Category: Articles

AAM’s approach is unmatched when selecting a management company for your HOA; we go above traditional operational, financial, and communication practices. AAM invests in our people, procedures, and technology to deliver a high-quality management experience, creating a robust support structure that increases customer satisfaction. This article details how AAM effectively leverages its superior resources and capabilities to enhance community management, ensuring our clients/ HOA Board members receive exceptional service and support.

Commitment to Excellence

As a result, these commitments are essential when considering a top-notch management company for HOA management services.

Reliable Support Staff

At AAM, our support staff is the backbone of our operations, ensuring seamless day-to-day execution. Though not always in the spotlight, their roles are pivotal to our success. Choosing AAM as your HOA management company means gaining a Community Manager and a dedicated support team. Our support staff are always ready to deliver exceptional customer service and tackle challenging situations. Our commitment to internal and external satisfaction distinguishes us from other management companies. We naturally provide higher-quality services by ensuring our employees are well-supported, thoroughly trained, and work in a positive environment. In addition to robust support, this can assist Community Managers in making you, our valued client, our top priority.

Streamlined Procedures

This commitment to excellence is more than just a philosophy at AAM; it’s embedded in our operations. Our dedication to operational excellence is evident in the thorough development procedures designed to streamline community operations and ensure efficiency and responsiveness at every level, giving you the confidence that your HOA’s operations are in good hands.

Transparent Financial Management

Financial integrity is a pillar of our service delivery. We ensure that all financial transactions and budgets are managed with complete transparency. Our detailed financial reporting and proactive budget oversight give communities confidence that their funds are managed wisely and with clear accountability.

Excellence in Communication

Effective communication is a cornerstone of our service at AAM. We understand that maintaining an open, transparent, and responsive communication flow is essential for the success of any community. Our commitment to excellence in communication ensures that all homeowners, HOA Board members, and management are always in sync and well-informed.

Technology Solutions

AAM stands out in the sea of HOA management companies through our commitment to advanced, technology-driven solutions that simplify and enhance the living experience for our homeowners and Board members. Our innovative approach includes user-friendly tools that facilitate efficient community management and communication. These tools deliver a seamless, integrated experience, ensuring transparency and easy access to essential information for all community members.

Key features of our technology suite include a robust mobile app that delivers comprehensive functionalities tailored for both residents and Board members, along with our dedicated BoardVue portal for Board-specific needs. We are enhancing the All Access and BoardVue platforms to demonstrate our commitment to continual improvement. Actively incorporating feedback from our valued clients, we launched a significant update in the summer of 2024. This update introduced a unified platform, enabling single-login access across our mobile apps, web portals, and community-specific sites. This will ensure seamless integration and streamlined management across all user interfaces.

Our focus on incorporating cutting-edge technology into our services sets us apart and reinforces our role as a leader in the HOA management industry. We continually enhance our technology to meet evolving community needs, equipping our management solutions and communities for the future.

Enhanced Response Times

We prioritize swift and effective responses to all inquiries. Advanced communication tools and dedicated support let us promptly address issues, boosting community satisfaction.

Meticulous Attention to Detail

Our approach to HOA management focuses on meticulous attention to detail. We carefully handle every aspect of community management, from property inspections to vendor vetting, to maintain the highest service and upkeep standards.

Unmatched Customer Service

At AAM, we deliver customer service that goes beyond expectations. Our personalized service and ongoing staff training ensure professional, caring interactions that make every community member feel valued.

Adaptability in Changing Environments

We maintain flexibility in our operations to adapt to changes swiftly. Our adaptive strategies ensure we meet the needs of communities and the HOA Board, even with new regulations or priorities.

Customization Options

AAM provides customized services tailored to meet the unique needs of every community we manage. We recognize the uniqueness of each community and offer flexible services tailored to include a wide range of management functions. This adaptability allows us to provide a personalized management experience addressing each community’s unique challenges and preferences.

Dispute Resolution Processes

AAM fosters community harmony by implementing fair and efficient dispute-resolution processes. These processes hear all parties, leading to resolutions and strengthening the community’s long-term well-being. This approach resolves issues and strengthens community ties by fostering a sense of mutual respect.

Accessibility of Senior Management

At AAM, our senior management team is thoroughly aware of what’s happening within each community we serve. Our dedicated team stays fully informed on key issues and developments, enabling them to quickly support Community Managers in resolving complex situations. Our leaders are integral to decision-making processes and engage proactively to support the strategic needs of our communities. Their involvement has helped create a well-managed and transparent environment. This level of attentiveness and readiness highlights our commitment to responsive and accountable management, bolstering trust and satisfaction across all the communities we manage.

