Community Association is a generic term used to identify communities in which the owners share in the ownership and responsibility to maintain certain community assets. Associations are a legal entity under the laws of your state. By purchasing a home within your community association, you automatically become a member of the association and will remain so for as long as you own your home. Membership in the association is mandatory and automatic for all owners. The deed to each lot, unit or share specifically designates that the property owner will comply with the Covenants, Conditions, and Restrictions (CC&R’s) of the association. You are entitled to receive a copy of the association’s governing documents at the time you enter into a contract to purchase your home. As an owner in a community association, you will be required to pay assessments to operate and maintain the association, abide by the community’s rules and restrictions, and maintain those areas of your home for which you are responsible.
Records and reports of the association are available to the members based upon state law. For specific information on what is available to you as a member, please contact the management company.
Typically, members have the right to
- Elect the Board of Directors
- Remove Board Members
- Attend meetings of the Board
- Call for special meetings
- Vote on issues brought before the members in membership meetings
- The use and enjoyment of the common areas and facilities
- Review association records
- Due process/dispute resolution
Board of Directors
The Board of Directors is responsible for maintaining the assets of the community, ensuring the financial health of the association, determining the level of services, and establishing policies and/or rules and regulations governing the use of the common areas. In developing communities, the Board of Directors is appointed by the developer. After transition to homeowner control, the Board is elected by the membership. The board has a fiduciary responsibility to do what is in the best interest of the association and to provide leadership in community affairs as dictated by the Governing Documents.
The directors may be developer appointees in the case of developing communities, or owners like yourself, who are elected by the membership.
- Fill a vacancy on the Board of Directors
- Establish rules and regulations for the association
- Develop the annual budget to determine the assessment rate
- Contract services for the association (management, landscape, maintenance, etc)
- Collect assessments
- Pay the obligations of the association
- Establish committees
- Enforce the CC&Rs
- Elect officers of the association
- Obtain insurance for the association as required and appropriate
- Invest funds controlled by the Association
- Establish a covenants/architectural committee
- Establish the standard of care for the maintenance of the common areas
- Engage the services of professional advisors
The members of the association vote to elect the Board of Directors (unless the association is still under developer control). Most associations elect board members for staggered terms so that knowledge of the community is retained. Each association’s Governing Documents outlines the process for board elections. Generally speaking, board elections take place at the annual membership meeting. Owners must be in good standing (current in assessments and in compliance with association covenants) to run for a board seat or vote in the election. A vote may be cast by ballot at the meeting or by proxy prior to the meeting. Typically, all votes are tallied and results are announced at the meeting. Board positions that may become vacant during the year may be filled by board appointment or at the Annual Meeting.
Any member who is in Good Standing.
The Board may establish committees and appoint committee members as dictated by the Governing Documents or deemed appropriate to assist the Board in achieving its goals and objectives for the Association. Committee members should be owners in good standing.
The purpose of a proxy is to establish quorum for the Annual meeting as required by the Association’s Governing Documents. The proxy also allows owners who cannot attend the Annual Meeting an opportunity to vote or to authorize another individual to attend the meeting and vote on their behalf.
It is recommended that if you are unable to attend the meeting you exercise your right as a homeowner, in good standing, to vote by proxy. This also allows for a quorum to be met. Quorum is defined in your Governing Documents but generally reflects a percentage of the ownership. If a quorum of the membership is not reached, the association may incur additional costs to reschedule and notify owners of another meeting.
Your Association may have committees that are required under the Governing Documents. Other committees may be established at the discretion of the Board. Members of committees are appointed and removed by the Board of Directors. The primary function of the committee is to render a recommendation to the Board on the subject matter of their committee.
Your Board of Directors can always be reached through your management company. CMC's corporate office is open during the hours of 9:00 am - 5:00 pm Monday through Thursday and from 9:00 am to 2:00 pm Friday.
Your Board of Directors are individual volunteers who may not desire to make their personal phone numbers and addresses available. All communications directed to the Board at the CMC address will be delivered to the Board of Directors.
In most associations, there is one vote per household. Consult your Governing Documents to understand how votes are calculated in your community.
Budgets and Assessments
Yes. Associations adopt annual budgets each fiscal year. This budget is available to all owners by request or by mail in accordance with your association’s Governing Documents. The budget is developed by the Board, with the assistance of CMC. The budget is developed over a period time in open meetings so that homeowners will have the opportunity to understand how assessments are set.
The annual budget determines how your assessments will be used. The financial health of your association is reported on at each annual meeting.
In order for the Board to accomplish the many tasks for which it is responsible, the association utilizes your assessments to operate the association, including routine maintenance, general administration, major repairs or replacement of capital items and adequate reserve funding.
In order for the Board to accomplish the many tasks for which it is responsible, the association needs operating funds for daily maintenance, repairs, administration and adequate Reserve funds for major repairs or replacements of capital items. As a member of the association, you are required to pay a share of the costs.
The costs of operating the association are not fixed and therefore your assessments are not fixed. You must refer to the Governing Documents of your association to determine the method by which assessments are modified.
In addition to your regular, annual assessment, the association may approve a special assessment to remedy unforeseen needs or circumstances, make capital improvements, and/or to correct deficits of prior years.
The difference is the terminology; it all points to the same thing, your mandatory Monthly, Quarterly, or Annual Assessments whichever pertain to your subdivision.
Other Questions
Contact CMC. You may be able to download a copy of your Governing Documents from your association website, or you may contact CMC. All requests for documents, account statements and resale certificates should go through the Resale Department.
Payment should be sent to the lockbox:
Name of HOA
C/o Community Management Corporation
PO Box 61148
Phoenix, AZ 85082-1148
Also, please remember to put your account number on your check before mailing.
Visit CMC’s website http://www.cmc-management.com/. Click on “Homeowner Assistance”, where you can input your information and an email can be forwarded to the relevant department in order to update your information in our system and confirmation may be sent via postcard or email.
Any exterior modifications or additions to your home or any structural changes must have prior written approval from your association. For information, applications and further details, contact us. You should note that this approval process may take up to forty-five days; therefore, please do not schedule any construction work or purchase any equipment until written approval has been received.
There are processes in place to address covenant violations. Disputes between owners that are not covered by the Governing Documents should be settled between the individual parties involved.
Common area / facility refers to all property leased, owned, or maintained by the Association. This is mainly for the sole use and benefit of the members, their guests and invitees. Examples of common area or facilities would be tennis courts, swimming pools, clubhouses, tot lots, etc.
CMC has a Resale Department with individuals whose main objective is to help you comply with resale disclosure requirements as required, so that you and your purchaser complete the transaction in a timely manner.
Management Questions
Your Community Manager performs many tasks for your Association and sometimes these tasks require them to be away from the office. These tasks consist of but are not limited to: weekly inspections, meeting with vendors and Board Members and visiting with homeowners. There are also times when a Community Manager is in the office but is unavailable because they are on the phone conducting business with other homeowners, vendors, or Board Members.
We are always interested in hearing from our owners if you have a question, issue or complaint. Please call our office or contact us through this website so that we may promptly assist you.
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