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WHAT IS ASSOCIATION MANAGEMENT?

Association management is a distinct field of management. This is because of the unique environment of associations. Members pay dues and govern their association through an elected board, along with association committees, commissions, task forces, councils, and other units. Typically, the board selects, retains, and evaluates a director or president who is responsible for the day-to-day management of the association and paid staff. Association Managers are responsible for many of the same tasks that are found in other organizational contexts, including:

  • Human resource management
  • Financial management
  • Meeting management
  • IT management
  • Project management

Unique aspects of association management are:

  • Membership recruitment and retention
  • Tax-exempt accounting and financial management
  • Development of non-dues revenue and fundraising

Association managers must be familiar with laws and regulations that pertain only to associations. To attain the knowledge needed to effectively operate in association management, its practitioners may choose to pursue the Certified Association Executive designation.

WHAT ARE THE STAFFING ADVANTAGES OF USING AN AMC?

Because the relationship of an AMC to a client association is that of an independent contractor, the association is freed of employment responsibility, liability, and employee relations, such as:

  • Hiring
  • Termination
  • Worker compensation
  • Benefits
  • Payroll

The flexibility in staffing levels that an AMC provides an association is another distinct advantage. A well staffed AMC can provide the appropriate person with necessary skills to complete an association project when needed. The shared resources of an AMC help smooth out the peaks and valleys of staffing needs. This concept allows AMC clients to realize savings in computers, office equipment, office space rental, insurance, and other expenses that go into maintaining a business.

WHAT IS A COMMUNITY MANAGER?

A Community Manager is a person or entity hired to assist the board in enforcing documents and managing the assets, funds, and interests of the association.

WHAT IS A HOMEOWNERS ASSOCIATION (HOA)?

A Homeowners’ Association (HOA) is a legal entity created by a real estate developer, and then handed over to the homeowners. Generally, positions in the HOA are voluntary and are aimed at protecting property values and improving the neighborhood. HOAs have the authority to enforce the covenants, conditions & restrictions (CC&Rs) and to manage the common areas and amenities. Most homeowners associations are non-profit organizations and subject to state statutes that govern non-profit corporations.

WHAT IS AN ASSOCIATION MANAGEMENT COMPANY (AMC) AND WHAT DOES IT DO?

An AMC is a property management company contracted by a board of directors or community to provide a variety of services, including but not limited to:

  • Collecting assessments
  • Sub-contractor endeavors
  • Financial advisement and statement/reports preparation and analysis
  • General maintenance and problem resolution
  • Advisement on legal and other property related matters

WHY DO AMCS WANT PAST AND CURRENT FINANCIAL INFORMATION WHEN RESPONDING TO A REQUEST FOR PROPOSAL?

Financial statements provide the AMC with information about the extent and breadth of the association’s activities, giving the AMC a more accurate picture of the association. A current financial statement reveals the budgetary priorities of the association and helps identify projects and activities that consume staff time. This gives the AMC the opportunity to see how well the association finances are handled and if the prospective client is, in fact, solvent.

WHAT ARE CC&RS?

Covenants, Conditions & Restrictions are legal obligations imposed in a deed by the seller of a property upon the buyer of the property to do or not to do something. Restrictions are determined by the community’s board of directors and are enforceable on future buyers of the property.

CC&Rs may include or address the following:

  • Property maintenance
  • Architectural guidelines and restrictions
  • Parking
  • Residential businesses

Depending on the community, CC&Rs can range from simple covenants meant to protect and preserve the neighborhood’s aesthetic and property values, to strict guidelines on everything a homeowner can and can’t do to their home, acceptable exterior colors, the number of non-familial tenants allowed, automobile placement or repair on property, satellite placement, and more.

WHAT IS A BYLAW?

Bylaws are the rules or guidelines regarding operation of a community board of directors. Bylaws define offices and committees of the board and may include voting rights, meetings, notices, and other areas involved with the operation of a Homeowners Association.

WHAT IS A PROXY?

An individual appointed to act or vote on behalf of another by representing them at an association meeting. The title may also refer to the document granting that power.