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We know that some terms are unique when living in a community association. It may help to review these definitions to better understand communications that may come to you from your association board of directors.
Commonly used terms include:
Assessment
Fee paid by a homeowner in a community association that primarily includes the coverage of contractual obligations, annual expenditures, maintenance of the association, and reserve sums for long-term maintenance of community property and/or community facilities.
Board of Directors
Oversight body composed of volunteers elected by association homeowners. During initial sales and construction phases, the board typically also includes builder or developer representatives.
Bylaws
The Bylaws document defines the governance structure for the association and contain provisions concerning operation of the housing development and the homeowner's association.
CC&R's
Covenants, Conditions and Restrictions are based on state-mandated requirements for community management and operating procedures. Recorded on the development, these documents apply to all property in a community association and, with few exceptions, can only be changed by a vote of the members of the association.
DRE
Department of Real Estate
Commonly asked questions include:
What are the benefits of a community association?
An association enhances community life for residents in a number of ways, which include:
Well-maintained community property and landscaping
Preservation of community standards
Access to quality amenities and services
Oversight of Covenants, Conditions and Restrictions (CC&Rs)
Ongoing communication to residents
How are membership and assessments determined for community associations?
Membership in a community association is an automatic and integral component of purchasing a home in an association. The assessment amount is determined by Department of Real Estate (DRE) mandated budgetary guidelines. Prior to actual property sales, the developer is required to submit a detailed association budget to the DRE which, when approved, determines the amount of the assessment paid by residents. The board periodically reviews the association's financial needs, including contractual obligations and anticipated annual expenditures, as well as appropriate reserve sums for long-term maintenance of community property and/or community facilities in order to determine any assessment fluctuations. Limits on the amount by which assessments may be increased each year are detailed in the CC&Rs or applicable civil code.
What is the role of the board of directors?
Your board is an oversight body composed of volunteers elected by association homeowners. During initial sales and construction phases, the board typically also includes builder or developer representatives. The board's fiduciary responsibility to make decisions in the best interest of the community includes ensuring that CC&Rs and other governing documents are upheld, integrity of common areas is maintained, and community issues are addressed on behalf of the association.
How does MERIT work with the board of directors?
In its leadership capacity, the board of directors is responsible for overseeing the business and administration of the community association, and utilizes MERIT¹s services to facilitate management of those responsibilities. MERIT provides support by implementing the board's policies, operational decisions and directives to help keep your community functioning smoothly.
What is MERIT's role as a professional management company?
A professional management company takes its direction from the board of directors and provides support for the board, community association and homeowners in five crucial areas: finances, legal issues, maintenance, communication, and the facilitation of insurance coverage.
What is the composition and role of MERIT¹s management team?
Your MERIT team is led by a community manager and includes specialized support staff such as customer service and administrative personnel, CPA's and senior management. As part of MERIT¹s commitment to excellence, community managers must be certified by the California Association of Community Managers prior to being hired or achieve certification within the first year of employment with the company.
For further questions, please contact MERIT toll-free at 800-428-5588 or email merit@meritpm.com.
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