M-100 PowerPoint Slides FINAL 8-11

5/28/2018 M-100 PowerPoint Slides FINAL 8-11

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Introduction/Welcome

Self introduction

Participant introduction

Administration

Logistics


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AgendaDay 1

Introduction/Logistics/Course Objectives

Legal Basis

Rule Development/Enforcement

Budget & Reserves Collecting Assessments

Financial Statements

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AgendaDay 2

Maintenance

Contracting

Risk Management & Insurance

Community Management Board Meetings & Decision-Making

Manager Ethics

Day 2 Wrap-Up

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AgendaDay 3

Review/Questions and Answers

Course Evaluations

Examination

100 multiple choice

questions

2 hours

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Certified Manager of Community Associations

(CMCA) Certification Program

Administered by the National Board of Certification for

Community Association Managers (NBC-CAM).

Establishes acceptable standards of knowledge and skills for

the community management industry.

Provides association homeowners with a level of confidenceregarding a certified manager's knowledge.

Raises the professional status of community association

management.

Resources: M-100: The Essentials of Community Association

Management, Drafting Rules, Bids & Contracts, Meetings &Elections, Reserve Funds, Risk Management and Insurance.

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Certified Manager of Community Associations

(CMCA) Certification Program, cont inued

What are the steps to earning the CMCA

certification?

1.Complete and pass the CAI-sponsored

course, M-100: The Essentials of Community

Association Management

2.Complete and submit the CMCA application

3.Pass the CMCA Examinationa 3-hour, 120

multiple-choice question examination

For more information, visit www.nbccam.org.
http://www.nbccam.org/http://www.nbccam.org/


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Other CAI Designationsfor Community

Managers and Management Companies

Association Management Specialist

(AMS)

Large-Scale Manager (LSM)

Professional Community AssociationManager (PCAM)

Accredited Association Management

Company (AAMC)


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Focus

Why we have

community associationsand how they are

structured.

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Module 1: Legal Basis


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Legal Basis

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This section of the program will

introduce you to:

The legal nature of a community

association, including the scope andlimits of its authority (Legal Basis for

Community AssociationsLesson 1)

Proper rule development and

enforcement (Rule Development andEnforcementLesson 2)


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Lesson 1:

Legal Basis for Community Associations

Session Overview

Learning Objectives

Define a community association.

Describe the purpose of a community association.

Identify the types of community associations.

Identify federal laws that affect community associations.

Identify state statutes that affect community associations.

Understand governing documents of community associationsand their hierarchy of authority.


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Characteristics of a Community Association

Mandatory membership

Mutually binding documents

Lien-based assessments


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Purposes of a Community Association

BusinessCommunity

Government


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Types of Community Associations

Planned Community

Condominium

Cooperative


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Types of Community Associations:

Planned Community


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Condominium A


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Condominium B


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Cooperative


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Other Types of Communities

Master (Umbrella) AssociationMore than one

residential community association

Mixed-Use DevelopmentMixture of residential

and commercial and/or industrial use groupedtogether

55 and Older CommunitiesMust have one

person who is 55 years of age or older living in at

least 80% of its occupied units


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Sources of Legal Obligation for

Community Associations

Federal, state, and local statutes, regulations, and case law

Legal documents unique to the community associationcalled

Governing Documents

Lender requirements

Standards set by professional bodiesfor example, auditing

standards set by the American Institute of Certified Public

Accountants (AICPA)


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Types of Federal Laws Applying to


Equal Employment Opportunity Commission (EEOC)

Fair Debt Collection Practices Act (FDCPA)

Fair Housing Act

Fair Labor and Standards Act (FSLA) Family and Medical Leave Act (FMLA)

Federal Communications Commission (FCC) /

The Telecommunications Act of 1996

Federal Insurance Contributions Act (FICA)

Occupational Safety and Health Act (OSHA) Soldiers and Sailors Civil Relief Act of 1940 (SSCRA)

U. S. Bankruptcy Code

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Fair Housing Act

55 and Older Communities

Reasonable Accommodations/

Modifications

Maintenance Pets/Service Animals

Disruptive Residents

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Types of State Statutes Applying to


