Article II.IMPOSED COSTS
There are also matters that can only be solved when an organization has a sizable muscle to flex. Take one City in the southland for example. About three years ago this City changed their water rates for condominiums from residential to industrial. Consider what effect that has had on water and sewer bills in this region. If it happened once, how long before other cities will follow? Some cities are holding water deposits of condominiums on file until the corporation changes ownership, which can never happen. These, and other similar matters, will be challenged by the California Association of Homeowners Associations Incorporated.
Article III. PROPERTY TAXES
Consider your property taxes? Within a city consider the geographic size of a condominium association of 100 units compared with the geographic size of one hundred single family homes. The 100 homes are typically on asphalt streets with curbs, parkways and landscaping, with sewer lines, fire hydrants, telephone and power lines, streetlights, street sweeping, police patrol and street maintenance. The 100 unit condo complex has none of these public-funded amenities. If one asks the police to tow an abandoned car, they will tell you they cannot for it is on private property. Both the homes and the condos pay the same property taxes according to proposition thirteen. Appropriate legislation resolving this matter alone may solve the financial problems of many condominium and townhome associations.
Article IV.LEGISLATIVE INFLUENCE
Homeowners Associations working together provide tremendous strength and influence on a "State of California" level to enact legislation that will benefit all condominium homeowners. We will strive to enact legislation that will help standardize community living, define association responsibilities from homeowner's responsibilities, and help professionalize community living. We need legislation in many other areas such as: building requirements, standards for preparing financial reports, yearend audits, property taxes and reserve analysis.
There is a tremendous need for new legislation in other areas. Most homeowners would agree that townhomes were intended for homeowners and apartments intended for renters. It is common knowledge that renters commit an inordinate percentage of violations of association rules and regulations. Where there is not a vested interest in the property, there is not the commitment to the value and enjoyment of the property. Even so more renters are occupying the units of community associations. Condos and Townhomes especially are being rented out in increasing numbers, which is having a negative effect on the value of property and the quality of life for community dwellers. Why not? Condos and Townhomes make great rental investments. Remember, the owner is only responsible for his tenant while the tenant is inside the unit. When on the outside, the homeowner's association becomes responsible. The Association is also responsible for full maintenance of the external portion of the unit while the absentee owner is only responsible for the interior. This is also true of the association's insurance policy. New legislation to correct this situation is being written by the California Association of Homeowners Associations Inc.
Article V.ACCOUNTING AND FINANCIAL REPORTING
Financial planning and reporting are essential to the survival of any organization. CPAs are available to offer boards and managers consultation on financial matters, accounting functions, budget preparation and reserve analysis and tax preparation. The California Association will provide guidelines to Boards of Directors and Property Managers to standardize the accounting and financial reporting of community associations.
Article VI.EDUCATION & TRAINING
The California Association provides education and training for Board Members, Homeowners and Management Companies. Seminars will be held periodically throughout the year to accommodate new board members on subjects of finance, conducting meetings, parliamentary procedure, preparing essential records, etc.
Article VII.UPDATING DOCUMENTS
Why should each Homeowners Associations reinvent the wheel? It is common knowledge that the CC&Rs, Bylaws and other association documents are out of date. So why should each association hire an attorney to update these documents at high costs? Could not a committee of attorneys bring the best of all associations together, prepare one generic document on computers and then attorneys could tailor a new document for each association at a fraction of the cost?
Article VIII.WHAT IS OUR OBJECTIVE?
The objective of the "California Association of Homeowners Associations Incorporated" is to provide current, comprehensive, professional and accurate information to Homeowners Associations. We are organized to strengthen the condominium investment of our members, establish distinguished professional standards and codes of ethics dedicated to: "Strength in Unity, and the Value and Enjoyment of Property," and provide a "Standard of Professionalism" for Homeowners Associations, Boards of Directors and Management Companies.
SECTION II. CORPORATION STRUCTURE
Organization of the California Association of Homeowners Associations Inc.
Board of Directors
Advisory Council
Legal Counsel Financial Advisor
Executive Advisory Board
Property Managers Committee
BOARD OF DIRECTORS
President
Vice President
Secretary
Treasurer
Honorary Member
ADVISORY COUNCIL
Five (5) Member Boards of Directors
Legal Counsel - One (1)
Financial Advisor - One (1)
Executive Advisory Board - Board of Homeowners Seven (7)
Property Managers Committee–Board of Prop Managers (7) Owners
Powers and Duties of Board Members
President
The President shall be the chief executive officer of the Association. The President shall preside at all meetings of both the Members and the Board of Directors, and shall have all of the general powers and duties which are usually vested in the office of President of an association, including, but not limited to, the power to appoint committees from among the Members to assist in the administration of the affairs of the Association. The President, or his or her designated alternate, shall represent the Association at all outside business meetings.
