Frequently Asked Questions
Assessments
Are 'Dues' different than 'Assessments?'
Generally speaking, the terms are used interchangeably, although “Assessments” is technically more correct.
What do Assessments Cover?
Assessments (also referred to as “dues”) are each home’s share of the annual operating costs of the HOA. For example, assessments cover: Maintenance and repair of common areas
Landscaping of common areas
Community Association Management fees Insurance on the common areas
Water and electricity for the common areas
Contributions to long-term maintenance reserves
Legal and accounting fees
In addition to assessments, all new home buyers pay an initial capital contribution (currently $500). This set up fee is separate from advanced assessments. Instead, it goes into the HOA operating account that pays start up costs.
What is an Assessment?
Homeowners in an Association are required, as a condition of ownership, to pay a share of common expenses. 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.
Association
Benefits of Living in an HOA
Your Homeowners Association (HOA) maintains the common areas, preserves a consistent look throughout the community, and can enhance the sense of community. An HOA may prevent your neighbors from making changes to their homes and using their property in ways that might negatively impact other homes.
Can Homeowners Participate in the HOA?
An HOA is the way by which homeowners may maintain the pleasant, desirable lifestyle envisioned when they purchased a home. After transition, HOAs are wholly run by homeowners who volunteer to serve their community. For more information about active committees in your community, please visit the "Committees"page of this website.
Does my community have an Association Management Company, and if so, how do I contact them?
If your community is not self managed, the Association Management's contact information may be located on the website, and most Association Management companies have contact information listed on their company websites or in the phone book. Generally, a management company can be contacted online or by telephone by community or Board members, or individuals whose communities are seeking a management company for representation.
How is an HOA Legally Created?
All HOAs are created by Covenants or CC&Rs. They are recorded on the title to every piece of property in a community; therefore, they are legally binding upon the entire community. CC&Rs grant the HOA and the HOA Board legal authority and are the source of restrictions that apply to all members.
CC&Rs may be amended only by the Declarant or a supermajority of homeowners (the percentage required in the Covenants, but more than 50%).
Other governing documents include the Bylaws, Articles of Incorporation and Community Rules or Guidelines. The Community Rules are made by the Board of Directors, and may change. They may not conflict with the CC&Rs, but should add helpful guidance to homeowners. Please go to the"Documents"page of this website to download a copy of the governing documents and rules.
What are the Common Areas?
Homeowners have the right to use and enjoy the common areas owned by the HOA. Examples of common areas include parks, trails, mailboxes, detention ponds, play structures, sport courts, etc. In some communities, local jurisdictions or third parties may own certain common areas. Check the recorded plot map or call the community association manager to find out what your HOA owns.
What Does the Community Association Manager Do?
Coordinates and supervises maintenance activities, landscaping, repairs, snow removal, trash pickup.
Advises the board of regulatory issues and compliance requirements, fair housing procedures, fair debt collection practices.
Coordinates member/board communication: provides notice of meetings, arranges and facilitates social interactions.
Manages office operations: accounts payable and receivable, bookkeeping, filing.
Manages association finances: budgeting, collecting assessments, analyzing reserves, pursuing delinquencies.
Works with accountants and auditors to maintain the association's financial viability.
Works with insurance companies to file or settle claims.
Works with state and regulatory agencies as an advocate for the association.
Prepares proposals and screens contractors.
Facilitates the PIC submittal and response process and keeps a record of all PIC applications and decisions for property improvements within your community.
What is a Declarant?
The Declarant is usually the developer. It is a corporation that owns the land being developed in a community. The Declarant—sometimes Quadrant Homes—is responsible for managing the HOA during the development phase. As the initial owner of all property in the subdivision, the Declarant at first holds all voting rights in the HOA and appoints the first Board of Directors.
What is a Homeowners Association (HOA)?
