Understand Your Community

 An HOA (Homeowner’s Association), is a non-profit organization that oversees the upkeep of a neighborhood’s common areas and establishes general rules and standards for the community. HOA’s are established with the intent of protecting community assets and establishing a code of conduct for owners and residents, while instituting proper and sound financial management practices.

Decisions concerning HOA operations are made by a Board of Directors, which is made up of volunteers who are initially appointed by the developer and thereafter elected by the community’s residents during the annual membership meeting. The Board appoints officers and depending on the number of units or homes in the association will usually determine how extensive a role the Board takes. 

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The Board of Directors are responsible for making most operating and enforcement decisions on behalf of the homeowners’ association. These decisions include but are not limited to:establishing budgets, preparing reserve studies and enforcing the collection of assessments; making sure contracts are in place for the maintenance of the common area and vendors are providing the work they were contracted for; having proper insurance for the association, and establishing and enforcing the rules and regulations.item.

All homeowners should assume responsibility to protect property values and secure a lifestyle that all residents can enjoy. As a member of your community association, your legal responsibilities to the community association include complying with the governing documents, rules and regulations, architectural guidelines, policies and procedures, and paying the monthly assessment necessary to operate the community association. Should you wish to influence the direction of the association it is advisable that you volunteer to serve on the Board of Directors.

The assessment covers the operating expenses that the community association is legally responsible for. Typical expenses include:insurance, water and sewer, gas and electricity, landscaping services, street sweeping, janitorial, pest control, pool and spa, elevator, maintenance and management. Assessments also cover the funding of reserves, which are funds accumulated to pay for future repair or replacement of major components for which the community association is responsible. These include: water heater replacements and plumbing, roofing, painting, street repairs, pool and spa, elevator upgrades, and clubhouse refurbishment.

The daily workload for maintaining the association is often very time consuming for a volunteer Board of Directors. A management company is an independent firm that assists the Board in the daily functions some of which include: handling financial operations and enforcing collection policies, maintenance and overseeing vendors, helping the board to stay in compliance with the governing documents and laws, handling notices and correspondence to the owners, act as homeowner liaison and providing routine inspections of the property. The scope of services provided by a management company varies based on the needs of each Homeowners Association.