A. Fixed costs to the management company like rent, telephones, computers, accounting software, fax machines, copy machines, pagers, insurance- any modern office expense and labor costs. Total fixed costs, plus labor costs, plus the profit margin divided by the number of homeowners yields the management company’s “typical” charge. Typically smaller communities pay more and larger communities pay less, “per door”.

  A. A community manager, someone who does the accounting, administrative staff, including a portion of the cost for a receptionist, each is responsible for multiple communities. It is important for communities to remember that the management fee pays for multiple employees to complete the services provided by the management company – the community manager does not get the entire fee – and the management company is in business to make a profit.

  A. Community association living is a neighborhood where you and your neighbors share common property, amenities and services – everyone shares enjoyment of them as well as the costs of preservation and enhancement. Most community associations are mandatory (vs. voluntary).

To understand how a community association functions, think of them like small municipalities – they are governed (e.g. have rules and penalties), conduct business (e.g. provide services like trash removal) and similar to small towns in earlier eras, they often have parks, recreational facilities, etc. and social events – a community; and the members (homeowners) vote the decision makers into office (Board of Directors) but as in small towns have no say in the day-to-day decisions made that effect their community.

  A. Few people like fine print or red tape but there are several important documents homeowner’s need to be familiar with. Collectively, they are called Governing Documents. Depending on the type of Association you live in, individual documents will differ. Each is very useful tool, which will provide specific guidance. Governing documents will provide the structure within which the board can work effectively. They’ll guide board decision making, and support association operations. Their greatest value, however, lies in the protections they provide to board members. Community association governing documents typically include several items in descending order of authority.

• Articles of Incorporation: Create the corporation under state law and define the Association’s basic purposes and powers
• Declaration or master deed, including Covenants, Conditions & Restrictions, or CC&Rs (in condominiums and planned communities): Regulates resident behavior. They bind all the owners to the Association, establish Association responsibilities, and define owner’s rights and obligations.
• By-Laws: Contain provisions concerning actual Association operations, such as meetings, procedures for electing Board Members and officers, and general duties of the Board.
• Rules and Regulations: Are adopted by Board of Directors’ but must be consistent with the Declaration, By-Laws and state laws.

  A. The Board is elected to serve the Association and that the Association is comprised of all the homeowners in the neighborhood, not just an exclusive few. That it is a democratically elected governing authority that is tasked with enforcing the covenants which are created for common good of the neighborhood. Although there may be parts of the covenants that cause inconvenience to some, they are there to promote conformity and harmonious living throughout the community.

  A. : If residents cannot resolve a situation between themselves, then turn to your Association. Should you have a situation that cannot be resolved through neighborly means, and you are willing to actively participate in the enforcement provided by the Policies and Guidelines, you may file a complaint with your Management Company. If the situation is deemed in violation of the Policies and Guidelines, the Board of Directors will institute the enforcement policy. Your continued assistance may be required.

  A. : An assessment is an owner’s financial obligation to the community association during a period of time. It covers the owner’s share of common expense. Occasionally, special assessments may be levied. A special assessment is a one-time assessment, often voted on by the owners to cover a major expense that was not included in the annual budget.