Category: Articles

Residents choose communities that offer the lifestyle and amenities they desire. However, residents’ desires change over time, and so do their desired amenities. To keep up with these changing desires, communities may need to perform capital improvements. This article will discuss examples of capital improvements and how HOAs can pay for them.

For this discussion, a capital improvement is defined as a significant upgrade to an asset or the creation of a new asset with substantial expenditure. The Internal Revenue Department defines capital improvements differently, using specified standards. Although definitions may vary by state or industry, the Community Association industry generally accepts this one.

Examples of Capital Improvements

Over the past decade or so, pickleball has become very popular.  This has led to some communities building pickleball courts for their residents. The addition of pickleball courts would be a capital improvement. Other examples of additional sporting amenities would be tennis courts, bocce ball, and basketball courts, to name a few.

A community may have a modest play area that it wants to improve with a larger play structure. Based on its size and cost, consider the new structure a capital improvement. A community might lack a pool, but residents may want to add one as a desirable amenity. Adding a pool would be considered a capital improvement. Other examples include installing a surveillance system or constructing a clubhouse. Capital improvements vary based on community size and residents’ preferences for beneficial additions.

Examples of Capital Improvements: 

• Sporting amenities (tennis courts, bocce ball, basketball courts, etc.)
• Play areas and structures.
• Community pool
• Surveillance system
• Clubhouse or similar building

How do HOAs pay for Capital Improvements?

After inquiries from homeowners and considerable discussion by Board and Committee members, the Board of Directors may come to the decision that a capital improvement is in the best interest of the community. Inevitably, the next question to ask is: How do we pay for capital improvement?

Review Community Documents

The first step in funding major community projects is to review governing documents for restrictions on capital improvement funding. Some residents may suggest using reserve funds, but those are meant for long-term maintenance and replacement of existing assets. Reserve studies typically plan to replace assets at the end of their useful life, not for substantial improvements. They usually account for replacing assets with similar versions at comparable value. Therefore, if the asset is to be substantially improved, it may be considered a capital improvement. The community governing documents may also include restrictions preventing the use of reserve funds for these community improvements.

Loan or Special Assessment

Other funding options may include establishing a capital improvement fund, the Association taking out a loan or establishing a special assessment to fund the project.

Suppose a community’s governing documents allow for the collection of special closing fees. The Board of Directors may establish a closing fee to fund capital improvements. While this funding option may have the least impact on the community’s immediate finances, it also takes longer for the community to accumulate the desired funds as this relies on home closings; therefore, this may not provide a funding timeline that meets the desires of the community.

A more immediate funding option would be for the community to take out a capital improvement loan to fund the project. If allowed by the governing documents, the community needs to put together a comprehensive project plan to present with the loan application for the lending institution’s review. This may involve hiring a project manager, architect, or other professionals to assist in preparing these documents.

If the options above are not viable, the Board of Directors may choose to consider a special assessment to fund the project. A special assessment may provide more immediate funding for the project than collecting closing fees, and it avoids the challenges of getting funding from a lending institution; however, special assessments have their own challenges. Foremost, many homeowners do not like special assessments and may not be in a financial position to pay for them. In addition to the individual homeowner impact of a special assessment, the Association’s governing documents may have strict requirements for approval of special assessments. 

While the funding of improvements accounts may be a challenge, the project is completion result may add considerable value to the community and its residents through the quality of life, accessibility, exercise options, or increased overall monetary value of the community and its homes. Therefore, with open discussion, resident involvement, and thorough research, a capital improvement may benefit your community and your residents.

We are often asked, “When should we start preparing for our HOA to transition from a developer-controlled board to a homeowner-controlled board?” Our answer is always the same, “starting on day one from when the developer first hires a professional management company.”

Setting up a community for a successful transition begins with ensuring the community will be financially stable once the Developer is no longer involved. The AAM Developer Services department begins work with our developers months, if not years, before construction commences. This process starts with preparing the initial budget to determine the reserve requirements and set the assessment rate. At the request of the Developer, AAM will also conduct a thorough review of the governing documents to ensure they align with state and federal laws. Thus, we anticipate any concerns that may arise for a community down the road. Setting an appropriate assessment rate and having the proper documentation in place sets the foundation for the association. However, remaining vigilant by taking additional steps beginning on the first day of management will contribute to a successful transition.

