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Will a Management Company Take Control of My Neighborhood?

In a word, no.

Professional management companies, like us here at CAMS, serve to assist and provide guidance to homeowners’ associations, not take over. We do that through a number of duties and in a variety of ways, but what we don’t do is adopt budgets, approve contracts, establish special assessments and set policies. The authority to perform those important functions is left to the board of directors 

But the question of what, exactly, a management company does is one that can be a cause for concern and confusion – especially if left unanswered. 

So, to dispel any myths or misunderstandings out there, here is a quick guide to what property owners’ associations (which include Planned Unit Developments (PUD) and Condominium Associations) and management companies can and can’t do.

Association Boards CAN:

  • Hire a professional management company to help manage and operate the association.
  • Delegate certain duties to a professional management company.
  • Approve/adopt budgets
  • Set the rate of assessments
  • Adopt rules and regulations
  • Draft and approve policies
  • Manage the business affairs of the association.

Association Boards CAN’T:

  • Transfer responsibility of an association to a professional management company. 

Management Companies CAN:

  • Act at the direction of an association’s board of directors.

Management Companies CAN’T:

  • Approve budgets
  • Approve contracts on behalf of the association
  • Set the rate of assessments
  • Adopt rules and regulations
  • Draft and approve policies
  • Take legal action on behalf of the association

In addition, BOTH the Association’s Board of Directors – and a professional management company, if one has been hired – are required to comply with state and federal laws, as well as the association’s specific governing documents, which include: 

  • Articles of Incorporation
  • Declaration of Covenants and Restrictions
  • Bylaws
  • Architectural guidelines
  • Policies
  • Rules and Regulations 

An important takeaway is this - a well-managed PUD or condominium community can only be achieved if a board of directors, the committees, owner members and the management company all work together to achieve a successful track record of operations.