WHAT IS AN ASSESSMENT? |
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Homeowner associations can compel homeowners to pay a share of common expenses, usually per-unit or based on square footage. These expenses generally arise from common property, which varies dramatically depending on the type of association. Some associations are, quite literally, towns, complete with private roads, services, utilities, amenities, community buildings, pools, and even schools. Many condominium associations consider the roofs and exteriors of the structures as the responsibility of the association. Other associations have no common property, but may charge for services or other matters. |
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ARE ‘DUE’ DIFFERENT THAN ‘ASSESSMENTS’? |
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A predetermined set of fees usually referred to as ‘Dues’ are collected by HOAs, Community Associations, or divisions of property management for the upkeep of said organizations or neighborhoods in general. These fees are billed at intervals, sometimes by month, quarter, or annually. |
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WHAT IS A HOMEOWNERS ASSOCIATION (HOA)? |
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A Homeowners’ Association (HOA) is a legal entity created by a real estate developer for the purpose of developing, managing and selling a community of homes. It is given the authority to enforce the covenants, conditions & restrictions (CC&Rs) and to manage the common amenities of the development. It allows a developer to end their responsibility over the community, typically by transferring ownership of the association to the homeowners after selling. Generally accepted as a voluntary association of homeowners gathered together to protect their property values and to improve the neighborhood, a large percentage of U.S neighborhoods where free standing homes exist have an HOA. Most homeowners’ associations are non profit organizations and are subject to state statutes that govern non-profit corporations and homeowners’ associations. |
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WHAT IS ASSOCIATION MANAGEMENT? |
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Association management is a distinct field of management because of the unique environment of associations. Associations are unique in that the ‘owners’ are dues-paying members. Members also govern their association through an elected board or other governing body, along with association committees, commissions, task forces, councils and other units. Typically, the board selects, retains and evaluates a chief executive officer or an executive director who is responsible for the day-to-day management of the association and paid staff. Managers within the association environment are responsible for many of the same tasks that are found in other organizational contexts. These include human resource management, financial management, meeting management, IT management, and project management. Other aspects of management are unique for association managers. These include: membership recruitment and retention; tax-exempt accounting and financial management; development of non-dues revenue and fundraising. Association managers must also be familiar with laws and regulations that pertain only to associations. To attain the knowledge needed to effectively operate in association management, its practitioners may choose to pursue the Certified Association Executive designation. |
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WHAT IS AN ASSOCIATION MANAGEMENT COMPANY AND WHAT DO THEY DO? |
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A property management entity contracted by a Board of Directors or community to provide a variety of services including but not limited to collecting assessments, sub-contractor endeavors, financial advisement and statement/reports preparation and analysis, general maintenance and problem resolution, and advisement on legal and other property related matters. Some of these companies manage hundreds of properties simultaneously, while others focus on individual properties. |
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WHAT IS A ‘PROXY?’ |
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An individual appointed to act or vote on behalf of another person by representing them at a meeting of the association. The title can also refer to the written piece of paper granting that power. |
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WHAT IS A ‘QUOROM?’ |
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A Quorum is defined as the minimum number of owners required to hold an official meeting of the association. The number of owners required can vary greatly according to the corresponding association’s governing documents. |
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WHAT IS A BOARD OF DIRECTORS? |
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In relation to an HOA, Community or other formal organization, a director is an officer charged with the conduct and management of its affairs. The directors collectively are referred to as a board of directors, and are generally elected or appointed. Sometimes the board will appoint one of its members to be the chair, making this person the President of the Board of Directors or Chairman. |
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HOW DO I CONTACT MY BOARD OF DIRECTORS? |
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If your community has a Board of Directors, contact information, meeting times, minutes, and other information can be obtained through checking the Board information area of your website. |
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IS CAI A NATIONAL ORGANIZATION OR ARE THEY LOCAL TO MY AREA? |
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CAI is a national organization with almost 60 local and state chapters. CAI members enjoy automatic membership in the chapter of their choice. Find a CAI chapter in your area. |
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