Your Community’s Success with HOA Management Company

AAM invests in people, processes, and technology to consistently exceed community expectations with exceptional management services. Our dedication to superior management practices is about maintaining standards and setting new benchmarks in HOA management. This approach ensures that every community we oversee survives and thrives under our care.

Our framework maximizes the value of every customer dollar, delivering unparalleled personal attention and expert care. At AAM, we understand that the cheapest option is not always synonymous with the best value. We focus on quality and satisfaction, making us a top choice for effectively managing your HOA community. We ensure our partnership brings happiness, efficiency, and a strong commitment to your community’s long-term success.

In choosing AAM

You are choosing a partner who values your community’s integrity and the trust of its members. We support your community’s goals, address challenges proactively, and celebrate your successes. Our mission is to empower your community through responsive leadership, innovative solutions, and a commitment to excellence that sets us apart from other HOA management companies.

You have plenty of HOA management companies to choose from; however, expect excellence from AAM as your management company. Contact us today to see how our top-notch HOA services can transform your community. Don’t just manage—thrive with a partner as invested in your community’s success as yours. Experience the AAM difference and elevate your homeowners’ association to its fullest potential.

• Professional Homeowners Association Management Services
• 10 Tips for Successful HOA Board Members
• How to Get the Most from Your HOA Management Company

As an HOA Board member, your commitment plays a crucial role in managing your community. Understanding and overseeing the HOA’s insurance policies are fundamental aspects of this responsibility. This guide builds a solid foundation in HOA insurance, empowering you to make informed decisions about your community’s coverage.

Key Takeaways

• Importance of Coverage: Discover how HOA insurance, or the master policy, plays a pivotal role in protecting homeowner’s associations from disasters and liability.

• Coverage Types & Responsibilities: Unravel the differences between HOA insurance, covering common spaces and liabilities, and homeowners’ insurance for personal properties. Learn about the unique coverages and responsibilities essential for community safety and compliance. 

• Strategic Insurance Management: Explore strategic insights into managing HOA insurance policies effectively, from conducting regular reviews and understanding community-specific needs to proactive risk management and utilizing partnerships with insurance and legal professionals.

Understanding the Basics

What is HOA Insurance? 

HOA insurance, also known as a master association insurance policy, is a type of property and liability insurance specifically designed for homeowners associations. This insurance plays a critical role in protecting the community’s shared spaces and assets against unforeseen events like natural disasters, theft, vandalism, and liability claims.

Differences Between HOA and Homeowners Insurance 

• HOA Insurance: Covers the community’s common area property and liability. In some cases, depending on how the CC&Rs read, this can include your residential building and/or unit. Members’ HOA dues typically cover the HOA master policy’s premium as a common expense.

• Homeowners Insurance: Covers damage to an owner’s personal residence, belongings, and other assets. The individual owner is responsible for premium contributions and covers any interior damages not covered by the HOA policy. If you live in a single-family community, this would include everything on your lot, including the residential structure.

Understanding HOA Insurance Coverages

Property Coverage 

Property coverage within your HOA insurance pertains to physical damages to the residential building and may extend to units, shared facilities, and common areas. It’s essential for repairing or rebuilding parts of the community damaged by insured events such as fires, storms, or vandalism. The insurance provisions of the CC&Rs typically outline the specifics of this coverage.

Types of Property Coverage:

• All-In Coverage: Covers the entire residential building, including units and improvements to the inside of the unit.

• Walls-In – Single Entity Coverage: Covers the entire residential building and units but excludes improvements made to the interior of the unit-by-unit owners.

• Bare Walls Coverage: Limits protection to the bare structure of buildings, usually defined by the CC&Rs. This coverage also excludes the unit.

Liability Coverage 

Liability coverage addresses bodily and personal injury that occurs on or relates to the common property of the association’s cash assets. Base limits are usually set at $1,000,000/$2,000,000, meaning the association can have a claim or claims up to $1,000,000 per occurrence, with a total policy limit not exceeding $2,000,000. This includes injuries from dog bites or slips and falls, personal injury claims like defamation, breaches of contract, and unique instances like bee attacks, illustrating the broad nature of potential liabilities.

Directors and Officers (D&O) Insurance 

D&O insurance covers association officers and directors for defense costs and claims from lawsuits alleging duty failures.

