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Master-planned communities are large housing developments that typically feature various neighborhoods, sub-divisions, recreational facilities, amenities, and possibly multiple builders. They also usually represent a blend of lifestyle, convenience, and quality living, offering residents a variety of housing options. Master-planned developments offer tailored amenities for every life stage, whether in a townhouse, single-family home, condo, or apartment.

Below, you will find detailed descriptions of the components that make up Master and Subassociations in master-planned communities.

Understanding Master Associations and Sub-Associations:

If you reside within a master-planned community, then you are a member of its Master Association.

The Master Association, or HOA, governs shared facilities like roads, entrances, and recreation, ensuring uniform community aesthetics. Membership means enjoying communal amenities, following bylaws, articles, and CC&Rs, and paying associated dues.

These expansive communities often offer a diverse range of housing, from single-family homes to townhouses to condominiums and even commercial zones. To address the unique needs and concerns of these different housing types, sub-associations or “subs” are formed. It is best to think of them as specialized governing bodies: for instance, a condominium segment might have its own Submaster, also known as a Sub-Association or sub-HOA, to address issues inherent to shared living spaces.

There is an intricate interplay between the Master HOA and its Sub-HOA. While the Master HOA ensures a cohesive look and feel across the entire community, the Sub-HOA focuses on the nuances of specific sections or neighborhoods.

Homeowners in a Sub-HOA follow both Master and Sub-Association regulations and may pay dues to both for maintenance.

The Master Association Fees:

A fundamental aspect of this financial commitment is the Master Association Fee. This fee is a well-recognized obligation for members within the community’s purview. Collected periodically, it’s instrumental in covering the costs of preserving common areas, amenities such as swimming pools or tennis courts, and other community-wide benefits. You can think of it as a collective account where every resident chips in to support the upkeep of shared resources.

Additionally, Subassociation members may be obligated to take on additional financial responsibility. In addition to their segment-specific dues, which cater to their neighborhoods’ unique needs and amenities, they are typically obligated to contribute to the Master Association Fee. This dual contribution system ensures that while individualized concerns are addressed, the broader community also thrives, supported by the combined efforts of all its members.

Navigating CC&Rs and Bylaws:

Living in a Sub Association within a Master Association adds another layer of complexity when determining the precedence of HOA Covenants, Conditions & Restrictions (CC&Rs), and HOA Bylaws.

Master Association’s CC&Rs:

The Master Association’s CC&Rs set the foundation for the entire community, including any sub-communities or sub-associations. These typically address the broader framework for property rights, obligations concerning common areas, and overarching community standards. They’re established to ensure a unified appearance and character throughout the larger community.

Sub-Association’s CC&Rs:

The Subassociation’s CC&Rs, on the other hand, tend to be more specific, addressing the unique needs and characteristics of that segment or neighborhood. For example, a Subassociation for a condominium segment might have specific guidelines about shared amenities or architectural nuances relevant only to condos and not to single-family homes.

Precedence:

When conflicts arise between Master and Sub Association CC&Rs, the Master Association’s CC&Rs typically take precedence. The Master Association governs overall, ensuring consistency and harmony across the development with its rules.

The Master Association’s CC&Rs allow Sub Associations to set additional rules if they don’t conflict with broader regulations. Homeowners in Sub Associations must follow both sets of rules, but the Master Association’s rules generally supersede discrepancies.

Bylaws:

HOA Bylaws, both for the Master Association and the Sub Association, pertain to organizational governance. A similar hierarchy often exists here, too. If there’s a conflict between the bylaws of a Master Association and a Sub Association, the Master’s bylaws take precedence.

However, it’s critical to review both sets of documents closely. Occasionally, Master Associations may defer certain governance aspects to Sub Associations, particularly if those aspects are highly specific to the sub-community.

The exact hierarchy and relationship between the standard governing documents, such as the CC&Rs and Bylaws of a Master Association and its Sub Associations, can vary depending on the specific community, its legal documents, and local and state law. When ambiguities arise, residents or Board members should seek clarification from the respective associations or consult legal counsel specializing in HOA law.

The role of HOA Board Members in the context of Master and Sub Associations.

In the intricate framework of Master and Subassociations, Board governance remains a cornerstone of effective community management. Typically, the Master Association and each Subassociation have their own distinct Board of Directors. Each Board is responsible for its jurisdiction’s governance, management, and decision-making.

Master Planned Communities Association Boards

The Board focuses on community-wide matters, maintaining policies, aesthetic standards, and shared amenities for the entire development. Their purview might include large-scale infrastructure projects, communal facilities, and setting standards that impact the community.

Sub Association Boards 

Conversely, they tackle issues more specific to their individual segments. For instance, a Sub-Association Board within a condominium community might address concerns related to shared living spaces, communal amenities exclusive to that segment, or even unique architectural standards relevant only to that segment’s particular type of housing.

While each Board operates independently, maintaining its own meetings, budgets, and agendas, there can be instances where collaboration is necessary. Joint meetings or consultations between the Master and Sub Association Boards might occur when decisions made by one Board have implications for the other or when larger community projects require buy-in and coordination across multiple segments. Nevertheless, Boards tend to function within their specified domains for most day-to-day operations and standard decision-making.

For those serving on these Boards, whether at the Master or Sub Association level, understanding the delineation of roles, responsibilities, and the interplay between the various Boards is crucial to ensuring harmonious and effective community governance.

Homeowners’ Role in Master and Sub-Association Governance

Homeowners within the interconnected system of Master and Sub Associations are more than just residents; they’re active participants in shaping the community’s governance. Their investment in the well-being and evolution of their community signifies their position as essential stakeholders. The main focus of this involvement is their right to attend open Board meetings, both overarching Master Association and their specific Sub Association. This participatory right helps ensure homeowners remain informed, are able to voice their concerns, and can actively contribute to the community’s trajectory.

Many homeowners also have opportunities for leadership roles. Those in Sub Associations may seek positions on the Master Association’s Board of Directors. Eligibility, while recognizing each homeowner’s role in the community, is still governed by specific guidelines. The bylaws or foundational documents of the Master Association outline the eligibility criteria, nomination processes, and election procedures. Homeowners from diverse sub-associations on the Master Board bring varied perspectives, leading to well-rounded community decisions.

However, there might be restrictions, like a cap on representatives from a specific Sub Association or requirements related to tenure or prior Board experience. Potential conflict-of-interest evaluations are also not uncommon to factor into the equation. Motivated homeowners should consult governing documents or seek advice from HOA management or legal experts before serving on the Board. Through such active roles, homeowners collectively foster a community that thrives on transparency, shared responsibility, and mutual growth.

Conclusion:

Navigating the intricacies of HOA governance requires both comprehension and diligence, and we are here to help in all facets. At AAM, a professional Community Association Management company, we pride ourselves on being industry leaders. With extensive experience in Master and Sub Master associations, we provide customized solutions that ensure cohesiveness and rule adherence.

If you want more information about managing Master and Sub-associations and how AAM can provide full-service support to your Board, contact us today.

The HOA budget serves as the financial blueprint of a homeowner’s association (HOA). Specifically, the budget gives a detailed estimation of the association’s revenues, expenditures, and allocations toward reserve funds over a set time frame, typically a year.

Generally, the association’s Community Manager collaborates with the HOA Board Treasurer to formulate a preliminary budget. Alternatively, some associations opt to form a Budgetary Committee involving community member volunteers. This approach not only divides the responsibility but also boosts understanding and approval of the budget, thereby enabling residents to have a say in allocating their contributions.

Why Do HOAs Need a Budget?

An HOA budget is a pivotal tool, assisting the board in informed financial decision-making. It aids in anticipating the forthcoming year’s costs, ensuring prudent management of the association’s funds. These funds cover expenses like maintenance, utilities, insurance, and administrative fees. Moreover, the budget provides a steady reserve fund earmarked for significant repairs and replacements.

In addition, the budget is essential as it dictates the homeowner dues, which are the association’s primary revenue source. As a result, having a detailed budget allows the board to be well-informed about the necessary expenses, potentially leading to more accurate assessments.

Breaking Down an HOA Budget:

An HOA budget can be segmented into three primary divisions: estimated income, anticipated expenses, and contributions to the reserve fund. As a result, each division can then be further divided into distinct sub-divisions.

Income Streams: 

An HOA’s primary income sources are member assessments and membership dues.

Expenditure Categories:

First, we have General & Administrative expenses: These may encompass charges for accounting, legal services, banking, community management, office-related expenditures, and maintaining the organization’s website.

Next is Contracted Services: This involves the upkeep of community common areas and provisions such as HVAC, plumbing, greenery, sanitation, and utility bills like electricity, gas, water, wastewater services, and waste management.

Moreover, Repairs & Maintenance: These consist of federal income tax, property tax, official filings with the state’s secretary, and insurance premiums.

Finally, Utilities: Electricity, gas, water, wastewater services, waste management, etc.

Reserve Fund Contributions:

This allocation is meant for long-term projects, major repairs, and replacements that the HOA anticipates in the future. By setting aside money in the reserve fund, the association ensures it has enough financial resources to handle significant expenditures without placing a sudden financial burden on the members. The amount set aside can vary based on upcoming projects, the condition of existing amenities, and recommendations from reserve studies.

When the HOA Board partners with a professional HOA management team, like AAM, an experienced accounting team guides the process or prepares a proper budget while still offering invaluable insights for your annual budget planning.

