Association or Community Manager

  • Advise and provide administrative, managerial, and operational counsel to the association governing body
  • Exhibit professionalism and loyalty to the principal (the Board)
  • Exercise diligence in performing duties on the principals behalf
  • Account for financial activities covered by the Management Agreement
  • Perform onsite property visits
  • Solicit and evaluate bids for association services
  • Supervise maintenance activities and contractor performance
  • Oversee and authorize payment for primary association services
  • Know and abide with Bylaws, recognizing the State agency that supervises the community associations

Board of Director Duties and Responsibilities

President

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees

Vice President

  • Performs all of the duties of the president in his/her absence
  • Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
  • Usually assigned liaison responsibility to specific staff or contractors, and to specific committees

Secretary

  • Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes
  • Maintains minutes and book on all meetings
  • Maintains book of resolutions
  • Maintains all official records, including official correspondence, contracts, membership roster, etc.
  • Receives, verifies, and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents

Treasurer

  • Works with appropriate staff, contractors, and committees to develop and submit annual operating budget for approval
  • Maintains adequate records of all association financial transactions
  • Maintains roster of disbursement of funds, as authorized
  • Prepares period financial reports
  • Arranges, subject to board approval, an independent audit of financial affairs

Perspectives of board, homeowner and manager

Board of Director Perspective

  • Maintaining the value of the property and a good quality of life for the residential community
  • Governing smoothly
  • Enforces rules
  • Establishing and keeping budget

Homeowner Perspective

  • Most care a great deal about residences
  • Will want service from manager and decisions from Board that will provide a good quality of life
  • Problems may arise when expectations are too high or not realistic; this can occur when interests are too specialized or unique

Manager Perspective

  • Working in balance with homeowners, board, and realities of management companies business (possible friction)
  • Problem-solver
  • Multi-task oriented

Governing Documents

  • All documents that regulate or govern the community life, varying depending on type of Association (condo, townhome, etc.) - State law
  • Declaration of Covenants or Master Deed
  • Conditions and Restrictions
  • Bylaws
  • Rules and Regulations
  • Plats of Survey and Easement Agreements (may be separate, often included in the declaration)

Basic Condominium/Townhome Legal Documents

State Enabling Statute-permits the creation of condominium/townhome form of ownership and prescribes the basis of determining ownership interest, rights and obligations of the owners, duties and powers of the association, and the process of dissolution of the condominium

Subdivision of Condomimium/Townhome Plat-describes the location and nature of the common elements and the units

Condominium Declaration or Master Deed-defines the units, common and limited common elements, and is the collection of covenants imposed on the property to provide for: the basis for allocation of percentage ownership interest; the obligation of each owner to share in funding the cost of association operations; the power, authority, and responsibility of the association in its operations and in making and enforcing rules

Individual Unit Deeds-comprises the individual unit deed

Articles of Incorporation-creates the association as a corporation under state corporate statute and defines its membership and sets forth the process for creating the board of directors, voting procedures, etc.

Bylaws-implements, in specific detail, the provisions of the Declaration and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process

Rules and Regulations-sets forth the operational powers or provisions and the use restrictions adopted by the association

Accounting Basics

Cash Method of Accounting-income and expenses are only recorded when cash changes hands. Financial reports only reflect cash transactions. This is a relatively simple system for simple situations. Because all obligations are not recorded until cash changes hands, this method does not provide an accurate portrayal of the financial condition of the association at any given time. Generally Accepted Accounting Principles (G.A.A.P.) requires associations to use the Accrual Method of Accounting.

Accrual Method of Accounting-keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity and technical knowledge that is needed to maintain the records, understand the reports, etc.

Capital Reserves-the Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.