HRCA Delegates’ and
 Directors’ Duties,
Responsibilities, and
   Expectations
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
Terms
 Duty:   binding legal obligation

 Power:   ability to accomplish objective

 Liability:   corporate and/or personal
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
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
Delegate Expectations
 Attend Annual and Special Meeting of
  Delegates
 Attend monthly Recreation Advisory
  Committee Meeting
 Read updates and HRCA Newsletters
 Represent their District
Director Duties and Powers
Acting 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
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
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
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
Director Power
 General corporate powers
 Trash collection
 Regulate use of HRCA facilities
 Manage the affairs of the Association
 Delegate authority but not responsibility
Director Responsibilities (Finance)
 Maintenance   funds
 Other funds
 Deposits
 Disbursements
 Common Assessments
 Funding reserve funds
 Supplemental common assessments
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
Director Responsibilities (Finance)

 Notice of default and acceleration of
  assessments
 Lawsuit to enforce assessments
 Lien to enforce assessments
 Estoppel certificates
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
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
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

HRCA Delegates and Directors duties

  • 1.
    HRCA Delegates’ and Directors’ Duties, Responsibilities, and Expectations
  • 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.
    Terms  Duty: binding legal obligation  Power: ability to accomplish objective  Liability: corporate and/or personal
  • 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.
    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.
    Delegate Expectations  AttendAnnual and Special Meeting of Delegates  Attend monthly Recreation Advisory Committee Meeting  Read updates and HRCA Newsletters  Represent their District
  • 7.
    Director Duties andPowers Acting 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.
    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.
    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.
    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.
    Director Power  Generalcorporate powers  Trash collection  Regulate use of HRCA facilities  Manage the affairs of the Association  Delegate authority but not responsibility
  • 12.
    Director Responsibilities (Finance) Maintenance funds  Other funds  Deposits  Disbursements  Common Assessments  Funding reserve funds  Supplemental common assessments
  • 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.
    Director Responsibilities (Finance) Notice of default and acceleration of assessments  Lawsuit to enforce assessments  Lien to enforce assessments  Estoppel certificates
  • 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.
    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.
    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