Key Terms for Newly Appointed Association Board Members

Congratulations on becoming a part of your homeowner or community association board! As you step into this new role, it’s essential to get familiar with some key vocabulary that will be integral to your experience as a board member.

Though it may seem overwhelming at first, keeping a handy list of these terms and reviewing them regularly can help solidify your understanding. As you continue in your service, these terminologies will become second nature. Additionally, consider consulting your property management company to learn about any specific terms relevant to your responsibilities.

Articles of Incorporation

This legal document forms the foundation of your homeowner association, condominium, or cooperative, usually registered with a state authority. Condos and co-ops commonly operate under this corporate structure. It's mainly applicable to non-profit, non-stock planned communities. The articles, sometimes known as a corporate charter, cover the creation of the corporation, define its purpose and powers, and outline the structure of the board of directors.

Bylaws

Bylaws are the formal rules that most housing communities adopt. They typically include membership requirements, meeting protocols, voting rights, election processes, quorum specifications, duties of board members, and the board's general powers.

Community/Maintenance Fees

Members of a community pay these fees periodically—be it weekly, monthly, or annually. These funds cover services like landscaping, snow removal, amenities such as swimming pools, tennis courts, gyms, garbage collection, security, community events, insurance, and other critical aspects related to shared areas of the property.

Community or Property Manager

The community or property manager is the professional responsible for overseeing the everyday operations of your community, usually appointed and approved by the association's board. This individual enforces bylaws, implements approved policies and guidelines, and assists with financial management, building upkeep, and administrative tasks.

Declaration, CC&Rs, or Master Deed

These documents outline ownership rights and restrictions applicable to all community members. Known as a declaration or master deed for condos and co-ops, and as a declaration of covenants, conditions, and restrictions (CC&Rs) for planned communities, they:

- Specify ownership boundaries (including common element percentages) between individuals and the community.

- Establish relationships among owners for the purpose of maintaining, financing, and managing the development.

- Set standards, restrictions, and duties to encourage harmony among residents.

- Define the administrative framework.

- Facilitate the transfer of control of the association from the developer to the property owners.

Hierarchy of Authority

This concept varies across communities but generally comprises all governing documents of a homeowner association, condo, or co-op. It includes, but is not limited to:

- Recorded maps or plans

- Declarations, CC&Rs, master deeds, proprietary leases, or occupancy agreements

- Articles of incorporation

- Bylaws

- Rules and regulations

- Any other necessary items for the community

Local Laws and Regulations

Each community is located within a town with its own set of codes, laws, taxes, and services. These local requirements can influence your community’s annual budget and member fees. For example, local fire codes might necessitate sprinkler systems, exit signage, or fire extinguishers, while pools might require water tests. Taxes could also apply to residents. It's wise to consult the local government office or your property management company to understand if these affect your community.

Recorded Map or Plan

Filed with the county recorder’s office, this document illustrates the layout of a condo, co-op, or planned community. It delineates the location of all lots and common areas before sales occur. Some states require a plot definition and accompanying architectural drawing. This document helps ascertain ownership and maintenance responsibilities.

Resolutions

These are rules established by association board members for governing the community. Keeping all resolutions organized in a Book of Resolutions ensures they are easy to reference. Types of resolutions include:

- Policy Resolutions: Impact owners’ rights and cover common areas, architectural conditions, and enforcement processes.

- Administrative Resolutions: Concern the internal workings of the community, including operations, collections, and meeting locations.

- Special Resolutions: Address unique situations, such as rule infractions or actions post-litigation.

- General Resolutions: Relate to routine community events like budget approvals or contract endorsements.