Vice President
The Vice President shall perform all of the duties of the President in his or her absence and such other duties as may be required of the Vice President from time to time, including, but not limited to, overseeing the administration and management of the various committees from among the Members.
Secretary
The Secretary shall keep the minutes of all meetings of the Members and the Board of Directors. The Secretary shall have charge of such books and papers as the Board of Directors may direct and shall, in general, perform all the duties incident to the office of the Secretary. The Secretary shall compile and keep up to date, with the books of the Association, a complete list of Members and their last known addresses as shown on the records of the Association. Such list shall be open to inspection by Members and other persons lawfully entitled to inspect the same at reasonable times during regular business hours.
Treasurer
The Treasurer shall directly, or through an appointed representative or agent, receive and deposit in appropriate bank accounts all money of the Association and shall disburse such money as directed by resolution of the Board of Directors. The Treasurer shall also have the authority and responsibility to keep proper books of account; cause an annual statement of the Association’s books to be made at the completion of each fiscal year; prepare an annual budget and a statement of income and expenditures to be presented to the Members at the Annual Meeting, and deliver a copy of each to the Members; present periodic statements of financial condition to the Board; and perform all other duties assigned to the Treasurer by the Board of Directors
SECTION III The duties, responsibilities and obligations of the Association
1. APPEARANCE:
Appearance is of extreme importance to the value and enjoyment of the property. The entire property must be properly maintained and free of debris, leaves, paper, etc. "Walking" the project on a regular basis is essential to ascertain that maintenance contracts are being appropriately performed, and deficiencies, non-conforming uses, maintenance needs and performance of contractors are in compliance with the association's regulations and State and City code.
2. MAINTENANCE AND REPAIRS:
Maintenance repairs and / or replacement of common area facilities or equipment will have the approval of the Board and be in compliance with budget and association regulations. Licensed and insured contractors, such as plumbers, electricians and similar craftsmen will be used. Specific improvements and repairs, authorized by the Association, will be completed within a reasonable period of time.
3. MAINTENANCE CONTRACTS:
Specifications and bids for all major maintenance and improvement contracts will be approved by the Board and entered into the official records of the association prior to the commencement of any work or project.
4. LANDSCAPE MAINTENANCE:
The appearance and often value of property has a direct relationship to the quality, condition and maintenance of the landscape. Properties that appear well maintained and groomed often have higher values and generally sell faster than properties that do not have the same appeal. Therefore, a thorough evaluation of the landscape is prepared and presented to the Board of Directors with specific suggestions for improvement and special care is given to the landscape on a regular basis.
5. EMERGENCY SERVICES:
In resolving an emergency, Agent will promptly ascertain the extent of the problem, possible damages which may result, and estimate of the costs for repair or replacement. Where the total costs are estimated to be less than $ 300.00, Agent will immediately take action to correct the problem. If it appears that costs will exceed $300, Agent will attempt to contact Association for authorization to expend Funds on behalf of Association. At all times, Agent will take appropriate action as it deems necessary to protect life and the property of the Association.
Non-emergency problems are to be communicated directly to the office of Agent during normal business hours (9:00 A.M. to 5:00 P.M.). During non-business hours emergencies should be communicated directly to the assigned property manager.
6. FINANCES, RECORDS AND REPORTS:
Detailed financial records will be maintained monthly in accordance with appropriate accounting principles using the double entry system and on a modified accrual basis.
Financial Reports will be prepared monthly and sent to the Association. Said reports will include but not be limited to the following:
A. Balance Sheet" disclosing the finances of the property, (IE, assets, liabilities, reserves, etc.)
B. "Income Statement" detailing, budget, revenues and expenditures for the current month and year to date.
C. Bank accounts and "Trust Fund" accounts
D. Register of all issued checks
E. A schedule of dues or other income received by unit
F. A schedule of delinquent units.
7. TRUST ACCOUNT AND DEPOSITS:
All Association's funds received by Agent will be deposited frequently into a "Trust" Account which will bear the name of the Association. Collection of regular monthly dues, fees, or assessments will be made by Agent by providing Homeowner with monthly statements and envelopes preaddressed for return mail to Agent.