HOA Transition Best Practices

Below is an outline of best practices to follow leading up to an HOA transition from Developer to homeowner control.

COMMON AREAS

After installing the common areas, the Developer should document their condition before transitioning maintenance to the association. An inspection must confirm that everything is installed according to plan and the common areas are in good condition. Once the association accepts maintenance, regular inspections should monitor the common areas and address any concerns promptly. Auditing the community for maintenance issues a year before the transition is a good practice. This allows time for any maintenance concerns to be addressed while the Developer still controls the board. Failure to properly maintain the common elements throughout development can lead to problems during transition.

The Developer should confirm that ownership of common area parcels has been conveyed to the association. Some counties offer special tax valuations for common area parcels, so ensure all parcels are submitted for this valuation. Failure to do so may result in substantial future tax bills for the association. This process is simple for smaller communities but may require an HOA attorney for more complex communities. Developers should consider having an HOA attorney audit these communities before the transition to ensure proper deed and valuation.

FINANCIALS

The developer board should constantly evaluate the financial condition of the community to ensure that the association is financially stable, has a balanced budget, and has an appropriately funded operating account and reserve account. By the time of transition to homeowner control, the association should be self-sufficient. If there are deficiencies being funded by the Developer leading up to the transition, that is an indication that the assessment is set too low. By monitoring the financials through development, the developer board can ensure that appropriate assessment increases are taken to provide sufficient income at the time of transition to cover anticipated expenses.

Every community should have a reserve study in place that lays out a plan for the repairs and replacements of common areas. It is prudent to thoroughly review the reserve study to make sure that all common area improvements that should be funded are included. Studies should be updated at least every three years, unless the CC&Rs require more frequent updates, to make certain that the association’s reserve account is sufficiently funded at the time of transition. Failing to fund reserves adequately is a common area of contention with homeowner boards following the transition. 

Good Faith

There is no legal requirement to complete a reserve study or ensure the association is adequately funded. However, the Non-profit Corporation Act requires directors to act in good faith and with the care of an ordinarily prudent person. Directors must also act in a manner they reasonably believe is in the best interest of the corporation.

Common law, established through the Restatement Property (Servitudes), is court-made law based on previous court opinions. Sub-Section 6.20 outlines the Developer’s Duty to the community during the period of control. The Developer must establish a sound financial basis and maintain accurate records for the association. They must also account for the association’s financial affairs and disclose all material facts affecting its financial condition. These duties remain until the Developer relinquishes control of the association to its members.

DOCUMENT & ORGANIZATION

As the transition approaches, it’s prudent to ensure the association is well-organized. Association records should include all pertinent documents, such as CC&Rs, recorded amendments, plat maps, and common area tract deeds. Include signed Bylaws, filed Articles of Incorporation, and any working documents adopted by the developer board. Files should contain current contracts, insurance policies, financial records, development plans, and meeting minutes. Confirm that the association is in good standing with the Secretary of State or Corporation Commission.

TRAINING 

Four months to one year prior to transition, depending on the size and complexity of the community, a Transition Committee consisting of homeowners should be organized. This Committee will go through a series of training sessions regarding the association’s inner workings and the board members’ responsibilities. This is a good time for the management company to educate and build relationships with homeowners who will hopefully go on to run for the Board of Directors. Additional training for board members following the transition will further contribute to a successful transfer of control.

Our ultimate goal with any transition is for the homeowners to take control of the association and move forward with a good relationship with the Developer. Homeowner concerns with the Developer may arise within a few months following the transition. However, sometimes situations arise years later. As such, the management company must diligently follow up on any concerns and initiate discussions with the Developer to resolve issues amicably. Following best practices and having the right team from day one ensures a smooth, successful management transition.

