M-100 THE ESSENTIALS OF COMMUNITY
ASSOCIATION MANAGEMENT WITH COMPLETE
SOLUTIONS 100%
Characteristics of a Community Association
Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association
Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations
Planned Community - Owners owns his lot/living unit and community owns common areas (tennis
courts, basketball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common elements.
Cooperative - Individual owns stock or membership in cooperative and holds a proprietary
lease/occupancy agreement.
Community associations can be grouped into clusters called:
Master or Umbrella Associations - More than one residential community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least one per unit.
Name the sources of legal obligations for a Community Association
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations
Equal Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations
General - Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence over any general statutes and
governing documents.
Uniform - National Conference of Commissioners draft generic content-specific wording to encourage
uniformity among the states.
, Purpose of Community Association Governing Documents
Provide legal structure and operation of a community association.
Hierarchy of Governing Documents
Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation
Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating
Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws
Formally adopted regulations for the administration and management of a community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions
A motion that follows a set format and formally adopted by the board.
Public Offering Statement
Provides association information to first prospective buyers in community.
Required by state statute.
Not considered a governing document.
Types of Resolutions
Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules
Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
ASSOCIATION MANAGEMENT WITH COMPLETE
SOLUTIONS 100%
Characteristics of a Community Association
Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association
Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations
Planned Community - Owners owns his lot/living unit and community owns common areas (tennis
courts, basketball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common elements.
Cooperative - Individual owns stock or membership in cooperative and holds a proprietary
lease/occupancy agreement.
Community associations can be grouped into clusters called:
Master or Umbrella Associations - More than one residential community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least one per unit.
Name the sources of legal obligations for a Community Association
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations
Equal Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations
General - Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence over any general statutes and
governing documents.
Uniform - National Conference of Commissioners draft generic content-specific wording to encourage
uniformity among the states.
, Purpose of Community Association Governing Documents
Provide legal structure and operation of a community association.
Hierarchy of Governing Documents
Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation
Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating
Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws
Formally adopted regulations for the administration and management of a community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions
A motion that follows a set format and formally adopted by the board.
Public Offering Statement
Provides association information to first prospective buyers in community.
Required by state statute.
Not considered a governing document.
Types of Resolutions
Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules
Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
