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We've compiled a list of some Frequently Asked Questions below. If you can't find the question/answer you are looking for on this page, select Search - we'll search the entire site for you.
Q: What is a "management company," what do they do?
A: A management company is contracted by the Association's Board of Directors/Trustees to provide such services as: Collection of assessments, supervision of subcontractors, obtaining bids for subcontracted services, providing financial statements and collection reports, as well as a general clearing house for problem solving, communications with homeowners and the Board and to serve in an advisor capacity. The management company reports directly to the Board of Directors/Trustees and all decisions are made by a majority vote of the Board.
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Q: What is a condominium or homeowner's association?
A: It is a non-profit organization managed by a duly elected Board of Directors/Trustees. Its purpose is to maintain all common areas and to govern the community in accordance with the provision of the legal documents: CC&Rs, Bylaws, and Articles of Incorporation. The corporation is financially supported by all members of the homeowners association. Membership is both automatic and mandatory.
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Q: What are the CC&Rs?
A: The Covenants, Conditions and Restrictions (CC&Rs) are the governing legal documents that set up the guidelines for the operation of the planned community as a non-profit corporation. The CC&Rs were recorded by the County recorder's office of the County in which the property is located and are included in the title to your property. Failure to abide by the CC&Rs may result in a fine to an owner by the Association.
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Q: What are the Bylaws?
A: The Bylaws are the guidelines for the operation of the non-profit corporation. The Bylaws define the duties of the various offices of the Board of Directors, the terms of the Directors, the membership's voting rights, required meetings and notices of meetings, and the principal office of the Association, as well as other specific items that are necessary to run the Association as a business.
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Q: What is the Board of Directors/Trustees?
A: The Condominium/Homeowner's Association again is an organization and at times a corporation and therefore a governing body that is required to oversee its business. The Board of Directors/Trustees is elected by the homeowners, or as otherwise specified in the bylaws. The limitations and restrictions of the powers of the Board of Directors/Trustees is outlined in the Association governing documents.
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Q: Are there any other rules?
A: Most associations have developed Rules and Regulations as provided for in the CC&Rs and adopted by the Board of Directors/Trustees. Rules are established to provide direction to the owners for common courtesies with regard to parking, vehicles, pets and pool use hours, etc. In addition, your Association will adopt Architectural Guidelines with procedures for submitting requests to make exterior changes to your home. Such changes may include patio covers, decks, landscaping, exterior color changes or extensive interior changes and additions. These rules and guidelines are set up to maintain the aesthetic value and integrity of the community on behalf of all owners, and hopefully protect the market value of your investment as well. Violations of these rules may result in action by the Board of Directors/Trustees and a fine. In addition, if you proceed with an exterior improvement or change, without written approval of the Board of Directors/Trustees, or Architectural Committee, as applicable, you will be required to remove or correct the alteration and/or be fined for the violation.
Back to Top Q: What is an assessment?
A:The assessment is the periodic amount due from each owner to cover the operating expenses of the common area and provide for reserve funds for replacement of common facilities in future years.
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Q: How is the amount of an assessment determined?
A:Typically an initial budget is prepared by the developer of the community. This budget is set based on an Association's repair and replacement responsibilities as defined in the governing documents (i.e. recreation, landscaping, building maintenance, administration, etc.). Preparing for the future is also a responsibility of the Association and therefore Reserve funds are set aside for future expenses based on the life expectancy of certain items: lighting, street resurfacing, pool equipment, roofs, etc. These amounts are then divided by the number of units within the Association or often by percentage of ownership. Subsequent budgets are developed by the Board of Directors/Trustees and adjusted periodically to meet anticipated expenses.
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Q: Will my assessment go up?
A:Typically the cost of goods and services increase each year for an Association. Also with each year a community's assets get older and their need for repair and replacement increases. As the Association's expenses increase and the need for future repairs gets closer it is likely that your fees will go up.
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Q: What happens if I don't pay an assessment?
A:The maintenance and management services incurred by the Association are dependent upon timely receipt of the assessments due from each owner. Late payments will result in a late charge as assessments are due on the first of the month unless otherwise noted on the assessment coupon/invoice. In addition, the CC&Rs allows the Association to charge late charges and interest and proceed with a lien on your property, or foreclosure proceeding for nonpayment of assessments.
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