What is a Homeowners Association?
The
Association is a legal corporation organized and incorporate under the
laws of your state or commonwealth. The Association has Articles of
Incorporation that entitle the association to exercise powers of a
corporation. By purchasing a home within your community association, you
automatically become a member of the association and will remain so for
as long as you own your home. Membership in the association is
mandatory and automatic for all owners. The deed to each lot and/or
parcel specifically designates that the property owner will comply with
the Covenants, Conditions, and Restrictions (CC&R’s) of the
association. You should have received a copy of these documents at the
time your home purchase was closed by the title company. As a property
owner in a community association, you will be required to pay
assessments, abide by the community’s rules and restrictions and
maintain those areas of your home for which you are responsible.
Board of Directors
What empowerment does the membership have?
- Pursuant to the Bylaws:
- Election of the Board of Directors
- Removal of a member of the Board of Directors
- Call for a special meeting of the members pursuant to the bylaws
- Pursuant to the CC&R’s
- Voting on increasing the maximum annual assessment, if over a set amount
- Voting on amendment to Articles, Bylaws, and CC&R’s
What is the purpose of a Board of Directors and what is there role?
Your
Association is a not-for-profit corporation. As such, the Board’s
responsibility is to run the business of the corporation. The board has a
fiduciary responsibility to the stockholders or owners of the
corporation. This includes timely collection of assessments as well as
payments made for services provided to the Association. In general, the
Board Members are the decision makers for the Association. The Board of
Directors are individual homeowners who live within the same subdivision
and who are elected to that position by the members of the Association.
All affairs of your association are governed by the Board of Directors.
If you are living in an Association that is still being developed, the
members of the Board may be appointed by the developer of your community
until such time as control of the association transitions to you the
homeowners.
Who makes up the Board of Directors?
The directors are owners, like yourself, that are elected by the membership.
What empowerment does the Board of Directors have?
- Pursuant to the Bylaws: (includes, but is not limited to)
- Fill a vacancy on the Board of Directors
- Establish rules and regulations for the association
- Set the Annual Assessment rate
- Contract for services of the association (management, landscape, maintenance, etc)
- Use and disburse association funds
- Establish committees
- Enforce the CC&R’s
- Elect officers for the association
- Prepare the annual budget
- Insure the association
- Invest excess funds controlled by the Association
- Pursuant to the CC&R’s
- Establish an architectural review committee
- Collect assessments
- Establish the standard of care for the maintenance of the common areas
- Interpretation of the wording in all governing documents
How is the Board of Directors elected? What is the election process?
The
members of the association vote to elect the Board of Directors (unless
the association is still under declarant control). Each association has
specific bylaws outlining the for board elections. Generally
speaking, the board elections take place on an annual basis either prior
to (in the case of absentee ballots) or at the annual meeting of the
members (proxies and ballots). Positions usually become vacant and are
normally filled during your Annual Meeting. During the Annual Meeting a
vote via a secret Ballot is taken for the nominees who are running for a
position on the Board. Those voting must also be in Good Standing in
order for their vote to count, all the votes will then be tallied and
the results announced. Boards of Directors can have more than one
position when their position consists of two roles i.e., Secretary /
Treasurer.
Can anyone run for the Board or who can be elected?
Anyone
can be a Director as long as they are in Good Standing. Individuals
who volunteer their time to be / run for the Board of Director or to
serve on a Committee are people who have the time to serve the Community
and are well informed about the legal documents for their subdivision.
This is strictly voluntary and there is no compensation for their
efforts except for the fruits of their labors shown at the end of the
year
I don't want to run for the Board but would like to assist with a committee. What are the requirements?
The
Board shall appoint other committees as deemed appropriate to carry out
its purpose and delegate to said committees such powers and duties
required to execute and enforce the committee’s responsibilities. Shall
perform such functions as directed by the Covenants and shall advise
the Board on all matters pertaining to their Committee.
What is a Proxy and its purpose?
The
definition for Proxy is “the function or power of a person authorized
to act for another. The person so authorized.” The purpose of a proxy
is important as it allows for voting and establishing a quorum in order
for business to be conducted.
Is it mandatory to complete it if I'm not attending the meeting?
A
Proxy Form must be completed if you do not plan on attending the
meeting be it Special / Annual. The form should be completed and signed
by you the homeowner naming your proxy holder such as your Neighbor or
it can be the Secretary of the Board or the Board themselves but it must
be presented prior to the opening of the meeting and the proxy holder
needs to be present at the meeting. It is recommended that if you are
unable to attend the meeting that you exercise your right as a
homeowner, in good standing, to vote by proxy. This allows for a quorum
to be met.
What are association committee's?
In
general, each association will have mandatory committees (e.g.
architectural review committee and/or nominating committee). An
Association may also have standing committees (e.g. finance, landscape,
newsletter). There may also be ad-hoc committees, temporarily created
for specific one-time items (e.g. selection of a refuse provider).
Members of committees are appointed and removed by the Board of
Directors. The primary function of the committee is to render a
recommendation to the Board on the subject matter of their committee.
This recommendation, once delivered to the Board of Directors, is then
approved/rejected by the Board.
What are my options for communicating with the Board of Directors or Community Manager?
