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HRCA Delegates and Directors duties


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HRCA Delegates and Directors duties

  1. 1. HRCA Delegates’ and Directors’ Duties,Responsibilities, and Expectations
  2. 2. Basis Community Declaration (CC&R’s) Covenants, Conditions, and Restrictions Recorded against every Privately Owned Site Contract between Owner and the HRCA Supplemental Declaration Articles of Incorporation Bylaws
  3. 3. Terms Duty: binding legal obligation Power: ability to accomplish objective Liability: corporate and/or personal
  4. 4. Delegate Responsibilities Community Declaration Delegates elect Directors One vote for each privately owned site Serve as Recreation Advisory Committee Authorize the Board of Directors to convey property with 2/3 voting approval Authority to approve increase in the assessments greater than 120% from preceding year with 2/3 voting approval
  5. 5. Delegate Responsibilities Community Declaration Authority to approve increase in Maximum Common Assessment (cumulative CPI based) (2/3 voting approval) Authority to approve Special Assessments for capital expenditures (2/3 voting approval) May amend the Articles of Incorporation May Amend the Bylaws
  6. 6. Delegate Expectations Attend Annual and Special Meeting of Delegates Attend monthly Recreation Advisory Committee Meeting Read updates and HRCA Newsletters Represent their District
  7. 7. Director Duties and PowersActing through the Board, HRCA shall have these duties and powers: Duties: – Accept property and facilities from Declarant – Pay taxes – Maintain casualty insurance – Maintain liability insurance – Obtain fidelity coverage for persons handling cash
  8. 8. Directors’ Duties Other insurance (e.g. workers’ compensation) Prepare budgets Levy and collect assessments Provide audit Assist Architectural Committee as outlined in Article X. Follow all applicable local, State and Federal Laws
  9. 9. Director Power Acquire property and construct improvements Adopt rules and regulations Enforce the Declaration and rules and regs Provide Public Functions Provide services to sub-associations Provide special services for members Charge for facilities and services Grant easements
  10. 10. Director Power Convey and dedicate property (with approval of 2/3 Delegate voting power) Borrow money and mortgage property (with approval of 2/3 of Delegate voting power) Employ managers Engage employees, agents, and consultants
  11. 11. Director Power General corporate powers Trash collection Regulate use of HRCA facilities Manage the affairs of the Association Delegate authority but not responsibility
  12. 12. Director Responsibilities (Finance) Maintenance funds Other funds Deposits Disbursements Common Assessments Funding reserve funds Supplemental common assessments
  13. 13. Director Responsibilities (Finance) Limitations of assessments (thresholds to exceed requires 2/3 voting power of Delegates) Annual Budgets Special assessments for capital expenditures (requires 2/3 voting power of Delegates) Reimbursement assessments Late charges and interest
  14. 14. Director Responsibilities (Finance) Notice of default and acceleration of assessments Lawsuit to enforce assessments Lien to enforce assessments Estoppel certificates
  15. 15. Director Responsibilities (Architectural) Appoint Architectural Committee Members Approve Rules and Guidelines Appoint Tribunals for appeals – Hear and make determinations on Tribunal recommendations (improvements to property and non-compliance) – Lawsuits to enforce architectural matters – Estoppel Certificates
  16. 16. Director Expectations Attend monthly Board Working Session Attend Recreation Advisory Committee Meetings Attend Board Meetings Attend other meetings (Metro District, Team Highlands Ranch, etc.) Understand Director Roles Represent HRCA at community events and activities Understand Director Roles, Duties, Powers, and Responsibilities Lead Special Projects in support of the HRCA Strategic Objectives
  17. 17. Directors Have Liabilities Fiduciary Duty Duty of undivided loyalty Conflict of interest Uniform and consistent enforcement of rules Uniform and consistent enforcement of collections Corporate liability Personal liability