Frequently asked questions

A Homeowners Association, often referred to as a Common Interest Development (CID) or a community association, is a non-profit entity responsible for managing and maintaining shared spaces within a neighborhood and setting up basic guidelines and norms for the community. The primary purpose of these associations is to safeguard community resources, enforce a behavior code for homeowners and occupants, and implement robust financial management strategies.

The Board of Directors, consisting of volunteers initially designated by the developer and later elected by the community members at the yearly general meeting, is responsible for making decisions for the Homeowners Association. The number of houses or units in the association usually dictates the board’s level of involvement. The Board assigns various roles, including President, Vice-President, Secretary, Treasurer, and member-at-large. It’s not uncommon for the By-Laws to allow a single individual to assume multiple roles. Furthermore, the Board may delegate other homeowners to various committees, like Landscaping, Finance and Budgeting, Maintenance, Social, and Architectural Committees, to aid in the association’s operations.

The Board of Directors is entrusted with the task of making key operational and enforcement decisions for the homeowners’ association. Their responsibilities encompass a wide range of tasks, including setting budgets, conducting reserve studies, enforcing the collection of assessments, ensuring that contracts for common area maintenance are properly in place, and verifying that contracted vendors are delivering on their obligations. They also ensure that the association has adequate insurance and are in charge of creating and enforcing the rules and regulations.

The Governing Documents refer to a set of documents that outline the authorities, rights, and duties of the Association’s Board of Directors and the property owners. This collection of documents typically includes Articles of Incorporation for associations that are incorporated, By-Laws, CC&R’s (Covenants, Conditions, and Restrictions), which are also referred to as the Declaration or Declaration of Restrictions, and the Rules and Regulations.

The overarching term used by homeowners’ associations or Community Associations is Common Interest Subdivision or Common Interest Development. This refers to any development with a mix of privately owned and commonly owned property by the owners within the development. These developments can encompass Condominium Projects, Planned Unit Developments—typically composed of single-family homes, Stock Cooperatives, and Community Apartment Projects. It’s important to note that while homeowners associations primarily pertain to residential properties, common interest properties can also comprise commercial or office spaces, and they are managed in a manner similar to homeowners’ associations.

Every homeowner has a duty to safeguard property values and ensure a lifestyle that is enjoyable for all residents. As a member of your community association, you have legal obligations, including adherence to the governing documents, rules and regulations, architectural guidelines, and policies and procedures. You’re also required to pay the monthly assessment that keeps the community association operational. If you’re interested in having a say in the association’s direction, it’s recommended that you consider volunteering to serve on the Board of Directors.

Yes, all homeowners who own a unit or lot within a community association are by default members of that association and are obligated to pay the assessment. This fee encompasses all expenses related to the operation of the community association.

The assessment is designed to fund the operational costs that the community association is legally obliged to cover. Such expenses typically involve insurance, water and sewer services, gas and electricity, landscaping, street cleaning, janitorial tasks, pest control, pool and spa services, elevator maintenance, and management costs. Additionally, assessments contribute to the reserves, which are funds set aside to cover future costs of repairing or replacing major components under the community association’s responsibility. This includes water heater and plumbing repairs or replacements, roofing, painting, street repairs, pool and spa maintenance, elevator modernizations, and clubhouse renovations.
If you have any further queries about the functions of a Homeowners Association or how Neighborhood Management, LLC, can assist your community, feel free to get in touch with us.

The day-to-day tasks involved in maintaining the association can often be overwhelming for a volunteer Board of Directors. A management company is an external entity that aids the Board in various daily operations, which may include managing financial transactions and enforcing collection policies, supervising maintenance tasks and vendors, assisting the board in adhering to the governing documents and laws, managing communication and notices to the owners, serving as a liaison for homeowners, and conducting regular inspections of the property.
The range of services offered by a management company can differ based on the specific requirements of each Homeowners Association. At Neighborhood Management, LLC, we offer a personalized management service tailored to each association’s needs, encompassing financial, accounting and collection services, administrative support as needed, and comprehensive community management.

Yes, the regulations set forth by an HOA carry legal weight. If an owner breaches any restriction, covenant, or rule, the HOA has the authority to impose fines or even initiate a lawsuit against the violator. Furthermore, the offending owner may be held accountable for any legal expenses or fees that the HOA incurs while enforcing the rule.

A Board of Directors has the capacity to modify the rules as long as they adhere to relevant processes. The specific rules and regulations are typically detailed in the development’s Bylaws and/or CC&Rs.

The authority to modify HOA rules lies with the Board of Directors, and not with individual homeowners. The comprehensive set of rules and regulations is provided in the community’s Bylaws and/or CC&Rs.

While law enforcement agencies aren’t tasked with upholding HOA rules, they can be summoned to manage situations involving excessive noise or physical altercations originating from a property within the association.

In the event that a homeowner infringes upon an HOA rule, they will be issued a violation notice. If the issue isn’t rectified, the homeowner may face consequences such as fines, suspension from utilizing the community’s amenities, or in extreme cases, they may be subjected to legal action.

Yes, an HOA has the authority to enforce restrictions on pets, typically outlined in the Rules and Regulations. However, in California, certain state laws prevent associations from outrightly banning pets.

You can only join an HOA by purchasing a property within an Association. While homeowners aren’t typically compelled to buy a property within an Association, once they do, they become a member of that Homeowners Association and retain this membership until the property is sold.

HOA dues and assessments are perpetual, meaning they cease only if the association was established solely for architectural guidelines or if it has been disbanded.

Homeowners are billed for HOA fees and are obligated to pay them. While some homeowners may opt to have their tenants cover these fees, in the event of any overdue payments, the responsibility falls on the homeowner. Any actions to recover unpaid fees are directed towards the homeowner, not the tenant.

In the event that a homeowner fails to pay their assessments, they will be issued late notices and a pre-lien notice. If the situation persists, the Board of Directors has the power to decide to foreclose on the property.

Yes, if a person purchases a property within an Association, they are obligated to pay the HOA fees and assessments. This payment is mandatory.

Associations commonly encounter significant costs in areas like Insurance, Water and Sewer services, and landscaping. Another major source of high expenses tends to be repairs resulting from water leaks and damages. To mitigate these costs, it’s advisable for HOAs to opt for insurance policies with the highest possible deductibles and to implement low-water, low-maintenance vegetation. It’s crucial to ensure that homeowners promptly report any leaks they notice and that these leaks are addressed immediately.