Abbreviations
Architectual Review Committee
What is ARC?
HOA's help protect property values in a community?
What is true? One of the biggest benefits of having an HOA is that it helps protect and even increase property values over time.
Who has the burden of enforcing the HOA's CC&R's, Bylaws, and rules?
Who is the Board of Directors?
Is a private corporation that manages a planned community. When purchasing in the community, owners agree to abide by the rules and regulations in addition to paying the annual dues.
What is a HOA?
An extra fee collected for major expenses that go beyond the annual budget, like big repairs or emergencies.
What is a Special Assessment?
Covenants, Conditions, and Restrictions
What is CC&R?
The best time to learn about the HOA rules is when you get a notice?
What is false? The best time is prior to purchasing, take time to read and understand the guidelines - it will save headaches later and help everyone feel more confident.
Money set aside by the HOA to pay for future repairs and maintenance of shared assets such as amenities, landscaping, buildings, etc.
What is a Reserve Fund? A strong reserve fund helps avoids large surprise assessments.
A financial tool that an HOA uses to map out anticipated expenses for the year ahead.
What is an HOA annual budget?
HOA fees only pay for landscaping and pool maintenance?
What is False? The dues pay for maintenance of common areas, insurance for shared structures, reserve funds, utilities, management, and compliance.
Board of Directors
What is BOD?
All HOA rules can be changed by a simple majority vote of homeowners?
What is false - Amending CC&R's and ByLaws doesn't always just take a simple vote. Most governing documents require a super majority (often 75%) of homeowners and in some cases the Declarant.
Running an association involves a lot of voting and decision-making. These decisions must be made with forethought and caution.
What is Duty of Care? Board members must do their due diligence, researching every possible solution before arriving at an informed decision.
How the HOA should run.
What is the ByLaws?
Directors & Officers, Worker's Comp, Liability, Umbrella
What is types of insurance the HOA must carry?
Articles of Incorporation
What is AOI?
The board can be held personally liable for certain actions or results?
What is true? There are two standards - Business Judgement Rule and Reasonableness
Every action the Board takes must be in the community's best interest.
What is Duty of Loyalty? As a board member you must remove yourself from decisions where there is a conflict of interest and must keep personal information confidential.
A closed board meeting involving personnel, contract negotiations, confidential communications with an attorney, pending litigation, and enforcement actions.
What is Executive Session?
In what decade did homeowners associations start to become widespread in the United States?
What is 1960's?
Community Association Manager
What is CAM? There are other acronyms that a manager can hold - CMCA (Certified Manager of Community Associations), AMS (Association Management Specialist), PCAM (Professional Community Management Specialist) - these are all certifications on the national level
The HOA is a not-for-profit organization, therefore not subject to income taxes or filing a tax return.
What is false? Association's are considered not-for-profit organizations but not considered 501c3 organizations. They are subject to taxes on income outside of assessments (yard sale, amenity fobs, etc) and must file a tax return yearly.
Board members are obligated to follow the HOA's governing documents and all applicable state and federal laws. Actions must remain within the scope of the board's authority.
What is Duty of Obedience?
Widely used manual of parliamentary procedure for conducting meetings and making decisions in an orderly and fair manner.
What is Robert' Rules of Order?
Not voting due to conflict of interest, internal conflict, disagreement, lack of information.
What is Abstention? Although this is allowed, there are potential consequences such as a perception of neglecting a fiduciary duty, reduced effectiveness, recalls, and non-reelection due to frequent abstains, and effect of the vote.