Perspective

  • Working in balance with homeowners, board, and the management companies business
  • Problem-solver
  • Multi-task oriented 

Governing Documents

  • All documents that regulate the community life
  • Documents may vary depending on type of Association (condo, townhome, etc.)
  • State law- Maintenance Declaration
  • Deed Restrictions/ CCRs
  • Bylaws
  • Rules and Regulations
  • Plats of Survey and Easement Agreements (may be separate, often included in the Declaration)
  • Basic Condominium/Townhome Legal Documents
  • State Enabling Statute-permits the creation of condominium/townhome form of ownership and prescribes the basis of determining ownership interest, rights and obligations of the owners, duties association, and the process of dissolution of the condominium and powers of the subdivision of Condominium/Townhome Plat-describes the location and nature of the common  elements and the units
  • Condominium Declaration or Master Deed-defines the units, common and limited common  elements, and is the  collection of covenants imposed on the property to provide for:               
    •  The basis for allocation of percentage ownership interest              
    •  The obligation of each owner to share in funding the cost of association operations             
    •  The power, authority, and responsibility of the association in its operations and in making and enforcing rules
  • Individual Unit Deeds-comprises the individual unit deed 

Articles of Incorporation

Creates the association as a corporation under state corporate statute and defines its membership   and sets forth the process for creating the board of directors, voting procedures, etc.    

Bylaws

Implements, in specific detail, the provisions of the Declaration and the Articles of Incorporation  regarding the association operations, including delineation of the meeting process, election  procedures, powers and duties, board meetings, committees, insurance requirements, rule-making  and enforcement process    

Rules and Regulations

  • Sets forth the operational powers or provisions and use restrictions adopted by the association
  • Legal Docs for Homeowner Associations and the Hierarchy of such documents 

Subdivision Plan

Describes the location and nature of the common property and the individual lots 

Property Deeds

Comprise the individual lot deeds and the deeds to common property which give a legal  description of the property 

The Declaration of Covenants, Conditions, and Restrictions (CC&Rs)

The Declaration of CC&R’s is the collection of covenants imposed on all property within the development and provides:                

  •   For automatic association membership of all owners and the basis for voting rights              
  • The obligation of each owner to share in funding the cost of association operations            
  • Certain restrictions (architectural control and other rules) on the use of the property and the association’s enforcement powers             
  • Sets forth the power and authority of the association to own and maintain the common property and to make and enforce rules    

Articles of Incorporation

  • Creates the association as a legal entity under state corporate statute; defines the board powers and responsibilities of the association and its membership; and, sets forth the process for creating the board of directors, voting system, etc. 
  • Bylaws-implements, in specific detail, the provisions of the CC&Rs and the Articles of Incorporation regarding the association operations, including delineation of the meeting process,    election procedures,  powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
  • Rules and Regulations-sets forth the operational powers or provisions and the use restrictions adopted by the association    

Applicable Civil Rights Laws

  • Prohibition against racial discrimination as stated by the Civil Rights Act of 1866
  • Equal Credit Opportunity
  • Fair Housing Amendments Acts, 1988
  • Board is prohibited from discrimination in exercising its 1st right of refusal
  • Persons with disabilities (at own expense) must be allowed to make accommodations per  the Americans with Disabilities Act, 1993         

Capital Reserves

The Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due