Homeowners Associations (HOA’s) are organizations which handles the upkeep of a property’s common areas and establish standards for the community.
The Covenants, Conditions and Restrictions (CC&R’s) are the governing legal documents that set up the guidelines for the operation of the planned community as a non-profit corporation. Also known as the Declaration and Bylaws.
Prospective purchasers should receive a complete set to review before taking title to a new property.
An HOA’s responsibilities and powers can be determined by consulting its governing documents.
Its authority may cover the maintenance, upkeep, and standards that owners are expected to abide by as members of the HOA. Rules may limit construction, so residents likely need permission if they wish to install or build anything additional on or around the property. Standards may also apply to driveways, landscaping and other aspects of a property.
Your Management Company is hired by the HOA Board of Directors to provide Management Services. These services include, but are not limited to, the collection of assessments, obtain bids for subcontracted services and ensuring the HOA’s insurance is renewed on schedule. In addition, the Management Company will provide financial statements, collection reports, and support in an advisory capacity to both the Board of Directors and Owners.
The management company reports directly to the Board and decisions are made by a majority vote of the Board of Directors.
The Homeowner’s Association is incorporated and requires a governing body to oversee its business. The Board of Directors is elected by the homeowners, or as otherwise specified in the bylaws. The limitation and restrictions of the powers of the Board of Directors is outlined in the Association governing documents.
The board has officers, with the most common roles being president, vice president, secretary, and treasurer.
Yes, except on the occasion when the Board goes into executive session.
The assessment is the periodic amount due from each homeowner to cover the operating expenses of the common area, insurance, and provide for reserve funds for replacement of common facilities in future. The assessments are due at the beginning of each month.
A budget is set upon specific guidelines for utilities, landscaping, administration, etc. Reserve funds are monies set aside for future expenses . Budgets are developed by the Management Company and approved by the Board of Directors, ratified by the homeowners (in some cases), and the management company follows. The assessments are adjusted to meet anticipated expenses.
The maintenance and management services incurred by the Association are dependent upon timely receipt of the assessments due from each homeowner. If payments are late, the CC&R’s allow the Association to charge late fees, interest and if seriously delinquent, Homeowner Associations are allowed, by state law, to place a lien on your property, and subsequently, foreclosure on that lien thus taking ownership of the property.