Association management is a distinct field of management because of the unique environment of associations. Associations are unique in that the 'owners' are assessment-paying members. Members also govern their association through an elected board or other governing body, along with association committees, commissions, task forces, councils and other units. Typically, the board selects, retains and evaluates a management company who is responsible for the day-to-day management of the association and paid staff. Managers within the association environment are responsible for many of the same tasks that are found in other organizational contexts. These include human resource management, financial management, meeting management, IT management, and project management. Association managers must also be familiar with laws and regulations that pertain only to associations. To attain the knowledge needed to effectively operate in association management, its practitioners may choose to pursue the designations that are specific to the industry.
What is an Association Management Company and what do they do?
An association 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 advisement on legal and other property related matters. Some of these companies manage hundreds of properties simultaneously, while others focus on individual properties.
What is Association Management?
Association management is a distinct field of management because of the unique environment of associations. Associations are unique in that the 'owners' are assessment-paying members. Members also govern their association through an elected board or other governing body, along with association committees, commissions, task forces, councils and other units. Typically, the board selects, retains and evaluates a management company who is responsible for the day-to-day management of the association and paid staff. Managers within the association environment are responsible for many of the same tasks that are found in other organizational contexts. These include human resource management, financial management, meeting management, IT management, and project management. Association managers must also be familiar with laws and regulations that pertain only to associations. To attain the knowledge needed to effectively operate in association management, its practitioners may choose to pursue the designations that are specific to the industry.
What is the difference between a Homeowners Association and a Neighborhood Association?
The term neighborhood association is sometimes incorrectly used instead of homeowners association (HOA). Some key differences include: 1. HOA membership is mandatory generally through rules tied to the ownership of property like deed restrictions. Neighborhood association membership is voluntary or informal. 2. HOAs often own and maintain common property, such as recreational facilities, parks, and roads, whereas neighborhood associations are focused on general advocacy and community events. The rules for formation of a neighborhood association in the United States are sometimes regulated at the city or state level. Neighborhood associations are more likely to be formed in older, established neighborhoods, whereas HOAs are generally established at the time a residential neighborhood is built and sold. In some cases, neighborhood associations exist simultaneously with HOAs, and each may not encompass identical boundaries.
What Uses are Restricted?
To preserve consistency and make living in your community more pleasant, the CC&Rs include a list of uses that are prohibited or restricted in within the community. Examples of common use restrictions include limits on breeding animals, nuisances, and parking oversized vehicles.
Before transition of HOA to Homeowner Control:
Most Declarant-controlled HOAs also have use restrictions that—among other things—prohibit the following:
Rentals during development period
Businesses—homes are intended for residential use only
Signs RV, trailer, and commercial vehicle parking
When Does the HOA Transition to Owner Control?
The HOA is turned over to the homeowners after the developer is done developing, selling, and building the community. After that period, a meeting is held when homeowners vote to elect members of the community to the board of directors. That meeting is called the "transition," and marks the transfer of full control to homeowners. HOAs are governed by a board of directors. After transition, the board is elected by, and composed of, homeowners. The board hires and supervises the community association management firm, which is responsible for the day-to-day management of the HOA.
Association Legal Documents
What are 'Bylaws?'
A set of rules or guidelines regarding the operation of a non-profit corporation such as a Board. 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.
What are CC&Rs?
The term CC&R refers to 'Covenants, Conditions & Restrictions.' A real covenant is a legal obligation imposed in a deed by the seller of a home and or property upon the buyer of the real estate to do or not to do something. Such restrictions frequently 'run with the land' and are enforceable on future buyers of the property. Examples might be to maintain a property in a reasonable state of repair, to preserve a sight-line for a neighboring property, not to run a business from a residence, or not to build on certain parts of the property. Many covenants are very simple and are meant only to protect a neighborhood from homeowners destroying trees or historic things or otherwise directly harming property values. Some can be more specific and strict, outlining everything a homeowner can do to the exterior of their home, including the number of non-familial tenants one may have, acceptable colors to re-paint the home, exactly when holiday decorations are allowed up, automobile placement or repair on property, satellite placement, etc.
What are Governing Documents?
The declaration, bylaws, operating rules, articles of incorporation or any other documents which govern the normal operating procedures of an association.