Effective HOA Budget Planning Steps:

1. Draft a Strategic Plan: 
   Begin by outlining your association’s financial goals. What milestones do the association aim to achieve over the next year? Monthly goal segregation can help simplify this process.

2. Examine Previous Budgets: 
   A retrospective analysis of past budgets can be very insightful and helpful in creating a new one. Comparing projected versus actual expenditures can also highlight patterns.

3. Solicit Vendor Proposals: 
   Providing accurate financial forecasting, including contracts for association vendors, is crucial. It is a best practice to review vendor contracts nearing expiration and send out proposal requests to gauge future costs.

4. Assess Maintenance and Utility Costs: 
   Budgets should encompass projected utility and maintenance costs. Moreover, potential inflation and wage increments, which can also indirectly influence these expenses, should be factored in.

5. Review Insurance Policies: 
   Ensure your association’s insurance coverage is both comprehensive and current. Regular discussions with your insurance provider can inform you about any necessary coverage modifications.

6. Ensure Adequate Reserves: 
   A well-maintained reserve fund is crucial for unforeseen expenses and preventative maintenance. Periodically review your reserve fund to guarantee it remains sufficiently funded, aiming for a minimum of 70% funding.

7. Examine Financial Reports: 
   Thoroughly explore your financial statements to help discern any required budgetary adjustments.
   1. Consolidate and Calculate: 
      Next, utilize budgeting software or spreadsheets to consolidate your data and determine the required homeowner dues.
   2. Acquire Approval: 
      Ensure that the specifications of your governing documents or local regulations ratify the finalized budget.
   3. Engage the Homeowners: 
      Share the approved budget with community members to prioritize transparency. This not only informs but also fosters trust.

Tips for HOA Budget Creation:

• Contemplate any potential projects discussed throughout the year for possible inclusion in the subsequent year’s budget.

• Use year-end projections to detect trends and anomalies.

• Consult vendors for potential cost increases in contracts.

• Familiarize yourself with legal stipulations surrounding dues incrementation and budgetary adjustments.

• Adhere to recommended budget categories, like association websites, board education, and long-term planning tools.

• Consider utilizing online templates for a streamlined budgeting experience.

• Fundamental Principles for HOA Budgeting

The goal is to keep your budget balanced. If expenses exceed income, find ways to cut costs without lowering service quality. However, if balancing is still difficult, consider raising dues or a special assessment. The main aim is to break even by the end of the year since associations are not-for-profit.

Additionally, adhering to due dates and stipulated deadlines for budgetary approval, as mentioned in the association’s legal documents, is paramount. Any delay or oversight could spark owner disputes or non-payment of dues.

Example of an HOA Budget Template

Typical HOA budgets list expected income, expenses, and savings for reserves. If you’re new to this, online templates can help you with budgeting.

The Importance of Meticulous Budget Planning

The HOA budget is an integral component of successful community management. It relies on rigorous data collection and computation and the importance of early planning. Additionally, the budget indicates the residents’ dues amount while serving as a fiscal roadmap for the association’s finances.

Partnering with an expert HOA management company like AAM can be invaluable for associations seeking professional budget formulation and approval guidance. Let our experienced team guide you and offer instrumental insights for your community’s future budgeting needs. Take the step for better financial planning today!

When it comes to effectively managing a homeowners’ association (HOA), hiring a professional HOA management company can provide numerous benefits. This article will explore the top 10 benefits of hiring an HOA management company and how they help run day-to-day operations smoothly and effectively.

1. Expertise and Experience

When you partner with a professional HOA management company, you harness industry-specific expertise and abundant hands-on experience. Professional HOA management companies have years of experience managing diverse communities and navigating varying scenarios and challenges effortlessly. Their track record shows proficiency in meeting unique community needs, from high-rise condominiums to lifestyle communities and everything in between. Entrusting your community to these seasoned professionals means turning HOA management from a daunting task into a seamlessly handled operation. Their wisdom, earned through years in the field, empowers your HOA Board to operate effectively, ensuring compliance, stability, and satisfaction. Their expertise and experience translate into a well-managed community of harmony, progress, and satisfaction for all residents.

2. Efficient Financial Administration

Entrusting your HOA’s financial administration to a professional management company isn’t just strategic—it’s transformative. Financial administration is pivotal yet challenging, involving complex budgeting, sensitive payment collections, and intricate expense handling. Partnering with a proficient HOA management company streamlines these processes, elevating your association’s financial efficiency to new heights.

HOA management companies don’t just manage—they employ sophisticated, proven systems to ensure your HOA’s finances are impeccably maintained. They expertly navigate budget management, ensuring every penny is accounted for and wisely allocated. Beyond budgeting, these experts adeptly handle payment collections, including the delicate task of overdue assessment collection. An external, unbiased party provides a buffer between Board members and residents, reducing potential conflict over overdue fees. This impartial stance instills fairness and transparency, as residents see that there’s no personal agenda.

Additionally, an HOA management company accurately tracks and manages expenses, closely monitoring your association’s financial health. They provide transparent financial reports, enabling the Board to make informed decisions based on accurate, up-to-date information. Partnering with an HOA management company transforms financial administration into a smoothly functioning system. Their expertise and procedures ensure your association’s finances are managed efficiently, on time, and with transparency, benefiting the entire community.

3. Legal Resources

A professional HOA management company, like AAM, is knowledgeable about legislation affecting homeowner associations and ensures policies conform to the law. While having a board member well-versed in HOA laws is ideal, it’s not always the case. Without adequate legal knowledge, the association risks potential legal issues. Hiring an HOA management company bridges this expertise gap with managerial excellence and informed legal opinions.

HOA management professionals know the law and stay updated on changes, court decisions, and trends that could impact your community. This knowledge acts as a compass, guiding your Board’s decisions to be both effective and legally compliant. Even the most knowledgeable community manager may encounter unfamiliar legal terrain. In such cases, HOA management companies have a significant edge with access to legal resources and professional contacts.

This access allows them to address legal issues swiftly and competently, providing the right guidance when needed. Engaging an HOA management company means acquiring a partner who ensures your community operates within the law. They protect residents’ interests and help build a harmonious, legally compliant community. Their legal expertise is your association’s asset, paving the way for confident decision-making and sound governance.

4. Technology Solutions

One noteworthy benefit of hiring an HOA management company is gaining access to their state-of-the-art Technology Solutions. These strategic integrations are designed to streamline operations, enhance transparency, bolster resident communication, and improve the overall community living experience. At AAM, we have developed a library of technology and resources to help transform complex processes into efficient, user-friendly ones. Our suite of tools serves as a beacon of innovation in community management, automating tasks and making information readily available.

Technology promotes accessibility, ensuring that residents have what they need, when they need it, right at their fingertips. This can transform the HOA living experience, making it more convenient and satisfying. By hiring an HOA management company, such as AAM, your community doesn’t just gain a service provider—it acquires a partner that leverages technology to amplify efficiency, responsiveness, and care, setting the stage for a harmonious, well-managed community.

5. Effective Vendor Management

An HOA management company acts as a strategic ally to the Board, relieving them of vendor management responsibilities. They’re not just administrators—they’re connectors, building relationships with vendors to deliver timely, high-quality services that maintain your community. Effective vendor management involves negotiating favorable contracts, ensuring vendors meet high standards, and addressing issues promptly and professionally.

These tasks are crucial since vendor service quality directly impacts your community’s functionality and aesthetic appeal. An experienced HOA management company uses its extensive vendor contacts to meet your community’s needs. Effective vendor management can reduce repair and replacement costs over time through consistent maintenance and expert service from trusted vendors. All of this is efficiently managed under the expert oversight of your HOA management company.

6. Enhanced Community Appeal

Partnering with an HOA management company helps preserve and enhance your community’s aesthetics and appeal. With their expertise, they implement strategies that improve your neighborhood’s look, functionality, and overall desirability. They are the driving force behind well-maintained landscapes, homes, and common areas that residents enjoy daily.

A well-managed community attracts potential homeowners, fostering a sustainable and thriving environment. This promotes pride among current residents and can significantly increase property values, benefiting everyone. An HOA management company understands your community’s unique needs and works to highlight and enhance it. They make your community not just a collection of homes but a highly sought-after living destination.

7. Transparent Communication and Community Engagement

Effective, consistent communication is the cornerstone of a thriving HOA community. By enlisting an HOA management company, communities can access comprehensive, diversified communication strategies encompassing traditional and digital mediums—from newsletters and community bulletins to dynamic websites and homeowner portals. These multi-functional platforms deliver important updates, share community achievements, and foster a transparent environment, sharing Board decisions and initiatives, thereby cultivating trust among members. Moreover, this open communication encourages active engagement within the community.

Residents become more aware of their roles within the community narrative and, consequently, are more inclined to participate constructively. This understanding minimizes friction and resistance to new projects, allowing for smoother operations and harmonious living. Finally, an HOA management company ensures the community stays abreast of the evolving communication landscape. Continuously adapting and upgrading their communication tools to align with residents’ preferences ensures that important information is accessible, relevant, and engaging. An HOA management company helps transform your association from a residential area into an engaged, informed, and vibrant community.

8. Strategic Support and Training for Board Members

Board members are the backbone of any HOA, and their contributions are pivotal in shaping the community’s success. As such, the guidance and support they receive become vital for making informed and strategic decisions. HOA management companies fill this role impeccably, offering guidance to Board members based on years of industry knowledge, extensive experience, and specialized expertise. An HOA management company acts as a trusted advisor to your Board, offering insights and recommendations on various issues, including financial management, legal compliance, community engagement, HOA vendor management, and more.

