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Started by DenaeM • 10 replies • 1554 views

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DenaeM (Utah)
Posts: 4

Posted:

I have had 7 years experience in Property Management for apartment communities. The apartment community I managed converted to a PUD a while ago. Now, I am going to be managing the HOA. I have taken a class to educate myself, but I found that the class only taught what I already know, such as budgets, hiring vendors, etc. I need to know about HOAs. I don't understand how the HOA is turned over to the home owners. According to my CC&Rs, they will turn over 4 months after 75% of the units have been sold. This is coming up really soon! The CC&Rs also state that there will be three Directors, but then later state the need for a President, Vice President, Secretary, and Treasurer. Also, the only Committee it refers to is the Nominating Committee. Does this mean that I can have as many committees as I see fit? What if no one is nominated for the Board?

JulieS (Georgia)
Posts: 412

Posted:

Directors are the board members who hold the positions of president, treasurer, etc. Typically, the members elect directors and the directors decide on who will hold each position, but some associations may elect for positions.

As for committees, if the documents require you to have a nominating committee, then you need to have one. As for other committees, you can have as many as you need as long as you have volunteers (social, ACC, etc.). We have had social, newsletter, neighborhood watch, ACC and they all seem to lack volunteers in which that committee disappears along with the volunteers.

RogerB (Colorado)
Posts: 5,067

Posted:

Denae, if you want to manage the HOA and have to ask these questions I suggest you advise the HOA you are not currently qualified to be the managing agent but if they still want to employ you that you are willing to learn quickly. As far as committees I would presume you already know that as the property manager you can not assign any committees. The association decides what committees it will have through its Board of Directors. If there is no Board then the association can not hire you. A Court would assign someone to manage the association.

DenaeM (Utah)
Posts: 4

Posted:

Roger-

I am trying to learn quickly about HOAs, that is why I am on this website. I do know how to manage large communities however. The developer currently controls the HOA and therefore, is on the board. My biggest question still, is what we do if no one volunteers or is nominated for the board?

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By DenaeM on 01/15/2007 4:31 PM
My biggest question still, is what we do if no one volunteers or is nominated for the board?

Who is we? As a property manager you can do nothing. The Developer could agree to continue with their Board or else as I stated "A Court would assign someone to manage the association."

DenaeM (Utah)
Posts: 4

Posted:

I should have clarified: I work for the developer. He wants to manage his own communities that he builds, so he created the property management entity.

That does answer my question. Thanks.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

DenaeM,

The language that I have seen in governing documents is that there is no relationship between the Developer and the MC.

By your own admission you are at a loss on how to manage the community.

The developer should have sought out a more experienced property manager.

Hopefully this forum will show you the pitfalls of poor inexperienced property management, bad developers, bad boards and the effect all this has upon hard working hoa residents.

Good luck!!
GeraldT1
NNJ

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By GeraldT1 on 01/16/2007 5:21 AM
The language that I have seen in governing documents is that there is no relationship between the Developer and the MC. NNJ

I have not seen this language in any governing document Gerald but think it is a very good idea. Could you provide some references?

In Colorado it is becoming common practice for Developers' to have a "deal" with a given management company to manage their HOAs. I believe every HOA should consider terminating a management company which has a close relationship with the Developer when the homeowners are in the transition process of taking control of their Board.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

RogerB,

I quoted from my gov. docs. A copy of the MC contract is included in the documents as well as the statement, "There is no relationship between the Developer and the MC".

GeraldT1
NNJ

GlenL (Ohio)
Posts: 5,491

Posted:

Denae, I would recommend you start with finding any regulations concerning HOA's specific to your State. The link to the right for Community Associations Network; CAN has a wealth of information on their site. Also if you are located in a major metropolitan area there is probably a local outlet of Community Associations Institute you can find them online at http://www.caionline.org/ They hold seminars and have many books on property management.

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

DenaeM (Utah)
Posts: 4

Posted:

We do not have any language in the governing documents that prohibit a relationship between the Developer and the MC. The Developer wanted to manage his own communities because he has been displeased with third party management companies. The property management company is set up as a separate entity. I understand that I will be working for the home owners, not the Developer, and therefore, I will be unbiased in everyway possible. I am unsure why there would be restrictions on the relationship between the Developer and the MC. We want nothing but to maintain the value and aesthetics of our communities. The home owners may choose to fire us as the management company if we fail to provide the service they expect. We strive to be a better management company than what we have used.

Thank you to those that offered advice, rather than those who reprimanded me for asking questions and seeking help.

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