Whether a planned community, condominium or mixed use
associations, all communities share five traits for success. These five
characteristics, when employed together, allow a community to operate
at its highest level of efficiency and efficacy, benefiting everyone
involved - the board, homeowner and management.
1. A Functioning Board of Directors:-
Because all five characteristics are affected by
board actions and decisions, an effective board is set as the first
priority. The most critical component of an effective board is
knowledge. Board members must have a working knowledge of their
community's governing documents if they are to make informed decisions
during meetings.The board meeting is not a "discussion forum" or
"planning session" it is a business meeting. It is imperative that board
meetings are efficient and productive. The majority of official
business is conducted during the board meeting.
2. A Relationship Between the Board and Management:-
The board is the ultimate decision-making
authority, and the managing agent is the indispensable vehicle they
utilize to implement and facilitate their vision. By understanding and
leveraging the nature of this relationship, communities are well on
their way to success. The managing agent serves as a repository of
industry-related experience and information. As such, he or she is a
professional service provider that brings stability and continuity to
the Community Management, and affects all aspects of the community’s operations.
3. Communication Between All Parties:-
The number one complaint received from owners is
that the association does not adequately communicate with residents.
Communication and transparency are essential for a successful community.
Without it, people may feel left in the dark, which can cause discord
among board members and homeowners, and the management company.
4. Financial Integrity:-
The first thing new boards must learn is their
fiduciary duty, a term often thrown around, and all too often
misunderstood and misapplied. Fiduciary duty means that the board has an
ethical and legal obligation to make decisions in the best interests of
the entire association. Board members should never use their position
to take advantage of the association and they must act reasonably in all
their decision-making processes. The Business Judgment Rule, defined by
Smith v. Van Gorkom Del. (1985)as "a presumption that in making a
business decision, the directors of a corporation acted on an informed
basis, in good faith and in the honest belief that the action taken was
in the best interests of the company,"is cited as a useful tool for
board members to use when making community decisions.
5. Community Governance:-
Finally, a successful community is effectively
governed. A community association's governing documents are structured
to be a representative form of government, but governing by polls is the
greater good of the community.
I am Felix Shelsher from UK, I am working for
real estate business at last 15 year. HOA is a one of best company for
real estate business in UK. I have lots of Information about Real Estate
and Community Association Management. I want to share my knowledge from
this type of articles.
Article Source: http://www.compensationsecrets.co.uk/