THE BOARD
. . .
So now you are part of a
homeowners association. But
what exactly is a homeowners
association, and why do they exist?
The nuts and
bolts of an
HOA
O
ne of the main purposes of the HOA is to enforce
a set of promises that binds all owners. The
promises are usually contained in a document
called a memorandum of incorporation (MOI)
or constitution, comprising a set of policies,
procedures, rules and regulations, including
those that relate to the management of common
property such as parks and roads, or what are known as
common areas. Individual property owners are required
to pay levies (usually monthly) to enable the HOA to
operate the association and maintain that common
property. Common property insurance, security, waste
management, office administration, staff costs and
common rates and taxes also come out of that levy.
WHO SERVES ON HOMEOWNERS
ASSOCIATIONS?
HOAs are governed by a board of volunteer owners,
known
as
trustees
or
directors,
elected
by
the
remaining owners at a properly constituted annual
general meeting. The board holds regular meetings to
enforce the standard rules and regulations, to establish
a budget, authorise expenditures, collect levies, solve
problems and oversee maintenance of the common
property. The board acts in much the same way as a
corporate board of directors. Many HOAs also make
use of committees to help administer the association.
For example, architectural control committees are
Pecanwood Estate and Pecanwood Golf
and Country Club
commonly used to maintain architectural consistency
in the community.
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