By leveraging their in-depth understanding of HOA operations and best practices, they equip the Board members with the knowledge, tools, and resources required to navigate the complexities of association management. Furthermore, HOA management companies can offer training and education opportunities to Board members, ensuring they stay current with the latest developments in the HOA industry. This could include changes in state or local regulations, emerging trends in community management, new technological solutions, and more.

With such a support system, Board members are empowered to make decisions with greater confidence and clarity. They can effectively fulfill their roles and responsibilities, streamline decision-making processes, and easily navigate potential challenges or disputes. This leads to a smoother functioning HOA and increases community members’ satisfaction.

9. Professional Contacts and Resources

With the complexities of an HOA, the need for a diverse range of professional services is inevitable. An HOA management company has access to an expansive network of trusted professionals, from legal experts and financial accountants to maintenance specialists, insurance brokers, and landscape artists, providing a key advantage for your community. The well-established connections with these professionals ensure your community has multiple options available when high-quality, specialized services are needed. Whether it’s navigating legal complexities, ensuring financial health, or maintaining the physical appeal of the community, the HOA management company has the right contacts to address these needs promptly and proficiently.

10. Time and Stress Savings

Partnering with an HOA management company provides two of the most sought-after commodities—time savings and invaluable stress alleviation. Outsourcing the intricate, time-consuming day-to-day HOA management tasks and governance to seasoned professionals can benefit Board members and the community enormously. An HOA management company is a reliable professional who skillfully navigates the association’s operations. They shoulder administrative responsibilities, from financial management to vendor coordination, dispute resolution, and legal compliance. Their thorough management ensures the seamless operation of the association, leaving no task pending or overlooked.

By transferring these extensive duties to the HOA management company, Board members can reclaim time spent juggling these tasks. This newfound time can be directed toward their personal lives, core responsibilities, and strategic decisions that shape the community’s future. But the benefits continue beyond time savings. Delegating these tasks also drastically reduces the stress of managing an HOA. Board members no longer have to split their attention between their personal commitments and the often overwhelming demands of the HOA.

With a competent HOA management partner, Board members can have peace of mind knowing their association is in capable hands. By leveraging the expertise of an HOA management company, Board members can rediscover the joy and satisfaction of their role—shaping a vibrant, thriving community free from the stress of daily operations and governance. They can focus more on what matters most: creating a community they and their fellow residents are proud to call home.

In Conclusion

In conclusion, partnering with an HOA management company like AAM opens many opportunities to elevate your community living experience significantly. Leveraging our deep expertise in community management, robust financial administration capabilities, legal resources, comprehensive maintenance services, and commitment to enhancing community appeal, we strive to be an indispensable asset for your HOA. We empower Board members to make well-informed decisions, ensure residents enjoy impeccably maintained common areas, and streamline your HOA operations to deliver unparalleled efficiency.

Choosing AAM means offloading HOA management’s vast responsibilities and intricate complexities onto a dedicated team of industry veterans. Every community is unique, with distinct needs, values, and aspirations. At AAM, we understand this and are committed to providing personalized solutions that align with your community’s unique vision and goals. With our tailored approach and strong partnership, your HOA can thrive and become an even more desirable place to call home.

Don’t let your community settle for anything less than the best. Contact us today and start your journey towards a better-managed, prosperous community.

As a homeowner or Board Member living in an HOA, you may have heard the terms Resolutions and Amendments but may not fully understand the differences between the two. These terms refer to how homeowner associations document decisions made by the Board of Directors, and it is essential to understand the nuances of each to navigate the complexities of community association management with ease.

• HOA Resolutions vs. Amendments: Defining the Terms
• When to Use HOA Resolutions vs. Amendments
• Types of Resolutions
• The Process: How to Implement HOA Resolutions and Amendments
• What should be included in each?
• Examples of HOA Resolutions and Amendments
• HOA Resolutions and Amendments: FAQs

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Resolutions vs. Amendments: Defining the Term

HOA Resolutions 

HOA Resolutions memorialize decisions made by the Board of Directors to address specific issues or clarify the Governing Documents and are an essential tool for managing any community association. They provide additional guidelines, procedures, or rules and regulations to help the community’s day-to-day operations. The Board typically passes these resolutions by a majority vote to address matters such as budget approval, rule establishment for common areas, or HOA rule violations.

In summary, a Resolution is a document created for the Board of Directors to memorialize the policy decisions of the Board. It contains information on the purpose of the Resolution, what action follows, and where the Board’s authority to make that decision comes from (e.g., a specific section of the CC&Rs). Resolutions validate and support the Board’s policies.

HOA Amendments

HOA Amendments are changes made directly to the Governing Documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, or Articles of Incorporation. These changes require a more formal and rigorous process than resolutions, often involving a majority vote from the community membership or the Board of Directors.

To approve an Amendment, the HOA must follow a strict process as provided for in the applicable Governing Document that typically involves a period of notice and an opportunity for members to comment on the proposed changes. This formal process ensures that all members have a say in the changes being made to the documents, and it helps to promote transparency and fairness in the decision-making process.

When to Use HOA Resolutions vs. Amendments

Resolutions do not need to be used for every decision the Board makes. Instead, they help formalize and clarify community procedures and internal workings and provide transparency in the Board of Directors’ decisions.

At AAM, our focus is on customer-centric efficiencies. Clarity and ease of access to information are essential for effective community management. Maintaining a comprehensive and organized record of Resolutions ensures that the Board and management team can quickly locate approvals when needed rather than having to sift through extensive meeting minutes. This approach saves time and promotes transparency and accountability, reinforcing the trust our communities place in us.

Opt for Resolutions When:

• Clarifying ambiguous language in policy documents.
• Establishing new rules or procedures not explicitly mentioned in the Governing Documents but that are not in conflict with the Governing Documents.
• Addressing specific issues or concerns raised by Members.
• Memorializing approvals regarding assessment increases, annual budgets, and procedural changes as may be allowed in the Governing Documents, such as increasing the number of Board members.

Choose Amendments When:

• Making changes to the CC&Rs, Bylaws, or Articles of Incorporation.
• Updating the Governing Documents to comply with new laws or regulations.
• Outdated restrictions the Board may seek to amend covenants or change rules would be a desire to modernize existing rules and covenants.
• Altering existing rules or restrictions that impact property rights.

Types of Resolutions

• Administrative Resolutions, also referred to as Procedural Resolutions, pertain to internal processes and procedures. These encompass guidelines for Board meetings, elections, and applications for architectural changes. It is crucial for both the Board and community members to adhere to these procedures consistently.

• Policy Resolutions have a direct impact on the rights and responsibilities of property owners. Boards typically use Policy Resolutions to clarify vague provisions within the Governing Documents or to approve the creation of policies allowed by the Governing Documents, such as a Fine Policy or Collection Policy. Many times, the CC&Rs only give a limited amount of information — not enough to support or help the Board make a decision. This is where a Policy Resolution can be helpful and effective. Policy Resolutions can take various forms, including resolutions pertaining to the visual aesthetics of homes within the community, how common facilities must be used, pet restrictions, and more.

• Special Resolutions deal with an individual situation. Boards have the option to utilize this tool in order to introduce a new regulation that is not currently covered by the Association’s operating guidelines or to address a specific situation on an individual basis. For instance, a Board might adopt a special resolution related to a decision concerning a violation or behavior of individuals at meetings (e.g., Code of Conduct) or common areas. Guidance from the HOA attorney is recommended for these types of Special Resolutions.

The Process: How to Implement HOA Resolutions and Amendments

The Road to Resolutions 

1. Identify the policy or change that requires a resolution.

2. Discuss the proposed policy or change during an Open Board meeting.

3. Vote on the policy or change and document it in the meeting minutes, ensuring it passes by the required majority.

4. Draft and sign the Resolution memorializing the Board action and notify the community members.

The Path to Amendments 

1. Determine if the proposed change requires an amendment to the Governing Documents.

2. Seek legal counsel to ensure compliance with laws and regulations.

3. Present the proposed Amendment to the community members for discussion.

4. Hold a vote or written consent process (check the Governing Documents for language that may allow the Association to utilize the written consent process or voting by absentee ballot or in person) and ensure the Amendment passes by the required majority, as stated in the Association’s Governing Documents.
5. Record the Amendment or file it with the appropriate governmental agency if applicable.

6. Publish the Amendment on the community’s website, app, and/or shared portal.

What should be included in each?

What should be included in Resolutions: 

An HOA Resolution is a formal decision made by the HOA Board to address specific topics or to clarify the Governing Documents. It provides additional guidelines, rules and regulations, or procedures that help in the community’s day-to-day operations.

As such, it requires a less formal process and should include the following elements:

1. A clear statement of the policy or decision that the Resolution is addressing.

2. The specific action that the Board is taking to address the issue or concern.

3. The effective date of the Resolution.

4. A record of the vote by the HOA Board of Directors (i.e., a majority of the Board during a duly called Board meeting).
5. Information on the purpose of the Resolution.

6. Where does the Board’s authority to make that decision come from?

What should be included in an Amendment:

An HOA Amendment is a formal change made directly to the Governing Documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, or Articles of Incorporation.