Community associations are unique entities, and the Boards that lead community associations fill unique roles. In our experience, the most successful board members have strong integrity, reasonable judgment, a willingness to serve, and commitment to the best interests of the community. Couple this with a Community Manager who has an approachable attitude, excellent communication skills, unwavering integrity, and takes a genuine interest in the community, and you have a formula for success! But what else does it take to lead a successful community association?

Below, we have provided successful tips for both Board Members and Community Managers:

5 Habits for Board Members

 
1. Look at the Long Term Financial View

Take the time to look at the Association’s overall financial position in a 5, 10, 20, and 30-year span. Understand the assets of the Association. Obtain a Reserve Study and update it every 2-3 years. The assets of an Association typically age and require maintenance and/or replacement. Don’t skip routine maintenance to save a few dollars. Don’t be fearful of raising assessments if needed. 

2. Make Educated Decisions

Education should be a high priority. Part of learning how to be a good Board member will come from trial and error; but, reduce the errors and the time it takes to get up to speed by attending Board training (often offered by your management company, Association attorneys, and certain municipalities), read the governing documents, rely on the guidance of experts and ask questions.

3. Be Reasonable

Although Boards have a big responsibility, they don’t need to be overzealous or inflexible to fulfill it. Avoid snap decisions, act rather than react, and deal with real problems, not nuisance situations.

4. Be Transparent

Transparency in an association is a good thing and goes a long way toward giving members the feeling that the Board is doing the right thing. It can be tempting to keep certain decisions under wraps, especially if there is friction among Board members or if the Board believes their decision may be unpopular with the members. However, secrecy leads to distrust once the secret is unveiled. While there are times when confidentiality is necessary, most often, the HOA Board’s business is public information, and it is required to be easily accessible to homeowners.

5. Communicate, Communicate, Communicate

Effective communication helps to establish “unity” in the community. Use your available tools to get the information to your members and create a process in which members can communicate with you! In this era of interactive technology, use your website, eblasts, text messaging, social media platforms, and Association or management apps. Additional tools may include bulletin Board postings, A-frame signs, door-to-door flyers, information sent out via US mail, and face-to-face Board meetings.

5 Habits for Community Managers

(The following is part of AAMs core fundamentals) 

 1. Be Proactive

Plan your work. Solve problems before they happen by anticipating future needs or opportunities and addressing them in advance. Looking ahead allows us to better capitalize on opportunities and to prevent issues instead of fixing them.

2. Share Information

Learn to ask yourself, “Who else needs to know this?” When in doubt, share more rather than less. No team ever failed because they shared too much information.

3. Be a Fanatic About Response Time

People expect us to respond to their questions and concerns quickly, whether in person, on the phone, or by e-mail. This includes simply acknowledging that we got the question and we’re “on it,” as well as continuously updating those involved on the status of outstanding issues. Rapid response is one of the easiest and best ways to stand out from the crowd.

4. Pay Attention to the Details

Whether it’s getting the contract terms right, getting the correct address, or doing the proper research, details matter. Double-check your work for accuracy and precision. Accuracy is a reflection of excellence.

5. Take Ownership

Take personal responsibility for making this happen – somehow. Respond to every situation by looking for how we can do it rather than explaining why it can’t be done. Be resourceful and show initiative. Don’t make excuses. Take the extra step to solve the problem.  See issues through to their completion.

In addition, having an engaged community is of equal importance for a successful Community Association. Below are ways to encourage Community involvement.

Encouraging Community Involvement

Running an effective homeowners association takes the work of many. While Boards can hold meetings and make decisions, what really makes an Association a “community” is the involvement of its members. But how do we encourage participation? 

• Provide opportunities for members to interact through social events.
• Encourage volunteers to share their positive experiences with other members.
• Recognize and thank your volunteers often.
• Form committees.
• Host Town Hall Meetings.
• Hold regular Board meetings.
• Communicate, communicate, communicate. 

A successful community association is a collaborative effort. It’s a committed group of community volunteers (Board Members) leading the charge and making sound decisions for the community, partnered with a management company that can move decisions forward, both with the same shared vision of success.

