abcsA BASIC COURSE

FOR COMMUNITY ASSOCIATIONS

ChapterCalendar of Events

Introduction (8:30-8:45)

Overview (8:45-9:50)

Approach to Solving Problems (10:00-10:35)

Maintenance (10:35-12:10)

Rule Enforcement (1:10-2:00)

Finances (2:00-2:30. 2:45-3:30)

Board Meeting (3:30-4:15)

Conclusion (4:15-4:30)

SCHEDULE

OVERVIEW

• Overview of Industry– Types of Communities– Legal Foundation– Rights and Obligations

oDeveloperoOwnersoBoard membersoOfficersoCommittees

RIGHTS & OBLIGATIONS

• Developer• Owners• Board Members• Officers• Committees

COMMON-INTEREST COMMUNITIES

• Condominium• Cooperative• Planned community• Master association

LEGAL DOCUMENTS• Declaration

– Condominium– Planned community

• Proprietary lease– Cooperative

• Bylaws• Book of Resolutions• Articles of Incorporation

PROBLEM SOLVING

1. Identify the scope of the problem.2. Determine who has the authority

and obligation to act.3. Consider approaches and

resources; formulate and implement the plan.

4. Communicate the plan.5. Monitor and evaluate the plan.

IDENTIFY THE SCOPE OF THE PROBLEM

• Roof• Pipes

DETERMINE WHO HAS THE AUTHORITY AND OBLIGATION TO ACT

• Pipes– Declaration– Bylaws

• Roof– Declaration– Bylaws

CONSIDER APPROACHES AND

RESOURCES; FORMULATE AND IMPLEMENT THE

PLAN• Roof• Assessments

– Who has authority?– What are the procedures?

COMMUNICATETHE PLAN

• Roof– What? When? How?

• Pipes– What? When? How?

• Assessments– What? When? How?

MONITOR AND EVALUATE THE PLAN

• Short-term– Replace roof

• Long-term– Maintenance plan

FINANCIAL STAGES

• Planning– Budget

• Operation– Balance Sheet– Income and Expense

Statement– Budget Variance Report– Bank Reconciliation Statement– Accounts Receivable Report– Accounts Payable Report

FINANCIAL STAGES

• Evaluation– Compilation– Review– Audit

ACCOUNTING

• Cash• Accrual • Modified

ENFORCEMENT HEARING ERRORS

• Before– Didn’t attempt to settle

amicably– Didn’t explain variance

procedure– Didn’t file complaint– Didn’t send notice of violation

ENFORCEMENT HEARING ERRORS

• During hearing– Chair disorganized– Board member was rude– Not prepared for hearing– Relative participated– Didn’t give Susie time to gather

and present evidence– Didn’t view property

ENFORCEMENT HEARING ERRORS

• Conclusion of Hearing– No valid reasons for

decision– Penalty is unreasonable

BOARD MEETING ERRORS

• Before Meeting– Notice not adequate– Preparation not adequate

BOARD MEETING ERRORS

• During Meeting– Started late– Two members never come– Started without a quorum– Didn’t read background material– Didn’t follow parliamentary procedure– Didn’t follow agenda– No time for resident input– Maybe breach of duty of loyalty– May not have authority to levy

assessments– Didn’t take minutes

ENFORCEMENT PROCEDURES

• Internal Enforcement Procedures– Procedures to induce willing

compliance– Rule enforcement hearing

• External Enforcement Procedures– Mediation– Arbitration– Litigation

XYZ FINANCIAL PROBLEMS

• Income– Overestimated income– Didn’t plan for bad debts– Overestimated investment

income– Borrowed from replacement fund

• Expenses– Underestimated expenses– Didn’t plan for unexpected

• Replacement fund error?

Community Associations Institute(YOUR NAME) Chapter

• Phone• Fax• E-mail• Website

(CUSTOM MESSAGE)

Building stronger communities.