Step into the world of community associations and uncover one of the most misunderstood aspects of the community management industry! Together, we’ll explore the intricate roles and responsibilities of homeowners' associations (HOAs), community management companies, and board members. Prepare to challenge misconceptions and gain a deeper understanding of the invaluable work community managers do to ensure the smooth functioning and harmony of our neighborhoods.

Q: What is a homeowner's association (HOA)?

A homeowner’s association (HOA) is a legal entity that manages, maintains, and governs a residential community. It consists of homeowners (that’s you!) within the community who elect a board of directors to represent the community’s interests. The primary purpose of an HOA is to uphold and enforce community rules and regulations created by the elected board, typically outlined in a governing document known as the "covenants, conditions, and restrictions" (CC&R).

The community residents comprise the homeowner’s association, each owning an equal share of the common areas. For example, if a single-family community had 100 houses, each owner would own 1/100 of the common areas.

Q: What is the role of the board of directors?

The board of directors is elected by homeowners within the community and serves as the governing body of the HOA. They are responsible for making important decisions, establishing, and enforcing community rules, managing the association's finances, and maintaining common areas. The board acts in the community’s best interest, aiming to preserve property values and enhance community amenities. The specific responsibilities of the board may vary depending on the size and needs of the community and the governing documents.

Q: What does the community management company do?

A community management company is a professional organization hired by the HOA’s board of directors to provide administrative, financial, and operational support. The management company acts as a liaison between homeowners and the board of directors, ensuring that the association's policies and decisions are implemented effectively. Their responsibilities often include collecting dues, managing budgets, overseeing maintenance and repairs, coordinating vendor services, and handling communication within the community

Q: What is the management company prohibited from doing?

The community’s board of directors hires the management company to provide support and guidance. While the community manager’s goal is to have a vibrant, harmonious community, they ultimately work at the board of director’s discretion. Community managers do not have the authority to make or change the community rules, decide on neighborhood projects, determine the monthly dues, or make any other decision for the board. The board has hired a management company to provide guidance, but the board of directors is ultimately responsible for community decision-making.

Q: How does the board interact with the community management company?

The board of directors collaborates closely with the community management company to ensure effective community management. While the board sets policies and makes decisions, the management company handles the day-to-day operations, such as budgeting, financial reporting, maintenance requests, and compliance enforcement. The management company serves as a resource for the board, providing guidance and expertise based on their experience in community management.

In a community association, homeowners, community management companies, and the board of directors work together to maintain and enhance the quality of life within a residential community.

In summary, the main responsibilities of each entity include:

• The HOA sets rules and regulations.
• The management company provides operational support.
• The board of directors governs and represents the interests of the homeowners.

 Through effective collaboration, these entities strive to create thriving, well-managed communities that owners can be proud to call home.

About Community Association Management Services

In business since 1991, CAMS is North and South Carolina’s premier community management company. With experienced local managers in each of its nine regions, CAMS provides innovative solutions to the community associations it serves. Additionally, CAMS was featured on Inc. Magazine’s 2022 Inc. 5000 list of the fastest-growing private companies in America. To learn more, visit www.camsmgt.com.