What is a Homeowners Association (HOA) or a Condominium Association?
A Homeowners’ Association (HOA) or a Condominium Association 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 and condominium owners after selling. They are generally accepted as voluntary associations of homeowners and condominium owners gathered together to protect their property values and to improve the neighborhood.
What is an Assessment?
Homeowner and Condominium 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.
What is a ‘Managing Agent?’
A Managing Agent is a person or entity hired specifically to assist the board of directors in enforcing the documents and managing the assets, funds, and interests of the association.
What is an Association Management Company and what do they do?
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 other property related matters. Some of these companies manage hundreds of properties simultaneously, while others focus on individual properties.
Why would my association need an Association Management Company?
Community associations select management companies for a number of reasons. During a community’s development stage, some developers may not believe a professional community manager is needed. When the board assumes full control of the association from the developer, board members may find they need to take this step themselves. Boards of self-managed communities may decide they’d be better served by a management company than volunteers. Or, a board may believe a change is needed from an existing management company to another. Also, State laws and statutes require a Community Association license if you are handling many of the financial, administrative and maintenance duties for the Association. Many Association Management Companies will already carry the correct licenses.
What items are required for transition to a new management company?
For a seamless transition, documents required to be provided to the management company include but not limited to all governing documents, meeting minutes, resolutions, site maps, plat of surveys, unit information, unit ledgers/balances, financial statements, reserve study, maintenance records, any vendor agreements and contracts, insurance policy, and any banking information.
How long is your standard contract?
We tailor our contracts for each community but we customarily draft a 2 year contract.
Do you attend meetings?
We do attend meetings for the Board of Directors. The frequency of attendance would be stipulated in the Community Liaison section of the management contract. Recording of minutes to be approved by the Board Secretary, a meeting PowerPoint, sign-in sheets and providing decorum for the flow of meetings are items that can also be added to your management contract.
Do you assist in the Annual meeting?
If provided in your management contract, we do attend the Annual meeting and assist in any items required. This includes but not limited to collection of ballots, proxies, posting of notices or any other items appropriate for that meeting.
How do you handle special mailings, notices, or large database projects?
As we are a boutique management company, our services are tailored to meet each community’s needs. Any item can be included in your management contract, at the monthly price. Charges do apply to additional items not covered in your management contract, but rates are broken down in the contract.
How do you handle delinquent accounts?
As most associations have a collection policy defined in their governing documents, we adhere to those guidelines and work efficiently with the association Attorney to collect any previous assessments. Utilizing a collection chart with triggers, items including Liens, parking privilege rescission, and evictions aid in the collection process.
If a home is sold, do you provide all documentation required for the closing? Are there any charges to the association?
As stated in our standard services, we do handle the homeowner transition process. We provide documentation including but not limited to a 22.1 disclosure letter, paid assessment letter, a current account ledger, and any governing documents. The closing bank or Title Company would be charged our standard fee of $75. The association is not charged additional for these services, as long as they are stipulated in the management agreement.
Do you have a preferred vendor list or can we transition and maintain the same vendors?
We strive to always keep the current vendors in place for your community, unless they are not providing services at a value. We have a list of vendors that we refer to, but always aim to obtain 3 quotes for any bid.