The document outlines the duties, responsibilities, and expectations of HRCA Delegates and Directors. Key points include: - Delegates elect Directors, approve property conveyances and assessment increases over 120%, and may amend governing documents. - Directors' duties include maintaining insurance, collecting assessments, enforcing rules and declarations. They have powers to acquire property, adopt regulations, and manage community affairs. - Directors are responsible for finances like budgets, assessments, and collections. They oversee architectural matters and appoint related committees. - Both Delegates and Directors are expected to attend meetings, understand their roles, and can face liabilities like fiduciary duty and conflicts of interest.

1. HRCA DelegatesHRCA Delegates’’ andand
DirectorsDirectors’’ Duties,Duties,
Responsibilities, andResponsibilities, and
ExpectationsExpectations

2. BasisBasis
 Community Declaration (Community Declaration (CC&RCC&R’’ss))
 Covenants, Conditions, and RestrictionsCovenants, Conditions, and Restrictions
 Recorded against every Privately OwnedRecorded against every Privately Owned
SiteSite
 Contract between Owner and the HRCAContract between Owner and the HRCA
 Supplemental DeclarationSupplemental Declaration
 Articles of IncorporationArticles of Incorporation
 BylawsBylaws

3. TermsTerms
 Duty: binding legal obligationDuty: binding legal obligation
 Power: ability to accomplish objectivePower: ability to accomplish objective
 Liability: corporate and/or personalLiability: corporate and/or personal

4. Delegate ResponsibilitiesDelegate Responsibilities
Community DeclarationCommunity Declaration
 Delegates elect DirectorsDelegates elect Directors
 One vote for each privately owned siteOne vote for each privately owned site
 Serve as Recreation Advisory CommitteeServe as Recreation Advisory Committee
 Authorize the Board of Directors to conveyAuthorize the Board of Directors to convey
property with 2/3 voting approvalproperty with 2/3 voting approval
 Authority to approve increase in theAuthority to approve increase in the
assessments greater than 120% fromassessments greater than 120% from
preceding year with 2/3 voting approvalpreceding year with 2/3 voting approval

5. Delegate ResponsibilitiesDelegate Responsibilities
Community DeclarationCommunity Declaration
 Authority to approve increase in MaximumAuthority to approve increase in Maximum
Common Assessment (cumulative CPICommon Assessment (cumulative CPI
based) (2/3 voting approval)based) (2/3 voting approval)
 Authority to approve Special AssessmentsAuthority to approve Special Assessments
for capital expenditures (2/3 votingfor capital expenditures (2/3 voting
approval)approval)
 May amend the Articles of IncorporationMay amend the Articles of Incorporation
 May Amend the BylawsMay Amend the Bylaws

6. Delegate ExpectationsDelegate Expectations
 Attend Annual and Special Meeting ofAttend Annual and Special Meeting of
DelegatesDelegates
 Attend monthly Recreation AdvisoryAttend monthly Recreation Advisory
Committee MeetingCommittee Meeting
 Read updates and HRCA NewslettersRead updates and HRCA Newsletters
 Represent their DistrictRepresent their District

7. Director Duties and PowersDirector Duties and Powers
Acting through the Board, HRCA shall haveActing through the Board, HRCA shall have
these duties and powers:these duties and powers:
 Duties:Duties:
–– Accept property and facilities from DeclarantAccept property and facilities from Declarant
–– Pay taxesPay taxes
–– Maintain casualty insuranceMaintain casualty insurance
–– Maintain liability insuranceMaintain liability insurance
–– Obtain fidelity coverage for persons handlingObtain fidelity coverage for persons handling
cashcash

8. DirectorsDirectors’’ DutiesDuties
 Other insurance (e.g. workersOther insurance (e.g. workers’’ compensation)compensation)
 Prepare budgetsPrepare budgets
 Levy and collect assessmentsLevy and collect assessments
 Provide auditProvide audit
 Assist Architectural Committee as outlined inAssist Architectural Committee as outlined in
Article X.Article X.
 Follow all applicable local, State and FederalFollow all applicable local, State and Federal
LawsLaws

