A community association management company is contracted by the Board of Directors to provide such services as: collection of assessments, supervision of subcontractors, obtaining bids for subcontracted services, providing financial statements and collection reports, as well as a general clearing house for problem solving, communications with homeowners and the Board of Directors and to serve in an advisory capacity. The community association management company reports directly to the board and all decisions are made by a majority vote of the Board of Directors.
It is a non-profit corporation registered with the state and managed by a duly elected Board of Directors. Board members are representative homeowners or the developer for new communities. The associations’ purpose is to maintain all common areas and to govern the community in accordance with the provision of the legal documents: CC&R’s, Bylaws, and Articles of Incorporation. The corporation is financially supported by all members of the homeowners association. Membership is both automatic and mandatory.
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. The CC&R’s were recorded by the County Register of Deeds office of the county in which the property is located and are included in the title to your property. Failure to abide by the CC&R’s may result in a fine to a homeowner by the association.
The Bylaws are the guidelines for the operation of the non-profit corporation. The Bylaws define the duties of the various offices of the Board of Directors, the terms of the directors, the membership’s voting rights, required meetings and notices of meetings, and the principal office of the association.
The homeowner’s association is a corporation and therefore a governing body is required to oversee its business. The Board of Directors is elected by the homeowners, or as otherwise specified in the Bylaws. The limitations and restrictions of the powers of the Board of Directors are outlined in the association governing documents found on each communities’ website. For new communities, the developer generally represents the association until it’s turned over to the homeowners.
Most associations have developed Rules and Regulations as provided for in the CC&R’s and adopted by the Board of Directors. Rules are established to provide direction to the homeowners for common courtesies with regard to parking, vehicles, pets, pool use hours, etc. In addition, your association will adopt Architectural Guidelines with procedures for submitting requests to make exterior changes to your home. Such changes may include patio covers, decks, landscaping, exterior color changes or extensive interior changes and additions. Violations of these rules may result in action by the Board of Directors and a fine. In addition, if you proceed with an exterior improvement or change, without written approval of the Board of Directors, or Architectural Committee, as applicable, you will be required to remove or correct the alteration and/or be fined for the violation.
If residents cannot resolve a situation between themselves, then turn to your association. Should you have a situation that does not appear to be resolved through neighborly means, and you are willing to actively participate in the enforcement provided by the Policies and Guidelines, you may complete a Covenant Violation form online. The Violation form may be found within the Management Office on each community website. If the situation is deemed in violation of the Policies and Guidelines, the Board of Directors will institute the enforcement policy. Your continued assistance may be required. Also, city and county resources can be utilized, such as contacting the police for noise violations or calling 311 for animal control or grass over 12” high. For criminal activity, contact the local police.
Not all board meetings are open to the public. The board will have periodic meetings that are open to the public. Notice of the time and place of any regular board meeting will be noted in the community newsletter, or accessed online on the Calendar page of the communities’ website.
The Contact Us page of each community website will inform you of the status of current committees organized and committee contact information. If you are interested in volunteering, please contact the committee chairperson or fill out the online volunteer form found on the Management Office page of the communities’ website. If your community does not yet have a website, email us at HOA@HendersonProperties.com and include your community name and property address.
The assessment is the periodic amount due from each homeowner to cover the operating expenses of the common area and provide for reserve funds for replacement of common facilities in future years. The Board of Directors determines the due date and grace period for paying assessments.
The developer of each new community prepares the initial annual budget and determines the initial assessment amount. This budget is set upon specific guidelines for utilities, landscaping, administration, etc. Reserve funds are monies set aside for future expenses due to the life expectancy of certain items: lighting, street resurfacing, pool equipment, etc. These amounts are then divided by the number of units built in a given phase of the development. Subsequent budgets are developed by the Board of Directors and adjusted periodically to meet anticipated expenses. Some assessments are determined by a percentage. This will be clarified in the governing documents.
There is no concrete answer to this. Typically the CC&R’s provide for annual increases. Many CC&R’s have a maximum increase per year without the vote of the membership. The Board of Directors may approve an increased budget, increasing your assessment up to this percentage to cover increased costs of operating and maintaining the common area and sufficient reserve funds.
The maintenance and management services incurred by the association are dependent upon timely receipt of the assessments due from each homeowner. Late payments will result in a late charge. In addition, the CC&R’s allow the association to charge late charges and interest and proceed with a lien on your property, and eventually start foreclosure proceedings for nonpayment of assessments.
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