Email Mike Email
Residential Real Estate
Jan 26, 2017

What Roles Do Owners, Boards And Committees Play Within Community Associations?

Sponsored Content provided by Mike Stonestreet - Founder, CAMS (Community Association Management Services)


There are various opinions on the role of community and condominium associations. But, generally speaking, the main purpose and authority of the association are to maintain common elements and ensure compliance with the association’s governing documents. 
 
Property owner associations typically operate with three bodies of community governance:

  • Owners, whose only direct power is voting for - or to remove -directors, amendments and certain special assessments, and perhaps ratifying the budget, approving assessment increases and other specific items outlined in each association’s governing documents.  
  • Board of Directors, which has the most direct power to govern and manage the affairs of the association. State statutes and he governing documents (i.e., Declaration of Covenants, Conditions and Restrictions or Declaration of Condominium, articles of incorporation, bylaws and state statutes) set the responsibilities and power of the board. The board has a fiduciary duty to act for the benefit of the community as a whole and cannot act in self-interest. 
  • Committees, which study issues and may make some decisions, but only under the power and direction of the board. Committees have no power themselves, unless the governing documents state otherwise.
 
The role and responsibilities of owners include paying assessments in a timely manner to ensure the financial stability of the association.  Owners who follow the rules and regulations of the association promote harmony within a community. 
 
When an owner votes, his or her vote should be an informed vote, made after learning something about the board candidates and topics being considered. Study any issues on the agenda for annual meetings.
 
Remember - once board members are elected, they will be making many decisions on behalf of the association. Volunteer to serve on the board or help the board on committees or special projects, especially in areas of personal expertise. 
 
The role and responsibilities of the board, in a nutshell, are to make most of the decisions for the association. The board should always use the “business judgment rule” and exercise sound business reason when making decisions.
 
The board is responsible for the care, maintenance and enhancement of common property, as well as community finances and risk management, including proper insurance and funding reserves for future capital repairs and replacements of common elements. It must establish, enforce and interpret rules and regulations, and oversee employees, management companies and volunteers. 
 
The role and responsibilities of committees are to aid the board in its work and involve more members in the governing of the association, with the added benefit of providing a training ground for possible future board members. Committee members are usually appointed by the board. 
 
It is strongly recommended that committees have charters that define their roles and authority. It is critical the board knows what its committees are doing. If a board member is assigned to be a committee liaison, he or she provides communication to and from the board. It is typically not recommended that the board member serve on the committee, unless the governing documents state otherwise.
 
There are three forms of management: 
  • Volunteer or self-management, where the board and committees manage the entire association themselves. With this type of management, it is important that members keep up with current legal requirements and have proper insurances in place (as mentioned in an earlier article). 
  • Association-employed manager, in which a dedicated manager is employed through an employment contract and with the assistance of additional onsite staff. 
  • Professional management company, which meets the needs of most associations and is much more affordable than an onsite manager and staff. A professional management company typically manages more than one association through management contracts. 
Mike Stonestreet is a 28-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services for more than 265 associations throughout North Carolina, South Carolina and Georgia. To find out how CAMS can benefit your community, call 910-256-2021, email [email protected], or visit www.CAMSmgt.com.

Other Posts from Mike Stonestreet

Gwbjbizmaginsightsblockad300x250px
Ico insights

INSIGHTS

SPONSORS' CONTENT
Untitleddesign7

A Guide to Joining Your Community Association’s Board of Directors

Dave Orr - Community Association Management Services
Untitleddesign4 212391244

Firing With Compassion

Andy Almeter - Leath HR Group, LLC
2022052 75 142344351

Elevating Wilmington: Why a New, Taller Bridge is Essential for Our Progress

Natalie English - Wilmington Chamber of Commerce

Trending News

Avelo Airlines To Establish Base At ILM, Add Three Nonstop Destinations

Cece Nunn - Dec 4, 2024

Local Ice Cream Shop Earns National Honors

Staff Reports - Dec 3, 2024

Wilmington-area Residents Appointed To State Panels

Staff Reports - Dec 3, 2024

A First Look At A Planned Aquatic Center And Recreation Village

Staff Reports - Dec 5, 2024

Local Leaders Talk Ongoing, Future Projects At Power Breakfast

Emma Dill - Dec 4, 2024

In The Current Issue

Branching Out

Live Oak Bank’s latest spinoff emerged last month with the announcement of its $4.8 million seed round....


Rebranded MLS Follows Tech Buzz

When officials rolled out Hive MLS, a rebranded version of the former N.C. Regional Multiple Listing Service, they said Hive comes with new...


Couple Gets Moving With Beach Carts

The idea for the Beach Mule, an electric beach cart, came to company owner and founder Will Parker while on the Bald Head Island ferry....

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season