Planned communities with multiple governing bodies have many responsibilities to manage. The Homeowner’s Association Board, the management company, and the homeowner all play important roles in creating a vibrant, appealing, valuable community. Successful communities clearly define which tasks fall under the purview of each entity to ensure the highest quality living environment.
In this article, we outline each group in detail – who they are and what they’re responsible for.
- The Homeowner’s Association (HOA) Board
The Homeowner’s Association Board is composed of volunteers elected by homeowners to represent the interests of the community.They are responsible for:
· Providing oversight to the homeowner’s association.
· Creating policies and rules to govern the community.
· Overseeing architectural review requests.
· Hiring and managing firms to conduct business.
· Ensuring periodic independent financial reviews.
· Making decisions for the community as needed.
- The Management Partner
The management partner is an outside vendor, hired and managed by the Homeowner’s Association Board, to carry out day-to-day operations. It’s important to note that the management partner is not a decision-making body, but rather “boots on the ground” to carry out the decisions of the community’s HOA.“The management partner's role is always to be a facilitator,” said Timothy J. Snowden, CMCA®, AMS®, ARM®, PCAM®, Vice President of Towne’s Carolina Regional Office. “We always give the board and homeowners the best information we can, focusing on the facts, and we always follow procedure. We should never offer an opinion other than the responsibilities of each party.”
They are responsible for:
· Performing contractual duties to implement the vision of the HOA Board.
· Managing billing and payment collections.
· Ensuring enforcement of community rules.
· Maintaining clear and timely communication with community residents and the HOA Board.
· Overseeing maintenance of community facilities and grounds.
· Managing and reconciling bank accounts and ledgers and preparing/distributing timely and accurate financial reports to the HOA Board and homeowners.
“Management's key role during disputes between a homeowner and the board is to be an impartial moderator. They ensure that everyone follows both the association's policies and procedures and the business judgment rule*[JB1] , so that the board can perform its fiduciary duties,” Tim added.
- The Homeowner
The homeowner is a property owner within a managed community.They are responsible for:
· Learning the community rules, policies, and regulations.
· Following community rules, policies, and regulations.
· Staying informed of current events and community topics.
· Paying dues, fines, and other payments as required.
- Replying to necessary communication promptly.
If this structure sounds beneficial for your community, we invite you to consider Towne Properties for your management needs. Towne relies on tried-and-true policies and standards to provide stability. We have decades of experience managing operations and building positive relationships with communities.
When you partner with Towne, you can expect:
· Vetting, hiring, and management of staff and vendors with security and quality of service in mind.
· A fully staffed HR team that has experience screening qualified candidates, including conducting background checks, along with the day-to-day work of managing benefits and recordkeeping.
· A skilled accounting team that will maintain meticulous records and reporting; together with our association managers, they provide coaching and guidance to board members so they understand the data to achieve or maintain financial stability.
· Onsite staff trained to deliver concierge-level service.
· 24-hour emergency maintenance service and backup to keep our communities safe, secure, and up and running.
Our services are not cut-and-paste. We tailor what we do to your needs. Ready to learn more? Contact us for a consultation.
*The business judgment rule is a legal standard that says a director of a corporation must make decisions in good faith, with the care that a reasonably wise person would use, and that can reasonably be considered in the best interests of the corporation. If the director follows this rule, you cannot sue them for violating their duty of care for the corporation.