You probably have a good idea of what “homeowners association” means, but you might have some questions about running one, or about what exactly an HOA management company does. Read on to find answers to frequently asked questions about boards/board members, the benefits of a community management company, financial issues, and more.
What is a Homeowners Association?
Homeowners associations, or HOAs, govern and maintain residential communities. These can be neighborhoods of single-family homes, condominiums, or townhomes. HOAs manage upkeep and maintenance, and elect a governing board to uphold covenants and bylaws.
How are HOAs formed?
The goal of an HOA is to protect the property values and shared assets of a community. Often formed by developers during the development and sales stages, the organization assumes financial and legal responsibility and retains voting and governance rights.
What is an HOA Board Member and what are their responsibilities?
An HOA board is made up of elected volunteers within the community. Board members are also homeowners within the community, so they have a vested interest in the HOA’s success. The board will often elect officers, and will conduct regular meetings. These meetings follow a set agenda and usually involve discussing amenities maintenance, HOA finances, and voting on potential community projects.
HOA Fees and Assessments Management
What are HOA fees used for?
HOA fees are collected from every member of the community into a fund. This fund is used for various community maintenance, upkeep, and large-scale pre-planned projects (typically referred to as capital improvements ).
What is a special assessment?
These are fees charged separately from HOA dues for unexpected costs. Special assessments usually happen when HOA reserve funds are low. There are many reasons this may become necessary, including costs going over estimates, poor budget management, or insufficient insurance coverage.
What are governing documents?
These are legal documents usually created by the declarant or builder of your community. They may include Articles of Incorporation, Bylaws, and CC&Rs. They are recorded documents that establish the framework for your HOA.
What are CC&Rs and what is their purpose in an HOA?
The Covenants, Conditions and Restrictions (CC&R) are a set of unique rules and policies created and enforced by an HOA. These state what homeowners can and cannot do as members of the HOA. Well-defined CC&Rs help keep the community clean and safe, and neighbors working and living together peacefully.
How do I get a copy of my governing documents?
A copy should have been provided to you upon closing on your home, but you can get another copy by signing into the VCM Bridge.
The Role of An Association Management Company
What does an association management company do?
Just like it says—we help you manage your HOA. From budget management to sourcing and hiring contractors for routine maintenance or large projects, we take care of the day-to-day details so you don’t get bogged down.
What is the role of a community association manager?
Your association manager helps the HOA and board members with all aspects of community management. The manager handles everything from financials to maintenance, internal communication, insurance, and enforcing bylaws.
We’d be honored to help you realize your vision for your community. Contact us today to learn how we can alleviate your HOA stress.