Terminology
Understand Your Association
As a premier property management firm, we understand that the jargon of community association management can be complex and sometimes confusing. This page is dedicated to demystifying the language of our industry, providing you with clear definitions and explanations of the terms and concepts we use every day. Whether you’re a homeowner, board member, or industry professional, our goal is to empower you with the knowledge to navigate the intricacies of property management with confidence and ease.
Architectural Review Committee (ARC)
The architectural review committee is responsible for reviewing and approving or denying requests for architectural changes or improvements to properties within the community, ensuring they comply with CC&Rs.
Assessment Fees
Assessment fees (or dues) are regular payments made by homeowners to the association to cover maintenance costs, community amenities, and reserve funds for future expenses.
Board of Directors
The board of directors is a group of elected volunteers who oversee the management of the association. They make decisions regarding community policies, budgets, and major expenditures
Bylaws
Bylaws are rules that govern the internal affairs of the association, including board member duties, meeting procedures, voting rights, and dispute resolution processes.
CC&R (Covenants, Conditions, and Restrictions)
CC&Rs are rules and guidelines that govern how homeowners can use and maintain their properties within the community. They are legally binding and are designed to maintain property values and preserve the community’s aesthetic.
Common Areas
Common areas are parts of the community (e.g., parks, pools, sidewalks) owned and maintained by the association and accessible to all residents.
Community Covenant
A community covenant is a set of principles or values agreed upon by residents to promote a cohesive and harmonious community environment.
Community Manager
A community manager is a professional hired by the association or a management company to oversee day-to-day operations, manage vendors, communicate with residents, and implement board policies.
Fiduciary Duty
Fiduciary duty is the legal obligation of board members and community managers to act in the best interests of the association and its members, with honesty, loyalty, and diligence.
Governing Documents
Governing documents are legal documents that establish the rules, regulations, and operational guidelines for the association. They typically include the CC&Rs, bylaws, and articles of incorporation as well as any rules and regulations.
HOA (Homeowners Association)/ Condominium Association
A homeowners association and/or condominium association is an organization within a community that establishes and enforces rules and regulations for properties and common areas. Members typically pay dues to cover shared expenses and upkeep.
Meeting Minutes
Meeting minutes are official records of board meetings that document discussions, decisions, and actions taken. They provide transparency and accountability to association members.
Proxy Voting
Proxy voting allows homeowners to appoint someone to vote on their behalf during association meetings, particularly useful if they cannot attend in person.
Reserve Fund
A reserve fund is a savings account maintained by the homeowners association to cover major repair and replacement expenses for community assets such as roofs, roads, and amenities.
Special Assessment
A special assessment is an additional fee imposed on homeowners for unexpected or large-scale expenses not covered by regular dues, such as emergency repairs or legal fees