General State StatutesApplies to all types of

associations, including community associations

For example, regular corporate or not-for-profit

corporate statutes


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Community Associations, cont inued

Specific State Statutes

- Applies onlyto one or more of the types of

community associations

- Takes precedence over any general statute and

takes precedence over the associations governingdocuments

For example

- Provides for establishment and operation of

condominiums as legal entities- Regulate development and sale of condominiums


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Uniform State StatutesNational Conference of

Commissioners on Uniform State Laws draft generic,

content-specific wording for topical issues to

encourage uniformity among the states

For more information, visit www.nccusl.org


Community Associations, cont inued
http://www.nccusl.org/http://www.nccusl.org/


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Community Association

Governing Documents

Purpose:To provide for the legal structure

and operation of a community association

The documents:

o Define the rights and obligations of both the community

association and its owners

o Create a binding relationship between each owner and the

community association

o Establish the mechanisms for governing and funding the

community associations operations

o Set forth rules and standards


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General

Hierarchy of

GoverningDocuments for

a Community

Association

Declaration, CC&Rs,

proprietary lease or

occupancy agreement

Recorded

map,

plat or plan

Articles of

Incorporation

Bylaws

Board Resolutions


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Recorded Map, Plat, or Plan

Recorded before first parcel sold/title transferred

Plat sets developments boundaries


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Declaration, CC&Rs, Proprietary Lease or

Occupancy Agreement

In community developments, deed restrictions are

recorded in one document instead of the deed/title for

each lot or unit

Condominium= declaration/master deed

Planned Community= declaration of covenants,

conditions, and restrictions (CC&Rs)

Cooperative= proprietary lease/occupancy

agreement


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Articles of Incorporation

Brings corporation into existence

Cooperatives must incorporatewhy?

Other types of communities may incorporatevaries

by state Benefits of incorporating:

- Limit liability of individual owners

- Right granted all corporations

- Easier to deal with utility companies, vendors, etc.

- Grants the board the same rights as all board

members of incorporated entities under state statutes


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Bylaws

Bylaws:Formal procedures for administration and

management of the governing entity

Examples:

- Meeting proceduresincluding voting rights- Board powers and duties

- Indemnification of officers and directors


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Resolutions

ResolutionA motion following a set format and

formally adopted by the board.

May enact rules and regulations or formalize other

board decisions

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Public Offering Statement

Public Offering StatementProvides association

information to first prospective buyers

Required by state statute

Notconsidered a governing document


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Lesson 2:

Rule Development and Enforcement:

Session Overview

Learning Objectives

Understand the scope and purpose of rules and

architectural guidelines in community associations.

Identify the four types of resolutions for community

associations.

Develop valid and enforceable rules

using formal rule making procedures.

Develop and implement a dueprocess procedure for enforcing rules.


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Scope of Rules and Guidelines

Rules cover the following areas:

1. The use of common property

2. The use of individual lots/units

3. Exterior appearance of homes or units

4. Behavior of residents, guests, and visitors


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Resolutions

ResolutionA motion following a set format

and formally adopted by the board.

Kept in a Book of Resolutions

Four types of resolutions:

1. Policy resolutionsowners rights and

responsibilities, i.e., use of recreation facilities

2. Administrative resolutionsinternal operation,

i.e., where board meetings will be held

3. Special resolutionsapply a policy or rule to an

individual owner, i.e., decision about alleged ruleviolation

4. General resolutionsroutine events, i.e., adoption

of annual budget 36


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Criteria for Valid Rules

Must not violate constitutional rights

Must be consistent with laws, statutes, and governing

documents

Must reasonably relate to purpose of community

Must be reasonable and fair

Must be capable of uniform

enforcement

Must be necessary


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Steps in Developing Rules

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1. Justify theneed for the

rule

2. Look at theimmediate andlong-termimpacts

3. Find theauthority to

make the rule

4. Define thescope of the

rule

5. Justify thevalidity of the

rule

6. Give noticeof the

proposed rule

7. Act promptlyon the

proposedrule

8. Give noticeof the adopted

rule

9. Revise theRules and

Regulationsdocument

10. Record the

new rule in theland records*


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Due Process Procedure

A formal process to protect the rights of all parties. Alleged violations all handled the same way

Courts recognize and value the procedure

Majority of violations can be resolved

Non-threatening environment furthers voluntary

compliance

Provides opportunity to explore alternative means of

resolution


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Basic Steps in a Due Process Procedure for

Handling Alleged Rule Violations

1. Call the resident or send a courtesy

letter to resolve the violation.

