Download - 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.
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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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Types of Community Associations:
Condominium A
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Types of Community Associations:
Condominium B
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Types of Community Associations:
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
Community Associations
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
Community Associations
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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Types of State Statutes Applying to
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
Types of State Statutes Applying to
Community Associations, cont inued
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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
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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.
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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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87
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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104
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
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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.
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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
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The Managers
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Loyalty Conundrum, cont.
Association:
Continue after turnover
Use skills
Challenges
Word of mouth
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Th C d Wi
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The Conundrum Winner
123
H R M t
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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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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
128
Helping to Facilitate a Board Meeting
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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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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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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.
133
Course Conclusion
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Course Conclusion
134
Module 1: Legal Basis
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Module 1: Legal Basis
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)
Module 2: Financial Management
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Module 2: Financial Management
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
Module 3: Facilities Management
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Module 3: Facilities Management
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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139
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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140
6402 Arlington Blvd., Suite 500
Falls Church, VA 22042(888) 224-4321 (M-F, 9-6:30 ET)
(703) 970-9558 (Fax)
www.caionline.org
Thank you!
mailto:[email protected]://www.caionline.org/http://www.caionline.org/mailto:[email protected] -
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141
For participating in this course
For your support of CAI and the ProfessionalManagement Development Program
Final Questions?
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142
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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144
Course Exam
100 questions Multiple choice
Results will be available
within four weeks, if not
sooner Good luck!
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