As Boards of Directors prepare their annual budgets, important tips should be followed to ensure accuracy and comprehensiveness. A well-crafted budget goes beyond mere numbers; it forms the financial backbone that supports the entire association. This budget guides decision-making throughout the year, ensuring that resources are efficiently and effectively allocated to meet community needs. Furthermore, a robust budget helps maintain financial stability, allowing both short-term and long-term goals to be confidently achieved.

Reviewing the Timeline

One of the first critical steps in this process is reviewing the timeline for budget completion and Board approval. This step is not only essential for organizational purposes but also for compliance with the HOA’s Governing Documents. These documents often outline specific distribution requirements, making adherence to timelines vital. Timelines are more than just formalities; they ensure the budget is prepared, reviewed, and communicated in a timely manner. This practice fosters transparency and trust within the community, both of which are crucial for smooth operations.

Adhere to Governing Documents

For example, some HOAs’ CC&Rs require the budget to be mailed or delivered to homeowners 30 days before its effective date. Meeting these deadlines is essential to prevent last-minute rushes and ensures all stakeholders are informed and prepared for the upcoming year. A well-prepared budget provides a clear financial plan that reflects the association’s priorities and strategic goals. It also helps anticipate potential challenges, allowing the Board to address them proactively.

In addition to meeting deadlines, it’s important to regularly review and adjust the budget as necessary throughout the year. This flexibility allows the association to respond to unforeseen circumstances while maintaining financial health. By carefully considering these factors, Boards of Directors can create a budget that not only meets the current needs of the community but also lays the groundwork for future success.

While keeping these critical deadlines in mind, consider the following items to help make the HOA budget preparation process successful:

 Download our latest guide on HOA Budgets HERE

Each association is different, and its governing documents drive the HOA transfer fees collected at the close of escrow. 

Examples of fees that could be charged at the closing are: 

Working Capital/Initial Capital Contribution/Community Enhancement Fee

• The association collects this part of the transfer fee and deposits it into its operating account for the board’s use. If the governing documents do not require a reserve fund fee, the board often designates the working capital fee to fund reserves. The CC&Rs or a board-adopted resolution specifies the amount collected. The buyer typically pays this fee at closing

Reserve Fund Fee

• The association collects this fee to fund the reserve account. It supports the maintenance and replacement of capital improvements outlined in the CC&Rs. The association deposits the fee into the reserve account for future use. The Board of Directors hires third-party vendors to identify assets and develop funding strategies to maintain them. The buyer typically pays this fee.

HOA Transfer Fees

• The association collects this fee, and the board of directors decides how to use it. Governing documents grant the board this authority. The board may allocate the fee to reserves or the operating account. In some states, the fee offsets the cost of updating owner records. The buyer typically pays this HOA transfer fee.

Resale Disclosure Fee/Statement of Account Fee/Certificate of Assessment

• The managing agent typically collects this fee, with the amount determined by the management contract negotiated by the board. State statutes often set the fee amounts. The seller usually pays this fee.

The fees listed above do not count as advance payment of assessments and are not refundable for future property sales.

While HOA transfer fees may initially seem complex, understanding their purpose and how they are allocated can simplify the process and reduce surprises during closing. Whether negotiated between buyer and seller or dictated by the HOA’s governing documents, these fees ensure the smooth transition of ownership and the continued financial health of the community—an investment that benefits all residents.

• What is a Capital Improvement
• What is the purpose of an HOA
• What is an HOA Estoppel

Moving to Mobile First

Today, we live in a mobile-first world when it comes to technology. We do our banking and shopping on mobile apps, and we even manage our home appliances and thermostats through mobile apps. Unfortunately, the same is not currently valid in the HOA Management industry. AAM is looking to address this oversight with the rollout of the HOA Toolkit. 

No Wi-Fi, No Problem

Our initial rollout of the HOA Toolkit focused on allowing our managers to perform community inspections on an offline mobile app. The offline mode has been a critical feature for us since several communities are in areas without cellular coverage. In the past, this could mean long wait times when uploading pictures or, worse yet, timeouts. Caching violation information on the device and uploading it later ensures faster, more accurate inspections, even in areas with coverage.