Common claims under D&O include: 

• Neglect in maintaining common areas or elements

• Disputes related to Architectural Committees

• Challenges to Board decisions or breaches of fiduciary duty

• Non-compliance with open meeting laws or other regulations

• Unfair treatment of homeowners, such as discrimination

• Violations of Fair Housing Laws

Crime/Fidelity Bond Coverage 

These bonds protect against fraudulent acts by the Board or association manager, typically covering embezzlement of cash assets.

Common claims under Crime/Fidelity coverage include:

• Cyber theft, forgery, and falsified invoices.

• Fidelity bonds do not cover mysterious disappearances, burglaries, or thefts by outside parties, ordinary mismanagement of funds, or overspending.

• Your association’s governing documents may dictate the minimum amount of coverage required. If not, the standard formula is 3 X monthly association dues + reserves.

Workers’ Compensation Insurance 

There have been many discussions regarding whether an association needs to carry a Workers’ Compensation policy. Even when a contractor provides proof of insurance, there is no guarantee that coverage will be in force at the time of an injury, potentially exposing the association to responsibility.

Common Workman’s Comp claims include:

• Accidents involving tools

• Slips, trips, and falls

• Being struck or colliding with an object

• Owners perform services that should be done by licensed, bonded, and insured professionals.

Claims Made vs. Per Occurrence: Navigating Policy Types in HOA Insurance

Understanding the nuances between “claims made” and “per occurrence” policies is crucial in HOA insurance. A “claims made” policy provides coverage if both the incident and the claim happen while the policy is active and enforceable. On the other hand, a “per occurrence” policy covers incidents that happened during the period of insurance, even if the claim is reported after the policy has expired.

Claims Made Policies 

Typically, Directors and Officers (D&O) insurance policies are “claims made,” which means they cover claims as long as the incident and the reporting of the claim both occur while the policy is in force. This underlines the importance of maintaining continuous coverage, as any gap could mean a lack of coverage for previous acts.

Per Occurrence Policies 

General Liability (GL) insurance policies are usually “per occurrence” policies, providing coverage for events that happen during the covered period, irrespective of when the claim is filed. This is significant for HOAs, as a claim for an injury or damage can arise long after the incident occurred.

Multiple Coverages and Overlapping Years 

In certain situations, multiple coverages can apply to the same claim. For example, both D&O and GL policies might respond to a claim, depending on the circumstances and how the policies are written. Additionally, claims can span different years of coverage, potentially involving overlapping policies which might both contribute to the settlement of a claim.
HOAs must understand their insurance policies and how to address claims within each. When a claim overlaps multiple policy periods or types, the association should work closely with its insurance broker and legal counsel to determine how the coverages may interact.

Navigating HOA Insurance Responsibilities

As a Board member, you play a key role in ensuring that your HOA has adequate insurance coverage.

This involves:  

• Conducting Regular Reviews: Insurance needs can evolve with changes in state laws, community assets, or risk exposure. Annual reviews of your policies are critical.

• Understanding Community Needs: Each community has unique features and risks. Whether your community includes amenities like pools, gyms, or playgrounds, each introduces specific insurance considerations. Review your CC&Rs and make sure you are meeting the required limits.

• Hiring Vendors with Insurance: When engaging with HOA vendors, it’s imperative that contracts mandate adequate insurance coverage. This process should include a review by the HOA’s attorney to confirm the sufficiency of the types and limits of insurance, terms of indemnification, and any other additional coverage for insured endorsements.

• Educating Homeowners: A common area of confusion is the differentiation between what’s covered by the HOA’s insurance versus an individual homeowner’s policy. Providing clear communication on these distinctions is vital.

• Maintenance: Associations need to continually ensure they are maintaining the common areas, residential buildings, and units in accordance with their CC&Rs. Failure to properly maintain the community may affect the association’s insurance premium.

Enhancing Your HOA’s Insurance Strategy

• Comprehensive Policy Reviews: Engage with an insurance professional who understands association insurance to conduct thorough policy reviews. This ensures your coverage meets both current community needs and legal requirements. Additionally, it’s an opportunity to identify potential coverage gaps or areas where the association may be over-insured.

• Specialized Coverage Considerations: Depending on your community’s specific amenities and features, additional coverages may be necessary, such as Fidelity/Crime Insurance, Workers’ Compensation, Flood or Earthquake Insurance, and Cyber Insurance.

• Managing Risks: Proactive risk management can help minimize insurance claims and potentially lower premiums through regular maintenance, implementing safety measures, and conducting safety audits.

