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A homeowner’s association is a not for profit corporation registered with the State and managed by a duly elected Board of Directors. Its purpose is to maintain all common areas and to govern the community in accordance with the provision of the legal documents: CC&Rs, Bylaws, and Articles of Incorporation.
HOAs can consist of single family homes, condominiums, or town homes and are typically setup by the original developer of the community with a set of rules called the Declaration of Covenants, Conditions, and Restrictions otherwise known as CC&Rs.
One of the primary functions of the HOA is enforce and ensure that these “CC&Rs” are adhered to by all homeowners. The guiding principles of these regulations are normally to help maintain property values and the quality of life within the community.
Membership is normally mandatory for all property owners.
Mandatory dues are normal and periodic special assessments are not uncommon.
Monthly fees can vary and are established by the Board of Directors and approved by the Homeowners.
There is usually an elected Board of Directors who consist of volunteer homeowners.
Many HOAs hire a property management company typically chosen by the Board of Directors to do things like maintenance, bookkeeping, and dues collection.
Associations collect dues from homeowners and maintain financial statements. They enforce the deed restrictions or CC&Rs for things like: exterior home improvements, general exterior condition of property such as paint, how properties can be used, and even noise control.
Associations typically provide for the at least some of the following services: Maintain landscaping in the common areas, provide snow removal, maintain recreation facilities such as clubhouses and pools, maintain adequate liability and Workers’ Compensation insurance. Associations organize and hold meetings of the Board and provide for an annual meeting of the members of the Association.
The Davis-Stirling Act is the main body of law that governs common interest developments including condominiums, planned developments, stock cooperatives, and community apartment projects.
The HOA consists of all owners within the geographic boundaries of the HOA. Each and every owner is a member of the HOA. Membership is not optional. The Board of Directors consists of those owners who have been elected to conduct the day-to-day business of the HOA and make the decisions that affect all owners.
Unfortunately, unless you want to move, you will have to get rid of two of those animals. One of the most important things to do before buying a home in an HOA is to thoroughly read the CC&Rs.
The Governing Documents for your association are the Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions plus any Rules and Regulations, Resolutions or guidelines that have been established by your association.
The Covenants, Conditions and Restrictions (CC&Rs) are the governing legal documents that set up the guidelines for the operation of the planned community as a non-profit corporation. The CC&Rs were recorded by the County recorder’s office of the county in which the property is located and are included in the title to your property. Failure on the part of a homeowner to abide by the CC&Rs may result in a fine to the 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, as well as other specific items that are necessary to run the Association as a business.
Articles of Incorporation provide the legal basis for operating within California’s Corporation Codes.
Typically, yes. Most associations have additional rules that are usually intended to maintain the aesthetic value and integrity of the community on behalf of all owners and help protect the value of property. Other rules may include the types of changes you may make to the exterior of your home.
In relation to a community Association or HOA, a Director is charged with the conduct and management of its affairs. The Directors collectively are referred to as the Board of Directors and are typically elected or appointed. The Board will usually vote some of its members to be the Chair or President and others as the Vice President, Secretary and Treasurer.
The authorities of the Directors are outlined in the Association governing documents found within the CC&R tab under “Bylaws”.
The Board of Directors is responsible for maintaining the assets of the community, ensuring the financial health of the association, determining the level of services, and establishing policies and/or rules and regulations governing the use of the common areas. The Board has a fiduciary responsibility to do what is in the best interest of the association and to provide leadership in community affairs as dictated by the Governing Documents. This includes timely collection of assessments as well as payments made for services provided to the Association. In general, the Board Members are the decision makers for the Association. The Board of Directors is made up of individual homeowners who own property within the Association and who are elected to that position by the members of the Association. All affairs of a Homeowners Association are governed by the Board of Directors
The best way to contact the Board is through your community’s Association Manager. He or she can include your questions and concerns with those of other residents and present them to your Association’s Board of Directors for discussion and direction. The ability of your community’s Association Manager to group information together on a common subject allows the Board of Directors to be better informed and make better decisions. If your association has a website, current members of your Board of Directors will be posted there.
The association’s Bylaws set the guidelines for when Annual meetings and Board meetings are to be held.
Your Board of Directors makes decisions for your Association. However, they volunteer for these positions and receive no compensation for the jobs that they perform. Your Management Company represents the Board and your Association, which entails being a contact for all communications addressed to the Board. Also, legally we are not allowed to give out personal information of any homeowner including your Board of Directors.