2. Issue a formal cease and desist letter.

3. Issue a hearing notice if the alleged violation does notend within the stated time.

4. Hold the scheduled hearing if the alleged violation

does not end within the stated time.

5. Issue a decision after a hearing is held.

6. Allow for an appeal of a decision.40


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Alternative Dispute Resolution

Effective with serious disputes

Used before lawsuit/court

involvement

Trained 3rdparty

Can include arbitration (binding

or non-binding) or mediation

(binding or non-binding)


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Internal Resources for Enforcement

Suspend voting rights

Suspend use of amenities or recreation facilities

Fines

Eviction Self help corrections


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External Resources for Enforcement

Health department

Zoning department

Police

Fire department Building/planning department

Animal control


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Focus

How to understand the basic financial reports and

activities of a community association and the

community managers typical involvement in them.

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Module 2: Financial Management


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Financial Management

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This section of the program will

introduce you to:

Budgets and Replacement

ReservesLesson 1

Collecting AssessmentsLesson 2

Financial Statements, Audits, Income

Taxes, and InvestmentsLesson 3


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Lesson 1: Budgets and Replacement Reserves

Session Overview

Learning Objectives

Use budgets as a management tool to facilitate the effective

operation of the community association.

Explain the sources of budget requirements.

Identify and understand the budget components.

Identify the two types of budget line items.

Identify the two basic methods of budget preparation.

Present a budget to the board of directors.

Recognize the purpose and benefit of the reserveaccount.

Calculate replacement fund budget line items.


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Using the Budget as a Management Tool

To plan community

activitiesnot a

prediction

To determine

assessment rates

To measure and control

financial operations

To give continuity to

services

To maintain quality of life

To limit surprises andminimize the unexpected

To balance the needs

and desires of the

community


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Sources of Budget Requirements

Federal laws and regulations

State statutes, regulations, and court decisions

Local laws and regulations

Governing documents


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Budget Components

Revenue

Owner assessments

Interest

Other revenue (includeslate fees, fines, and

user fees)

Expenses

Operatingroutine

administration and

operations

Major improvements

new

Replacement fund

repairor replacementof

major components


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Calculating Assessments

Formula for calculating assessment fees for condominium owners:

Total Assessments Required Percentage Interest as Found

in Annual Budget X in the Declaration

Number of Installment Payments in a Year

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Budget Items

Mandatory line itemscommunity and owner

needsand obligations

- For example: taxes, repairs, utilities, maintenance

Discretionary line itemsowner, board, and

committee desires or expectations

- For example: social and recreational expenses,

picnic areas, patrols, pool towels


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Budgeting Methods

1. Zero-base budgetingall line items are set to zero and the

amount of funds allotted to each must be justified

2. Historical trend budgetingexisting line items are needed

- Item assumed to be justified

- Prior information adjusted for expected changes

* Utility costs

* Construction materials

* Insurance

* Staff size* Staff raises


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Reserve Account

Typically used to replace asphalt paving,

concrete sidewalks, roofs, central heating and

cooling plants, swimming pool, tennis courts,elevators, and other varied property components.

Revenue raised for adding a major item will be

a major improvement expense.

Revenue raised for replacing that item when it

deteriorates will come from the replacementreserve account.

The reserve account consists of funds put asidein reservefor

the replacement of major components of a communitys common

property.


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Benefits of an Adequate

Reserve Account

Meets legal, fiduciary, and professional requirements

Provides for planned replacement of major items

Equalizes contribution of new and old owners

Minimizes need for special assessment

Enhances resale value


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Benefits of a Reserve Study

Fulfills fiduciary duty

Meets state

requirements

Meets AICPArequirements

Reduces liability

Saves planning time

Effective

communication tool Reveals unbudgeted

items


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Lesson 2: Collecting Assessments

Session Overview

Learning Objectives

Recognize the sources of authority to collect

assessments.

