Frequently Asked Questions
Common questions about Property Management
Answer: Homeowner associations can compel homeowners to pay a share of common expenses, usually
per-unit or based on square footage. These expenses generally arise from common property, which
varies dramatically depending on the type of association. Some associations are, quite literally, towns,
complete with private roads, services, utilities, amenities, community buildings, pools, and even schools.
Many condominium associations consider the roofs and exteriors of the structures as the responsibility
of the association. Other associations have no common property but may charge for services of other
matters.
Answer: A predetermined set of fees usually referred to as ‘Dues’ are collected by HOAs, Community
Associations, or divisions of property management for the upkeep of said organizations or
neighborhoods in general. These fees are billed at intervals (monthly, quarterly, or annually).
Answer: A Homeowners’ Association (HOA) is a legal entity created by a real estate developer for the
purpose of developing, managing and selling a community of homes. It is given the authority to enforce
the covenants, conditions & restrictions (CC&Rs) and to manage the common amenities of the
development. It allows a developer to end their responsibility for the community, typically by
transferring ownership of the association to the homeowners after selling. Generally accepted as a
voluntary association of homeowners gathered together to protect their property values and to improve
the neighborhood. A large percentage of U.S neighborhoods where free-standing homes exist have an
HOA. Most homeowners’ associations are nonprofit organizations and are subject to state statutes that
govern non-profit corporations and homeowners’ associations.
Answer: A Homeowners’ Association (HOA) is a legal entity created by a real estate developer for the
purpose of developing, managing and selling a community of homes. It is given the authority to enforce
the covenants, conditions & restrictions (CC&Rs) and to manage the common amenities of the
development. It allows a developer to end their responsibility for the community, typically by
transferring ownership of the association to the homeowners after selling. Generally accepted as a
voluntary association of homeowners gathered together to protect their property values and to improve
the neighborhood, a large percentage of U.S neighborhoods where free-standing homes exist have an
HOA. Most homeowners’ associations are nonprofit organizations and are subject to state statutes that
govern non-profit corporations and homeowners’ associations.
Answer: A Neighborhood Association (NA) is a group of residents or property owners who advocate for
or organize activities within a neighborhood. An association may have elected leaders and voluntary
dues. Some neighborhood associations in the United States are incorporated, may be recognized by the
Internal Revenue Service as 501(c)(4) nonprofit organization, and may enjoy freedom from taxation
from their home state.
Answer: The term neighborhood association is sometimes incorrectly used instead of homeowners
association (HOA). Some key differences include: 1. HOA membership is mandatory generally through
rules tied to the ownership of property like deed restrictions. Neighborhood association membership is
voluntary or informal. 2. HOAs often own and maintain common property, such as recreational facilities,
parks, and roads, whereas neighborhood associations are focused on general advocacy and community
events. The rules for formation of a neighborhood association in the United States are sometimes
regulated at the city or state level. Neighborhood associations are more likely to be formed in older,
established neighborhoods, whereas HOAs are generally established at the time a residential
neighborhood is built and sold. In some cases, neighborhood associations exist simultaneously with
HOAs, and each may not encompass identical boundaries.
Answer: Association management is a distinct field of management because of the unique environment
of associations. Associations are unique in that the ‘owners’ are dues-paying members. Members also
govern their association through an elected board or other governing body, along with association
committees, commissions, task forces, councils and other units. Typically, the board selects, retains and
evaluates a chief executive officer or an executive director who is responsible for the day-to-day
management of the association and paid staff. Managers within the association environment are
responsible for many of the same tasks that are found in other organizational contexts. These include
human resource management, financial management, meeting management, IT management, and
project management. Other aspects of management are unique for association managers. These
include: membership recruitment and retention; tax-exempt accounting and financial management;
development of non-dues revenue and fundraising. Association managers must also be familiar with
laws and regulations that pertain only to associations. To attain the knowledge needed to effectively
operate in association management, its practitioners may choose to pursue the Certified Association
Executive designation.
Answer: A property management entity contracted by a Board of Directors or community to provide a
variety of services including but not limited to collecting assessments, sub-contractor endeavors,
financial advisement and statement/reports preparation and analysis, general maintenance and
problem resolution, and advisement on legal and other property related matters. Some of these
companies manage hundreds of properties simultaneously, while others focus on individual properties
Answer: If your community is not self-managed, the Association Management’s contact information can
be located on the website, and most Association Management companies have contact information
listed on their company websites or in the phone book. Generally, a management company can be
contacted online or by telephone by community or Board members, or individuals whose communities
are seeking a management company for representation.
Answer: A Managing Agent is a person or entity hired specifically to assist the board of directors in
enforcing the documents and managing the assets, funds, and interests of the association.