• Working with Insurance Professionals: Maintain a strong partnership with your insurance professional who can assist with explaining coverage intricacies, identifying cost-saving opportunities, recommending coverage adjustments, and navigating claims processing complexities.

Conclusion 

As an HOA Board member, you are responsible for safeguarding and managing your community’s collective assets. A general understanding of HOA insurance is necessary to protect the community from unforeseen risks and liabilities. This guide empowers you with the knowledge to be effective stewards of your community’s well-being.

Navigating the complexities of HOA insurance can be challenging, especially whether your community is self-managed or partners with a professional HOA management company. This is where the expertise of AAM HOA Management can make a significant difference. Our involvement extends beyond insurance management; we are committed to enhancing your Board’s proficiency in ensuring the community’s comprehensive protection. Partnering with AAM, a professional HOA Management company, not only simplifies the intricacies of insurance but also strengthens the protection of your community and bolsters the Board’s confidence and competence.

As a reminder, the HOA Board Member Roles are paramount in building your community’s financial health and stability. Engaging with trusted professionals is not just about managing policies; it’s about building a partnership that increases your Board’s proficiency in preserving your community’s future.

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Q&A Section

Q: What is an HOA Master Policy?

A: An HOA Master Policy hoa insurance policy is the primary insurance policy held by the homeowners’ association that covers all communal and shared areas within the community. This may include residential buildings, common grounds, pools, gyms, and other shared amenities.

Q: How often should our HOA update its insurance policies?how/Hide Answer

A: It’s prudent to review your policies annually or after significant changes to your community’s structure, amenities, or local legislation.

Q: What’s the difference between “All-In”, “Walls in Single Entity” and “Bare Walls” coverage?

A:  “All-In” and “Walls in Single Entity” coverage extends to both the residential buildings and units, while “Bare Walls” coverage is limited to the residential building BUT excludes the actual units.

Q: Why is D&O insurance important for HOA Board members?

A:  D&O insurance protects individual Board members from personal financial loss in the event of legal action against them for their decisions or actions taken on behalf of the Homeowners Association.

Q: What exactly does HOA insurance cover?

A: HOA insurance typically covers damages to common areas and general liability for accidents within these spaces. Coverage details vary based on the policy and community needs.

Q: Why is HOA insurance necessary?

A: It protects the community’s financial health and ensures continuity in the face of unexpected damages or legal challenges.

Q: What determines the cost of HOA insurance?

A: Costs depend on the community’s size and specifics, the desired coverage level, and historical claim rates.

Q: Can Homeowners Association insurance premiums increase?

A: Yes, premiums may rise due to higher claims, market changes, and adjustments made by the association.”

Q: How often should our HOA review its insurance policy?

A: Annually or more frequently if significant changes occur within the community or in the insurance market.

An HOA transition from a developer-controlled Board to a homeowner-controlled Board can be a complex process with various challenges. However, with careful planning and execution, it can be a smooth and successful endeavor. In this guide, we’ll explore the essential steps and considerations for the newly elected HOA Board members to ensure a seamless transition, along with insights on how partnering with AAM, LLC, a professional HOA management company, can streamline the process.

Understanding HOA Transition

Transitioning control from the developer to the homeowners marks a significant milestone in the life cycle of any homeowners association. Initially, the developers sit on the Board of the association, overseeing construction, establishing governance structures, and managing common areas. However, as the community matures and more homeowners move in, the transfer of control occurs, shifting authority from the developer to the owners. Control usually transitions to the association after a specific percentage of homes have closed. The HOA’s governing documents or state statutes typically outline specific criteria and timelines dictating when association control can be transferred to its members.

Ideally, this transition process unfolds gradually, allowing owners to become increasingly involved in the association’s operations and decisions. Some associations facilitate this transition by forming homeowner committees — such as transition, finance, management, or insurance committees—providing valuable training opportunities for future Board members on how to effectively govern the association.

Roles and Responsibilities of the Board

Before the transition of control from the developer to the homeowners, it is advisable to establish a Transition Committee consisting of homeowners. The establishment timeline of the Transition Committee will depend greatly on the size and scope of the community. This Committee should undergo training sessions to familiarize themselves with the association’s operations and the roles and responsibilities of Board members. This early preparation ensures a smooth transition and allows the community management company to educate homeowners who may consider running for the Board of Directors.

As the newly elected homeowner-controlled Board takes over, they are responsible for ensuring a smooth transition, with the support from their HOA management company. This collaborative effort involves acquiring crucial information from the developer, meticulously reviewing documents, and crafting a strategic plan for governance and operations. Thoroughness and attention to detail are paramount during this phase, with the management company’s assistance, to prevent oversights or disruptions.