Secure, Fast & User-Friendly 

The transition from a mobile-friendly webpage to a mobile app has also paid significant dividends. This shift has allowed us to create a more intuitive interface and enable features on the device that would not have been possible in a traditional web format.

The results have been better than we could have hoped. Even the most technology-resistant users have fully and gladly embraced the new tools. We believe our Managers’ feedback has been overwhelmingly positive because the tool is familiar and preferred. Additionally, it enhances their efficiency by cutting typical inspection times in half.

Resident Information a Few Taps Away

This success encouraged us to deploy a module for Resident Information. We realized that Managers are often away from their computers, whether conducting inspections, meeting vendors, or attending Board meetings. As a result, many issues that could be quickly resolved must wait until they return to their desks. Issues can be addressed more rapidly by providing a tool that allows Managers to access residents’ information from their phones. This also reduces the number of tasks on their to-do lists. This is especially beneficial for our Afterhours Team, who need quick access to information while resolving emergencies in real-time.

Expect More

Seeing how impactful these tools have been for our staff has caused us to shift our thinking from “What can we deliver via a mobile app?” to “What can’t we deliver via a mobile app.”  We have already added work orders, architectural processing, and vendor management to our roadmap for what we want to add to our toolset. We hope that the HOA Toolkit will add new modules over the next few years, transforming into a primary device for how most of our staff will do their jobs.  

To learn more about HOA Toolkit, visit Hestia Software.

• HOA Management Technology
• Enforcement in an HOA : Why Consistency is Important

Hurricane season officially begins on June 1st and runs through November 30th. Unlike a tornado that can strike a community with little warning, hurricanes often develop over weeks, giving homeowners associations (HOAs) crucial time to focus on HOA Hurricane Preparedness. However, without proper planning, the devastation from a direct landfall can leave lasting impacts for years, much like the aftermath of a sudden tornado.

Why does an HOA need to have a Hurricane Preparedness Plan?

It is part of an HOA’s duty to protect their community’s well-being and act in their residents’ best interest. Although having a Hurricane Preparedness Plan will certainly not save your community from being hit by a hurricane, it will assist your association and residents be prepared when the time comes. Ultimately, having a plan will help minimize health, safety, and monetary risks for the entire community.

Roles the HOA plays in preparedness:

Creating a Hurricane Preparedness Plan

It is essential for associations, especially those in states prone to hurricanes, tornadoes, and other natural disasters, to review their emergency preparedness plans periodically. Keeping residents informed and prepared for these situations is equally important. An emergency preparedness plan should already exist for your HOA. However, it’s crucial to revise and update it as needed. We recommend discussing updates to the plan during your HOA’s annual meetings. Creating one should be your top priority if your association does not yet have a plan. For assistance, contact your management company or AAM today.

Conducting Regular Inspections and Maintenance

As part of your HOA’s responsibility to protect the community, your association or management company should regularly inspect shared facilities. This includes roofs, windows, landscaping, mechanical equipment, and other communal assets. Regular inspections help identify potential safety hazards and assess necessary changes to buildings or infrastructure before a storm. For insurance purposes, it is also recommended to videotape or photograph community assets and common areas while they are in good condition. Ideally, these images should include time and date stamps.

Keeping Everyone Informed

Keeping residents and staff informed during uncertain situations is vital. Residents expect answers, and your HOA must be prepared to provide them before, during, and after an emergency.

Before hurricane season, share a digital copy of your Hurricane Preparedness Plan with residents and staff. Use emails, flyers, and your community website to share key information. This should include details about hurricane season, how to prepare, how the association will handle certain situations, and what to do during and after a hurricane.

For example, residents may be required to secure trash cans and backyard furniture to prevent significant property damage. Your HOA should ensure all residents know this policy and the penalties for noncompliance. Additionally, be ready to share local government updates, such as voluntary or mandatory evacuation notices.

