A management company is contracted by the Board of Directors to provide such services as the collection of dues, supervision of subcontractors, obtaining bids for subcontracted services, and providing financial statements and collection reports. A management company also communicates with homeowners and the Board of Directors, serving in an advisory capacity instead of making decisions for the community.
The management company reports directly to the Board, with all decisions being made by a majority vote of the Board of Directors. The management company may be reached online through the Management Office page on this website or by phone from the numbers listed on the Contact Us page on this site.
A homeowners association is a nonprofit corporation registered with the State and managed by a duly elected Board of Directors. The purpose of an HOA is to maintain all common areas and govern the community in accordance with the provisions of its governing documents. These governing documents include the Bylaws, CC&Rs, and Articles of Incorporation.
All members of the homeowners association provide financial support to the corporation. Membership is typically automatic and mandatory for most homeowners associations.
All types of community associations can benefit from the help of a management company. Typically, smaller communities with only a few members won’t need professional help. But, as communities grow, tasks become more difficult to complete. A management company can significantly lighten the burden of community management and maintenance.
The CC&Rs stand for the Declaration of Covenants, Conditions, and Restrictions. This is a governing document that sets up the rules of the community association. The goal of the CC&Rs is to preserve and enhance the property values in the association.
Associations have to record their CC&Rs with the county recorder’s office where the community is located. All members of the community, including the Board of Directors, have to abide by the provisions of the CC&Rs or risk facing a penalty (usually monetary).
The Bylaws are the guidelines for the operation of the community association. This document defines the duties of the Board of Directors, the terms of the Directors, the voting rights of members, any required meetings and meeting notices, and any other specific items needed to run the community association as a nonprofit corporation.
The Board of Directors is responsible for governing the community association. The Board’s duties include collecting dues, preparing the budget, managing the association’s finances, ensuring common area maintenance, communicating with homeowners, enforcing the rules, and many more. In other words, the Board acts as a steward of the community.
The Board of Directors consists of volunteers who are typically elected by the homeowners. These board members receive no special compensation or benefits and must abide by the community’s rules and regulations just like everyone else.
No, the management company does not take a seat on the Board of Directors. The Board is reserved for the members of the community who volunteer their time and are elected into office. The management company simply helps the Board with the community’s operations and advises the Board on important decisions.
Most homeowners associations have a set of operating rules and regulations. These rules are usually enacted to clarify and enforce the CC&Rs.
Rules are established to provide direction to members with regard to parking, vehicles, pets, pool use, home use, noise, rentals, and more. In addition, associations will also adopt Architectural Guidelines that outline the procedures for submitting requests to make exterior changes to your home. Making an exterior modification to your home without receiving approval from the Board may require you to undo these changes.
These rules and regulations are set up to maintain the aesthetic appeal of the community as well as the values of properties within the association. When a member violates these rules, the Board of Directors will enforce the corresponding penalty.
Residents are encouraged to resolve disputes among themselves. But, if the situation cannot be resolved, then members should turn to the association.
If you are willing to actively participate in the enforcement provided by the Policies and Guidelines, you may complete a Covenant Violation form online. You can find the Covenant Violation form on the Management Office page of this website.
If the association finds that the situation is, indeed, in violation of the Policies and Guidelines, the Board of Directors will institute the enforcement policy. Your continued assistance may be required.
Yes, board meetings are open to all residents. Notice of the time and place of any regular board meeting will be noted in the community newsletter. You may also view this information online on the Calendar page.
The Contact Us page of this website will inform you of the status of the current active committees and committee contact information. If you are interested in volunteering, please contact the committee chair or fill out the online volunteer form found on the Management Office page of this site.
The assessment is the periodic amount due from each homeowner to cover the association’s operating expenses. A portion is also allocated to the association’s reserve funds, which are funds designated for the cost of major repairs and replacements of common facilities in future years.
Your assessments are due on the first of the month. Statements will be sent for assessments as a reminder of the amount due.
The Department of Real Estate typically requires an initial budget from the developer for each community that a developer proposes to build. This budget is set upon specific guidelines for utilities, landscaping, administration, etc.
Reserve funds are monies set aside for future expenses due to the life expectancy of certain items: lighting, street resurfacing, pool equipment, etc. These amounts are then divided by the number of units built in a given phase of the development.
Subsequent budgets are developed by the Board of Directors and adjusted periodically to meet anticipated expenses.
There is no concrete answer to this. The Board of Directors may approve an increased budget if it is necessary to cover increased operational and maintenance costs or to meet the adequate reserve fund requirements.
The association relies on the timely payment of assessments to carry out maintenance and management services. Homeowners who pay their assessments late face a late fee. In addition, the CC&Rs allow the association to charge interest and proceed with a lien on your property. After that, the association can initiate foreclosure proceedings for nonpayment of assessments.
Unfortunately, when you buy a home in an HOA community, you automatically become a member of that association. Membership is mandatory. Hence, the only way to end your membership is to move out and sell your home.
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Germantown, WI 53022
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Menomonee Falls, WI 53052-0923
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