Tips for a Successful HOA Transition from Developer to Homeowner Control

Form a Transition Committee

To manage the transition of an HOA effectively, it’s crucial to consider benchmarks and timeframes outlined in the governing documents regarding when control can or should be turned over to its members. Establishing a transition committee before the designated transition date ensures the presence of qualified individuals throughout the process. This committee should comprise of homeowners and at least one industry expert well-versed in development and associations. Transition planning should commence well before the turnover date, involving collaboration between homeowners, Board members, and developers.

Develop an HOA Transition Plan

A well-defined transition plan is essential for a successful turnover. This plan should outline key milestones, responsibilities, and timelines for the transition process. It should also fulfill any legal or regulatory requirements during the transition period.

Establish Clear Communication Channels

Cultivate a culture of openness and clarity in communication with Board members, homeowners, and stakeholders during the transition phase. Elevate engagement levels by employing diverse communication avenues, including regular email bulletins and interactive community gatherings. Effective communication stands as the cornerstone of a successful transition. The HOA Management company plays a pivotal role in this process, diligently supporting Boards with expertise and resources to facilitate transparent dialogue and swift resolutions.

Gather Essential Documents and Records

As part of the transition process, the developer must provide the homeowner Board with all necessary documents and records related to the HOA. These may include governing documents (such as the Declaration of Covenants, Conditions, and Restrictions), financial records, architectural guidelines, insurance policies, and maintenance schedules. Reviewing these documents is crucial for the homeowner Board to fully understand the HOA’s operations and obligations. Documentation should include:

• The recorded Declaration (original or certified).
• The Articles of Incorporation.
• A comprehensive listing of owners
• Contact information for owners.
• Current bylaws and meeting minutes.
• Rules and regulations.
• Tangible property.
• All association funds.
• Accounting of financial statements.
• The Financial Records of Association.
• Active insurance policies.
• Manufacturers, contractors, subcontractors, and suppliers’ warranties.
• Copies of service and employment contracts.

Conduct Comprehensive Due Diligence 

This may involve reviewing financial records and evaluating existing contracts and agreements.

HOA Transition Meeting 

The homeowners formalize the transfer of control from the developer during a transition meeting. During this meeting, the developer officially relinquishes control of the association to the newly elected homeowner Board of Directors. The meeting may also involve discussions about ongoing projects, financial matters, and the transfer of essential documents and records

Evaluate the Condition of the Community 

Newly elected HOA Board members should assess the community’s health and incorporate professionals to assist. Those items for assessment should include:

• Review the reserve study to determine if you are well-funded.
• Reviewing the community budget.
• Potentially getting an audit done to ensure financial health.
• Working with an insurance agent to ensure the community is properly covered.
• Make sure you have received the deeds for the common areas.
• Get training on understanding your responsibilities as a Board member.

Ensure Legal Compliance 

Ensure compliance with all legal requirements, including ownership transfer of common areas and updating insurance policies. Your HOA Management team can provide guidance and support throughout the legal process.

Professional Support 

To navigate the transition process successfully, homeowner Boards may enlist the support of professional HOA management companies, legal advisors, and financial consultants. These professionals can provide expertise, guidance, and support in areas such as governance, financial management, and compliance with legal requirements. Partnering with trusted professionals can help ensure a smooth transition and set the stage for the long-term success of the HOA.

Effective HOA Transitions

By following these tips and tapping into the expertise of professionals, HOA Board members can confidently steer the transition process, paving the way for the sustained success of their community. With a solid understanding of the basics of the transition process and the support of professional services where needed, homeowner Boards can effectively transition to homeowner control with clarity and confidence.

As you incorporate these fundamentals into your transition plan, rest assured that AAM, LLC is ready to accompany you on this journey, providing invaluable support, resources, and guidance every step of the way. Together, we can ensure a seamless and successful transition, laying the foundation for a thriving and well-managed community for years to come.

For more information and expert guidance on HOA transitions, feel free to contact AAM, LLC – your trusted partner in HOA management excellence.

Disclaimer: The information provided in this guide is for educational purposes only and should not be construed as legal or financial advice. It is recommended to consult with qualified professionals for specific guidance tailored to your HOA’s unique circumstances.

