Frequently Asked Questions
Community Management
- Who is in charge of my homeowners association?
- What is the role of the management company in my homeowners association?
- What is a community association?
- To keep an association running smoothly, who is responsible for what?
- Does our association really need a management company?
- What are governing documents?
- How are the governing documents enforced?
- What are my rights as a community member?
- Can owners review association records?
- What types of insurance does an association need?
- What is a resale certificate?
- What is “common area”?
- What are deed restrictions?
- I want to serve on the board. How do I get elected?
- I want to change something on the exterior of my home. What do I need to do?
- I read my governing documents but don’t understand them. Who can I talk to?
- When are my association’s board meetings?
Assessments
- What are assessments and what do they cover?
- How are assessments determined?
- Do I have to belong to the association and pay assessments?
- How often do I need to pay assessments?
- How do I get new coupons or replacement coupons?
- How do I pay my assessment dues online?
- I’d prefer to pay my assessment dues by check. Where should I mail them?
- To whom do I make my check payable?
- Where can I find my account number?
Community Management
Who is in charge of my homeowners association?
All homeowner associations are governed by a board of directors. The board of directors is an elected body made up of owners. Board members are elected annually at an annual meeting. It is common practice for the board of directors to contract with a management company to handle many of the day-to-day tasks and functions of the homeowners association. If a management company has been retained they report to the board of directors and take all direction from the board.
What is the role of the management company in my homeowners association?
The management company takes direction from the board of directors. The tasks the management company performs for the homeowners association are specified in the contract between the homeowners association and the management company. The management company enters into a contract with the homeowners association based on the services your board of directors desires to have performed.
Every homeowners association has different wants and needs. Common duties performed by the management company are accounting services, budget recommendations, vendor oversight, violations enforcement and community inspections. It is also common for the management company to serve as a point of contact for all owner requests and concerns. The management company typically attends board meetings and communicates with the board on a regular basis through email and phone calls.
Your management company does not select which vendors serve your homeowners association nor should your management company sign any contracts with those vendors. Those duties are reserved for the board of directors. A good management company should do all of the research for your board of directors, present that information in a timely and professional manner, and then wait for the board of directors to make a decision. The management company takes all direction from the homeowner elected board of directors.
What is a community association?
A community association is typically a nonprofit corporation, run by a volunteer board of directors elected by the members of the community. The board’s responsibility is to protect and maintain the community assets, and to enforce the governing documents with the help of a property management company.
Large-scale planned communities may create a “master association” responsible for governing the entire community. A separate “sub association” may also oversee individual neighborhoods within a large planned community.
To keep an association running smoothly, who is responsible for what?
- The board of directors establishes policies and procedures
- Homeowners are responsible for paying assessments, voting in elections and observing the governing documents
- The property management company carries out policies and procedures established by the board of directors
- Committees research potential projects and make recommendations to the board of directors, which then votes to make a final decision
- Vendors are professionals hired by the board to perform services for the association. The management company helps with vendor management
- Independent auditors provide an impartial audit and review of your association’s finances
Does our association really need a management company?
No, but it sure can make life easier. A professional property management company provides expert guidance to the volunteer board of directors in the operation of the community. The management company can also carry out the day-to-day operation of the association, leaving board members more time and energy for work and family. Explore our helpful services.
What are governing documents?
An association’s governing documents include:
- Articles of Incorporation. These state the name of the association and the purpose for which it was formed.
- Declaration of Covenants, Conditions and Restrictions (CC&Rs). This document explains homeowner property rights and obligations, and the association’s responsibilities, too.
- Bylaws. Your association may be incorporated as a nonprofit mutual-benefit corporation. If so, bylaws clarify the corporation’s rules of operation.
- Association Rules & Regulations. The board of directors has the authority to make and enforce rules that regulate behavior. The rules of your community may address use of common areas, parking restrictions, posting signs and pet control.
- Architectural Guidelines. Your association establishes architectural standards you must uphold if you want to make changes or improvements to the exterior of your home or property. There are also State and Federal laws and statues that apply to your community.
How are the governing documents enforced?
The community association, via the board of directors, is responsible for enforcing the governing documents. Most boards hire a property management company, such as Community Development, to help enforce the regulations of the community.
What are my rights as a community member?
