Chapter 2 Q & A Flashcards
What 3 types of legal sources specifiy management authority and responsibilities for community associations?
- state Statutes
- Court Decision
- Community Ass Gov Docs (4 - D, C, M & Articles of Inc. Bylaws, Rules & regulations
List some specific types of management activities that community associations are empowered to engage in.
Assessment collection, contracts, common area maintenance, restriction enforcement, member services, manager employment, create rules & regs, invest funds, replacement reserves, obtained prof. advisers, comply with fed, state, local laws, obtain insurance, adopt/approve budges, audit finances.
Explain the relationship between the owners authority and the board of directors authority in a community association
Owners - elect board, rights to vote, elect, remove board members + amend governing docs & resolutions +approve special assessment or capital improvements
Board - elected by owners, act on their behalf,
List some means of obtaining owner input on community management
Voting, meetings, committees, etc
What legal sources typically define a community association board of directors authority and responsibilities
specific state statues, general state statutes, and ca governing docs.
What is the role of a Comm. Assoc. board of directors?
set policies, standards, procedures, programs, & budgets for CA
Who is responsible for supervising implementation of the board decisions
community manager
List some areas of responsibility for a community association board of directors
maintain, protect, preserve, enhance
care, maintenance, enhancement of property; finance management, preservation, etc.
What legal sources typically authorize the establishment of committees in a community association?
bylaws & declaration
What is the general role of a community association committee?
assist the board, broaden community input on decisions, perform research, prepare recommendations
List some guidelines for a successful community association committee.
- serve at pleasure and direction of board
- established appeals process,
- they have specific job descriptions within their roles & responsibilities
- keep meeting minutes
- provided with meaningful work and their output is taken eriously
- meetings are open to all members
Describe the role of a community association manager
- provide info training, leadership on CA living to board, committees, and community a large
- foster sense of community awareness
- provide admin tools to support board
- support decision making process
What sources typically define a mangers authority on duties?
Governing docs, management agreement/employment agreement, & actions of board which further delegate specific authority and duties to manager
What are the three forms of community association management?
Volunteer/self
Association/Employed
Management Company
Compare their advantages and disadvantages in terms of cost, continuity, and professionalism
see pg. 31
What are some basic elements in a management contract or employment agreement
- authority & duties
- chain of command
3 compensation/termination terms - signatures (supporting)
List some of the different types of management tasks included in a management plan.
rules of enforcement, property maintenance, services, communications, finances, administration, asset protection, policy development
What resources can be used to develop the plan’s goals for the year?
board meetings, & an evaluation
List two means of evaluating management performance in a community association.
owner/resident survey & management audit
List some potential warning signs of a weak management situation.
high delinquencies, increase in action items, increase in owner attendance, increase in response time for maintenance calls, contractor performance = low quality, board members start resigning, many owners volunteer for board, high turnout at annual meetings.
Give some examples of the ethical behavior expected of a professional community association manager,
diligent & faithful; disclosure of potential conflicts of interest; reasonable care, diligence, skill; avoiding conflicts of interest; no kickbacks; disclosure of gifts; over delegation of ones authority; avoid acting on on behalf of community if terminated by board
What is necessary for a true conflict of interest to exist for the manager of a community association?
when individuals duty to one leads to disregard for other
What are the 3 steps t take to avoid either a conflict of interest or the appearance of such.
- full disclosure of any relevant facts
- obtain board approval before proceeding on any action that my present COI
- avoid actions to be perceived as COI