• What is an HOA Transition
• HOA Transition from Developer
• How to Successfully Change Your HOA Management Company

Master-planned communities are expansive housing developments that combine neighborhoods, amenities, and services to provide residents with convenience, quality living, and a vibrant lifestyle. These communities often feature a mix of housing types, including single-family homes, condos, and apartments, as well as shared amenities such as recreational facilities, commercial establishments, and common areas. The goal is to create a self-contained, thriving community for every stage of life.

At AAM, we specialize in managing the unique needs of master-planned communities, ensuring seamless operations, increased property values, and a positive experience for both homeowners and board members. Moreover, with a proven track record in managing master-planned communities, our expert team offers customized solutions to help communities like yours thrive.

Services Tailored for Your Community

Managing master-planned communities involves juggling diverse needs, from maintaining aesthetic standards to navigating complex governance structures. At AAM, we provide a wide array of services to meet the specific demands of both Master and Subassociations, ensuring that every aspect of your community runs smoothly:

• Full-Service Accounting & Budgeting Assistance
• Dues Collection & Financial Reporting
• Routine Inspections & Maintenance of Common Areas
• Violation Enforcement & Compliance Support
• Vendor Management & Contract Negotiation
• Board Training, Education, & Meeting Preparation
• Resident Communication & Portal Management
• Reserve Planning & Legal Assistance
• Emergency After-Hours Support

Our approach is rooted in transparency, collaboration, and a commitment to excellence. As a result, we help boards unburden themselves from administrative tasks and focus on creating a cohesive, vibrant community.

Understanding Master and Subassociations in HOA Management

Understanding the dynamics between Master Associations and Subassociations is key to effective community management. Here’s how we help navigate this complexity:

• Master Associations: Governs shared amenities like roads, entrances, and recreation facilities, ensuring consistent community aesthetics and standards.
• Subassociations: Focuses on the unique needs of specific neighborhoods or housing types, such as condos or townhomes, addressing segment-specific challenges.

Our seasoned managers ensure seamless coordination between these governing bodies, minimizing conflicts and fostering harmony across the community.

Why Choose AAM for Your Master-Planned Community

AAM is an industry leader in community association management, serving master-planned communities across the region with dedication and expertise. Here’s what sets us apart:

Focus on Value & Experience: We strive to exceed expectations, creating a positive experience for every homeowner, resident, and board member.

Local Expertise with a Broad Reach: With extensive experience managing communities in Arizona, New Mexico, Texas, Indiana, Michigan, South Carolina, and beyond, we also understand the unique challenges of master-planned communities in diverse regions.

Proven Track Record: Our history of success speaks volumes—helping communities enhance property values and create a welcoming environment for residents.

Customized Solutions: Additionally, we don’t believe in one-size-fits-all. We tailor our management strategies to your community’s specific needs, ensuring optimal results.

Take Your Community to the Next Level

Navigating the complexities of managing a master-planned community doesn’t have to be overwhelming. In fact, at AAM, we’re here to help every step of the way, providing full-service support tailored to your needs. Let us show you how professional management can elevate your community.

Contact us today to learn more about our customized solutions for Master and Subassociations and discover why AAM is the trusted partner for communities like yours.

• HOA Management Company Responsibilities
• A Guide to HOA Insurance for New Board Members

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.

• Why HOA Boards Benefit from Working with a HOA Management Company
• When to Hire a Professional HOA Management Company
• HOA Management Co.
• How to Get the Most from Your HOA Management Company

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.

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.

• Community Management: How to Work with Your HOA Management Company
• Selecting an HOA Vendor
• HOA Management Company: How to Select the Best Partner
• A Guide to HOA Insurance for New Board Members

The role of an HOA Community Manager encompasses 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. A professional HOA management company typically employs Community Managers, 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 drive their communities and work 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 unavailable 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 reports regularly 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 about 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 particular needs, but some key aspects of this relationship include:

• Communication: HOA managers should communicate clearly and consistently with the board and Association members. This includes regular updates on HOA issues, responding to resident concerns and questions, and informing the board of significant developments.
• Decision-making process: HOA managers typically work with the board to make decisions 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. 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: Work with the board to plan maintenance and repair projects, including hiring vendors and overseeing the work.
• HOA events: HOA managers may work with the board and residents to organize Association events.

Overall, the HOA manager’s role is to support the board members and residents. They provide 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 standard 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 have 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 effectively manage the community association’s day-to-day operations.

Organizational and time-management skills

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

Financial skills

They should understand financial management, 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 these skills, management companies always look for new managers; visit our CAREERS page.

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.

• HOA Board Member Roles

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.