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Kuester ppt

  1. 1. Association Management Division<br />Roles and Responsibilities<br />
  2. 2. There is an old adage that says, <br />“Managers do things right. Leaders do the right things.”<br />So what is Leadership?<br />
  3. 3. Leadership<br />For the Board of Directors, leadership isdefined by focus and participation on the following items:<br />Fiduciary Relationship to the Community<br />Action throughJudicialDecision<br />Acting as a guiding body for the Community<br />
  4. 4. Board of Directors–Role One<br />Building and Maintaining a fiduciaryrelationship to the community<br />FiduciaryDutymeans:<br />Acting in the best interest and for the benefit of the corporation<br />Avoidingconflicts of interest<br />Acting as reasonablepersons in the management of affairswithin the association<br />
  5. 5. Board of Directors–RoleTwo<br />Acting throughJudicialdecisionmaking<br />Judicialdecisionmakingmeans:<br />Excercisingsound and reasonablejudgement on matterspresentedbefore the Board<br />Demonstratinggreat care in makingdecisions<br />Being able to provide to a judging body how decisionswere made<br />
  6. 6. Board of Directors–RoleThree<br />Acting as a guiding body for the community<br />The boarddefines:<br />Policies<br />Standards<br />Procedures<br />Programs<br />Budgets<br />AuthorityCANbedelegated–ResponsibilityCANNOT<br /><ul><li>A boardmayimplementitsowndecisions or delegate the implementationto a manager, committees, or independentcontractor</li></li></ul><li>Legal Considerations<br /> 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.<br />Areas of responsibility include:<br /><ul><li>Care, maintenance, and enhancement of the physical property, common areas, and facilities
  7. 7. Management of community finances
  8. 8. Risk management, including obtaining insurance and developing reserve funds
  9. 9. Establishment, enforcement and interpretation of rules and regulations
  10. 10. Human resources management of employees and volunteers
  11. 11. Preservation and promotion of community harmony</li></li></ul><li>Further Responsibilities<br />The Board of Directors bears the ultimate responsibility for operating the community association on behalf of its owners. <br />The Board’s legal authority to act on the owners’ behalf typically is found in:<br />Uniform State Statutes which are uniform state laws meant to standardize specific state statutes that apply to community associations.<br />General State Statutes which provide for the general authority and responsibilities of all corporate boards of directors.<br />Specific State Statutes which apply to one or more types of community associations.<br />Community Association’s Governing Documents which give the board authority to act on the owners’ behalf.<br />
  12. 12. Officers<br />
  13. 13. Officer Roles:President<br /><ul><li>Prepares meeting agenda
  14. 14. Presides at all Board and Association meetings
  15. 15. Appoints and supervises all Committees
  16. 16. Supervises Community Manager
  17. 17. Trains Directors for future leadership positions
  18. 18. Sets positive example</li></ul>Specific duties can be found in the Bylaws of your Association’s governing documents.<br />
  19. 19. Officer Roles:Secretary<br /><ul><li>Takes minutes at all meetings
  20. 20. Maintains book of minutes and resolutions
  21. 21. Posts meeting and special meeting notices
  22. 22. Attests to the authenticity of all corporate documents
  23. 23. Certifies all meeting notices and election results
  24. 24. Timekeeper for all meetings</li></ul>Specific duties can be found in the Bylaws of your Association’s governing documents.<br />
  25. 25. Officer Roles:Treasurer<br /><ul><li>Responsible for collection and expenditure of assessments
  26. 26. Reviews and summarizes financial statements, especially the status of reserve funds, unusual amount of receivable and payables and variances of actual vs. budget for month and year to date
  27. 27. Approves/monitors investment policy
  28. 28. Monitors delinquencies and advises the Board</li></ul>Specific duties can be found in the Bylaws of your Association’s governing documents.<br />
  29. 29. Action and Responsibilities<br />Effective Board Meetings<br />
  30. 30. What are Board Meetings? <br />Board meetings are a tool used to make decisions affecting the community<br />Decisions made in the Board Meetings:<br /><ul><li> Will impact the quality of life in the community – each home/business, each family, and each member
  31. 31. Should enhance the overall value of the assets commonly held and individually owned
  32. 32. Must set the boundaries within which management will function</li></li></ul><li>What decisions are made?<br />There are three areas of board decision making. They are related to the three functions of a CA board of directors:<br /><ul><li>Business</li></ul>As volunteer leaders responsible for a CA’s business affairs, a board must: <br /><ul><li>monitor administrative, financial, and property maintenance matters for the purpose of preserving and enhancing the community.