Post-Storm Cleaning and Repairing

After the storms have passed, your HOA must conduct a damage assessment tour of the community’s common areas. The HOA should contact the appropriate vendors to clean and repair the damage.

What is included in an HOA Hurricane Preparedness Plan?

A Hurricane Preparedness Plan will serve as a guide for your HOA, specifying protocols and procedures. The following are items that you should include in your HOA’s Hurricane Preparedness Plan:

Hurricane Supply Kits

Provide your residents with a list of essential items or supplies they need to have handy before and whenever a storm is approaching. Important things include cash, personal documents, non-perishable food, water, clothing, medications, personal hygiene items, a fully charged cell phone, etc.

Roles and Responsibilities

Specify the roles and responsibilities of the HOA before, during, and after the emergency. For instance, what will the association communicate to residents, and what mediums will be used? Text messages, emails, community website? Similarly, specify what is expected from the residents to preserve their safety and the community’s safety.

Standard Protocols

Share a list of standard procedures for different situations. For example, what should be done if water or electricity are shut off, flooding occurs, or if the government issues an evacuation notice? Evaluate all the potential situations residents might be exposed to and determine the safest action plan for them. Remember, not everyone has experienced hurricanes before. What may seem like an obvious solution to some might not be apparent to others.

Site Plan

Include a site plan or map pointing out critical areas in the community and access to water valves, lift stations, generators, etc. Sometimes, local officials instruct communities in the most threatened areas to turn off electricity, gas, and water before evacuating.

Evacuation Plan

Establish a detailed evacuation plan, including a map highlighting emergency exits, evacuation paths, nearby shelters, gas stations, and drugstores.

Instructions for Re-entry

If an official evacuation notice has been issued, advise residents to be patient and not to re-enter unless state/county officials have allowed doing so. Your residents must stay updated with the latest news from the most reliable sources, and your HOA could help by providing a list of the most dependable sources of information.

Emergency Contact Information

Provide a list of all-important contacts, including your HOA Board members, Community Manager, insurance providers, relevant vendors, and other emergency services. It’s essential that your HOA also has access to all residents’ contact information and home addresses.

How can AAM help prepare your community?           

AAM has plenty of experience preparing a community for a storm. With community partners through the Carolinas, 80% of the communities we serve are on the coast and could be impacted by every gulf or Atlantic storm. From those experiences, we can build a plan for each community that covers Pre, Mid, and Post Storm.

Working with local authorities and the Board of Directors, our preparation and execution of the personalized plan for the community mitigates damage and sometimes saves lives. In addition, we can work with the Board and their CERT (Community Emergency Response Teams) on planning, preparation, drills, and execution to preserve the common properties and ensure that all owners heed the warnings and prepare for their safety.

Our ability to work with our Preferred Vendors on the staging protocols ensures our team can have the workforce available when others may be stretched for help. This also enables our management professionals to focus on residents’ immediate needs and concerns to prepare for recovery once the storm has passed.

Does your current management company have a plan for you? If not, give us a call and let AAM build a plan for your community.

As Board members, you understand that HOA management technology has an important role in effectively managing your Association. Ensuring that Board members and homeowners have access to the best technology available should be a top priority of your HOA management company. Technology services should provide helpful tools, adapt to the individual needs of a community, and encompass these functional traits: Secure, Productive, Automated, Efficient, and Transparent.

As a member of your Community Association and an elected HOA representative, you have a pulse on what the community wants and needs, especially concerning technological advances and service offerings. Websites, cloud-based portals, and mobile applications are a few examples of innovative tools AAM provides to their communities; what technology is currently available to you?

AAM ALL ACCESS: The Ultimate Homeowner and Board Portal

Advancements in digital solutions are reshaping how homeowners and board members interact with their HOA. A user-friendly portal and mobile app make finding information, taking action, and communicating effectively easier. AAM All Access delivers this seamless experience, serving as both a web portal and mobile app designed to enhance engagement and streamline HOA management.

A Unified Homeowner and Board Experience

Whether accessing AAM All Access through the mobile app or the cloud-based web portal, homeowners and board members enjoy a centralized platform to manage HOA-related tasks easily. From submitting service requests to tracking community updates, AAM All Access provides the ultimate convenience.