As a property owner in a board-managed community, you have the right to:
- Vote to elect or recall the board of directors in line with the governing documents
- Vote to amend the Articles of Incorporation, Bylaws and CC&Rs
- Access certain documents of the association
- Be elected to the board of directors
Can owners review association records?
Most records are available for viewing by association members. If your community’s property management company maintains the record, you can see it during normal business hours. If a community member has a document, it’s best to agree upon a time to view it. If you request copies of records, you’ll need to pay the copy fees and/or postage costs.
What types of insurance does an association need?
Insurance requirements differ according to your property type and governing documents. To protect the interests of your community, your association may purchase any or all of these insurance types:
- Property damage (fire)
- General liability (common area injuries)
- Directors & officers (questionable business judgments by your board)
- Workers compensation (protects against financial liability caused by injury to employees, board members or volunteers)
- Fidelity bond (protects against theft of association monies)
What is a resale certificate?
A resale certificate is a disclosure package provided by the association upon each transfer of ownership of individual property. A resale certificate pertains to each property subject to association membership, and many times is required by law. The disclosure package includes a summary of assessment account status, copies of association governing documents, certificates of association insurance, financial statements and annual budget. If there is any pending litigation, the package will also include a corresponding notice.
What is “common area”?
Common areas are places within the community that are owned and maintained by the association. These include tennis courts, pools, rec rooms and other areas intended for shared use by all owners.
What are deed restrictions?
In communities governed by a board of directors, deeds are subject to conditions, covenants and restrictions. By accepting the deed, the property owner agrees to comply with the provisions set forth in the governing documents of the community association.
I want to serve on the board. How do I get elected?
Contact your Community Manager to find out when the next annual meeting and election is. At that meeting, homeowners living in the community have the opportunity to be elected to the board.
I want to change something on the exterior of my home. What do I need to do?
You need to complete an architectural application form, and submit it to your board. If you have questions, contact your Community Manager.
I read my governing documents but don’t understand them. Who can I talk to?
Call your Community Manager, who will be glad to interpret the governing documents for you and answer questions. Not sure who your Community Manager is? Call our main office at (763) 225-6400.
When are my association’s board meetings?
Every association is different. Some meet monthly while other associations only meet every three months. To find out when your board meets, call your Community Manager at (763) 225-6400.
Assessments
What are assessments and what do they cover?
Every community member is charged assessments, which represents each owner’s financial obligation to the association. The assessments cover operating expenses, including common area maintenance, utilities, insurance, legal costs, management fees and general repairs. The assessments may also cover insurance, taxes, water, electricity, landscaping services, janitorial and even pest control. To find out what your community assessments cover, see your governing documents or contact your Community Manager.
How are assessments determined?
Each year the board of directors, with help from their property management company, reviews the current year’s expenses, and estimates costs for the coming year. They then create an annual budget. Each owner is responsible for a portion of that budget, based on the formula provided in the governing documents.
Do I have to belong to the association and pay assessments?
Every person owning a unit or lot within a community association automatically becomes a member of the association. By belonging to the association, you are required to pay the assessment. Not paying could result in a lien against your home, and potentially foreclosure.
How often do I need to pay assessments?
Depending on your association, you’re required to pay assessments annually, semi-annually, quarterly or monthly. Assessments are always applied on the first of the month.
- If annual or semi-annual, your statement is sent 45 days prior to the date the assessments are due
- If quarterly or monthly, coupons are sent for the entire fiscal year 30 days prior to the beginning of a new fiscal year
How do I get new coupons or replacement coupons?
Contact the Accounts Receivable department at (763) 225-6400 or e-mail accountsreceivabledept@developcommunity.com.
How do I pay my assessment dues online?
Make a secure online payment through the CAB bank website.
I’d prefer to pay my assessment dues by check. Where should I mail them?
Mail to:
(NAME OF YOUR ASSOCIATION)
c/o Community Development, Inc.
PO Box 61838
Phoenix, AZ 85082-1838
To whom do I make my check payable?
Make your check payable to the name of your community association. Be sure to include your account number. If the address to which you want the payment applied is different than the address on the check, please indicate to which address you would like the payment applied.
Where can I find my account number?
Your account number is located on payment coupons, account statements and on any late letters you may have received.