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ARC has developed a range of policies that all community associations are encouraged to use as a basis for implementing policies within their communities. A summary of these follows. For a full description, please contact jeff@hoasupport.co.za.
01 Access of visitors, contractors, guests and the ‘public’
ARC supports the right of an HOA to control access to the community whether roads are deemed to be private or public. ARC opposes access controls that conflict with the constitutional rights of citizens. ARC encourages the use of proper signage and other means to advise all visitors of their obligations while in the community.
02 Security protocols, standard operating procedures and emergency procedures
ARC supports the implementation of the highest possible security standards within budgetary constraints, and supports the principle that home owners living within communities are responsible for their own home security. The ARC opposes any groups challenging the rights of an HOA in regard to how the HOA applies these standards. ARC encourages all communities and their security service providers to implement standard operating procedures and emergency procedures in the community. ARC opposes the use of security providers who are unregistered.
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03 Financial controls, budgets and reserves
ARC believes it is imperative for all community associations to adopt and use a financial planning and budget process that accurately reflects projected annual operating costs and long-term capital or major expenses (reserves), and results in a balanced budget. ARC believes that the developer and developer-controlled board should prepare and disclose the initial budget to ensure accurate estimation of projected operating costs and reserves. ARC also supports full and open disclosure to owners, and the opportunity for participation by owners in the development of the budget. Further, ARC opposes laws that would mandate how community associations fund and maintain reserves.
04 Risk management and insurance
ARC supports the implementation and maintenance of an effective risk management programme by all member communities. ARC believes that an effective risk management programme can best be achieved if associations and their governing boards work with recognised community association professionals. ARC further believes that a comprehensive association insurance programme must focus on meeting a broad range of legal requirements while recognising that the governing board is the ‘trustee’ of the owners in insurance matters. This programme (collectively, risk management and insurance) requires that risks of loss be fully evaluated, and that funding for such loss (whether by commercial insurance or self-insurance) must be completely analysed.
05 Debt collection practices and clearance certificates
ARC supports effective, fair and reasonable collection methods according to properly established policies dealing with arrear levies, special levies and penalties, and opposes any government limitations on the ability of HOAs to pursue such methods. ARC also supports reasonable procedures to accommodate owners experiencing temporary financial difficulties. ARC opposes any claim that an HOA does not have a real right to issue levy clearance certificates on all transfers of property, including forced sales.
06 Home owners’ access to information
ARC supports all owner rights to information, in accordance with the Promotion of Access to Information Act. ARC opposes any instruction by any party to provide them with a member database of any community, beyond a simple member register.
07 Relationships between associations and other entities
ARC supports an integrated approach to the branding, communications and marketing strategy for the community industry, while respecting the right of individual communities to maintain their own strategies.
08 Dispute and conflict resolution
ARC recognises the need for, and supports the use of, internal and neutral alternative dispute resolution mechanisms to resolve disputes arising in community associations in appropriate cases. ARC opposes any legislation enforcing dispute resolution processes if an HOA has in place its own mechanism that complies with the industry policy.
09 Rules development and enforcement
ARC supports legally sound, fair and equitable rules development and enforcement procedures in community associations. ARC opposes penalties that are excessive and punitive.
10 Protection of association volunteers and prescribed officers
ARC supports protection against unwarranted legal liability for volunteers serving as members of a community association board of directors, prescribed officers or committee members, to enable them to make responsible judgments without fear of personal loss interfering with the judgment or decision-making process.
11 Contracting with service providers and estate agent ‘registration’
ARC supports the best practice document relating to service providers and estate agents. ARC also supports approval fees that are fair and equitable. ARC opposes practices removing the rights of owners to choose an agent and the rights of an agent to conduct business within the rules and regulations of the HOA but according to accepted industry norms.
12 Manager licensing and professional designations
ARC encourages the national certification of community association managers. ARC opposes the licensing of community association managers as real estate brokers, agents or property managers.
13 Aesthetics, architectural and building guidelines
ARC opposes all attempts at national and local levels to enact laws or regulations that ignore or negate the economic importance of the implementation of aesthetic controls in the residential community industry, including architectural and building restrictions.
14 Conservation, sustainability and the environment
ARC supports environmental and energy efficiency policies that recognise and respect both the legislative framework and the contractual obligations of community association residents, as the best mechanism to enact sustainable environmental policies.
15 Residents’ occupancy standards
ARC supports the HOA’s right to develop occupancy standards and to apply remedies if these standards are not met.
16 Communications in the association
ARC supports a communications methodology that keeps all owners and residents informed on all issues, whether good or bad news.
17 Tenants in community associations
ARC supports a balanced approach to the rights of tenants and landlords in community associations, while protecting real property rights. ARC supports reasonable regulation of transient occupancy, tenant compliance with association standards, and the integration of tenants into the community on an equal basis while recognising that the contractual agreement is between the HOA and the owner.
18 Rights and responsibilities of directors, prescribed officers and home owners
ARC supports a balance of the rights of individual owners in a community association with the need for effective management of the affairs of the association for the benefit of all owners. Reasonable association procedures that enable the board of directors and staff of the community association to perform their obligations efficiently must take into account the rights of an individual owner to privacy, enjoyment of his or her home, and full participation in the community association.
19 Transitioning of control from the developer to home owners
ARC recognises that successful transition is the responsibility of the developer, through open and timely communication, cooperation and disclosure, proper record keeping, the establishment of adequate management structures, staff selection and training, and home owner involvement in association governance. ARC opposes any claims by developers to retain unnecessary control and veto powers on issues not negatively impacting on the developer.
20 Government legislation in community associations
ARC supports effective legislation, when it is deemed necessary for consumer protection, protection for ongoing operations, or other necessary revisions of, or additions to, existing statutes or common law, to ensure that community schemes are developed, managed and maintained consistently with legitimate public policy objectives and standards that protect individual consumers, balancing the legitimate rights of the property owners and the development industry.
ARC supports local legislation that emerges from a balanced, well-considered assessment of all issues and interests affecting community associations within the greater local community, avoids discriminatory regulations against an individual community, and recognises both the unique nature of association-managed residential communities and the role of the homeowners associations. ARC opposes any local government legislation related to duplication of rates and service contributions on private communities who impose levies for the purposes of maintaining infrastructure and/or delivering services. ARC opposes any form of ‘double taxation’.
