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Association Management Division Roles and Responsibilities
There is an old adage that says, “Managers do things right. Leaders do the right things.” So what is Leadership?
Leadership For the Board of Directors, leadership isdefined by focus and participation on the following items: Fiduciary Relationship to the Community Action throughJudicialDecision Acting as a guiding body for the Community
Board of Directors–Role One Building and Maintaining a fiduciaryrelationship to the community FiduciaryDutymeans: Acting in the best interest and for the benefit of the corporation Avoidingconflicts of interest Acting as reasonablepersons in the management of affairswithin the association
Board of Directors–RoleTwo Acting throughJudicialdecisionmaking Judicialdecisionmakingmeans: Excercisingsound and reasonablejudgement on matterspresentedbefore the Board Demonstratinggreat care in makingdecisions Being able to provide to a judging body how decisionswere made
Board of Directors–RoleThree Acting as a guiding body for the community The boarddefines: Policies Standards Procedures Programs Budgets AuthorityCANbedelegated–ResponsibilityCANNOT
A boardmayimplementitsowndecisions or delegate the implementationto a manager, committees, or independentcontractor
Legal Considerations Legal sources assign a Board of Directors the responsibility of maintaining, protecting, preserving, and enhancing the common areas and the unit values of the total community. Areas of responsibility include:
Care, maintenance, and enhancement of the physical property, common areas, and facilities
Risk management, including obtaining insurance and developing reserve funds
Establishment, enforcement and interpretation of rules and regulations
Human resources management of employees and volunteers
Preservation and promotion of community harmony
Further Responsibilities The Board of Directors bears the ultimate responsibility for operating the community association on behalf of its owners. The Board’s legal authority to act on the owners’ behalf typically is found in: Uniform State Statutes which are uniform state laws meant to standardize specific state statutes that apply to community associations. General State Statutes which provide for the general authority and responsibilities of all corporate boards of directors. Specific State Statutes which apply to one or more types of community associations. Community Association’s Governing Documents which give the board authority to act on the owners’ behalf.
Conversations will often stall – offering alternatives, such as tabling a motion until the next meeting, allow time for additional information to be gathered and presented on the matter in the next meeting
How to Prepare: Start Early Allow yourself more time than you thought you would need for preparation Familiarize yourself with Legal Requirements Each community has legal requirements it must adhere to, being aware of these is vital to success Frequency of Meetings Voting When the meetings open and close Decision Making Board meetings are the end, not the beginning of decision making Read all supplied documentation well in advance of the meeting, and make sure others have access to the same material Meeting Notifications Send notification of the meeting time and location at least a week in advance to board member Meeting Location Select a public location: Avoid meeting in Board members homes Select a location that is neutral for all parties attending: instead of a local church look for a local school that will allow use
Conducting the Meeting Utilize the basics of parliamentary procedure Clearly establish the role of the presiding officer to all present before the beginning of each meeting Display proper behavior during debate There is a difference between debate and argument Executive sessions Maintain accurate record keeping Meeting minutes Action item lists
Basics of Parliamentary Procedure Maintain Order Focus on one, and only one, matter at a time If other matters begin to come into debate, call for order and bring the conversation back to the matter up for discussion Courtesy leads to success The rights of individuals should be recognized and respected There are no filibusters in board meetings Majority Rules The will of the Majority must dictate action on issues Protection of Rights The rights of the Minority must be protected If one side loses the majority vote, it does not mean they were wrong: Simply outvoted Justice Everyone is entitled to a voicing of their position
A Manager’s Role Play a key role in effective board meetings Their role has multiple layers Support Staff Professional Advisor Facilitator
The Basics Support Staff Sees to it that the meetings are well prepared and board members have the needed information in advance Professional Advisor Provides the board with guidance and perspective in matters before the Board Facilitator Assists in facilitation of meetings by providing historical information on past decisions and responding to inquiries about the management reporting Assists in managing personality conflicts Calling for a break to allow others to “cool down”
Action and Responsibilities Legal Basics for Community Associations
Types of Associations Planned Community Association HOA (Homeowners Association) POA (Property Owners Association) PUD (Property Unit Development) TOA (Townhome Owners Association) Condominium Cooperative These three can exist by themselves or be part of a mixed use development which may have a “Master” Association or “Umbrella” Association
Planned Communities An owner owns a lot The Association owns the common area Pool Clubhouse Entrances Owners are “members” in the association
Condominiums Individual ownership of a unit An undivided interest in Common elements Percentage of ownership in the property
Cooperatives Owner will own stock or have membership in co-op Hold a lease agreement that defines the rights and obligations to live in the unit. Owners have two legal relationships with Cooperative Stock Holder Tenant
Declaration, CC&R (Conditions, Covenants & Restrictions) or Master Deed Gives shape to the recorded map Creates interlocking relationship binding all owners to one another and to the community association for the purpose of maintaining, governing and funding the development Establishes protective standards, restrictions, and obligations in areas such as architectural control or use restrictions Creates the administrative frame work and purpose for the operation and management of the association Provides the mechanism for financial support of the community association through assessments Establishes the method of transition of control of the community from Developer to Homeowners
Articles of Incorporation Bring the corporation into existence Define its basic purposes and powers (from CC&R’s) Indicates whether stock is issued Indicates whether there will be a board of directors Reasons for Incorporating Helps limit liability of owners and officers Entitles the association to the rights granted to all corporations Easier to deal with other corporations
Bylaws Formally adopt governing regulations for the administration and management of an association. Included in the Bylaws: Requirements for membership Requirements for membership meetings Voting rights of member owners Procedures for electing the Board of Directors and qualifications Procedure for the Board of Directors to elect officers General Powers and Duties of the Board
Resolutions Established by a motion of the Board May enact rules/regulations to clarify Covenants and/or Bylaws or establish procedure for uniform enforcement Cannot contradict the Bylaws or CC&R's Types of resolution: Policy Resolution Administrative Resolution Special Resolution General Resolution
Community Governance Good governance is understanding of the rules Good governance is providing uniform enforcement to create a sense of fairness and equity among residents Good governance promotes harmonious community living Good governance will maintain, preserve, enhance and protect property values and other assets of the community
Action and Responsibilities Introduction to the CAI
For 32 years the Community Association Institute (CAI) has been the national voice for an estimated 50 million people 250,000 who live in more than community associations in the United States. An estimated 9,000 to 11,000 new community associations are formed every year.
CAI is dedicated to fostering vibrant, responsive, competent community associations that promote harmony, community and responsible leadership.
CAI advances excellence through a variety of education programs, professional designations, research, networking and referral opportunities, publications, and advocacy before legislative bodies, regulatory bodies, and the courts.
Education CAI Membership provides access to numerous online educational materials The majority of these are available 24/7/365 Online learning courses are self paced, allowing learners to absorb the material at whatever pace is comfortable to them Community Association Leadership Development—Online Interactive Course The Community Association Leadership Development program, an online learning course created by CAI's Washington Metropolitan Chapter, provides community association leaders and would-be leaders the critical information needed to function effectively. This course is intended to educate you about the functions and tasks required for the role you will play in your community association. The course is self paced, can be completed within one hour, and available 24 hours a day seven days a week. FOR MORE INFORMATION GO TO caionline.org!
With Kuester at your side, you are never alone! Kuester Management Group partners with THE MISSION OF CAI To assist community associations in promoting harmony, community, and responsible leadership. We believe that by giving board members, managers, and homeowners the knowledge they need to better run their associations, they can turn "owners" into "neighbors," increasing harmony, and leading to more prosperous, safer communities.