As such, it requires a more formal process and should include the following elements:

1. A clear statement of the proposed change.

2. The rationale for the change.

3. The specific section or sections of the documents that will be affected.

4. The specific language of the proposed Amendment.
5. A description of the voting process and the required majority for approval.

6. The effective date of the Amendment.

Examples of HOA Resolutions and Amendments

Resolutions and Amendments can cover a wide range of topics, depending on the community’s specific needs. Here are some examples of HOA Amendments and Resolutions:

Examples of HOA Resolutions: 

• Approving the annual budget and setting the monthly assessments for homeowners.
• Establishing rules for using common areas, such as swimming pools, clubhouses, or parks.
• Addressing violations of HOA rules or Bylaws.
• Designating the responsibilities of the Board members and officers of the HOA.
• Creating policies such as a Fine Policy related to compliance issues or a Collection Policy to give guidance on steps to take if an owner becomes delinquent in paying assessments.

Examples of HOA Amendments: 

• Changing the restrictions on the use of property, such as adding or removing restrictions on leasing restrictions and short-term rentals.
• Modifying the terms for Board members and Officers of the Board.
• Adding a resale reserve fund fee or working capital fee.
• Updating the CC&Rs to reflect changes in state or federal laws.
• Annexing additional property into the Association.

HOA Resolutions and Amendments: FAQs

What is the main difference between HOA Resolutions and Amendments?

Resolutions provide additional guidelines or rules, while Amendments directly change the Governing Documents.

Do both Resolutions and Amendments require a vote from the community? 

Resolutions generally require a vote from the HOA Board of Directors, while Amendments typically require a majority or some super-majority vote from the community members.

Can an HOA Resolution override an existing Amendment?

No, Resolutions cannot override Amendments since Amendments are changes to the Governing Documents themselves.

How often should an HOA update its Governing Documents? 

There is no fixed timeline or requirement for updating Governing Documents.

Conclusion

HOA Resolutions and Amendments are critical in maintaining harmony within a residential community. Understanding the differences between the two can help you quickly navigate their complexities and ensure the documents remain up-to-date and relevant to the community’s needs and concerns. Whether you’re clarifying ambiguous language or making significant changes, Resolutions and Amendments provide a framework for community management that benefits everyone involved.

Suppose you’re a homeowner who is part of an HOA. In that case, it’s important to familiarize yourself with your HOA’s Governing Documents, including the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, and Articles of Incorporation. If you need help determining which method of change, Resolution, or Amendment is appropriate for your situation, please do not hesitate to contact AAM. As an expert HOA Management company, we are here to provide guidance and address your questions or concerns. Being informed and actively participating in your community can make it sustainable and a great place to call home.

As a Board member of an HOA, you have an important responsibility to ensure that the association is running smoothly and effectively. Your fiduciary duty is to make decisions that reflect the best interests of the community and its membership. In this article, we will provide 10 tips for successful HOA Board members that will help you fulfill this duty and ensure the success of your community.

Tip #1: Be Consistent

Consistency is key to the success of any community association. By consistently enforcing rules, maintaining Board meeting expectations, and communicating regularly with residents, you can establish a fair and level playing field for all. This consistency will build trust among residents, who will feel confident that the Board is making impartial and consistent decisions. Remember that consistency is key to maintaining a successful community and ensuring that your HOA operates smoothly.

Tip #2: Be Open Minded

An open-minded approach is crucial for HOA Board members. They must be willing to adapt, change, and consider alternative perspectives rather than rely solely on past practices. By listening to the residents and working collaboratively with them, the Board can find agreeable solutions that promote positive changes for the association. This approach demonstrates their commitment to enhancing the HOA and building trust with residents.

Tip #3: Be Prepared

Preparation is essential for successful HOA Board meetings. As a Board member, reviewing meeting agendas and related materials beforehand and communicating any questions or concerns to your HOA management company is crucial. This allows you to fully understand the topics to be discussed and make informed decisions during the meeting. While your presence is important, being prepared is critical to the effective operation of a community association. By demonstrating a commitment to preparation, you can help ensure that Board meetings run smoothly and effectively, building residents’ confidence and trust.

Tip #4: Be Knowledgeable

As a member of the HOA Board, rely on your management company as a resource to stay informed on association issues. At AAM, we emphasize the importance of staying informed about legislative changes and legal matters that could affect your community. Additionally, you can attend Board training seminars, access resources provided by the Community Associations Institute (CAI), and subscribe to Google alerts for industry articles to stay informed. By leveraging these resources, you stay informed and make well-informed decisions that best serve your community’s interests.

Tip #5: Be Able to Ask for Help

Savvy members of the HOA Board comprehend when it is prudent to seek external support. Collaborating with a seasoned HOA management company helps protect the community and Board from potential legal risks and liabilities. A reputable HOA management company can furnish invaluable assets, such as accounting, budgeting, and vendor management, to assure the association’s prosperity. Furthermore, they can offer counsel in strategic planning, regulatory compliance, and crisis management. By partnering with a dependable management firm, Board members can concentrate on their obligations as fiduciaries while ensuring the community functions efficiently and effectively.

Tip #6: Communicate Effectively

Efficient communication is pivotal to the success of an HOA. As a Board member, it is imperative to communicate with clarity and expedience to residents, vendors, and fellow Board members. Ensure that you are responsive to emails and phone calls and provide residents with regular updates. Valuable communication methods include regular updates, maintaining a community website, frequent meetings, and promptly addressing inquiries and concerns. By emphasizing effective communication, you can nurture trust among residents and guarantee that the community operates with proficiency. Collaborating with an HOA management company and a community manager can simplify communication with homeowners.

Tip #7: Understand Your Governing Documents

As a Board member, understanding the association’s governing documents, including the CC&Rs, bylaws, and rules and regulations, is essential. This knowledge empowers you to make well-informed decisions that align with and support the best interests of your community. By familiarizing yourself with governing documents, you ensure you operate within set parameters and adhere to community association regulations. By demonstrating a commitment to understanding and following the governing documents, you can build trust and confidence among residents and support the success of the HOA.

Tip #8: Develop a Strategic Plan

A well-crafted strategic plan can help you prioritize resources and allocate funds efficiently, while also addressing the community’s long-term needs. By committing to strategic planning, you build resident confidence and support the ongoing success of your HOA.

Tip #9: Build Relationships with Vendors

As a member of the HOA Board, one recognizes the indispensability of vendors towards the association’s progress. The significance of building positive relationships with vendors, including landscapers, maintenance crews, and other service providers, cannot be overemphasized. Establish a rapport with the vendors makes it easier to work collaboratively and resolve any issues that may arise.

Tip #10: Foster a sense of Community

Building a strong sense of community is crucial to the success of an HOA. As a Board member, you can play a pivotal role in fostering this sense of community by organizing social events, creating community spaces, and encouraging resident involvement in association activities. This may entail hosting festive occasions and inspiring residents to participate in association undertakings such as committees or charitable work. By prioritizing community-building initiatives, you can assist in cementing a feeling of inclusion among the residents, which can cultivate a constructive and helpful atmosphere within the HOA. This can, in turn, lead to a more fruitful and cohesive community.

As a Board member, your role is vital to the success of your community association. By practicing consistency, being open-minded, prepared, knowledgeable, and seeking assistance, you can fulfill your fiduciary duty and ensure community success. Remember, the success of an HOA depends on the efforts and collaboration of all Board members, management, and residents. By following these tips, you can contribute to your community’s success and positively impact the lives of your fellow residents.

Homeowners Association (HOA) management companies handle a community’s day-to-day operations. Their services generally include maintaining common areas, managing financials, and enforcing rules and regulations. However, the level of service provided is not always equal and may not satisfy the needs of the community, residents, or Board. Sometimes, the Board is faced with the task of switching HOA management companies, whether due to poor communication, lack of transparency, or simply a change in the homeowner’s association’s priorities or needs.

In this article, we’ll discuss why it may be time to change HOA management companies and provide a step-by-step guide on making the transition as smooth as possible.

Evaluate Your Current HOA Management Company

Before changing your HOA management company, evaluating your current one is essential by assessing their performance and identifying any areas of concern. This evaluation will help you determine if a change in management companies may be warranted and what qualities to look for in a new professional hoa management company.

Signs You Need a New HOA Management Company

Below are some typical reasons why boards may start to conduct a new management search.

Lack of Communication

A lack of communication is among the most significant indicator of poor HOA management. If the management company is not responding to emails, phone calls, or other requests for information, it can be very frustrating for homeowners and for you as Board member. Is your current company responsive to your inquiries and concerns? Do they keep you informed of important updates and changes?

Limited Technology

Technology is essential to streamline processes and improve efficiency. Your HOA management company should offer a user-friendly and comprehensive online portal, such as a mobile app, to make it easy for Board members and residents to access important HOA information and pay dues. It may be time to switch if your current management contract or company isn’t invested in advancing technology.

Poor Record-Keeping

Another indicator of poor HOA management is poor record-keeping. If the management company is not keeping accurate financial records or failing to document important information related to the HOA, it can not only be difficult for the Board or homeowners to make informed decisions but also create distrust in the management company or harm the association financially.

Failure to Enforce Rules

If the management company is not enforcing the rules and regulations of the HOA, it can lead to disruption and dissatisfaction among homeowners. A lack of enforcement can also lead to legal implications for the HOA.

Inadequate Maintenance

If the management company is not adequately overseeing the maintenance of the common areas of the HOA or responding promptly to repair requests, it may lead to safety hazards and lower property values.

