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TimB4 (Tennessee)
Posts: 21,062
Posted:
Hi all,

Glen did a thread on having an HOA bible (or collection of papers needed). Within that thread Rob suggested holding classes for the membership. I've taken those ideas and want to start a series of articles for our Associations newsletter. I've come up with the following ideas:

CC&RS - The initial document that brought about the Association: What they are, how it's a contract between homeowners, what it specifies (generalized terms), why/how this document calls for an Association to be formed.

The Corporation known as your HOA: The fact it's a company authorized in the CC&R's and takes on the responsibilities of common areas and enforcement of the CC&Rs. Then broadly identifying what the Articles and Bylaws are.

How the HOA works: Basic organization of the HOA, how things are developed, adopted and implemented.

How laws affect you and the HOA: Basic concepts of the state hoa laws, corporate laws, how they are impact the HOA and thereby the member. Links to the laws, etc.

I've only spend about 20 min on this and I know it needs a lot of development. However, I would appreciate suggestions on other articles along the same theme of what is an HOA and how does it work. Any additions/subtractions from my initial ideas would also be appreciated.

Thanks,

Tim
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I've been working on a book about my experiences in a HOA and how to manage a GOOD HOA. My first step was to create an outline. Make an outline of what you want to convey and the points under each. This will help in organizing your classes/articles.

First, you may want to visit your local Courthouse records department and get a copy of the filed CC&R's and Articles of Incorporation on file. The By-laws may or may not be on filed. You may find the copy you have doesn't match the one on record. I would make this a good reason to make improvements and upgrades. Reviewing the documentation may help in presentation.

Keep in mind your HOA is a corporation. It deals with contracts. Any legal advice would be best to ask a lawyer specializing in corporate/business/contractual law. The HOA is also a quasi-government. It has the Executive (President) Legislative (Board members), and Judicial (ACC/BOD) branches. It's America except smaller! LOL!!!

Good luck!

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By MelissaP1 on 03/17/2011 6:09 PM

First, you may want to visit your local Courthouse records department and get a copy of the filed CC&R's and Articles of Incorporation on file. The By-laws may or may not be on filed. You may find the copy you have doesn't match the one on record.

Funny you would say this. I discovered by going through our own Association records that the Articles of Incorporation being published to the membership was not the same Articles files with the State Corp. Commission.

I'm correcting this issue but I couldn't believe that this was done and previous boards (especially those who issued the first printing to our members) were aware of it.

I'm in the outline process now. Good advise.

Tim
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Paperwork digging is much like dumpster diving...Your going to find someone's dirty little secret! LOL.

I suggest that a HOA review their documentation and update it every 5 - 7 years.

Former HOA President
GlenL (Ohio)
Posts: 5,491
Posted:
Tim, one of the best received articles I did for the newsletter was one where I broke down the monthly assessments and explained where each dollar went.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am shocked about that. Our meetings were based on our monthly EXPENDITURES. Only board members covered COLLECTIONS and talked in LOT numbers ONLY. However, when it came to the money we spent that month, everyone could have a copy. I then went over each expense and explained each one. After that we would discuss issues that were pertitent to repairs or other issues.

I wouldn't know any other way to run a HOA if you didn't discuss openly where the money went and why it can't go somewhere else. Seems strange to me that this wouldn't be the basis of any meeting...

Former HOA President
GlenL (Ohio)
Posts: 5,491
Posted:
Melissa, if your post was directed at me, of course the homeowners get a copy of the budget but when you are talking hundreds of thousands of dollars most people don't really realize what it takes to run an Association. I broke down their monthly assessment and explained how their money was spent i.e The first $13.10 goes to pay the Management Company and explained what the MC did for their $13.10. How much a month they paid for the pool, for maintenance, lawncare etc.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I've done the break down of our monthly assessment. It's a bit overkill for some. I am talking a copy of our actual expenditures for that month.

On occassion it did cause some confusion when they saw we have a $5000 balance. They thought that this was "Extra" money. Money to be spent on projects or put into savings. What the didn't understand is that our Monthly bills were around $5000 a month and that $5K was for NEXT month's bills...We didn't get all our money collected and deposited until the 15th. However, bills have to be paid by the 1st. Our meetings were on the 1st 2nd Thursday of the month. So you can see the timeline unfold there...

Ironically, the new BOD members didn't understand this concept at all. One of their points against me was that I was a "Tightwad" with our money. When the new group tookover they spent that money because they saw it on the books...Funny, how fast they came back to me on that bit of math...LOL!!!

Former HOA President
DianaB4 (Oregon)
Posts: 13
Posted:
I would suggest your booklet contain lots of references to municipal, county and/or state laws where appropriate. And remind them that legally, one trumps the other, where required. We've included websites for those areas when necessary. We also make sure new owners receive a copy of the CCRs (they should have reviewed it during closing ir not before), and some general information like board member names, meeting dates, etc, as well as general community info like non-emergency police phone, local utility info, cable, etc. It's good to start off on right foot.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You just reminded me of something... I once created a brochure for our HOA. It was a trifold brochure I put in a box at the entrance. Handed them out to new or interested owners. It hit the high points such as lawncare, garbage pickup, clubhouse rental, pool use, and other details a new owner may have questions about. Even made up a free email address for people to write to.

It came in handy as a sales piece more than anything. However, it did help those deciding to moving into HOA what they were in for. Covering the expense in creating and making these brochures is an area the HOA would have to decide if they want to pay for. I did mine on my own dime just because it helped me out.

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
@Glen - An excellent idea especially since we just had the huge increase to fund the reserves.

@ Diana - Also an excellent idea. I've always included references to the laws/governing docs but never took the time to explain the order of precedence.

Thank you all.

Any more ideas?

Tim
GlenL (Ohio)
Posts: 5,491
Posted:
Tim, another one I did was explaining what maintenance was the COA's responsibility and what was the homeowner's.

Studies show that 5 out of 4 people have problems with fractions

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