HOA Terminology

WHO’S WHO

Community Manager

• Advise and provide administrative, managerial, and operational counsel to the association governing body
• Exhibit professionalism and loyalty to the principal (the Board)
• Exercise diligence in performing duties on the principal’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
• Know and enforce covenants, recognizing the State agency that supervises the community associations

The Board of Directors

Depending on the management agreement, some of the following responsibilities can be turned over to a management company.  Board of Directors are the decision makers - management company is the staff to Board of Directors.

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
Enforces rules
Establishing and keeping budget

Homeowners 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

Managers Perspective

Working in balance with homeowners, board, and realities of management company’s 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
Declaration of Covenants or Restrictions
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 and powers of the association, and the process of dissolution of the condominium

Subdivision of Condomimium/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 the use restrictions adopted by the association

LEGAL DOCS FOR HOMEOWNER ASSOCIATIONS AND THE HIERARCHY OF SUCH DOCUMENTS

Subdivision Plat
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
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&R’s 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