Lack of Transparency

If the management company is not transparent about its fees, services, or other vital information, it can build distrust and a lack of accountability. Are they open and honest about their processes and fees, or do they have hidden costs? Do they provide detailed and accurate financial reports?

Quality of Service

If the management company is not delivering quality services to your community association, it is likely time to start looking at other options. Are you satisfied with the quality of service your community association receives?

Know What Your HOA Needs

Before you begin your search for a new HOA management company, you must clearly understand your association’s unique needs. Some of the things you should consider include the following:

• Community Size: The size of your community will impact the services you need from a management company. A larger community may require more frequent maintenance, implementation of community staff, and a higher level of financial management, while a smaller community may need less support.

• Priorities: What are your community’s top priorities? Is it maintaining common areas, enforcing rules and regulations, or ensuring financial stability?

• Budget: Your community’s budget will also impact the services you need from a management company. Consider how much you can afford to spend on management fees and ensure the service provider can deliver the necessary services within your budget.

• Expertise: Finally, consider the specific knowledge your community needs from a management company and HOA manager. For example, if your community has a lot of landscaping and outdoor maintenance needs, you should find a management company with expertise in those areas.

Research and Find Potential HOA Management Companies

Once you’ve identified the reasons for changing your HOA management company, it’s time to research and find potential companies. A thorough online search and referrals from other HOA members can help you find the right company.

Qualities to Look for When Switching HOA Management Companies

Experience and Expertise

One of the most critical factors to consider when choosing a new management company is their experience and expertise. You want to choose a company with a proven track record of successfully managing similar properties. At AAM, we have decades of experience managing various properties, including single-family homes, master-planned, lifestyle, and condominiums. Questions to ask, how long have they been in business? Do they have experience managing communities similar to yours?

Services Offered

Another essential factor to consider when selecting an HOA management company is its range of services. A good HOA management company should offer a wide range of services to cover all aspects of your community. Some services to look for include financial management, administrative support, and vendor management. Additionally, the company should clearly outline its service offerings so you can determine if they meet your community’s unique needs. Questions to ask: do they offer the specific services your community needs? How do their fees compare to those of your current management company? Are there any hidden fees or charges you should be aware of?

Customer Service

Another essential factor to consider when choosing an HOA management company is its customer service. Your management company will be working closely with your homeowners, so you want to make sure that they have a reputation for excellent customer service. At AAM, we pride ourselves on providing exceptional customer service to our clients. We understand that every association has different needs, and we work closely with our clients to meet their needs.

Professionalism and Communication

Selecting an HOA management company with high professionalism and strong communication skills is crucial. You want to choose a management company that is responsive and proactive when it comes to communication. At AAM, we have an open-door policy, and we encourage our clients to reach out to us with any questions or concerns they may have. Our Client Relations division and regional leadership teams respond to HOA Board member concerns to resolve them quickly and diplomatically. We also provide regular communication through newsletters, email updates, and meetings.

Financial Management

Managing finances is one of the most critical aspects of HOA management. You want to choose a management company with a reputation for excellent financial management. At AAM, we have a team of experienced accountants dedicated to managing your association’s finances. We provide regular and accurate financial reports and work closely with clients to create budgets and financial plans.

Technology

With the ever-evolving technological landscape, selecting an HOA management company that is up to date with the latest technology is essential. At AAM, we use state-of-the-art software to manage all aspects of HOA management, from accounting to communication. Our online portal and mobile app allow homeowners to access important information and make payments online, making the process more convenient for everyone.

Considering the above factors, you can make an informed decision to ensure that your community is well-managed, efficiently run, and highly functional.

Contact Potential HOA Management Companies and Request Proposals

Once you have a list of potential companies, it’s time to contact them and request proposals. Ask for a detailed proposal outlining their services, fees, and additional costs. Ensure the proposal clearly describes the company’s experience, credentials, and references. We have an article, HOA RFP Specifications, that can aid HOA Board Members in preparing an RFP.

Once you’ve identified a management company you want to work with, you must communicate your needs and expectations. This is the time to ask questions about their services, fees, and processes. You should also be clear about your community’s priorities and any specific needs you have. Some of the things you should discuss with the potential management companies include the following:

Scope of services

What services will they provide? Will they handle financial management, maintenance, association records, and rule enforcement?

Fees

What are their fees, and how do they compare to your current management provider? This can be tricky. Be aware of low management fees; unfortunately, it’s a common practice for HOA management companies to pad other costs such as envelopes, printing, and mailing to make up the difference. Make sure you are thorough when reviewing fees.

AAM has a significant cost comparison resource we can provide to Board members to make this task easier. Contact cchandler@AssociatedAsset.com for your free copy.

Communication

How will they communicate with the Board and homeowners? Will they provide regular updates and reports?

Expectations

What are their expectations for the Board and homeowners? What are your expectations of them? It is always a good idea to conduct a walk-through of the community with potential service providers.

Accreditations

It is also essential to check if the management company is licensed, insured, and accredited by industry associations. This accreditation ensures that the management company adheres to industry best practices and maintains high levels of professionalism.

Communicating with the new HOA management company ensures everyone is on the same page and the transition is as smooth as possible.

Notify Your Current HOA Management Company

You must notify your current company after selecting your new HOA management company. Please provide them with written notice of your decision to terminate their services. Ensure that you follow the termination procedures outlined in your current management contract.

Prepare for the Transition

Preparing for the transition is essential once you’ve chosen a new HOA management company. This will help ensure the switch is as smooth as possible, and your community’s needs are met. Some of the things you should consider include the following:

Communicate the Change

Be sure to communicate the change to all homeowners in your community. Provide information on the new management provider, its services, and what homeowners can expect during the transition.

Organize Important Documents

Organize and transfer all important documents and information to the new HOA management company. This may include financial statements, contracts, governing documents, and other relevant information.

Coordinate with the Current HOA Management Company

Work with your current HOA management company to ensure a smooth transition. Please provide them with any necessary information and ensure no outstanding issues need to be resolved before the transition.

Establish a Transition Timeline

Work with the new company to establish a transition timeline. This should include key dates for the transfer of documents, the start date for the new company’s services, and any other important milestones.

Conduct a Walk-Through

Schedule another walk-through of the community with the new Community Manager. This will allow them to become familiar with the community and any maintenance needs.

By preparing for the transition, you can ensure that your community’s needs are met and that the new management provider can hit the ground running once its services begin.

Monitor the Transition

Monitoring the new HOA management company’s performance is essential during the transition. Ensure that they’re following the contract and providing quality services. Regular communication with the new company will help identify issues and help with a smooth transition.

Board members often need help with decisions that require implementing changes in a way that doesn’t disrupt the association. Switching to a new HOA management company is one of those decisions. It can be incredibly challenging if the Board has no experience with transitioning or has had a negative experience in the past. However, by choosing a management company with a dedicated team focused on streamlining the onboarding process, you can be confident that the transition will be smooth, professional, and respectful to your community and its residents.

At AAM, we understand the importance of a seamless transition when switching HOA management companies. That’s why we have a dedicated Transition Team to ensure the process runs smoothly from day one. Our team follows a well-defined transition plan, which sets clear benchmarks for task completion at 30, 60, 90, and 120-day intervals, tailored to the size and needs of the community. With the help of advanced technology and effective communication, our experienced team can assume the association’s management without causing disruptions to the community’s daily operations. We are committed to providing excellent customer service and financial management to the residents right from the start.

Some of the things a Board should consider during the transition process:

Regular Communication

Establish regular communication with the new Manager throughout the transition. This will help you stay informed of any issues or challenges and ensure the transition is on track.

Monitor Financials

Keep a close eye on the community’s financials during the transition. Make sure that all financial information has been transferred to the new management company and that there are no discrepancies or issues with billing.

Review Maintenance Reports

Review maintenance reports to ensure your community management company properly maintains the community. This includes things like landscaping, building maintenance, and repairs.

Address Any Issues Promptly

If you identify any issues during the transition, address them promptly. This will help ensure that the transition stays on track and that your community’s needs are being met.

By monitoring the transition to the new community management company, you can ensure that the process is successful and that your community’s needs are met. This will help ensure a stress-free transition and a successful long-term relationship with the new management company.

Conclusion:

Changing your HOA management company can be daunting, but with proper preparation, it can be a smooth and successful transition. By communicating the change, organizing important documents, coordinating with the current management company, establishing a transition timeline, and conducting a walk-through, you can ensure that the new management company is prepared to meet your community’s needs from day one.

If you’re an HOA Board Member considering changing your community’s management company, consider AAM HOA Management. With decades of experience managing communities of all sizes, AAM has the expertise and resources to provide your community with the highest level of service. We understand that each community is unique and work closely with our clients to provide customized services that meet their needs. With a focus on communication, transparency, and quality service, AAM is committed to delivering our clients the highest level of satisfaction. Contact us today to learn more about how we can help your community thrive with our top-tier HOA management services.

HOAs often enter into contracts with contractors and vendors, but these agreements can contain hidden pitfalls that can cause trouble down the road. To ensure that your HOA is protected and avoids any unwanted surprises, it’s important to evaluate each contract carefully before signing. Here are some key factors to consider:

Termination Requirements

Before entering into a contract, it’s important to know what it takes to terminate the agreement if needed. Review the contract for any provisions that could make it difficult to end the agreement, such as lengthy termination notices or penalties for terminating the contract. An association should consider the following:

(A) Does the contract require a lengthy termination notice (such as 90 days, or is termination only allowed at the end of each year)?

