If you’re involved in an Aurora, CO community association, it’s important to understand the key terms and roles involved in day-to-day HOA operations. By understanding these terms, community leaders and HOA managers are better equipped to care for their communities and ensure that all residents are properly taken care of.
Whether you’re buying a home in a community association or have been elected to your HOA’s board, here are five essential community association management key terms you should know.
1. HOA Member
An HOA member is simply a homeowner within your community association. Membership in an HOA is a mandatory membership for individuals that purchase a home or lot within a community association.
An HOA is a nonprofit organization that represents the interests of the property owners within that community, so by paying your HOA dues, you’re essentially paying for a membership to that neighborhood organization.
2. Board of Directors
The board of directors is the governing body of the HOA. They’re responsible for overseeing the day-to-day operations of the association and making decisions on various matters on behalf of the neighborhood’s members. The board is made up of elected homeowners within the HOA, all of whom volunteer their time to act as fiduciaries of the corporation.
As fiduciaries of the community association, board members have fiduciary duties that they must carry out. HOA board members must act in the best interest of their fellow homeowners, regardless of personal relationships, financial circumstances or any other factors. All actions must be recorded, no single board member can act unilaterally, and all board decisions are available to the entire community association membership.
3. Board Meetings
Board meetings are regularly scheduled meetings of the board of directors. At these meetings, the board will discuss and vote on various matters related to the HOA, such as budgeting, assessments, rules and regulations, and other matters.
There are two primary types of board meetings — regular sessions, which are open to all HOA members, and executive sessions, which are private meetings of the board. Regular sessions are where all of the HOA’s operational decisions are made. Homeowners can sit in on the meeting and participate in any part of the agenda open to HOA members, such as homeowners forums. Executive sessions, on the other hand, are not open to the HOA membership, and meetings are not recorded in detail. These meetings are typically for sensitive subjects such as legal issues or personnel problems.
Assessments are mandatory dues or fees that all community members must pay. These fees are collected on a regular basis, such as monthly or annually, and are used to pay for the maintenance of the community association and its amenities.
There are several types of assessments: regular assessments, maintenance assessments, extraordinary assessments or special assessments. Your maintenance assessment is also known as the HOA fee. This fee pays for community management and the upkeep of all common areas, so you can continue to live in a desirable neighborhood with solid property values.
5. HOA Management Company
An HOA management company is a company that is hired by the HOA to manage its day-to-day operations. HOA management companies are typically responsible for collecting assessments, enforcing rules and regulations, and providing other administrative services to the HOA.
It’s important to note that the management company does not make any decisions on behalf of the association. It merely acts at the direction of the board to execute duties and enforce rules where needed. Hiring an HOA management firm is one of the best decisions you can make for your community, as it can help ensure that the community association is properly managed and its members are always taken care of.
The Management Trust is an HOA management firm that has helped communities throughout Aurora, CO become stronger and operate more smoothly. Just like an HOA board is composed of its fellow residents, The Management Trust is entirely owned by its employees. This makes us uniquely positioned to understand the diverse needs of HOA board members and offer exceptional, personable community management with every interaction. From vendor billings to record-keeping services, The Management Trust can do it all and leave your HOA with more time to focus on the big picture. For more information about our community management services in Aurora, CO or to request a proposal, give us a call at (303) 750-0994 or fill out our online contact form today.