  33. 33. Governance</li></ul> As volunteer leaders responsible for governing an organization, a board must: <br /><ul><li>enforce the community’s governing documents
  34. 34. adopt and enforce rules for governing the community
  35. 35. decide issues of policy for the owners in the community
  36. 36. Community</li></ul>As volunteer leaders of a community, a board must:<br /><ul><li>promote harmony through service programs and regular communication with owners
  37. 37. attempt to settle conflicts
  38. 38. hear appeals of committee and management decisions that are protested by individuals or groups of owners</li></li></ul><li>What makes a meeting a success?<br />Four aspects of board meetings that contribute to effective decision making<br /><ul><li> Focus
  39. 39. Preparation
  40. 40. Conducting the Meeting
  41. 41. Effective Management</li></li></ul><li>Focus<br /><ul><li>Maintaining focus is a key indicator of success
  42. 42. An efficient board meeting is one that keeps moving and stays on point
  43. 43. Board meetings should remain focused on:
  44. 44. The decisions to be made during the meeting
  45. 45. The presentation of possible solutions
  46. 46. The setting of new priorities that become the next meeting’s agenda items</li></li></ul><li>How to maintain Focus:<br /><ul><li>Create and Stick to an Agenda
  47. 47. A published agenda, prepared in advance and provided to participants, instills order and a sense of purpose to all in attendance
  48. 48. During a meeting, a presiding officer can appeal to the agenda as a way to keep a group moving and focused on decision making
  49. 49. Lessen Stalling
  50. 50. 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
  51. 51. Consolidate Time
  52. 52. Watch the time you spend in session – follow the “Movie Rule”
  53. 53. Consistent Decision Making
  54. 54. Every effort must be made to insure that past decisions and those made in the current session do not conflict – maintain consistent logic in your decision making</li></li></ul><li>Preparation<br /><ul><li>Being prepared:
  55. 55. Lessens the chance of missing important decisions on time sensitive issues
  56. 56. Ensures good usage of the time available
  57. 57. Appropriate preparation requires:
  58. 58. Conforming to legal requirements
  59. 59. Preparing for decision making
  60. 60. Proper distribution of materials
  61. 61. Selecting and preparing a meeting site</li></li></ul><li>How to Prepare:<br />Start Early<br />Allow yourself more time than you thought you would need for preparation<br />Familiarize yourself with Legal Requirements<br />Each community has legal requirements it must adhere to, being aware of these is vital to success<br />Frequency of Meetings<br />Voting<br />When the meetings open and close<br />Decision Making<br />Board meetings are the end, not the beginning of decision making<br />Read all supplied documentation well in advance of the meeting, and make sure others have access to the same material<br />Meeting Notifications<br />Send notification of the meeting time and location at least a week in advance to board member<br />Meeting Location<br />Select a public location: Avoid meeting in Board members homes<br />Select a location that is neutral for all parties attending: instead of a local church look for a local school that will allow use<br />
  62. 62. Conducting the Meeting<br />Utilize the basics of parliamentary procedure<br />Clearly establish the role of the presiding officer to all present before the beginning of each meeting<br />Display proper behavior during debate<br />There is a difference between debate and argument<br />Executive sessions<br />Maintain accurate record keeping<br />Meeting minutes <br />Action item lists<br />
  63. 63. Basics of Parliamentary Procedure<br />Maintain Order<br />Focus on one, and only one, matter at a time<br />If other matters begin to come into debate, call for order and bring the conversation back to the matter up for discussion <br />Courtesy leads to success<br />The rights of individuals should be recognized and respected<br />There are no filibusters in board meetings<br />Majority Rules<br />The will of the Majority must dictate action on issues<br />Protection of Rights<br />The rights of the Minority must be protected<br />If one side loses the majority vote, it does not mean they were wrong: Simply outvoted<br />Justice<br />Everyone is entitled to a voicing of their position<br />
  64. 64. A Manager’s Role<br />Play a key role in effective board meetings<br />Their role has multiple layers<br />Support Staff<br />Professional Advisor<br />Facilitator<br />
  65. 65. The Basics<br />Support Staff<br />Sees to it that the meetings are well prepared and board members have the needed information in advance<br />Professional Advisor<br />Provides the board with guidance and perspective in matters before the Board<br />Facilitator<br />Assists in facilitation of meetings by providing historical information on past decisions and responding to inquiries about the management reporting<br />Assists in managing personality conflicts<br />Calling for a break to allow others to “cool down”<br />
  66. 66. Action and Responsibilities<br />Legal Basics for Community Associations<br />
  67. 67. Types of Associations<br />Planned Community Association<br />HOA (Homeowners Association)<br />POA (Property Owners Association)<br />PUD (Property Unit Development)<br />TOA (Townhome Owners Association) <br />Condominium <br />Cooperative<br />These three can exist by themselves or be part of a mixed use development which may have a “Master” Association or “Umbrella” Association<br />
  68. 68. Planned Communities<br />An owner owns a lot<br />The Association owns the common area<br />Pool <br />Clubhouse<br />Entrances<br />Owners are “members” in the association<br />
  69. 69. Condominiums<br />Individual ownership of a unit<br />An undivided interest in Common elements<br />Percentage of ownership in the property<br />
  70. 70. Cooperatives<br />Owner will own stock or have membership in co-op<br />Hold a lease agreement that defines the rights and obligations to live in the unit.<br />Owners have two legal relationships with Cooperative <br />Stock Holder<br />Tenant<br />
  71. 71.
