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THE HIERARCHY (Who's Who)

Association Manager

One of the primary responsibilities of the Community Association Manager is to ensure the needs of the homeowners are met and that the rules and procedures of the association are followed precisely. Frequent community inspections are part of this process, including:

Inspecting the landscaping and grounds to identify any maintenance issues
Inspecting common areas like pools, parks, gyms, and other amenities for problems
Ensuring services like landscaping, trash collection, and snow removal are performed properly
Ensuring all property owners are in compliance with the association rules, deed restrictions, and applicable regulations.

In many cases, the Community Association Manager acts as the primary liaison between property owners and the Board of Directors, as well as the principal contact for vendors, contractors, service providers, and more. The manager has no voting rights whatsoever, but they are the "right hand" to the board of directors to carry out the day-to-day operations of the association. The manager will often work closely with and offer advice to the board of directors on many matters, from community maintenance to budgeting, reporting, and compliance. This can include tasks like:

Hiring and managing contractors and vendors for community services and maintenance
Hiring and managing maintenance, janitorial, office, and other association staff
Scheduling and paying vendors and contractors
Managing the association's finances: budgeting, collecting assessments, analyzing reserves, pursing delinquencies, producing financial statements, reconciling accounts, and arranging the tax return, audits, and government filings.
Ensuring compliance with association rules and local laws
Coordinating and supervising contracts from bidding process to close of service
Coordinating for board meetings by producing agendas and compiling data and information
Managing office operations: taking minutes, maintaining the web site, maintaining records, producing notices, and facilitating requests for information and services, and responding to the requests and complaints of property owners.
Working with insurance companies to file or settle claims.
After hours emergency service coordination
Offering a variety of view points and present a balanced and complete view of topics for discussion to ensure the broadcast perspective and informed decision-making
Advising the board of regulatory issues and compliance requirements including fair housing, fair debt collection, and FCC antenna regulations

The Board of Directors

Community associations are unique entities, and the boards that lead them fill unique roles. Depending on the community association management agreement, some of the following responsibilities can be turned over to a property management company.

President

The main role of the HOA President is to oversee the majority of the decision-making process. Essentially, the final say comes down to the President. The responsibilities include the following:

Presides at all meetings of the HOA or association board and membership
Executes legal documents on behalf of the community association
Sets meeting agendas and controls all association meetings
Represents the board before the residents
May have nominating, if not appointment, responsibility for all association’s committees
Calls meetings to order

Vice President

For all intents and purposes, the HOA Vice President’s responsibilities are the same as the President’s. This is because their primary duty is to assume the role of the President when the President is unable to do so themselves. This includes instances where the President is sick, out of town, or otherwise incapable of completing their regular duties.

Performs all of the duties of the president in his/her absence
Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
Usually assigned liaison responsibility to specific staff or contractors, and to specific association committees

Secretary

The Secretary is an integral part of the HOA board. The role of the HOA Secretary is to handle all of the documentation and record-keeping within the association. Since they are responsible for all official documentation, part of their function is to stay compliant with all legal requirements. This includes submitting any forms before deadlines. Other HOA Secretary responsibilities include the following:

Giving proper notice of all meetings
Records and distributes all meeting minutes, membership agendas, and materials referred to in minutes.
Maintains book of association resolutions
Receives, verifies, and maintains all proxies
Attests, by signature, to the legitimacy of certain association documents

Treasurer

The HOA Treasurer is responsible for the entirety of association funds and the disbursement of those funds. The main role of the HOA Treasurer is to keep a detailed record of current funds and all transactions sanctioned by the association. This includes billing, operational costs, and the collection and allocation of funds. Other responsibilities include the following:

Works with appropriate association staff, contractors, and committees to develop and submit annual operating budget for approval
Maintains roster of disbursement of association funds, as authorized
Prepares period financial reports for the community association
Arranges, subject to board approval, an independent audit of the association’s financial affairs
Comply with all laws and regulations that dictate the proper financial operations of the HOA.