Key Benefits of AAM All Access

1. 24/7 Access to HOA Information – Instantly retrieve account details, documents, and payment history.
2. One-Touch Communication – Contact HOA representatives quickly without searching for contact details.
3. Time-Saving Solutions – Submit architectural requests, pay assessments, and access essential resources with just a few clicks.
4. Real-Time Notifications – Receive updates on payments, compliance issues, architectural request statuses, and community announcements.

BoardVue™: Exclusive Features for HOA Board Members

In addition to AAM All Access, BoardVue™ is a specialized Board Member dashboard, providing customizable views, interactive reports, and real-time tracking of HOA operations.

What BoardVue™ Delivers

1. 100% Transparency – Board members gain complete visibility into community management.
2. Frictionless Oversight – Access critical financials, documents, and work orders easily.
3. Instant Reporting – Generate and review 13 essential board reports anytime.

WEBSITES influence how homeowners perceive a community

Let’s face it. People use Google before making any purchases, including deciding where to live. Because of this trend, a community’s first impression must be glowing and memorable. If an HOA website doesn’t reflect the experience homeowners expect, they may dismiss the community entirely.AAM understands how appearance influences a community’s perceived value. That’s why we invest in HOA management technology and recommend Premium Websites for HOAs to enhance their online presence.

What is an AAM Premium Website? Premium websites provide a secure resident portal where homeowners can view community documents, post classifieds, view their account and violation information, pay their bills, and communicate with other homeowners. In addition, HOA Boards and Community Managers can quickly contact residents through email and text blasts to keep the community informed and engaged.

Top 3 Benefits of a Premium Website

1. Responsive: Easily viewed on mobile devices.
2. Email Blasts: Effective communication to members.
3. Customizable: A unique reflection of your community.

A polished, professional HOA website with stunning images, easy navigation, and quality content reflects the HOA’s commitment to homeowners. Does your Association pass the Google test?

AAM All Access combines a robust web portal and mobile app to keep homeowners and board members informed and connected. This technology makes HOA management more efficient and straightforward than ever before.

Is your community benefiting from a web portal, mobile app, or modern website? If not, AAM can help update your HOA in today’s digital age. Contact us today to discuss your technology goals.

WHen selecting a vendor for your HOA, how do you know where to start, who to trust, and how to find companies that will provide the best quality workmanship for your Association?

Below are ten helpful tips that will guide you in the right direction when selecting a new HOA vendor:

1. Research what other clients are saying.

Once you have a list of potential vendors you have identified, go online and look at what their clients are saying about them. Google and Yelp reviews are always a good place to start. Consider the following when looking at reviews: Did the vendor get the work done? Did they meet project deadlines? Were they communicative during the process? Are there any common issues in customer complaints? How does the company address these concerns? Etc. As you go through reviews, keep an open mind and try to be objective.

2. Make sure vendors have the proper documentation in place.

Depending on the type of vendor that you are dealing with, proper documentation might mean insurance (such as liability, auto, workers’ compensation), licenses, certifications, or any other type of credential documents. Also, make sure to check that the coverage is current and will continue to be during work.

3. Ask for customer references.

Ask vendors for references to inquire about their performance, preferably other community associations. In the case of landscape businesses, which is generally the largest contract in most homeowners associations, visit some of the communities where they provide their landscape maintenance services.

4. Check for complaints.

When applicable, check for complaints with the Registrar of Contractors (ROC) or the Better Business Bureau (BBB).

5. Solicit at least three competitive bids.

After comparing multiple vendor options, make it a best practice to solicit at least three competitive bids, if possible.

6. Give each vendor you ask to bid an RFP or scope of work.

Having a defined outline of the work that needs to be performed and the expectations the Board has regarding materials, deadlines, and pricing will allow each vendor to provide you with a more detailed proposal.

7. Schedule meetings with each potential vendor.

Meet with each vendor to review the proposal, clarify unanswered questions, and ensure that the services proposed are what you are expecting.

