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Benefit from our insight by navigating through the links and resources for government agencies and organizations, answers to commonly asked questions, HOA terminology, and links to accounting requests, ARC requests, maintenance requests, pay assessments and order a resale certificate.
Homeowner Associations 101
A variety of useful terms to help people better understand the terminology, benefits and obligations of living in a community with an association.
Homeowner associations can compel homeowners to pay a share of common expenses, called Assessments, usually per-unit or based on square footage. These expenses generally arise from common property, which varies dramatically depending on the type of association. Assessments are based on the approved Operating Budget of the community and collected in accordance with the CC&R’s.
Association Management Company
Is 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 advisement on legal and other property related matters.
Is appointed by the Association Management Company to work with the Board of Directors in managing the Association. The Association Manager will carry out the decisions of the Board and manage the day to day operations of the Association. This can include, but is not limited to: maintaining the common areas, enforcing deed restrictions, and managing the Association’s contracts and insurance policies.
Architectural Review Committee
Or Architectural Control Committee, reviews all modification requests and ensures the submission is in compliance with the CC&R’s and Design Guidelines. Please click here for more information regarding the submission process and required documentation.
Are a set of rules or guidelines regarding the operation of a non-profit corporation. Bylaws generally set forth definitions of offices and committees involved with the Board of Directors. They can include voting rights, meetings, notices, and other areas involved with the successful operation of the Association.
Are a set of standards prepared and adopted by the Declarant pursuant to the Declaration. They have been developed to support and perpetuate the community’s visual integrity and design philosophy and are intended to ensure the creation of a pleasant physical environment both during and after construction. They have been established to explain design requirements and the design review process for development in the Association.
Declaration of Covenants
Conditions, & 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. It describes an owner’s responsibilities to the association which can include payment of assessments as well as the association’s various duties to the owners. It is commonly viewed as somewhat of a ‘constitution’ of the association. The CC&R’s should be 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.
Are the declarations, design guidelines, bylaws, operating rules, and articles of incorporation or any other documents which govern the normal operating procedures of an association.
Is an officer charged with the conduct and management of the Association’s affairs. The directors collectively are referred to as a Board of Directors, and are generally elected or appointed.
Homeowners’ Association (HOA)
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. Most homeowners’ associations are nonprofit organizations and are subject to state statutes that govern non-profit corporations and homeowners’ associations
Is a monetary claim levied against a property for unpaid mortgage, taxes, contractor work, or other charges. In association management, a lien is usually placed on a property for unpaid assessments, late fees, legal charges, or fines. A lien is attached to the property, not the owner, but legally must be recorded in the property records of the county of residence. If a Lien is in place, the property owner has very limited ability to do anything involving the property until the Lien is satisfied or removed.
Is usually ordered by the title company prior to closing on a property in a homeowner’s association. The resale certificate includes copies of all legal documents for the Association, current insurance certificate, and current financials. The resale certificate will also disclose information about the Association’s assessments, any past due amounts related to the property, unresolved violations, and fees due the Association and the Management Company.
Are monies set aside for future expenses related to capital repairs and replacements due to the life expectancy of certain items: lighting, fitness equipment, pool equipment, etc. Ideally the Association should plan for these future expenditures and incorporate the development of reserve funds into the Operating Budget and Assessments.