Educational Topic

Sooner or later every homeowners association is faced with the question of whether or not to amend its governing documents, bylaws, and CC&Rs. Here are some common questions and answers to the process, cost, and board of directors role in amending HOA governing documents. 

Making sure your HOA has proper insurance coverage is necessary to protecting the value of the property and the security of the homeowners. Find out the various types of coverage available to associations, what they mean, and how they can help your community

Most successful businesses embrace the concept of strategic planning to drive the direction, resources, and decisions made in the daily course of doing business. A strategy establishes common goals and objectives that guide leadership and unite employees and partners. By guiding your HOA with a strategic plan, you can: make the board’s actions more consistent, schedule projects in a proactive manner to take advantage of pricing opportunities and timing, place decisions required for implementation on an Annual Calendar to have adequate time to prepare, and allocate resources strategically to meet member needs.

For California homeowners associations, there is no state agency that enforces the law within HOA communities. So what are the consequences when boards don't follow the Davis-Stirling Act?

Rules Must Be Enforceable

What makes a rule enforceable? An enforceable rule meets the requirements of the law and governing documents. What makes an enforceable rule a good rule? A good rule meets the needs and requirements of the community. When writing rules, boards should make sure the rules are both enforceable and “good.” In general, courts recognize the following characteristics of enforceable rules. Even better, residents are more likely to accept and voluntarily comply with rules having the following characteristics.

Ethical issues occur in everyday administration, management and governance of any homeowners association. In order to navigate these complex ethical dilemmas, HOA board members first need to be able to identify problems of ethics before they will be able to implement an ethical value system. 

California has a growing body of law where courts have refused to enforce provisions in developer-drafted CC&Rs that deny homeowners and homeowners associations the right to have their disputes with developers heard in court. This article provides guidance for HOA board members who may not be aware of the impact of these two critical cases

Contract trapsManagement of condominiums requires HOAs to enter into a variety of contracts with different vendors and suppliers to provide essential services (laundry room facilities, landscape maintenance, etc.) to condominium residents. Your HOA board may sign these agreements for the condominium without thoroughly reading the legal terms governing the relationships, which may have just led your homeowners association to renew contracts with approval, limit service options, etc. 

Managing repair or reconstruction in your association requires frequent communication between all involved parties, an established payment schedule, and proper documentation. Learn how to keep your HOA in the loop instead of sitting on the sidelines to make sure the project gets done right. 

Accrual basis accounting gives a more complete picture of a homeowners association’s health and financial status than cash basis, making board members increasingly interested in converting their HOA’s financial statements to accrual basis. Accrual basis accounting provides a better matching of revenues and expenses for the period they are earned, not just as received.

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