8. Make objective comparisons before choosing the winning bid.

Create a vendor evaluation matrix to guide your final decision. Choose the vendor that best aligns with your community’s needs and requirements. Keep in mind that the lowest bid is not always the best bid.

9. Get a formal contract reviewed and signed by both parties.

Ensure there is a standard 30-day termination clause with or without cause, should the work performed not meet contract requirements or circumstances change. In addition, we recommend having an attorney review the contract for very technical projects to make sure that your Association’s best interests are being represented.

10. Consider hiring an HOA management company such as AAM to alleviate the stress of the vendor selection process. 

With more than 31 years in the industry, AAM has plenty of experience when it comes to helping Boards select the right vendors for their communities. Our Community Managers will assist you in preparing bid specifications and the subsequent solicitation of competitive bids. Additionally, once the Board awards a contract, AAM will monitor vendor performance and keep the Board aware of any updates or issues that arise.

If you are a Board member looking for a management company, contact AAM today toll-free at 833-745-6446 or submit an RFP through our website. 

Understanding the purpose of, and the different roles in, your Community Association.

You’re not alone if you’re asking what the purpose of an annual meeting is and what the differences are between an HOA, the Board of Directors, and the Management Company. Understanding the differences will help you have an even better experience for yourself and your family living in an HOA.

What is the purpose of an HOA Annual Membership Meeting?

The budget is presented during the annual HOA meeting, and past achievements and future goals are discussed. Committee reports are shared, creating a forum for members to ask questions and engage with the board and management. Board elections for expiring seats occur, allowing homeowners to vote for new directors. The governing documents or by-laws typically outline term lengths and eligibility.

What is the purpose of an HOA?

Community Association Living (a CAI publication) describes homeowners associations designed to manage common or shared property, protect owners’ property values, provide services to residents, and develop a sense of community through social activities and amenities. All residents have an essential role in a community’s success, but board members have a particularly vital job.

HOA refers to homeowners’ association; essentially, the HOA is responsible for maintaining items that are not the individual homeowner’s responsibility. Someone has to represent those interests to ensure the community’s assets are maintained and replaced at the appropriate time, that the community’s budget is well funded, and that home values are kept at an optimal pace. This is where the role of a board member comes in…

What is my role as a board member?

Your role is a very important one. You are responsible for making decisions directly impacting your community’s operations and finances. As a volunteer board member, you’re a fiduciary, prioritizing the community’s interests above your own in decision-making. As a fiduciary, you must protect the community by managing the budget, funding reserves, collecting assessments, and ensuring insurance. In sum, you actively preserve and enhance property values. This is no easy task, so selecting a professional management company is critical.

What is the role of the management company?

The management company works for the HOA and is hired by the Board of Directors. We help the board preserve community assets, maintain property values, and manage HOA operations and finances.

The Board sets policy, and the management company implements those policies by making decisions. 

What are some examples of how a management company assists the Board? 

• Coordinates maintenance activities 
• Seeks out proposals and screens vendors (licensing and insurance requirements) 
• Manages human resource needs 
• Informs the Board when legal advice is necessary 
• Manages the association’s finances (delinquencies, budgeting, examining reserves, assessment collection, payables and receivables, financial reporting) 
• Works with professional partners: CPA, legal counsel, reserve specialist, and insurance agent 
• Guides the Board through day-to-day operations by having a strong understanding of governing documents, governmental laws, and state statutes
• Brings the element of “community” through lifestyle programming

Board of Directors:

Volunteer, Governs, Makes Decisions

Management Company:

Under contract, Manages, Carries Out Decisions

Identifying who does what provides an excellent foundation for understanding your community association. It clearly defines how to care for the community and directs residents to the right contacts for their concerns. It clarifies board leaders’ roles, the management company, and what they do, enabling focused success. It’s a true partnership between board members, management company team members, vendors, and residents. A strong partnership in all capacities equals a successfully run community association!

Have A Question?

If you live in an association and have questions about the purpose of an HOA, fill out our Contact Us form, and we will happily contact you to answer them. 

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