FAQ's/Information
Links
FAQ's
What is a Homeowners Association or HOA? It is a non-profit corporation and is managed by a Board of Directors. The purpose of this type of organization is to maintain all common areas and make the community a pleasant place to live while maintaining property values and looking after the interests of the membership. As an owner in the community you become a "Member" of the "Association".
Who are the Board of Directors? The Board of Directors is a group of homeowners who are elected by the membership (owners of individual units/homes). The membership meets annually for the purpose of electing new members to the "Board". The Board may consist of 3 to 5 owners, sometimes more. In addition, there may be committees established to assist the Board in their duties to the association (i.e. Landscape Committee, Architectural Control Committee, Newsletter Committee, etc.). It is these people who govern and manage the Association - oversee the maintenance of the common areas and buildings, establish various policy, and the day-to-day operations. Board members are not compensated for their service. They are elected by the owners of the community and are volunteers.
Who or what is the Management Company? The Management Company is independent from the Association. Often the Board of Directors will hire such a company to assist and guide them in their duties to the association. Typical responsibilities might include; the collection of your monthly assessment, supervision of all contractors and vendors, accounting, processing homeowner inquiries and complaints, problem solving, meeting attendance and notice, and a lot of consulting. The Management Company is an independent contractor, not an employee of your Association and is paid in accordance with contractual arrangements as directed by the Board.
What are Assessments? The assessment, sometimes called "dues" is the monthly maintenance fee each member pays to cover the cost of maintaining the common areas, which might include the landscape, pools, roofs, painting, various administrative costs, utility costs and reserve funding. When you purchase a home in an Association, thereby agreeing to become a Member, you also agree to pay this assessment for as long as you are a Member. You should have received a copy of the budget for your Association while your unit was in escrow. If not, contact your management company to find out how you can obtain a copy. This will outline in detail where your monthly dues is spent or allocated. Occasionally your dues amount may change, depending on the decisions of your board of directors and Management Company.
How is the amount of my Assessment determined? Initially, the "Budget" is established by the developer of the complex and the Department of Real Estate. Thereafter, the budget is established by the Board of Directors. This is done annually in accordance with specific State Civil Codes, just prior to the beginning of each fiscal year. The budget will determine how much money it will take to effectively take care of the monthly expenses as well as reserve fund allocations, and thus, the amount each owner will have to pay for that fiscal year.
Will my dues go up? There is no concrete answer to this question. This will depend a great deal on the current economic climate and trends. It also depends a great deal on the management skill of your Board of Directors and Management Company. It is quite possible that you will see increases in your assessment as time goes by. There are limits and time requirements that the Board must adhere to when planning increases. These will be outlined in your Covenants, Conditions and Restrictions documents.
What will happen if I don't pay my Assessment? Not paying the assessment is not going to help solve any problem. In fact, not paying your assessments will create severe problems - for you and for the Association. The Association has several legal remedies in the event an owner does not or cannot pay the Assessment, including filing a lien against your property and even foreclosure. There may be additional fees charged to your account by the Association and any legal council assisting the Association. However, to initiate a lien and foreclosure, the Association does not have to go to court. The process is usually handled "non-judicially". Therefore, it is very important that you contact the Management Company immediately if you should run into problems in this area.
What are the Governing Documents? The governing documents consist of the Covenants, Conditions and Restrictions (CC&Rs), the Bylaws, the Articles of Incorporation and any Rules and Regulations established by the Board to supplement the above documents.
CC&Rs: Initially drawn up by the developer or "declarant" during or before construction, usually by their attorneys. This document is recorded in the county where the property is situated and "runs with the land" - that is, when you purchase your home in this Association you are legally bound to the provisions of the document. The CC&Rs outline the manner in which your Association shall operate, such as how assessments are to be levied, remedies for non-payment of assessments, Board members' powers and duties, Board members' limitations, homeowners' responsibilities and obligations for maintenance, use restrictions, how certain policy is to be established and carried out, Insurance requirements of the Association and of the individual homeowner, and much more. You should have received a copy of this document while your home was in escrow. If you did not, you should immediately contact your Escrow Company or real estate agent. You can also obtain a copy from the Management Company, however, there may be a processing and reproduction fee.
Bylaws: Where the CC&Rs outline the operational plan and requirements the Bylaws outline the manner in which the CORPORATION shall operate and will focus mainly on how the Board of Directors are elected, terms of office, vacancies, notice and quorum requirements for Association and Board of Directors meetings, and sometimes powers and duties of the Association and/or Board.
Articles of Incorporation: This is a simple document that is filed with the State. It establishes your Association as a corporation, for profit or non-profit (usually the latter), tax exemption status, and gives specific purpose of the Association.
Rules and Regulations: These are established by the Board of Directors, either annually or on an as-needed basis. These shall serve to supplement the CC&Rs "Use Restrictions" section by adding specifics. Such Rules will expound on the use restrictions, architectural provisions, parking enforcement, and the manner in which disciplinary action is taken in the event an owner or resident fails to observe any of the governing documents. The Rules and Regulations may be amended from time to time as deemed necessary by the Board of Directors. As your individual Associations needs change, the demographics and trends change, so might the Rules and Regulations.
The governing documents of your Association (with the exception of the Rules and Regulations) can be amended only by specific written vote of the membership, and in some cases, by the first trust deed holders. Any amendments must be recorded in the applicable county recorder's office and distributed to all members pursuant to the individual requirements of your Association (this will be described in your Association's governing documents).
What About Changes or Additions to the Outside of my Home? Your Association will be very strict on exterior changes of nearly every type, whether you are painting, installing a new door or porch light, sometimes even the planting of flowers and trees may require approval from the Association. Some Associations have an Architectural Control Committee to receive, approve or decline and process a homeowner's request for architectural change. Some do not, in which case you would submit your architectural change request to the Board of Directors (via the Management Company). Your request might be approved, it might not be approved, depending on the change proposed. Sometimes the Board will request additional information from you if they are to make a fair, sound determination. You should refer to your CC&Rs to obtain the details for architectural review provisions at your Association.
What if I want to rent my home? Sometimes an owner will choose to rent his/her home in the Association. Of course, the Association permits this however, there may be some restrictions. You should refer to the CC&Rs for any restrictions in this area. It is also recommended that you check with your lending institution, as many home loans are contingent upon a homebuyer residing at the property they have granted a loan on. Owners who rent their units are encouraged to screen prospective tenants in detail to ensure community association living will be agreeable to your prospect's lifestyle.
Renting tenants are expected to abide by the same rules and guidelines as owners, and it is the owner who may likely bear the consequences of any violations of the rules and use restrictions, should they occur.
Who do I contact if I have questions or a problem? Different problems may be under the jurisdiction of different people. When in doubt, contact your management company or a Board member. The Association's management company will usually know exactly how to help you or how to direct your inquiry. Sometimes a problem may be the Association's responsibility and sometimes the homeowner's. A good rule-of-thumb - If the problem is on or caused by the exterior of your unit it is probably the responsibility of the Association. If the problem is in or caused by the inside of your home, or within your lot, it may be your responsibility. However, this is not always the case. Again, if there is any doubt as to who is responsible, call the Management Company. This is why they are there.
If the problem is an EMERGENCY - that is - if persons or property are in danger, or potential danger, call the appropriate local authority FIRST (i.e. the local police, fire department, gas company, etc.) It is always good to follow with a call to your management company. There may be times when the Association may have to take some sort of corrective action. Even if not, your management company may want to monitor such a situation. Be sure to keep these phone numbers handy.
Classic Property Management - General Information
Telephone: 1 949 716 3998
FAX: 1 949 716 3999
|
|