(B) Does the contract violate any provisions in the association’s governing documents?

(C) Is there a penalty for terminating the contract?

Also, ensure the contract does not violate any provisions in the association’s governing documents. 

Liability for Contractor Actions

It’s essential to understand who will be responsible if someone is hurt due to the actions or negligence of the vendor or contractor. Some association contracts may require the HOA to be liable for such incidents. Be sure to review the contract language carefully to ensure that the HOA is protected.

Conflict Resolution Requirements

Many contracts have provisions requiring mandatory arbitration of any conflicts. Make sure to review these provisions and understand the requirements.

Hidden Costs

Review the contract for any hidden costs that are not explicitly outlined, such as copies, postage, or extra time spent. If such costs are not given, determine what they are before entering into the contract.

Time of Completion

If the completion date is a concern, ensure that it is specifically addressed in the contract. For example, is this the type of contract where liquidated damages may be an appropriate remedy if the contract is not completed by a specific date?

Clear Requirements

It is much easier to enforce a contract where the terms are black and white versus some oral representation. The contract should clearly set forth the requirements of both parties. Ensure that all terms of concern to the HOA are properly addressed in the contract.

Personal Liability

Review the contract for any provisions that may hold board members personally liable for payments due to the contractor. Shockingly some contracts have actually been known to contain this provision. No board member wants to be personally liable for contracts of the association. 

Contractor Performance

Ensure that the association is protected if the contractor fails to fully perform the contract requirements. Retain a certain amount of funds owed to the contractor to ensure the project is completed. Also, the contractor should only be paid for the work actually performed, and an expert should be hired to ensure sufficient funds remain to finish the project.

Recovery of Attorney’s Fees

Ensure that the association is entitled to recover its attorney’s fees and costs if it hires an attorney to enforce the terms of the contract. Protect the association from any potential legal fees and expenses.

By reviewing each contract carefully and considering these factors, HOAs can protect themselves from unwanted surprises and ensure they enter into agreements that are in their best interests.

HOA Community Managers have two primary responsibilities: to carry out policies set by the Board and to manage the Homeowners Association’s daily operations.

What is an HOA manager?

An HOA (Homeowners Association) Manager is responsible for overseeing the day-to-day operations of a community association, which typically includes managing the community’s finances, enforcing rules and regulations, and addressing resident concerns. They work with the HOA Board of Directors to create and implement policies, manage maintenance and repairs, and organize community events. Community Managers are typically employed by a professional HOA management company, but occasionally the HOA Manager is an employee of the community association.

Responsibilities of an HOA Manager

Some of the specific duties of an HOA manager may include the following:

• Preparing and managing the Association’s annual budget and delivering financial reports
• Coordinating with vendors and contractors for repairs and maintenance requests
• Communicating with residents, addressing homeowner concerns, and assisting in dispute resolution
• Enforcing the Association’s rules and regulations
• Preparing and distributing agendas and minutes for board meetings
• Act as a point of contact for the board of directors and the community
• Play a significant role in special projects

The Community Association Manager oversees a wide range of tasks. Below, we will examine each of these tasks and how they contribute to the overall management of an HOA.

HOA Managers Provide Expert Advise to the Board

A manager advises the Board by providing recommendations and information based on expertise, governing documents, and HOA management experience.

To better understand the responsibilities of HOA Board members and how they work with managers, check out our article on HOA Board Member Roles.

Act as a Liaison

The HOA Manager is a liaison between the Board and the community, ensuring the Board stays informed of resident concerns. They are available to assist residents on behalf of the Board. Since most HOA Managers are driving their communities and working on numerous tasks, they may not always be available by phone or email. However, diligent HOA management companies generally expect that their Managers respond to homeowner inquiries within one business day for phone calls and two business days for emails. While the Manager is a valuable resource for the Association and Board, they are not available or on-call 24/7.

Communicate Efficiently

The manager can answer questions and provide information about the HOA. An effective manager will communicate with the residents of the community in a variety of ways, including:

• Meetings: Managers may hold regular meetings with residents to discuss community issues and project updates and address any resident concerns or questions.

• Newsletters: Many Managers will publish regular newsletters to keep residents informed about community events, projects, and important dates or deadlines. These newsletters can be sent by mail or email or posted on the community’s website. Some community associations even print newsletters for HOA members at Board meetings. The decision of disbursement is always the Board’s decision.

• Email or phone: Managers will often have an email address or phone number that residents can use to contact them directly with any concerns or questions.

• Website: Some managers will also maintain an HOA website where residents can find important information, documents, and forms related to the community.

HOA Managers must establish clear, consistent communication with residents to build trust and ensure they feel informed and engaged. It can also help answer a lot of routine questions homeowners have, allowing the HOA Manager to focus on the strategic management of the HOA.

Monitor Vendor Management and Performance

Community Managers are responsible for monitoring the performance of HOA vendors and contractors, not supervising them. Residents should contact the Manager with any issues regarding vendors and contractors, who will forward the concerns to the Board for further action under the terms of the contract.

The Manager will also provide the Board with information on the condition of the community’s common areas and buildings and recommend any necessary repairs or maintenance. They will also coordinate with vendors and contractors to ensure that these tasks are completed promptly and cost-effectively.

Offer Guidance on Community Issues

The Manager will inform the Board of any issues or concerns within the HOA and guide how to address them. They may also offer suggestions for policies or procedures to prevent similar problems from arising. However, please note that the Manager does not set Association policies or rules. If anyone disagrees with a particular policy or rule, it is recommended to send a letter or email to the Community Manager, who will forward it to the Board to review.

Performs Community Inspections

The Manager performs site inspections to ensure that the community property and common areas are properly maintained and that all residents follow the community’s rules. The inspections may include checking the condition of buildings, landscaping, and amenities and ensuring proper maintenance. The Manager may also check for compliance with parking, noise, and pet regulations, among others. These inspections aim to ensure that the Association is well-maintained and that all residents follow the regulations to maintain the property values and appeal of the HOA. However, inspections alone cannot ensure everything is in top condition. The assistance and cooperation of the Association as a whole are greatly appreciated as well. If you encounter any potential maintenance issues, please do not hesitate to inform the Manager.

Provide Financial Management

The HOA Manager reviews the Association’s financials, including income, expenses, and reserves, and provides regular reports to the Board. They will also make recommendations for budgeting and financial planning. When selecting an HOA management company, ensure they have tenured employees with accounting experience as a resource for the Manager to answer any questions about HOA finances.

Will Source Expert Opinions

Managers have a broad range of expertise and skills but are not engineers, architects, insurance agents, attorneys, or accountants. The community association manager may offer opinions on various topics, but they should source expert opinions in a variety of situations, including:

• Legal matters: If a legal issue arises that affects the Association, such as a dispute with a resident or a violation of state or local laws, the manager should seek the advice of an attorney who specializes in HOA law.

• Financial matters: If the manager is unsure how to handle a financial issue, such as creating a budget or investing reserve funds, they should consult a financial advisor or accountant. Typically, the HOA management company will have staff accountants who can quickly help with any of the above. Still, it is common practice for a management company to source financial experts for HOA audits, reviews, and compilations.

• Maintenance and repair issues: When dealing with complex maintenance or repair issues, such as issues with the community’s infrastructure or the destruction of common areas or building systems, the manager should seek the advice of a qualified contractor or engineer.

• Insurance matters: If the HOA is facing a claim or needs to renew or negotiate an insurance policy, the manager should seek the advice of an insurance broker or agent.

• Compliance with state and local laws: If the manager is unsure how the board of directors should comply with state or local laws, such as those related to zoning or building codes, they should seek the advice of a lawyer or other legal expert.

How Managers Work with the Board of Directors

Managers work closely with the Board members and residents to ensure the seamless operation and management of the Association. The Board of Directors is responsible for making decisions related to association policies, budgets, and long-term planning and enforcing the community’s rules and regulations.

The specific ways in which Managers work with the board and residents may vary depending on the HOA and its specific needs, but some key aspects of this relationship include:

• Communication: HOA managers should maintain clear and consistent communication with the board and Association members. This includes regular updates on HOA issues, responding to resident concerns and questions, and keeping the board informed of important developments.
• Decision-making process: HOA managers typically work with the board to make decisions that are in the community’s best interest. This may involve providing information and recommendations to the board and helping to facilitate board meetings and voting processes.
• Planning and budgeting: HOA managers work with the board to create and implement budgets and plan for long-term maintenance and improvements in the Association. This includes providing accounting reports, making budget recommendations, and keeping track of the community’s financials.
• Rules enforcement: HOA managers work with the board to enforce the community’s CC&Rs, including issuing warnings, fines, or legal action when necessary. They also work with the board to create and update policies and procedures.
• Maintenance and repair: HOA managers work with the board to plan and coordinate maintenance and repair projects, including hiring vendors and contractors and overseeing the work.
• HOA events: HOA managers may work with the board and residents to organize Association events, such as neighborhood parties, social gatherings, or educational workshops.

Overall, the HOA manager’s role is to support the board members and residents by providing the information and resources they need to make informed decisions and maintain a well-functioning community association.

