Association 101

San Marco Condo 026

FIDUCIARY RESPONSIBILITY:  The Board of Directors and Association  Manager have a fiduciary relationship with the Alexandria’s owners and is responsible for making good decisions for the association. When facing a decision, the board members should always make that which is deemed in the best interest of all of its members—and of all of its residents. More specifically, Florida Statute Section 718.111, which governs condominiums, provides in pertinent part that “the officers and directors of the association have a fiduciary relationship to the unit owners.”

WHO DOES WHAT?

Association Manager 

Manager is responsible for:

COMMUNICATION

  • Maintain communication with the board, association members/owners, and vendors
  • Respond to letters and log calls from owners
  • Send notices of annual meetings

FISCAL MANAGEMENT

  • Collect assessments
  • Ensure bills are paid
  • Produce financial statements
  • Establish a draft budget for the board and implement budget policy
  • Ensure tax forms are completed and taxes are paid, as appropriate

ADVICE AND CONSULTATION

  • Advise the board on governing documents
  • Refer the board to other professional advisors (e.g. attorneys, CPAs, engineers)
  • Research insurance coverage and process claims

RECORD KEEPING

  • Maintain files for each member of the association/owner
  • Maintain records for the association
  • Process initial Architectural Control Committee (ACC) applications

PROPERTY MANAGEMENT & MAINTENANCE

  • Interview, hire, supervise and terminate association employees, when necessary
  • Negotiate contracts – with board approval
  • Monitor contract vendors such as landscapers and custodial services
  • Inspect and maintain comment elements
  • Handle emergency situations

MISCONCEPTIONS ABOUT THE PROPERTY MANAGER’S DUTIES
Here are some things a property manager typically is not contracted to do. A property manager does NOT:

  • Negotiate disputes between owners
    Managers may handle communications in the case of governing document violations.
  • Advise on legal matters
    Managers may recommend legal advice be solicited. Attorneys should be consulted.
  • Have to be available 24/7
    Managers should have procedures to handle emergencies and timely communication.
  • Have to be on-site whenever contractors are on the property
    Managers should do spot checks and a final inspection with a board representative.

The Board of Directors

Directors are responsible for: Preserving property values, Maintaining the property, Establishing house rules and regulations, Overseeing the organization’s finances (including collecting assessments), Maintaining appropriate insurance coverage for common area liability and property damage, Keeping members informed.

President

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees

Vice President

  • Performs all of the duties of the president in his/her absence

Secretary

  • Receives, verifies, and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents
  • Other duties, as assigned

Treasurer

  • Works with management and Board to develop and submit annual operating budget
  • Works with management and Board to ensure that financial records are accurate

Managers’ Objectives

  • Work in balance with homeowners and Board
  • Solve Problems
  • Enhance property and quality of life for residents

Board of Directors’ Objectives

  • Maintain and improve the value of the property
  • Provide an environment for a good quality of life for the residential community
  • Govern responsibly
  • Enforce rules and regulations
  • Establish and keep budget

Homeowners/Residents’ Objectives

  • Enjoy a quality of life, understanding that condominium living has rewards/restrictions
  • Enhance own and others property values
  • Set realistic expectations:  problems may arise when expectations are too high or not realistic; this can occur when interests are too specialized or unique

CONDOMINIUM OPERATION 101   WHAT/WHERE ARE RULES AND RESPONSIBILITIES?

GOVERNING DOCUMENTS

  • All documents that regulate owning and living at the Alexandria Condominium
  • Specifically, Alexandria By-Laws and Rules & Regulations
  • Other rules as mandated by Board of Directors

Basic Condominium Legal Documents

  • Condominium Declaration or Master Deed-defines the units, common and limited common elements, and is the collection of covenants imposed on the property to provide for:
    • The basis for allocation of percentage ownership interest for maintenance allocation
    • The obligation of each owner to share in funding the cost of association operations
    • The power, authority, and responsibility of the Alexandria Association in its operations
    • The power, authority, and responsibility of the Association in making/enforcing rules
  • Individual Unit Deeds-comprises the individual unit deed
  • Articles of Incorporation-creates the association as a corporation under state corporate statute and defines its membership and sets forth the process for creating the board of directors, voting procedures, etc.
  • Bylaws-implements, in specific detail, the provisions of the Declaration and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
  • Rules and Regulations-sets forth the operational powers or provisions and the use restrictions adopted by the association

For More Information, visit:  www.cu-inflorida.com/Florida-Condo-Docs-And-HOA.html