Your
Board of Directors can only be reached through your Community Manager.
However, you have plenty of options when it comes to communication. You
can call your Community Manager during business hours, or you can email
your Community Manager at their individual email address or you can put
your request, issue or concern in writing to the management company.
The Management company also provides for all of their clients a group of
cross trained individuals in our Customer Service Department that are
always available to help you in a variety of situations.
Why can't I have the Board members names, addresses and phone numbers? Don't they work for me?
Your
Board of Directors makes decisions for your Association. However, they
volunteer for these positions and receive no money for the jobs that
they perform. Principal Management Group represents the Board and your
Association, which entails being a contact for all communications
addressed to the Board. Also, legally we are not allowed to give out
personal information of any homeowner including your Board of Directors.
Is there one vote per family member?
Homeowners / Lot owners usually have one vote for every lot / property owned.
Budgets and Assessments
Do we have a Budget?
Yes.
All owners are mailed copies prior to the new year. Additional copies
are available through your management company. The budget is
established by the Board, with the assistance of the management company.
How can I find out how my Association dues are being utilized?
Your
Community Manager can provide you with this information. However, your
Association has an Annual Meeting where your Board of Directors discuss
the financial aspect of the Association with the homeowners. Attending
this meeting can be very enlightening and helps each homeowner
understand the workings of a Homeowners Association.
What are Assessments and how are they spent?
In
order for the Board to accomplish the many tasks for which it is
responsible, the association needs operating funds for daily
maintenance, repairs, administration and adequate Reserve funds for
major repairs or replacements of capital items. As a member of the
association, you are required to pay a share of the costs.
Are my Assessments fixed or can they be raised?
The
Annual Assessment may be adjusted by a majority vote of the Board of
Directors but shall not be increased by more than a percentage, dependent on your Governing Documents. Anything above that percentage
would have to be voted on by the homeowners, by proxy or in person.
What is a Special Assessment?
In
addition to your Assessment, the Board may levy, in any assessment
year, a Special Assessment on improved lots, only applicable to that
year, only for the purpose of defraying, in whole or in part the cost of
any construction, reconstruction, repair or replacement of a Capital
Improvement on or which is a part of the Common Facilities, provided
that any such assessment shall have the consent via a vote of the
members at large.
What is the difference in Homeowners Assessment and Homeowner dues?
The difference is the terminology; it all points to the same thing, your mandatory Monthly dues.
Management Questions
Why is it when I call to speak to my Community Manager, she is not always available?
Your
Community Manager performs many tasks for your Association and
sometimes these tasks require them to be away from the office. These
tasks consist of but are not limited to: weekly inspections, meeting
with vendors and Board Members and visiting with homeowners. There are
also times when a Community Manager is in the office but is unavailable
because they are on the phone conducting business with other homeowners,
vendors, or Board Members.
How does the management company handle issues and complaints?
Complaints
should be submitted in writing to the Management company. Complaints
should state the problem, identify the offending homeowner, and the
date(s) of the offense(s). Just as in any court of law, the offender has
the right to know who is complaining and what he/she is being accused
of. He/she is also entitled to a hearing before the Board. Please be
sure of your facts before filing complaints.
Other Questions
I have lost my Association Dues statement or payment book, where do I send my payments?
Payment should be sent to the lockbox:
Village on the Green
c/o Principal Management Group
P.O. Box 660090
Dallas, TX 75266-0090
Also, please remember to put your account number on your check before mailing.
Who do I contact if I want to change my personal information?
Visit
your management company’s website. Click on “Homeowner Assistance”,
where you can input your information and an email can be forwarded to
the relevant department in order to update your information in our
system and confirmation may be sent via postcard or email.
I'd like to start external projects on my Townhouse. Are there any requirements?
Any
exterior modifications or additions to your home or any structural
changes must have prior written approval from your Architectural Control
Committee (ACC). For information, applications and further details,
contact us. You should note that this approval process may take up to
thirty days; therefore, do not schedule any construction work or
purchase any equipment until written approval has been received.
Are the Rules in place to settle homeowner dispute's?
NO.
Unless the problem is one causing a common area problem or a direct
violation, homeowner disputes should be settled between the parties
involved. Your Board is not there to serve as referee between neighbors.
In any community, whether governed by an Association or not, homeowners
run into personality clashes, pet problems, and other neighborhood
issues. Often, the problem can be easily resolved to the satisfaction of
both parties with no hard feelings, with open communication between the
parties.
What are Common Area Facility's?
Common
area / facility refers to all property leased, owned, or maintained by
the Association. This is mainly for the sole use and benefit of the
members in your Association. It may include but is not necessarily
limited to private streets and alleys; signs; fountains; statuary;
swimming pools and adjacent buildings; recreation sites, with associated
furnishing; tennis courts and associated equipment; landscaping; with
or without sprinkler systems; walls; bridges, safety lanes; green belts
with or without trails; parking lots; median islands in cul-de-sac
streets; centralized mail boxes, which may be existing or potentially
built in the future.
When selling my Townhouse who at the management company do I need to contact?
Your
management company provides our customers a Resale Department with
individuals whose main objective is to help your buyer and yourself
complete your transaction in a timely manner.