  72. 72.
  73. 73. Hierarchy of Authority of Law<br />
  74. 74. Federal Law<br /><ul><li>Federal Telecommunications Act
  75. 75. Americans with Disabilities Act
  76. 76. Federal National Mortgage Association
  77. 77. Fair Debt Collection Act
  78. 78. Federal Income Tax Law</li></li></ul><li>State Statutes<br />NC Planned Community Act<br />House Bill 1541<br />NC Non-Profit Corporation Act<br />NC Fair Housing Act<br />NC Clean Water Act<br />NC Condominium Act<br />SC Horizontal Régime <br />
  79. 79. Court Decisions<br />Weise vs. Harrington<br />Raintree HOA vs. Bleimann<br />Armstrong vs. the Ledges HOA<br />
  80. 80. Recorded Map<br />
  81. 81. Declaration, CC&R (Conditions, Covenants & Restrictions) or Master Deed<br />Gives shape to the recorded map<br />Creates interlocking relationship binding all owners to one another and to the community association for the purpose of maintaining, governing and funding the development<br />Establishes protective standards, restrictions, and obligations in areas such as architectural control or use restrictions<br />Creates the administrative frame work and purpose for the operation and management of the association<br />Provides the mechanism for financial support of the community association through assessments<br />Establishes the method of transition of control of the community from Developer to Homeowners<br />
  82. 82. Articles of Incorporation<br />Bring the corporation into existence<br />Define its basic purposes and powers (from CC&R’s)<br />Indicates whether stock is issued<br />Indicates whether there will be a board of directors<br />Reasons for Incorporating<br />Helps limit liability of owners and officers<br />Entitles the association to the rights granted to all corporations<br />Easier to deal with other corporations<br />
  83. 83. Bylaws<br />Formally adopt governing regulations for the administration and management of an association. <br />Included in the Bylaws:<br />Requirements for membership<br />Requirements for membership meetings<br />Voting rights of member owners<br />Procedures for electing the Board of Directors and qualifications<br />Procedure for the Board of Directors to elect officers<br />General Powers and Duties of the Board<br />
  84. 84. Resolutions<br />Established by a motion of the Board<br />May enact rules/regulations to clarify Covenants and/or Bylaws or establish procedure for uniform enforcement <br />Cannot contradict the Bylaws or CC&R's<br />Types of resolution:<br />Policy Resolution<br />Administrative Resolution<br />Special Resolution<br />General Resolution <br />
  85. 85. Community Governance <br />Good governance is understanding of the rules <br />Good governance is providing uniform enforcement to create a sense of fairness and equity among residents<br />Good governance promotes harmonious community living<br />Good governance will maintain, preserve, enhance and protect property values and other assets of the community<br />
  86. 86. Action and Responsibilities<br />Introduction to the CAI<br />
  87. 87. For 32 years the Community Association Institute (CAI) has been the national voice for an estimated<br />50 million people<br />250,000<br />who live in more than<br />community associations in the United States.<br />An estimated 9,000 to 11,000 new community associations are formed every year.<br />
  88. 88. <ul><li>CAI is dedicated to fostering vibrant, responsive, competent community associations that promote harmony, community and responsible leadership.</li></ul>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.<br />
  89. 89. Education<br />CAI Membership provides access to numerous online educational materials<br />The majority of these are available 24/7/365<br />Online learning courses are self paced, allowing learners to absorb the material at whatever pace is comfortable to them<br />Community Association Leadership Development—Online Interactive Course <br />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.<br />The course is self paced, can be completed within one hour, and available 24 hours a day seven days a week. <br />FOR MORE INFORMATION GO TO caionline.org!<br />
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  92. 92.
  93. 93.
  94. 94. With Kuester at your side, you are never alone!<br />Kuester Management Group partners with<br />THE MISSION OF CAI<br />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.<br />