FREQUENTLY ASKED QUESTIONS...
Question: What is Association
Answer: Association management is a distinct field of management because
of the unique environment of associations. Associations are unique in that the
'owners' are dues-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 chief executive officer or an executive
director 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. Other aspects of management are unique for
association managers. These include: membership recruitment and retention;
tax-exempt accounting and financial management; development of non-dues revenue
and fundraising. 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 Certified Association Executive designation.
Question: What is an
Association Management Company and what do they do?
Answer: A property 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.
Question: What is a 'Quorom?'
Answer: A Quorom is defined as the minimum number of owners required to
hold an official meeting of the association. The number of owners required can
vary greatly according to the corresponding association's governing documents.
Question: What is a Board of
Answer: In relation to an HOA, Community or other formal organization, a
director is an officer charged with the conduct and management of its affairs.
The directors collectively are referred to as a board of directors, and are
generally elected or appointed. Sometimes the board will appoint one of its
members to be the chair, making this person the President of the Board of
Directors or Chairman.
Question: What are CC&Rs?
Answer: 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.
Question: What are Governing
Answer: The declaration, bylaws, operating rules, articles of
incorporation or any other documents which govern the normal operating
procedures of an association.
Question: What is a Lien?
Answer: A monetary claim levied against a property for unpaid mortgage,
taxes, contractor work, or other charges. 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
Question: What is an'Easement?'
Answer: An interest or a right in real property which grants the ability
to a landowner to use the land of another for a special purpose or endeavor. An
association may for example have an easement for slope maintenance or other
repair purposes. A public utility may also have an easement for maintenance or
repair work to be executed at a future date.
Question: What is an
Answer: Homeowner associations can compel homeowners to pay a share of
common expenses, usually per-unit or based on square footage. 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
Question: Are 'Dues' different than 'Assessments?'
Answer: A predetermined set of fees usually referred to as 'Dues' are
collected by HOAs, Community Associations, or divisions of property management
for the upkeep of said organizations or neighborhoods in general. These fees
are billed at intervals, sometimes by month, quarter, or annually.