Identify the benefits of establishing a collectionspolicy.

Identify legal remedies available to community

associations for collecting delinquent assessments.

Understand the impact of a bankruptcy filing on theassociation.


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Assessments

AssessmentOwners financial

obligation to a community association

during a given period of time

Special assessmentOne time

assessment, often voted on by owners

to cover a major expense such as a

major repair or replacement


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Benefits of an Established Collection Policy

Educates owners about their obligations to theassociation and the consequences of not meeting

those obligations on time

Provides a checklist and a road map to guide a board

and a manager Avoids charges that the association is proceeding in

a selective or discriminatory way

Helps preserve harmony among owners


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Characteristics of an Effective Collection Policy

1. Established by a formalresolution of the board

2. Specify only actions that are

within the power of the

association and its board

3. Set a firm due date forassessments

4. Outline the steps to be takenwhen a payment is late

5. Allow for discretion in special

cases

6. Specify when a delinquent

assessment should bereferred to legal counsel

7. Provide for the collection of

any costs associated with

collecting delinquent

assessments


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Delinquency Remedies

Extra Judicial Remedies Late charge or interest penalty

Require security deposit equal to certain number ofmonths assessments

AccelerationCollection of all assessments duethrough the end of the fiscal year

Suspend owners user privileges, such aspool privileges

Suspending owners voting and other

participation rights


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Delinquency Remedies, contd.

Judicial Remedies

Perfect association lien

Foreclose the lien

Personal money judgment- Allows association to claim/collect rent from the

owners tenant

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Bankruptcy

Immediately take three

actions:

1. Contact legal counsel

(attorney)

2. Forward any bankruptcy

notices to counsel

3. Stop all collection

efforts

Types of bankruptcy:

1. Chapter 7liquidation

2. Chapter 11corporate

reorganization

3. Chapter 13personal

reorganization


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Lesson 3: Financial Statements, Audits,

Income Taxes, & Investments

Session OverviewLearning Objectives

Identify the purpose and types of financial

statements.

Identify and explain the three types of accountingmethods.

Differentiate between an audit, review and

compilation.

Recognize federal income tax requirements and

responsibilities for community associations. Explain investment policies and objectives for

community associations.


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Accounting Methods

Cash Basis

Incomewhen received

Expensewhen paid

Accrual Basis Incomewhen earned

Expensewhen incurred

Modified Cash Basis

Records income and

expenses on a cash basis

with selected items recorded

on an accrual basis

Most common = records

income (assessments) on

the accrual basis and

expenses on the cash basis

Also known as ModifiedAccrual


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Financial Reports

The Statement of Revenue and Expense Records transactions during a given time period

Three components:

- Revenue

- Expense

- Net revenue (or loss)


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Financial Reports, cont inued

Balance Sheet

Snapshotfinancial condition at a specific point in

time

What association owns and owes and its net worth

ASSETS = LIABILITIES + MEMBERS EQUITY

and

ASSETSLIABILITIES = MEMBERS EQUITY


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Financial Reporting Warning Signs

Steady decline in the amount

of cash on hand

Replacement reserves not

set aside (no formal reserve

study)

Increase in assessments

owed to the community

Increase in what the

association owes for bills

Failure to resolve any

differences between bank

statements and financial

reports

Significant and/or unexplained

differences between actual

and budgeted figures

Members equity balance is

less than one to three months

of operating expenses

Unpaid amounts showing as

due between funds


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Role of the Certified Public Accountant (CPA)

Audit

Review

Compilation

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Investments

Safety

Liquidity

Yield

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Safeguarding Association Funds

Work with your board of

directors to implement a

series of safeguards and

internal controls to help

prevent fraud andembezzlement.

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Focus

How to understand the community managers role in:

Operating, maintaining, repairing, and replacing the

common elements and common areas.

Planning, organizing, leading, and controlling your

associations resources in order to achieve its goals.