* It is important to note that due to the complexity of association accounting, board members will often turn over these responsibilities to a reputable finance management company

Board of Directors Perspective

Homeowners Perspective

Managers Perspective

GOVERNING DOCUMENTS

Federal and State Laws

Federal Laws

Fair Housing Act
Americans with Disabilities Act
Fair Debt Collection Practices Act
COVID-19 Debt Collection Relief Act
Federal Communication Commission's Over the Air Reception Device (OTARD) Rule
Freedom to Display the American Flag Act and U.S. Flag Code
United States Bankruptcy Code
The Servicemembers Civil Relief Act

State Laws

Colorado Common Interest Ownership Act (CCIOA)

Policy to Adopt Policies,
Collection Policy,
Board Member Conflict of Interest Policy,
Conduct of Meetings Policy,
Covenant Enforcement Policy,
Inspection of Records and Records Retention Policy,
Reserve Study and Investment of Reserves Policy,
Alternative Dispute Resolution Policy

State Laws

Colorado Revised Non-profit Corporation Act
Colorado Fair Debt Collection Practices Act
Colorado Fair Housing Act
C.R.S. 38-30-168 - Unreasonable Restriction on Renewable Energy Generation Devices
Colorado Secretary of State Registration
Colorado Division of Real Estate HOA Registration

Declaration of Covenants, Conditions, and Restrictions

The Declaration of Covenants, Conditions, and Restrictions is the main guiding document and outlines the following:

What is maintained by the association,
What is to be calculated into the assessments,
The authority to collect assessments,
What uses are permitted,
Design review process,
How insurance shall work,
How party walls work,
How easements work,
How defects will be addressed,
The fact that drainage and soil conditions are excluded, and other miscellaneous provisions.

* Whenever there is a questions on how something should work, this is where I go first.

Plat map

A plat map is a diagram and is used to show how your purchased property is divided within your county, city, or neighborhood. It serves as a guide to a tract of land that has been created by licensed surveyors.

The Plat Map is drawn to scale to record the plots of land and property boundaries. It may also be used to determine easements, nearby streets, and flood zones.

Alone, the document doesn’t seem like much. But among the piles of paperwork associated with a property purchase, a plat map can look like a monster of a document.

It serves as a guide to a tract of land that has been created by licensed surveyors.

Basic Condominium/Townhome Legal Documents

State Enabling Statute-permits the creation of condominium/townhome form of ownership and prescribes the basis of determining ownership interest, rights and obligations of the owners, duties and powers of the association, and the process of dissolution of the condominium
Subdivision of Condominium/Townhome Plat-describes the location and nature of the common elements and the units
Condominium Declaration or Master Deed-defines the units, common and limited common elements, and is the collection of covenants imposed on the property to provide for:
- The basis for allocation of percentage ownership interest
- The obligation of each owner to share in funding the cost of association operations
- The power, authority, and responsibility of the association in its operations and in making and enforcing rules
Individual Unit Deeds-comprises the individual unit deed
Articles of Incorporation-creates the association as a corporation under state corporate statute and defines its membership and sets forth the process for creating the board of directors, voting procedures, etc.
Bylaws-implements, in specific detail, the provisions of the Declaration and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
Rules and Regulations-sets forth the operational powers or provisions and the use restrictions adopted by the association

Legal Doc for Homeowner Associations and the Hierarchy of such Documents

Subdivision Plat-describes the location and nature of the common property and the individual lots
Property Deeds-comprise the individual lot deeds and the deeds to common property which give a legal description of the property
The Declaration of Covenants, Conditions, and Restrictions-the declaration of CC&R’s is the collection of covenants imposed on all property within the development and provides:
- For automatic association membership of all owners and the basis for voting rights
- The obligation of each owner to share in funding the cost of association operations
- Certain restrictions (architectural control and other rules) on the use of the property and the association’s enforcement powers
- Sets forth the power and authority of the association to own and maintain the common property and to make and enforce rules
Articles of Incorporation-creates the association as a legal entity under state corporate statute; defines the board powers and responsibilities of the association and its membership; and, sets forth the process for creating the board of directors, voting system, etc.
Bylaws-implements, in specific detail, the provisions of the CC&R’s and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
Rules and Regulations-sets forth the operational powers or provisions and the use restrictions adopted by the association.

Applicable Civil Rights Laws

Prohibition against racial discrimination as stated by the Civil Rights Act of 1966
Equal Credit Opportunity
Fair Housing Amendments Acts, 1988, applies to sale of residence
Does not prohibit discrimination by owners, if selling or renting as long as they own 3 or less homes
Board is prohibited from discrimination in exercising its 1st right of refusal
Association must abide by laws prohibiting discrimination against families with kids
Persons with disabilities (at own expense) must be allowed to make accommodations per the Americans with Disabilities Act, 1993

ACCOUNTING BASICS

Cash Method of Account-income and expenses are only recorded when cash changes hands. Financial reports only reflect cash transactions. This is a relatively simple system for simple situations. Because all obligations are not recorded until cash changes hands, this method does not provide an accurate portrayal of the financial condition of the association at any given time.
Accrual Method of Accounting-keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity and technical knowledge that is needed to maintain the records, understand the reports, etc.
Capital Reserves-the Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.