9. Director PowerDirector Power
 Acquire property and construct improvementsAcquire property and construct improvements
 Adopt rules and regulationsAdopt rules and regulations
 Enforce the Declaration and rules and regsEnforce the Declaration and rules and regs
 Provide Public FunctionsProvide Public Functions
 Provide services to subProvide services to sub--associationsassociations
 Provide special services for membersProvide special services for members
 Charge for facilities and servicesCharge for facilities and services
 Grant easementsGrant easements

10. Director PowerDirector Power
 Convey and dedicate property (withConvey and dedicate property (with
approval of 2/3 Delegate voting power)approval of 2/3 Delegate voting power)
 Borrow money and mortgage propertyBorrow money and mortgage property
(with approval of 2/3 of Delegate voting(with approval of 2/3 of Delegate voting
power)power)
 Employ managersEmploy managers
 Engage employees, agents, andEngage employees, agents, and
consultantsconsultants

11. Director PowerDirector Power
 General corporate powersGeneral corporate powers
 Trash collectionTrash collection
 Regulate use of HRCA facilitiesRegulate use of HRCA facilities
 Manage the affairs of the AssociationManage the affairs of the Association
 Delegate authority but not responsibilityDelegate authority but not responsibility

12. Director Responsibilities (Finance)Director Responsibilities (Finance)
 Maintenance fundsMaintenance funds
 Other fundsOther funds
 DepositsDeposits
 DisbursementsDisbursements
 Common AssessmentsCommon Assessments
 Funding reserve fundsFunding reserve funds
 Supplemental common assessmentsSupplemental common assessments

13. Director Responsibilities (Finance)Director Responsibilities (Finance)
 Limitations of assessments (thresholds toLimitations of assessments (thresholds to
exceed requires 2/3 voting power ofexceed requires 2/3 voting power of
Delegates)Delegates)
 Annual BudgetsAnnual Budgets
 Special assessments for capitalSpecial assessments for capital
expenditures (requires 2/3 voting powerexpenditures (requires 2/3 voting power
of Delegates)of Delegates)
 Reimbursement assessmentsReimbursement assessments
 Late charges and interestLate charges and interest

14. Director Responsibilities (Finance)Director Responsibilities (Finance)
 Notice of default and acceleration ofNotice of default and acceleration of
assessmentsassessments
 Lawsuit to enforce assessmentsLawsuit to enforce assessments
 Lien to enforce assessmentsLien to enforce assessments
 Estoppel certificatesEstoppel certificates

15. Director ResponsibilitiesDirector Responsibilities
(Architectural)(Architectural)
 Appoint Architectural Committee MembersAppoint Architectural Committee Members
 Approve Rules and GuidelinesApprove Rules and Guidelines
 Appoint Tribunals for appealsAppoint Tribunals for appeals
–– Hear and make determinations on TribunalHear and make determinations on Tribunal
recommendations (improvements to propertyrecommendations (improvements to property
and nonand non--compliance)compliance)
–– Lawsuits to enforce architectural mattersLawsuits to enforce architectural matters
–– Estoppel CertificatesEstoppel Certificates

16. Director ExpectationsDirector Expectations
 Attend monthly Board Working SessionAttend monthly Board Working Session
 Attend Recreation Advisory CommitteeAttend Recreation Advisory Committee
MeetingsMeetings
 Attend Board MeetingsAttend Board Meetings
 Attend other meetings (Metro District,Attend other meetings (Metro District,
Team Highlands Ranch, etc.)Team Highlands Ranch, etc.)
 Understand Director RolesUnderstand Director Roles

17. Directors Have LiabilitiesDirectors Have Liabilities
 Fiduciary DutyFiduciary Duty
 Duty of undivided loyaltyDuty of undivided loyalty
 Conflict of interestConflict of interest
 Uniform and consistent enforcement of rulesUniform and consistent enforcement of rules
 Uniform and consistent enforcement ofUniform and consistent enforcement of
collectionscollections
 Corporate liabilityCorporate liability
 Personal liabilityPersonal liability