8. EXPENDITURE OF FUNDS:
At the request of Association, Agent will receive, review and prepare invoices submitted for payment by the Association through issuance of checks drawn on the association's checking account. Such invoices together with the appropriate checks will be submitted to the Association (or other person designated by the Association) for review, approval and signature. Copies of all invoices will be provided to the Board or its committee(s) on a monthly basis or as required. All checks drawn on Association's checking account(s) will be signed by members of the Board of Directors.
9. TRANSFER OF FUNDS:
Agent will confer with the Association for an approved procedure under which Agent will transfer funds from the checking account to other accounts (such as savings) as prescribed by law.
10. BUDGET PREPARATION:
Upon request and at no additional cost, prior to the end of the fiscal year, Agent will provide the Association with a proposed budget for the ensuing fiscal year. Or, if so requested, assist the Association in the preparation of said budget. The budget will represent a projection of cash receipts and expenditures estimated for the ensuing year and will be based on:
A. Analysis of revenues, expenditures and budget performance during the current year.
B. Review of the maintenance projects scheduled to be completed in the ensuing year and their projected costs.
C. Analysis of required recurring and non-recurring services and all projected costs.
D. Analysis of the current and projected financial status of the Association.
E. Estimated effects of inflation on specific projects.
F. Reserve Analysis.
11. ADMINISTRATIVE SERVICES
Agent will assist the Association in developing and/or improving its communications with homeowners.
Agent may, from time to time, provide written informational materials for distribution to homeowners by the Association, such as rules, regulations, and special announcements.
12. INSURANCE:
Agent will assist the Association in providing insurance for the Association and will obtain bids from qualified Insurance Brokers in the procurement of same for presentation to the Association.
13. MISCELLANEOUS SERVICES:
Agent will maintain appropriate files for Financial Documents, Legal Matters, Rules and Regulations, Minutes of Meetings and other data provided by or accruing to the Association. Additional clerical services requested by the Association will be provided at a pre negotiated rate.
Article I. Property Managers Committee
To function as a counter part to the “Executive Advisory Board,” the California Association of Homeowners Associations, Inc. has organized a "Property Managers Committee” also to receive, assess and provide valuable information and recommendations to the Board of Directors and to the organization.
The members of the “Property Managers Committee”, herein after referred to as "Managers Committee," will be appointed by the Board of Directors and will serve for a term of one year or until they are replaced or are no longer eligible. They may be reappointed for additional terms.
The Property Managers Committee will not receive compensation for their services but will be reimbursed for travel and lodging expenses if necessary. The Property Managers Committee will in no way be liable or responsible for their participation on this board.
To be eligible to serve on the Property Managers Committee, a representative must be the owner of a property management company specializing in Community Associations. Property management companies will be selected from the region in which they conduct business or based on the city where their main office is head quartered.
The State of California has been divided into twenty five (25) divisions; each division will be represented by one (1) member of the property Managers Committee.
Managers interested in serving on the Property Managers Committee may indicate their interest by sending an E-mail or by submitting a letter indicating the same and requesting consideration for a position on the committee to this office. In addition to your name, telephone number and address, please indicate the name of your company and address of your company and the number of associations you manage. You will be contacted within a few days.
SECTION III.
MANAGING COMMON INTEREST
DEVELOPMENTS IN THE 21 CENTURY
In recent years and months, we have experienced major changes in the world we live that have affected many, if not all, aspects of our lives and the conditions in which we live. Improved technology has changed the way in which we now perform many of our daily work tasks. We have observed major improvements to state freeways and streets that has made commuting easier. Movies and TV with their enhanced dramatics and special effects have become more entertaining. The most profound of these improvements however has been the evolutions and proliferation made in communications. Computer technology with all its advancements and refinements, in many respects, have been the main source of the changes and transitions we have experienced and enjoyed. Faster, improved, friendlier and less expensive computers have indeed made a significant and permanent impact on our business and the business community. The computer and the massive, advanced features of the internet=s world wide web have forever changed the business world by providing massive quantities of current and usable information readily and literally at our fingertips. Indeed the wise and progressive businessperson has long ago grasped the value of these ingenious tools and integrated them into their business activities.