Answer: An individual appointed to act or vote on behalf of another person by representing them at a
meeting of the association. The title can also refer to the written piece of paper granting that power.
Answer: A Quorum is defined as the minimum number of owners required to hold an official meeting of
the association. The number of owners required can vary greatly according to the corresponding
association’s governing documents.
Answer: the act of initiating a Recuse involves the temporary removal of an association member or
board member, or the act of disallowing his or her participation in a particular vote or proceeding.
Answer: In relation to an HOA, Community or other formal organization, a director is an officer charged
with the conduct and management of its affairs. The directors collectively are referred to as a board of
directors, and are generally elected or appointed. Sometimes the board will appoint one of its members
to be the chair, making this person the President of the Board of Directors or Chairman.
Answer: If your community has a Board of Directors, contact information, meeting times, minutes, and
other information can be obtained through checking the Board information area of your website.
Answer: Founded in 1973, CAI is Community Associations Institute, a national and chapter-based
membership organization dedicated to fostering successful common-interest communities. In addition
to state and national legislative advocacy on behalf of associations, CAI provides education, tools and
resources to those who govern and manage association-governed communities. CAI members include
association board members and other homeowner volunteer leaders, community managers, association
management firms and other professionals who provide products and services to associations, such as
attorneys, accountants and reserve specialists. CAI is committed to being the worldwide center of
knowledge and expertise for people seeking excellence in association operations, governance and
management. Visit www.caionline.org or call (888) 224-4321 for more information.
Answer: CAI is a national organization with almost 60 local and state chapters. CAI members enjoy
automatic membership in the chapter of their choice. Find a CAI chapter in your area.
Answer: The term CC&R refers to ‘Covenants, Conditions & Restrictions.’ A real covenant is a legal
obligation imposed in a deed by the seller of a home and or property upon the buyer of the real estate
to do or not to do something. Such restrictions frequently ‘run with the land’ and are enforceable on
future buyers of the property. Examples might be to maintain a property in a reasonable state of repair,
to preserve a sight-line for a neighboring property, not to run a business from a residence, or not to
build on certain parts of the property. Many covenants are very simple and are meant only to protect a
neighborhood from homeowners destroying trees or historic things or otherwise directly harming
property values. Some can be more specific and strict, outlining everything a homeowner can do to the
exterior of their home, including the number of non-familial tenants one may have, acceptable colors to
re-paint the home, exactly when holiday decorations are allowed up, automobile placement or repair on
property, satellite placement, etc.
Answer: A set of rules or guidelines regarding the operation of a non-profit corporation such as a Board.
Bylaws generally set forth definitions of offices and committees involved with the Board of Directors.
They can include voting rights, meetings, notices, and other areas involved with the successful operation
of the Association.
Answer: The declaration, bylaws, operating rules, articles of incorporation or any other documents
which govern the normal operating procedures of an association.
Answer: A monetary claim levied against a property for unpaid mortgage, taxes, contractor work, or
other charges. A lien is attached to the property, not the owner, but legally must be recorded in the
property records of the county of residence. If a Lien is in place, the property owner has very limited
ability to do anything involving the property until the Lien is satisfied or removed.
Answer: The Declaration is sometimes referred to as the ‘master deed,’ ‘documents,’ or ‘declaration of
covenants, conditions, and restrictions’ [CC&Rs]. It describes an owner’s responsibilities to the
association which can include payment of dues and assessments as well as the association’s various
duties to the owners. It is common viewed as somewhat of a ‘constitution’ of the association. The
person or group of persons who either signs the original declaration governing the development and
association or acquires the original developer’s rights is referred to as the ‘Declarant.’
Answer: An estoppel letter is used in a transfer or conveyance of real property prior to the Closing
transaction. The document is sent to a bank (or other lender), to an HOA (or Condo Association), to a
city/municipality, or a tenant requesting payoff of a mortgage, assessments or taxes due, or rental
amounts due on a lease, to incorporate these amounts into the Settlement Statement for the buyer and
seller of the real estate. Assessments and payments due must be incorporated into the amounts due at
Closing and paid at the time of the Closing. Some amounts may be pro-rated, but all must be included in
the Settlement Statement. The estoppel letter is the document that facilitates this process.
Answer: An interest or a right in real property which grants the ability to a landowner to use the land of
another for a special purpose or endeavor. An association may for example have an easement for slope
maintenance or other repair purposes. A public utility may also have an easement for maintenance or
repair work to be executed at a future date.
Answer: Similar in essence to a lien, the Notice of Noncompliance is a document sometimes authorized
under the CC&Rs and may be recorded in the county property records. Its’ essential purpose is to notify
prospective buyers that the property is in violation of the documents.
Answer: Any area of improved real property intended for shared use by the members of an association.
Answer: An Ordinance is an individual or set of laws adopted by local government at the county and city level.