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Module 3: Facilities Management


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Facilities Management

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This section of the program will introduce you to:

MaintenanceLesson 1

ContractingLesson 2

Risk Management andInsuranceLesson 3

L 1 F iliti M i t


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Lesson 1: Facilities Maintenance

Session Overview

Learning Objectives

Determine your associations

maintenance responsibilities.

Analyze your communitys maintenance needs.

Identify the types of maintenance work.

Analyze your facilities maintenance system and

management tools.

Evaluate maintenance systems and efforts. Explain the importance of sustainable lifestyles.


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Management Tools for Maintenance

Examples:

Checklists

Charts of information

Calendars or schedules

Records of actions

taken

Inventories

Work orders Request forms

Response forms

A management tool is any means used to track,record, remind, or command attention.


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Identifying Maintenance Needs

Conduct a site visit of the property

Examine building plans or specifications

Review any reserve studies

Review all maintenance records Interview board members, employees, or contractors

Review product or equipment information

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Types of Maintenance Work

Routine

Preventive

Emergency

Requested Reserve replacement


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Work Order Systems: Purpose

Document requests

Assign tasks

Obtain feedback

Allocate costs

Evaluate staff and

contractor performance


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Work Order Systems: Benefits

Ensure follow-up

Monitor costs

Provide historical records

Document problems

Bayview Towers Condominium Association, Inc.

GREEN ENERGY COMMITTEE


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(Advisory Committee)

CHARTER

OBJECTIVES:

To assist in the education of homeowners and staff regarding energy, water and other conservation

related subjects. This shall be accomplished through research, analysis and testing of newtechnologies, in addition to well established procedures and recommendations. Additionally, the

committee will investigate federal, state, and local government programs while also soliciting knowledge

and ideas from public utilities and private industry.

Communication of technical findings, ideas and suggestions to homeowners will be through, but not

limited to, a monthly column, special notices, lectures and demonstrations. Ideas suitable for the

community will be presented to the board or appropriate committees.

The actions and benefits resulting from this committee will be dependent upon a high level of interestand the involvement of the entire community. Therefore, the committee shall encourage and solicit

homeowner participation to the maximum extent practical.

ORGANIZATION:

The committee will meet as needed, typically monthly.

The committee members will select its chair.

All committee meetings will be open to the public. Minutes of the meetings will be taken and filed in the corporate files.

A report that will be issued to the board will be generated from each committee meeting.

The committee will consist of at least five (5) association members.

The committee will serve at the pleasure of the board.


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Relax Architectural Guidelines

Use broad language

Allow multi activities

Allow diversity

Include sustainable initiatives

Assure proper restoration

of sustainable systems

Predetermine technologies you want

Be up to date with terms Allow low tech options, too

Allow resourceful and natural systems


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Lesson 2: Contracting

Session Overview

Learning Objectives

Determine whether or not to

contract for services.

Prepare a request for proposals

and evaluate bids submitted for

consideration.

Identify the provisions that should

be included in every contract.

I th t Aff t th D i i


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Issues that Affect the Decision

to Contract Services

Personnel

Time constraints

Cost

Tools, equipment, and supplies

Insurance coverage

Licenses and permits

Storage facilities


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Preparing an RFP Packet

The full name, address,

and telephone number

of the association

Detailed description of

the work to be done orthe product to be

purchased

Key dates

Whom to call

for information or

inspection of site

Where to submit bid

Request for three to five

references from

previous jobs of similar

size and scope

Warranties required


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Contract Provisions

Parties

Scope of work

Compensation

Time period Performance standards

Warranty

Restoration

Indemnification

Insurance

License & permits


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Contract Provisions, cont inued

Notices

Termination

Default

Financial protection- Performance bond

- Completion bond

- Waiver of lien

Legal provisions

- Assignability

- Modifications

- Waiver

- Severability

- Entire obligation


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Tips for Successfully Completing a Contract

Hire a specialist to inspect ongoing work

Monitor the job site while work is in progress

Inspect the completed job before final payment

Prepare a payment schedule if you are going to makeprogress payments

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Lesson 3:


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Lesson 3:

Risk Management and Insurance

Session Overview

Learning Objectives

Identify the four types of exposure to loss for an association.

