Homeowners Association Terminology

WHO’S WHO

The Board of Directors

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

Member at Large

  • The large Board member may be elected because they have an area of expertise that the Board needs. For example, the Board may want to tap into an architect’s experience and knowledge if they are considering an expansion. In this case, one of the duties of the at large member is to educate and help the Board stay on the right track while the members discuss the expansion.
  • Another role for at large positions is to fill duties that do not fall under the scope of the officers or that the officers don’t have time to manage. These positions often head up committees and special projects. Or, they may research some aspect of association business. They are an important communication link between the Board and committees that consist of community volunteers.
  • They keep the HOA Board updated and provide recommendations on research and committee projects.
  • Every homeowner association has different objectives and needs. Thus, the role and responsibilities of at large Board members vary depending on the association governing documents and the community’s goals.

PERSPECTIVES OF BOARD AND HOMEOWNER

Board of Directors 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

Homeowners 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

GOVERNING DOCUMENTS

  • All documents that regulate the community life
  • Documents may vary depending on type of Association
    • 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)

Legal Docs for Homeowner Associations and the Hierarchy of such Documents

  • Subdivision Plat-describes the location and nature of the common property and the individual lots
  • Property Deeds-comprise the individual lot deeds and the deeds to common property which give a legal description of the property
  • The Declaration of Covenants, Conditions, and Restrictions-the declaration of CC&R’s is the collection of covenants imposed on all property within the development and provides:
    • For automatic association membership of all owners and the basis for voting rights
    • The obligation of each owner to share in funding the cost of association operations
    • Certain restrictions (architectural control and other rules) on the use of the property and the association’s enforcement powers
    • Sets forth the power and authority of the association to own and maintain the common property and to make and enforce rules
  • Articles of Incorporation-creates the association as a legal entity under state corporate statute; defines the board powers and responsibilities of the association and its membership; and, sets forth the process for creating the board of directors, voting system, etc.
  • Bylaws-implements, in specific detail, the provisions of the CC&R’s 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

Applicable Civil Rights Laws

  • Prohibition against racial discrimination as stated by the Civil Rights Act of 1866
  • Equal Credit Opportunity
  • Fair Housing Amendments Acts, 1988, applies to sale of residence
    • Board is prohibited from discrimination in exercising its 1st right of refusal
    • Association must abide by laws prohibiting discrimination against families with kids
    • Persons with disabilities (at own expense) must be allowed to make accommodations per the Americans with Disabilities Act, 1993