Transferring Authority From Developer to Homeowner Control “The method used to transfer control of the association from the developer to the owners often determined the success of the association. Ideally, the transfer of control should occur through an extended process…

One of the primary responsibilities of the Board of Directors is to maintain, protect, and enhance the assets of the Association. Typically, the most significant assets and related expenses of an association are those identified within a Reserve Study. What…

Let’s first establish what an assessment is: Each year, the Association is obligated to establish an annual budget that funds the necessary administrative functions, maintenance responsibilities, insurance costs and other such expenses as determined appropriate for the community or obligated…

Actions taken at meetings of the Association are required to be documented in “Minutes” to establish a permanent record of the decisions made. Minutes are taken by the Secretary to the Board of Directors. In the absence of the Secretary,…

A homeowners association is obligated to provide its members with various notices that constitute steps in the process of conducting association business. These notices include: Notice of covenant violation Notice of assessment Notice of delinquent account Notice of new policy(s)…

Assessments are annual obligations due to the Association by each Member. Assessments are most commonly payable in equal monthly installments; however some associations elect for quarterly or semi- annual payments. Members may pay their entire annual assessment at once even…

Homeowner associations are non-profit corporations governed by an appointed or elected Board of Directors. The individuals that serve on this board are bound by certain fiduciary duties, including the Duty of Loyalty and the Duty of Care. Specific duties and…

Common interest communities today are not all the same. Some developers set the community up with a homeowners association (HOA). Others split the community’s needs between a homeowners association and a metro district, which is a quasi-governmental body that manages…

Common-interest communities, whether residential or commercial, have three common characteristics. Membership is mandatory and automatic by ownership of property. Certain documents bind all owners to be governed. Mandatory lien-based assessments are levied on each Owner in order to operation the…

What is a Collection Policy? It is a policy adopted by the Board of Directors to establish a procedure for the handling of delinquent accounts. This policy establishes the perimeters of the due date, the delinquency date, and the penalties…