The Skills and Qualifications of an Association Manager

The qualifications and skills of an HOA manager can vary depending on the size and complexity of the community association. However, here are some common qualifications and skills that a management company desires for this role:

Education

Some Managers have a college degree in a related field, such as business administration, property management, or real estate. Some may also only have professional certifications, such as the Certified Manager of Community Associations (CMCA), Association Management Specialist (AMS), or local certifications like Arizona’s Certified Arizona Association Manager (CAAM).

Experience

Some managers come with experience in community association management or related fields, including property management, real estate, or construction.

Knowledge of State Laws and Regulations

A solid understanding of state and local laws, including zoning, building codes, and homeowner association regulations, is essential.

Communication and interpersonal skills

They need strong communication and interpersonal skills to effectively engage with the board, community members, vendors, and contractors.

Leadership and management skills

They should have strong leadership and management skills to manage the community association’s day-to-day operations effectively.

Organizational and time-management skills

They should have strong organizational and time-management skills to manage multiple tasks and meet deadlines successfully.

Financial skills

They should understand financial management well, including budgeting, accounting, and financial reporting.

Problem-solving skills

They absolutely should be able to identify and solve problems promptly and competently.

Any manager should have a combination of education, experience, knowledge, and skills suitable for managing an HOA. If you know someone with most of these skills, management companies always look for new managers; visit our CAREERS page to learn more.

In summary, an HOA Manager plays a crucial role in an HOA’s smooth operation and management. They oversee various tasks, including managing the community’s finances, enforcing CC&Rs, and addressing resident concerns. They are a point of contact for the Board of Directors and the homeowners. Ultimately, they implement policies established by the Board and oversee the daily operations of the Homeowners Association.

We hope this article clarifies the Community Manager’s role in your HOA.

When selecting vendors to perform work or other services for an HOA, all Board Members must be involved throughout the bidding process. Before obtaining bids, the Board should thoroughly review the Association’s governing documents to ensure that the bid selection process complies with the rules and regulations. Once that is established, it is recommended that the Board request and review at least three bids for each project or scope of work. As a best practice, bid proposals should be evaluated based on the overall value of the association and not solely on cost. Also, when interviewing vendors, it is advised to consider their overall demeanor, professionalism, and accountability. Lastly, all service and contract agreements should be put in writing.

What is an RFP

An RFP stands for Request for Proposal. It is a document created by an organization, such as a Homeowners Association (HOA), to solicit vendor bids for particular services or products. The RFP outlines the bid specifications the HOA is looking for in a vendor and provides details about the project and the expectations for the vendor. The proposals that the HOA receives back from the RFP are used to help the HOA compare contractors and make an informed decision when selecting a vendor that best meets the needs of the Association.

Understanding the HOA Vendor Selection Process

The HOA vendor selection process can be challenging. Many associations utilize their professional management company to manage vendor recruitment and oversee the process, entrusting the Community Manager to handle the project professionally. Experienced professional Community Managers will consider Board expectations and make recommendations regarding the qualification process. In our experience, Board members and/or Committee members are becoming more involved and want to participate in the qualification and vetting processes.

All maintenance and service contract bids require certain specifications and requirements to uphold the communities’ standards. This is particularly true in large-scale projects or services such as landscaping, painting, roofing, and asphalt (to name a few). However, it is not uncommon to receive proposals from contending vendors that do not compare “apples to apples.” Therefore, identifying bid specifications is the key to executing a successful Request for Proposal (RFP).

Defining Bid Specifications for Successful RFPs

The term “specification” refers to describing the definitive requirements to be provided. This information may include requirements for inspecting, testing, preparing materials, equipment, supplies, service delivery, and insurance. If the job is extensive, hiring a project manager to prepare the bid so that nothing is missed can prove beneficial. Clearly communicating community needs to vendors is crucial, as their priorities in proposals often differ from the Board’s. The goal is to get comparable bids and ensure all parties are on the same page, making the decision process much easier for everyone involved.

When creating proposals for an HOA Board of Directors, it is critical to ensure that bid specifications are adequately defined. Doing so has a two-fold benefit: it helps ensure that all stakeholders are involved in the process and that the selection process complies with the Association’s rules and regulations. Additionally, it allows Board members to select the best vendor possible by evaluating proposals based on value rather than cost. This can help the Association get the best value for their investment and ensure that the vendors meet the Association’s standards and expectations.

For HOAs, in particular, a detailed and specific Request for Proposal (RFP) is essential to ensure that the organization can get the services it needs efficiently and cost-effectively. With a clear understanding of the bid requirements, vendors can provide more accurate quotes and services that enable the HOA to compare submissions more effectively and make an informed decision.

Below are some examples of HOA services that the Board may want to submit formal RFPs for:

Legal
Accounting
New Management Company
Landscaping
Pool maintenance
Pest control
Security
Construction
Waste management
IT
Janitorial
Parking lot maintenance
Electrical
Asphalt
Painting
Tree trimming
Roofing
Fencing

Steps for Creating RFP Specifications

1. Establish the Need: Before creating an HOA RFP, you should assess the project’s need, scope of work, and desired outcomes. Then, determine the timeline, budget, contact person, and other relevant information.
2. Define the Objective: Clearly define the project’s objectives. This should include the desired outcomes, the project’s goals, and the timeline for completion. Leverage the HOA management company’s industry expertise by asking them for advice on which services to include in the RFP.
3. Identify Potential Vendors: Research potential vendors that can meet the project’s objectives. Ask for referrals from other HOAs or organizations that have done similar projects. Utilize your HOA management company’s resources and contacts to identify qualified vendors to participate in the RFP process.
4. Create an RFP: Create an RFP that includes all relevant project information, the timeline, the budget, the desired outcomes, and other necessary details. Have your professional management company review the RFP drafts to ensure they meet the project’s clear and concise requirements.
5. Communicate the RFP: Once the RFP is created, communicate it to potential vendors. A community Manager can also assist here. Allow sufficient time for vendors to respond to the RFP.
6. Review Responses: Carefully review vendor bids. Evaluate each response based on the project’s objectives, timeline, budget, and other factors. Community Managers are trained to determine the criteria to use in the selection process. Some HOAs create a scoring system to help rate each vendor.
7. Select the Best Vendor: The HOA’s Board members make the final decision during an RFP process to select the vendor that best meets the project’s objectives.
8. Get a Written Contract: Once the Board has selected, they should request a written contract outlining the project’s details, including services provided, payment terms, timeline, and other expectations. This will help to ensure that both parties are on the same page. 

When selecting a vendor, it is important to consider the following:

• Expertise in the Field – Look for companies that specialize in the needed services and have a proven track record for delivering quality work.
• Cost – Review at least three bids for each project and consider value over cost.
• Licensed & Insured – Ensure the vendor has a valid business license and carries the necessary insurance coverage required by the Association.
• Quality – Ask for references from previous clients and review their past work.
• Communication – Look for easily reachable vendors who can quickly respond to questions and concerns.
• Reliability—Look for companies that have been in business for a long time and have a good reputation for dependable and timely services.
• Flexibility – Choose vendors to work around the Association’s specific needs and requirements.

Create an Evaluation System for Reviewing Bids

In most cases, a bid evaluation system will help ensure that the vendors meet the Association’s standards and expectations. The bid evaluation should include a review of the work that will be performed, the perceived quality of the work, the timeliness, the overall value, and the cost.

Create a Vendor Evaluation Form

The form should include questions that assess the vendor’s qualifications, experience, customer service excellence, and overall value for the HOA.

Develop a Scoring System

Utilize a scoring system to rate each vendor based on the criteria from the evaluation form. This system should consider the HOA’s needs, goals, and budget.

Establish a Selection Committee

A selection committee of HOA representatives will review each evaluation form and determine which vendor is best suited for the HOA.

Finalize the Selection Process

After all bids and vendors have been evaluated and scored, the selection committee will decide which one best meets the HOA’s needs. The HOA should contact the chosen vendor to discuss obtaining a contract and other details.

Monitor the Vendor’s Performance

Once the project has started, monitoring the vendor’s performance over time is important to ensure they meet the HOA’s expectations. This should include feedback surveys, customer service reviews, and other performance evaluation methods.

Example of a Bid Scoring System

• Price: 0-2 points for low pricing, 0 points for mid-range pricing, and -2 points for high pricing
• Quality: 2 points for high quality, 1 point for mid-range quality, and 0 points for low-quality
• Experience: 2 points for extensive expertise, 1 point for some experience, and 0 points for no experience
• Reputation: 2 points for a strong reputation, 1 point for some reputation, and 0 points for no reputation
• References: 2 points for multiple references, 1 point for some references, and 0 points for no references
• Delivery 2 points for on-time delivery, 1 point for some on-time delivery, and 0 points for late delivery

In addition to vendor selection, the Association should have safety protocols to protect both the vendors and the residents. This includes having a safety plan to address hazardous conditions, properly labeling hazardous materials, and having safety equipment on hand.

The last step in the selection process is establishing a complaint-resolution policy to ensure that disputes between the Association and its vendors are handled promptly and efficiently. This policy should include a timeline for resolving the dispute and how the parties will communicate.

In conclusion

Following the steps mentioned above will help to ensure that the vendor bid selection process is fair and transparent and that the Association is getting the best value for its investment.

Bid specifications should be comprehensive and detailed, as it is the only way to ensure that all potential service contractors can provide the HOA-required services. By creating a thorough and accurate RFP, the HOA Board can make an informed decision and select the best provider for the job.

Professionalism, accountability, and experience should be paramount when selecting any vendor. AAM has over 33 years of professional community management experience with seasoned and trained management professionals, which can help facilitate bidding. If your HOA is looking for new management services from a reliable and tenured management company, consider AAM.