Define risk control.

Identify four ways to control risk.

Identify the requirements for community associations to have

insurance coverages.

Identify the four major insurance coverages available to

community associations.

Explain the managers role in the bidding process.

Provide tips for filing insurance claims.


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Exposures to Loss

1. Property Exposuretangible or intangible

Real propertybuildings, land, information

Personal propertyinventory, furniture, supplies

2. Liability ExposureThird-party claim of personal or property

damage3. Income Exposurenet lossreduction in income/increase in

operating expenses

4. Personnel Exposureclaims of employees

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Risk Control

1. Exposure avoidance

2. Loss prevention and reduction

3. Segregation of exposure

4. Contractual transfers


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Sources of Insurance Requirements

1. State statutes and regulations

2. Association governing documents

3. Local and federal law

4. Secondary mortgage market,agency, and lender requirements

5. Contractual obligations

6. Good business judgment


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Property Coverage

Commercial package policy

Mechanical/equipment

breakdown insurance

Ordinance/lawinsurance Flood insurance

Electronic data processing


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Liability Coverage

Commercial general liability

Hired and non-owned

automobile liability

Commercial umbrella liability Directors and officers liability


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Income Coverage

Fidelity insurance

Business income insurance

Assessment fees receivable

insurance Extra expense insurance


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Personnel Coverage

Workers Compensation

insurance

Employers Liability

insurance

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Evaluate Agents/Brokers

Experience

Specialty in the field

Knowledge of community associations

Claims processing history Participation in professional and trade associations

Professional standing

Licenses

Bonding CIRMS

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Module 4: Community Management


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Focus

How to:

Inform and guide your communitysowners and volunteers.

Successfully perform your role as

community manager and leader.

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Module 4: Community Management

and Leadership

C it M t d


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Community Management and

Leadership

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This section of the program will introduce you to:

Your role and responsibilities as a manager in

relation to the roles and responsibilities of your

communitys owners and volunteer leaders(Community ManagementLesson 1)

The effective use of board meetings for decision

making (Board Meetings and Decision-Making

Lesson 2) Management ethics (EthicsLesson 3)

L 1 C it M t


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Lesson 1: Community Management

Session Overview

Learning Objectives:

Explain the roles and responsibilities

of the community association owners,

board and committees.

Identify the roles and responsibilities of the manager. Explain the different forms of community management.

Describe the scope of the management contract.

Describe the scope of the employment agreement.

Understand the managers role in a developing community. Understand the managers role in overseeing a

communitys human resource system.


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Role of the Owner

Elect and remove directors

Amend any of the governing documents, except

board resolutions

Approve special assessments or capital

improvements

Not veto board decisions

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Role of the Board

Act in the best interests of the association

Be responsive to the needs and desires of the owners

Be familiar with the governing documents, state statutes

and federal laws that impact the association

Enforce the governing documents fairly and uniformly Set the policies, standards, procedures, programs, and

budgets for the community association

Not micromanage the manager, volunteers, contractors,

and other service providers

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Board of Directors Responsibilities

Care, maintenance, and

enhancement of the physical

property, common areas,

and facilities

Management of community

finances and developing

reserve funds

Risk management, including

obtaining insurance

Board of Directors


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Board of Directors

Responsibilities, cont inued

Establishment, enforcement,

and interpretation of rules and

regulations

Human resources managementof employees and volunteers

Preservation and promotion of

community harmony


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Business Judgment Rule

Based on fiduciary dutyact in the best interest

and for the benefit of the community association

Business judgment rule applies this as follows

The officers and directors of a corporation are immune fromliability to the corporation for losses incurred in corporate

transactions within their authority, so long as the transactions

are made in good faith, with due care, without any direct conflict

of interest, and with loyalty to the corporation evidenced by

acting in its best interests.- The court will not substitute its judgment for the boards


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Types of Committees

Mandatory

o Required by the governing

documents

o Typical mandatorycommittees:

- Elections

- Nominations

- Architectural standards


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Types of Committees, cont inued

