Homeowners associations are organized with a board of directors who help the community run smoothly. The board consists of volunteers who also own property in the association, and they are elected by the other owners for terms of service to the community. Association boards execute a wide variety of tasks that residents may not be aware of; however, their work affects every single resident.
The Board Makes the Decisions
One of the most important things the board does is create and enforce the association rules. While some residents may not like being told what they can and can’t do, ultimately the board is looking out for the greater good. By enforcing the rules, the board is doing its best to keep property value up and conflicts down. Of course, the board wants to make sure the rules are beneficial for the majority—and hopefully all—residents. Owners always have the right to raise concerns about the rules at open board meetings.
Another major responsibility of the board is to collect assessments from homeowners. Collecting this money is important for the stability of the association, because the assessments pay for the common elements enjoyed by all residents. Assessments also help to replenish the reserve funds, which pay for any major repairs the association may need. The board is responsible for the association’s finances, and collecting assessments is how it ensures that the association remains solvent.
They vote on all contracts for services, approve the budget and set assessments, approve and enforce all Rules and Regulations, and generally run the business of the association. The board acts on behalf of the association by hiring managers, attorneys, contractors and other professionals who help better the association. Board members also help conceive and lead many of the projects that will improve the association.
The Management Company’s Role
This work is clearly a big job for a small group of volunteers, which is why communities often hire a management company like Lieberman Management Services (LMS) to take care of the day-to-day tasks. The management company collects the assessments, prepares the financial reports for the Board of Directors, pays all the bills and assists the Board with anything they require in running the association.
The management company will assign one or more property managers to implement all the Board’s decisions. In essence, the manager is both an employee of the association and an expert advisor with many responsibilities. He or she executes the decisions of the board and maintains important records.
The property manager is responsible for obtaining bids for work and monitoring the association’s contractors and employees to ensure work is completed in an efficient and timely manner. The manager inspects the property for compliance to the association’s covenants, rules and restrictions, and notifies residents of violations of rules or standards. Finally, as experts in community association issues and laws, the management company provides expert advice and guidance to the board.
The board and management company work hand-in-hand to create an orderly, comfortable community. Together, they enhance environments and improve lives!