The new technology is obviously more adaptable to certain businesses and professions than to others. And, what’s more, some business and persons are more inclined to use this new technology than others. As for the Real Estate Management industry, the applications and ramifications are extensive and invaluable and have become common place. While certain aspects of the management process by nature cannot or will not change, many of the process, techniques and methodologies utilized by this industry in prior times are gone or will soon be gone forever.
In prior years, however, the property manager was intended to be all things to all people. Each property manager was expected to have a contemporary, working knowledge of finance, accounting, parliamentary procedure, construction, landscape, real estate, state and city laws and codes and a variety of other qualities and information and be prepared to provide the homeowner or Board of Directors with answers to questions upon request. With no place to turn for formal instruction, the property manager in most cases gained his / her knowledge on the job. Functioning in this environment was, for many property managers, a challenge. For others impossible.
Evolving from this chaos are new and improved methods of managing homeowners associations and other common interest developments. The year 2000 and the twenty first century have indeed been greeted with sophisticated property management programs and techniques designed and implemented with one main objective, to increase the value and enjoyment of property. The internet=s incredible ability to provide massive quantities of information to Boards of Directors, homeowners and property managers has made this objective a present day reality.
The following overview sets forth in detail the technicalities of managing homeowners associations and common interest developments in the year 2022 and in the 21 century.
I. STRUCTURING NEW MANAGEMENT FUNCTIONS
To ensure that all aspects of the association are professionally managed, the various management functions are divided into four (4) categories.
1. Professional Management
2. Middle Management
3. Maintenance Management
4. Landscape Management
Each category is distinctive and well defined.
1. Professional Management
The function of Professional Management is to provide competent, credible and effective management services at the highest level. These services include administrative services, financial services and coordination of all management functions and services at levels.
A. Administrative Services
Administrative services include liaison between the Board of Directors and the management company. The management company is expected to provide direction and offer suggestions and recommendations to the board. Administrative services include procurement of contracts and agreements for services such as landscape, pools and maintenance as well as taxes and reserve study.
B. Financial Services
Financial services include billing and collection of association dues, payment of association bills and preparation of monthly and annual financial reports. Financial services also include collection of dues in arrears and preparation of annual Budget Pro Forma.
C. Coordination of Management Functions
A function of the management company at the administrative level is also designed to provide a buffer between the Board of Directors and the homeowners; and to provide liaison between professional management and middle management.
2. Middle Management
Assigned to the homeowners association is an agent that represents the management company and attends the meetings of the association. The middle management representative is the contact person for the homeowners and contractors. The middle management representative also receives calls and requests for service from the homeowners.
Perhaps the weakest link in the property management chain of command is with the property manager assigned to the respective association. The relatively easy entry into the industry and high turnover of property managers has contributed to a mediocre level of property managers. The recent introduction of legislation by the state legislature will help improve this problem, still there is a need to improve the qualifications and skills of the middle management level administrators. Therefore, middle management is intended to gathering information and pass it on to the professional administrative level.
3. Building Maintenance Management
The Building Maintenance Management function is limited is to be performed under the direction of a licensed general contractor to assure that buildings are properly maintained.
Property managers are seldom qualified or knowledgeable about the maintenance of buildings and real property. Yet the value of property is greatly affected by the condition and appearance of the property. Therefore, this function should be performed by persons skilled and qualified to identify a building’s maintenance problems and make appropriate recommendations to correct the problem. Problems such as roof leaks, fence repairs and lighting require specialized areas of expertise. When the maintenance problem is properly diagnosed and appropriate repairs performed, the property will be correctly maintained and the costs mitigated. Well maintained properties typically have a greater value than properties not well maintained. Moreover, the CC& Sr mandate the Board of Directors to keep the property maintained.
4. Landscape Management
Landscape Maintenance like building maintenance is a specialized field that requires unique education, training and expertise. It is apparent that the beauty of property is significantly affected by the beauty and condition of the landscape. Landscape management requires a working knowledge of plants, trees, shrubs, flowers, fertilizer, trimming, planting soil conditions, soil erosion, lawns and irrigation, valves and timers. When studying an association=s financial report it is apparent that landscape is one of the most expensive line items.
It is essential that a landscape specialist be available to identify landscape problems and recommend the appropriate solution. It is certain that qualified landscape management can save associations significant amounts of money.
II. EDUCATION, TRAINING AND LICENSING
SECTION IV. CODE OF ETHICS
California Association of Homeowners Associations