Standingo Ongoing to meet a basic community need

o For example:

- Budget/finance

- Social

- Newsletter

o Established by board resolution

Ad Hoc

o One-time issue

o Established by board resolution


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Guidelines for Successful Committees

Serve in an advisorycapacity

Have an appeals

process, if needed

Have specific jobdescriptions

Keep minutes and

make recommendations

Have meaningful tasks

Have guidance to

complete tasks

Consideration of their

recommendations

Recognition of their

work

Role of the Manager


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Provide information, training, and leadership on

community association operations to the board,committees, and the community at large

Foster a sense of community awareness and spirit within

the residents

Develop a body of leadership through the committee

structure

Provide the necessary administrative tools to the board to

enable it to make wise, informed decisions on both short-

term and long-term actions and goals

Facilitate board meetings Provide practical, technical and administrative advice

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Forms of Management


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Volunteer

Association-Employed

Manager

Management Company


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Provisions of a Management Contract

Contracting parties

Chain of command

Responsibilities of

management

Insurance

Terms of agreement

Termination

Indemnification and

hold harmless

Compensation

Provisions of an


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Employee Agreement

Terms of employment

Duties and services to

be performed

Compensation

Termination

Associations

obligations

Exclusiveness ofagreement

Modifications only in

writing

Applicable legalsources

Nondisclosure of

confidential information

Notice provisions


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Transition

111


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Objectives of a Smooth Transition

Enhance community relations Minimize controversy

Build trust

Resolve issues before they

escalate Minimize potential claims

Retain management contract

Ensure future developer work

Less stressful life

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Definition


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Definition

Transition- (tran-sis'-shun)

n. the gradual process by which the control and

responsibilities of the governing board of an

association are transferred from the declarant to thepersons who bought units/lots in the common interest

community.

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Definition


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Definition

Turnover- (turn'-oh-ver)

n. the date on which the declarant no longer has

the right to appoint a majority of the members of

the board.

114


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The Players

Manager

Attorneys

o Developer

oAssociation Engineer/Reserve

Specialist

Accountant

Insurance Agent

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The Manager

Twinkle in eyeo Documents

o Budget

o Design

o Communityassociation creation

Orchestra conductor

Educator

Trainer

Coordinator Cheerleader

Mediator

Discipliner

Task Master The Great

Communicator

Buffer

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Initial Services


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Initial Services

Review site, building &landscape plans

Confirm amenities

Create team

Draft realistic multi-year

budget Determine developer

funding obligations

Review documents

Craft rules, ACCguidelines

Create transitiontimeline/checklist

Train sales andconstruction staff

Create HO manual

Create/reviewMaintenanceResponsibility Chart

P T S i


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Pre-Turnover Services

Train initial board

Provide leadership programs for emerging

homeowner board and committee members

Conduct new owner welcome and orientation

sessions

Update developer funding obligations

Frequent Town Hall meetings

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T S i


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Turnover Services

Prepare for TurnoverMeeting

o Documents & statutes

o Positive environment

o Ducks in a row Coach board

Prepare homeowneradvisory/board members

Coordinate transition team Turnover checklist

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P t T S i


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Post-Turnover Services

Community association management

New board orientation

Coordinate transition team

Coach new leaders Follow up turnover meeting issues

Leadership development

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The Managers


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Loyalty Conundrum

Developer:

Consulting fees

Sense of satisfaction

More business Easier work

No night meetings

Manager runs the show

121

The Managers


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g

Loyalty Conundrum, cont.

Association:

Continue after turnover

Use skills

Challenges

Word of mouth

122

Th C d Wi


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The Conundrum Winner

123

H R M t


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124

Human Resource Management

Personnel guidelines

Job descriptions

Personnel laws

Performance planningand evaluation

Disciplinary actions

Lesson 2: Board Meetings and Decision-Making


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125

g g

Session Overview

Learning Objectives

Explain the board of directors

decision-making authority.

Explain the managers role inpreparing for the board meeting.

Provide tools for conducting a board meeting.

Understand the types of owner meetings.

Use techniques to facilitate a successful meeting.