An effective way to increase homeowner participation in homeowner associations (HOAs) is to encourage homeowners to get involved in events and to volunteer for the HOA Board of Directors or recognized committees. As obvious as this may sound, HOA boards and Committee members must find creative ways to increase community participation. In this article, we will provide tips on how you can take steps toward getting homeowners involved.

Attracting Community Volunteers

Volunteers are integral to the success and vitality of a homeowners association. However, it is becoming increasingly evident that many communities are struggling to retain committed helpers due to the demands of modern society. If your community is struggling to attract and retain volunteers, here are some tips to consider:

Effectively publicize volunteer opportunities.

Consider using the community’s HOA website, newsletters, and announcements to promote the need for volunteers within the community. By presenting a positive image of unity within the HOA, you may be able to inspire individuals to get involved and contribute to the cause. Remember, people are often more likely to volunteer for causes that align with their beliefs and values. By highlighting the benefits of volunteering and the impact it can have on the community, you may be able to encourage more people to get involved. Note that annual meetings are a perfect opportunity to make call-to-action announcements.

Proactively approach prospective volunteers.

While it can be intimidating to approach your neighbors about volunteering for the HOA, it is important to remember that many people may hesitate to take the first step. However, this does not mean they are not interested in getting involved. In fact, some of your neighbors may have previously approached the board members with concerns, which makes them particularly well-suited to serve as volunteers for the HOA. So don’t be afraid to reach out and ask your neighbors if they would be interested in getting involved; maybe attend an annual meeting together. You may be pleasantly surprised by the response.

Keep overall time commitment to a minimum.

Most community and annual meetings are held in the evening after a long workday. To avoid discouraging potential volunteers, keep meetings concise and well-prepared. This could also have a secondary benefit by increasing homeowner participation at association meetings and the annual meetings. Remember that most people see time as their most valuable resource, so make it easier to join meetings by maintaining good time management.

Emphasize the importance of Homeowners volunteering.

Community engagement plays a crucial role in overall community success. Increase awareness by conveying the significance of community volunteers, which will help residents feel more comfortable getting involved. Gather testimonials from current association members who can share their experience volunteering with their entire community. Highlight the benefits of participation and the cheerful impact volunteers can have on the community. HOAs can encourage more homeowners to get involved and contribute to the best interest of their community association.

Build long-term relationships with short-term projects.

If a resident is hesitant to commit to long-term volunteering, you could suggest they get involved in short-term activities or events. For example, they could help out with a one-time committee activity or serve as an extra set of hands at a community event. Encouraging homeowners to take small steps toward getting involved can help them gradually become more engaged in their community.

Warmly welcome new volunteers.

Homeowner associations must provide a warm and friendly atmosphere to make the new member of a board or committee feel welcome and connected. By fully assimilating new helpers among experienced ones, HOAs can help new members feel comfortable and connected. One tip could be soliciting the help of your HOA management company to provide orientation or training sessions. Assign experienced volunteers to mentor new ones and encourage social interaction among all volunteers. By creating a welcoming environment and supporting new committed volunteers as they learn the ropes, HOAs can quickly build a stronger sense of community and increase participation among all community members.

Support a sense of belonging.

One way to support a sense of belonging among the board and committees is to create a positive and inclusive environment. This can be done by avoiding conflicts and interactions perceived as stressful, as these can create tension and undermine a sense of unity within the group. Instead, HOA leaders should focus on building positive relationships and open communication among all members. This can help to build togetherness and encourage everyone to work together towards a common goal: build a strong and cohesive association that is better able to serve the needs of its members.

Publicly recognize and thank your Board & Committee Member.

These positions can often be thankless, so you must let your board members know how much you appreciate them. Some ideas include an appreciation dinner or gestures that offer your contributors much-deserved gratitude. Remember: a little thanks goes a long way! Your community managers are a perfect resource to solicit ideas on how to show special recognition. For example, your community manager or HOA management company can order plaques or trophies to present at an annual meeting. Recognizing an hoa board member or committee member for their service to the community association can again easily influence many homeowners and increase homeowner participation.

Increasing HOA Homeowner Participation

Strong community engagement is a crucial component of community success, starting with the people who live there. There are numerous ways, big and small, that residents can get involved to increase engagement within their community and make it the best living experience possible. The tips below help spark interest in residents considering becoming active in your HOA.

Communicate to the association effectively.

Regular and effective communication with homeowners is key to engaging them in the HOA and its activities. This can involve using a variety of communication channels, such as email, newsletters, and social media, to keep homeowners informed about upcoming events, meetings, and other important information. Communication can make an HOA successful and lead to improvements that benefit the entire membership. If you notice a lack of communication within your HOA, create a communications committee whose primary responsibilities would be prioritizing communication strategies.

Involve homeowners in decision-making.

Involving homeowners in the decision-making process can help increase their participation in the HOA. This can include soliciting their input at the next meeting on important issues within the association, such as budgeting, property maintenance, and community events, and incorporating their feedback into the decision-making process.

Make it easy to participate.

Making it easy for HOA homeowners to participate in the HOA can help increase their engagement. This can involve providing clear, straightforward instructions for signing up for committees or events and offering flexible participation options. One tool that has been effective for many associations is sign-up sheets. If you need help with a specific event, you can easily print out and display these at your next meeting.

Encourage Volunteering for a committee.

Many HOAs have committees focusing on specific areas, such as communications, events, or community improvements. Homeowners can volunteer to serve on a committee and contribute their time and expertise to help the HOA. It’s recommended that the governing documents for committee member guidelines be reviewed.

Allow Members to Attend meetings remotely.

Many HOAs hold meetings that homeowners can attend in person, but they can also offer options for attending meetings remotely, such as by phone or video conference. This allows homeowners who cannot attend in person to participate still and provide input.

Online forums or discussions.

Many HOAs have online forums or discussion groups where homeowners can share ideas, ask questions, and provide feedback. This can be a convenient and flexible way for homeowners to participate in the HOA board meetings.

Create short-term projects.

Some HOAs may have short-term projects or activities that homeowners can volunteer for, such as helping to organize a community event or clean-up day. This can be a flexible way for homeowners to contribute to the HOA without committing to a long-term volunteer role.

Ask for feedback or suggestions.

Even if homeowners cannot attend meetings or volunteer for committees, they can still provide feedback or suggestions to the HOA. Many HOAs have online suggestion boxes or feedback forms where homeowners can submit suggestions, which can help the HOA gather input to improve and better serve the community.

Create a sense of community.

Building a sense of community within the HOA can help engage homeowners and increase their participation. This can include organizing social events like potlucks, picnics, and sports teams to foster belonging and connection.

Start a community garden.

Creating a community garden can allow homeowners to collaborate and work on a joint project. It can also provide a source of fresh produce and improve the community’s aesthetic.

Host educational workshops or seminars.

Workshops or seminars on home maintenance or financial management offer homeowners opportunities to learn and grow together.

Start a community book club.

It enables homeowners to gather, discuss books, and foster community through engaging thoughtful conversations.

Create a community directory.

Creating a community directory can help homeowners get to know their neighbors and connect. The directory can include contact information, interests, and additional relevant information about each homeowner. This is an item that your HOA can ask for professional help with to build, maintain, and provide a current member directory. AAM mobile app AAM All Access has this feature built-in and provides an opt-in and opt-out option.

Begin weekly gathers

Driveway gatherings like “Wine Down Wednesday,” where members bring their favorite bottle of wine to enjoy with neighbors, are excellent community-building ideas. “Front Yard Fridays are another popular idea that typically requires homeowners to sign up as hosts.

Other ideas and suggestions can be

• Pick a different local restaurant weekly to meet up at
• Start a hiking or biking group that meets weekly
• Pocket Park parties or barbeques in the common areas
• Party for One for the singles or not-so-singles that need an outlet they can shop together or catch a movie together

Offer incentives or rewards

Offering incentives or rewards for homeowners participating in the HOA can increase their engagement. This can involve offering gift cards or other rewards for homeowners who attend board meetings, volunteer for committees, or participate in community occasions.

Community service hours

Many schools and organizations require individuals to complete a certain number of community service hours to graduate or fulfill a requirement. HOA Board members can offer opportunities for homeowners to earn community service hours by participating in HOA activities, such as volunteering for a committee or organizing a community event.

Raffles or contests

HOA Board members can organize raffles or contests to encourage homeowners to participate in the HOA. For example, homeowners who attend a certain number of meetings or volunteer for a certain number of hours can be entered into a raffle to win a prize, such as a gift card. This has been an effective tool for increasing homeowner participation in many HOAs.

Recognition or awards

HOA Board members can recognize and award homeowners or fellow board members who have made significant contributions to the HOA. This can include public recognition at meetings or events or presenting an award or certificate of appreciation.

Education or training opportunities

Many HOAs offer educational or training opportunities that cover landscaping, board roles and responsibilities, maintenance, how to build community, or financial management. HOA management companies can offer these opportunities as incentives for new board members and new homeowners to participate in the HOA.

In conclusion

Imagine a vibrant community where residents collaborate to enhance properties, connect, and keep the neighborhood thriving. This is the power of homeowner participation in their HOA. HOA boards and committees can boost homeowner involvement by following the tips in this article. Homeowner participation through events, incentives, and addressing needs can significantly improve your HOA community for all residents.