How a HOA Works
The Board of Directors is elected by the Homeowners
The Board of Directors is made up of your fellow homeowners, each of whom are elected to terms of one or more years. The Board is in charge of making decisions for the community and delegating to sub-
Meetings are held on a scheduled basis, and have two parts: an Open Session, which all homeowners are entitled and encouraged to attend, and a closed Executive Session in which sensitive matters such as delinquent accounts are discussed.
The Management Group is hired by the Board of Directors
The Management Group works at the direction of the Board of Directors, and performs the day-
to- day business of the community. This includes overseeing community funds, assisting homeowners with information and service requests, and touring the community to ensure CC&R compliance.
Each community has a Community Manager, Customer Service Representative, and Accounting Representative:
- The Community Manager prepares an information package before every Board of Directors meeting, tours the community to ensure CC&R compliance, and solicits contracts and bids from vendors.
- The Customer Service Representative assists homeowners with information and service requests, generates and sends work orders to vendors, and works closely with the Community Manager.
- The Accounting Representative assists the community manager and homeowners with accounting information and requests, and is responsible for the maintenance of financial records for your association. They are also responsible for the preparation of monthly unaudited financial statement.
Vendors are solicited by the Management Group and hired by the Board of Directors
Vendors perform specific functions for the community, such as landscaping, painting, and pool maintenance. Many vendors are contracted to perform a service on a recurring basis, and others perform work on an item-
by- item basis. Work orders are sent to vendors electronically, and once the work is completed, the vendor notifies management.
Types of vendors include: Attorneys, Banking, Cleaning, Construction, Electrical, Gate and Keys, Insurance, Landscaping, Painting, Plumbing, Pest Control, Pools and Security.
Every vendor recommended by Community Management Professionals is required to be licensed, bonded, and insured to work on Homeowners Associations.
Want to know more?
The Community Associations Institute provides a complimentary in-depth ebook entitled An Introduction to Community Association Living which explains your rights, responsibilities, and role as a homeowner or board member.