Generally, any member of an Association who is in good standing (no delinquent dues, no outstanding violations) may run for the Board of Directors. Most Associations send out candidate solicitations several months prior to the annual election. Simply fill out the form and return it to the management office.
The Organizational hierarchy of an association consists of:
The rights reserved by owners are described in the governing documents and are generally limited to electing/removing members of the Board of Directors; to call special meetings of the membership and to vote amend the CC&Rs and bylaws. Owners also maintain the right to be heard by the Board on such issues as alleged violations of the documents or architectural approval issues.
The management company works with the Association and reports to the Board of Directors. The management company typically attends to the day-to-day operation of the Association and implements the policies and decisions as determined by the Board of Directors. Typical services offered by the management company include: collection of assessments, supervision of subcontractors, obtaining estimates for contracted services and providing financial statements/information and income and expense reports. The management company serves as the liaison between the volunteer Board and homeowners. It usually acts in an advisory capacity to the Board of Directors and acts only at the direction of the Board.
A professional management company, such as California HOA Solutions provides knowledge of the operations of the Associations, the governing statutes, continuity in operations, accurate accounting, expertise in condominium and homeowner association management, and provides better negotiating power with vendors, contractors and insurance companies.
The Manager 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.
No. California HOA Solutions will be retained as the association’s ‘Agent’. As the associations Agent we are like a partner to them allowing Boards to utilize our knowledge, training and expertise in the industry. Many Board members serve with little to no knowledge of the operation of both a not for profit corporation or a homeowners’ condominium association. Our role is to assist those members as the Agent in the proper operations of the association and its function as a not for profit corporation.
The assessment is the periodic amount due from each homeowner to cover the operating expenses of the common area and to provide for reserve funds for the repair and/or replacement of common facilities in future years. Assessment amounts are published in the Association Budget, which is typically available through the Association manager. The assessments you pay to your Association cover the current operating expenses and anticipated future financial obligations of your Association. That may include, but may not be limited to: landscaping maintenance, utilities, insurance, insurance, facility maintenance, meeting room reservations, legal fees, accounting fees, bank charges, management fees, roof replacement, painting, asphalt sealing, parking area striping, etc.
There is no simple yes or no answer to this question. In order to cover increased costs of operating and maintaining the common area and sufficient reserve funds, the Board of Directors may approve increases in budget that could increase your assessment up to the percentage allowed by the Civil Code
Typically, the CC&Rs state that not paying the monthly assessment causes the owner to be subject to a lien notice when he’s 60 days past due, and allows for interest and possible late charges to be assessed. If there is no response from the owner to notification of his delinquency, the account is usually sent to an attorney for collection. It is important to note that the maintenance and management services incurred by the Association are dependent upon timely receipt of the assessments due from each homeowner.
Your regular dues payments cover a number of items that may not be obvious including items such as insurance premiums, utility bills, bank fees, postage, copies, audits, legal fees, long term maintenance and capital improvements, and management fees. If there is something you wish to receive clarification on or if you observe something that is in need of attention, please contact your community’s Association Manager with the details.
Architectural change policies vary from one association to another but in general any exterior modifications require advance review and approval by the Board before project work can begin. All request forms must be submitted and approved in writing before beginning any such project. Most associations make these forms available through the Association website. In most cases, the Board may take up to 45 days to respond to a request, although most requests are processed more quickly than that.
No. Unless the problem is causing a common area problem or a direct violation, homeowner disputes should be settled between the parties involved. Your Board is not in place to serve as a mediator between neighbors. In any community, whether governed by an Association or not, homeowners experience personality conflicts, pet problems and other neighborhood issues.
Homeowners may report suspected violation of the governing documents to the Board of Directors through the Association Manager. All reports must be verified before the Board can act to address the issue and communication between the Board and individual homeowners is considered private information. Homeowners making reports are typically not kept apprised of these communications to protect the privacy of all involved.
A resale package is a packet of vital information provided to those purchasing a condominium or a home in an association. The package includes a complete set of recorded documents that govern your association. Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations.
When you are selling your home, a Disclosure/Resale Packet must be provided to you prospective purchase for their review. This allows them to review the financial condition of the community and to read the governing documents before they choose to finalize the purchase. If you have any questions about ordering a packet, contact your Community Manager or you may contact Signature Properties directly for assistance.