Board Meeting Policy Matters


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Board Meeting - Policy Matters

The emphasis of board meetings should be on timelyattention topolicymatters.

And, the day-to-day administration of the community

association should be left to the manager.

Legal Requirements


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Legal Requirements

State statutes and governing documents establishrequirements for board of directors meetings. Legal

requirements commonly address such issues as:

Frequency of meetings

When meetings shouldbe open or closed

Notice of meetings

Voting

Executive session

Violation hearings127

Dual Role of a Manager


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1. Support Staff

Meetings are well-

prepared

Board members

have the necessary

information ahead

of time

2. Professional Advisor

Provide the board with

guidance and

perspective on the

matters at hand

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Helping to Facilitate a Board Meeting


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129

Helping to Facilitate a Board Meeting

Help keep discussionson target

Offer alternatives when

discussion stalls

Call attention toprevious board actions

Be a timekeeper

Be aware of governing

documents

Urge consistency in

action

Support fairness

Elaborate on the

management report

Lesson 3: Ethics


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130

Session Overview

Learning Objectives:

Define ethics for community

associations.

Identify and resolve ethicalconflicts for managers.

Understand and apply CAI's

Designation Code of Ethics

for Management.

Ethics for Community Managers


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131

Ethics for Community Managers

Diligent service

Full disclosure

Reasonable care

Avoid

competition/conflict

No undisclosed monies

Accountability

Prudent use of authority

Conflict of Interest


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Conflict of Interest

1. Is the transaction which results in compensation to

the management company or agent directly or

indirectly related to managements relationship with

the community association?

2. Will management directly or indirectly receive some

compensation from the community association, or a

third party, other than the compensation described in

the management contract?

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Full Disclosure


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Full Disclosure

1. Make full and complete written disclosure of allrelevant facts to your boardprior to any dealings

which may be, or appear to be, a conflict of interest

for you.

2. Obtain specific authorization from the board in writingbefore proceeding with any action which may present

a conflict of interest.

3. Even after full disclosure, avoid any actions which

areor may be perceived asa conflict of interest.

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Course Conclusion


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Course Conclusion

134



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135

This section of the program

introduced you to:

The legal nature of a community

association, including the scope and

limits of its authority (Legal Basis forCommunity AssociationsLesson 1)

Proper rule development and

enforcement (Rule Development and

EnforcementLesson 2)



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136

This section of the program

introduced you to:

Budgets and Replacement

ReservesLesson 1

Collecting AssessmentsLesson 2 Financial Statements, Audits, Income

Taxes, and InvestmentsLesson 3



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137

This section of the program introduced you to:

MaintenanceLesson 1

ContractingLesson 2

Risk Management and

InsuranceLesson 3

Module 4: Community


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Management and Leadership

138

This section of the program introduced you to:

Your role and responsibilities as a manager in

relation to the roles and responsibilities of your

communitys owners and volunteer leaders

(Community ManagementLesson 1)

The effective use of board meetings for decision

making (Board Meetings and Decision-Making

Lesson 2)

Management ethics (EthicsLesson 3)

Additional Resources from CAI


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Additional Resources from CAI

CAI offers many excellent resources forthose interested in obtaining additional

information about community association

management. For information on these

products, call CAI for a bookstore catalogat (888) 224-4321 or visit the bookstore

online at www.caionline.org/shop

Contact CAI
http://www.caionline.org/bookstore.cfmhttp://www.caionline.org/bookstore.cfm


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6402 Arlington Blvd., Suite 500

Falls Church, VA 22042(888) 224-4321 (M-F, 9-6:30 ET)

(703) 970-9558 (Fax)

[email protected]

www.caionline.org

Thank you!
mailto:[email protected]://www.caionline.org/http://www.caionline.org/mailto:[email protected]


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For participating in this course

For your support of CAI and the ProfessionalManagement Development Program

Final Questions?


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Final Questions?

Evaluations


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Evaluations

Please be sure to fill out your course evaluations. Your

feedback is important to us.

Course Exam


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Course Exam

100 questions Multiple choice

Results will be available

within four weeks, if not

sooner Good luck!


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