Who's Who

Property Manager

  • Advise and provide administrative, managerial, and operational counsel to the Association governing body (the Board)
  • Exhibit professionalism and loyalty to the Association governing body
  • Exercise diligence in performing duties on behalf of the Association governing body
  • 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 abide with Bylaws, recognizing the State regulations in place for Condominium and Homeowner Associations

The Board of Directors

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
  • Preside at all meetings of the board and membership
  • Execute legal documents on behalf of the Association
  • Set meeting agenda and control all meetings
  • Represent the board before the residents
  • May have nominating, if not appointment responsibility for all committees

Vice President

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

Secretary

  • Prepare and distribute board and membership meeting agenda, minutes, and materials referred to in minutes
  • Maintain minutes and board book on all meetings
  • Maintain book of resolutions
  • Maintain all official records, including official correspondence, contracts, membership roster, etc.
  • Receive, verify, and maintain all proxies
  • Attest, by signature, to the legitimacy of certain documents

Treasurer

  • Work with appropriate staff, contractors, and committees to develop and submit operating budget for approval
  • Maintain adequate record of all association financial transactions
  • Maintain roster of disbursement of funds, as authorized
  • Prepare and or review financial report
  • Arrange, subject to board approval, an independent audit of financial affairs

Perspectives

Board of Directors Perspective

  • Maintain value of the property and a good quality of life for the residential community
  • Smooth governing 
  • Enforce rules
  • Establish and keep budget

Homeowners Perspective

  • Preserve a high quality and well maintained community.
  • Service from managing agent and decisions from Board that will preserve a high quality and well maintained community.
  • Resolve problems when expectations are too high or not realistic; this can occur when interests are too specialized or unique

Property Managers Perspective

  • Work in balance with Association residents, homeowners and board
  • Available to problem solve
  • Multi-task and utilize time management effectively

Governing Documents

  • All documents that regulate the community life
  • Documents may vary depending on type of Association (condo, site-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)

Basic 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 Association
  • Subdivision of Condomimium/Townhome Plat-describes the location and nature of the common elements and 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
  • Articles of Incorporation-creates the Association as a Corporation under state corporate statute, 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

 Hierarchy of 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 CCR 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 Associations 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 while defining board powers, responsibilities of the Association membership, process for creating board of directors, voting system, etc.
  • Bylaws-implements, in specific detail, the provisions of the CCR 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 Right Laws

  • Prohibit racial discrimination as stated by the Civil Rights Act of 1866
  • Equal Credit Opportunity
  • Fair Housing Amendments Acts, 1988, applies to sale of residence
      Does not prohibit discrimination by owners, if selling or renting as long as they own three or less homes
  • Board is prohibited from discrimination in exercising its 1st 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. 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 reserve 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 reserve 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 should begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.