HOA Board Services

Board Members

Providing convenience and value with our online board services

We’ve put our associations online to provide you with more convenience and a wealth of online services and opportunities to share ideas and information. For Board members we take the Homeowner experience and add the ability for you to see up to date information on Covenant Violations, Work Orders, Accounts Receivable; access an online resource center for important Board documents, forms; and calendars, as well as the full member directory.

We’re excited about offering online Board services and consider the service a valuable amenity for Boards.

Who's Who?

Advise and provide administrative, managerial, and operational counsel to the community association governing body
Exhibit professionalism and loyalty to the principal (the Board)
Exercise diligence in performing duties on the principals behalf
Account for financial activities covered by the Community Association Management Agreement
Perform onsite property management and inspections
Solicit and evaluate bids for community association services
Supervise association maintenance activities and contractor performance
Oversee and authorize payment for primary association services
Know and abide Bylaws, recognizing the State agency that supervises the community associations

Depending on the community association management agreement, some of the following responsibilities can be turned over to a property management company.

President

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

Secretary

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

Treasurer

Works with appropriate association staff, contractors, and committees to develop and submit annual operating budget for approval
Maintains adequate community records of all association’s financial transactions
Maintains roster of disbursement of association funds, as authorized
Prepares period financial reports for the community association
Arranges, subject to board approval, an independent audit of the association’s financial affairs

Perspectives of Board, Homeowner, and Manager

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

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

Working in balance with homeowners, board, and realities of management companies business(possible friction)
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 Master Deed
- Conditions and Restrictions
- Bylaws
- Rules and Regulations
- Plats of Survey and Easement Agreements (may be separate, often included in the declaration)

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 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 the use restrictions adopted by the association

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

Prohibition against racial discrimination as stated by the Civil Rights Act of 1966
Equal Credit Opportunity
Fair Housing Amendments Acts, 1988, applies to sale of residence
Board is prohibited from discrimination in exercising its 1^st right of refusal
Association must abide by laws prohibiting discrimination against families with kids
Persons with disabilities (at own expense) must be allowed to make accommodations per the Americans with Disabilities Act, 1993

Accounting Basics

Cash Method of Account

Income and expenses are only recorded when cash changes hands. Financial reports only reflect cash transactions. This is a relatively simple system for simple situations. Because all obligations are not recorded until cash changes hands, this method does not provide an accurate portrayal of the financial condition of the association at any given time.

Accrual Method of Accounting

Keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity and technical knowledge that is needed to maintain the records, understand the reports, etc.

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.