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Minimally, a quality community association should comply with all of the following statements:
- There is a functioning board that meets regularly and carries out its duties and responsibilities as prescribed by applicable laws and governing documents, including the articles of association.
- The board has disclosed to the owners the association information that is required by law and the governing documents, including the MOI or Constitution.
- The association’s legal documents, resolutions, books of accounts, and records are kept in a location that is open to inspection by owners on reasonable notice and reasonable grounds during regular business hours.
- The board provides for due process (the opportunity to be heard) for owners in association-related matters and the board encourages the use of alternative dispute resolution in appropriate matters.
- The board conducts and produces minutes of annual general meetings and extraordinary general meetings as required by the governing documents.
- Election procedures conform to the governing documents and applicable law, with information regarding the process available to all owners.
- A system is in place to respond to owners’ requests for association-related matters.
- A system is in place for property inspections and monitoring to ensure proper maintenance and appearance, both current and preventive.
- The board periodically communicates with the owners to provide information concerning the association and to get feedback from the owners on estate matters.
- There exists a mechanism and procedure for assuring residents’ obligations to adhere to the governing documents and a confidential and safe forum for the resolution of disputes.
- Management holds appropriate credentials evidencing its competence to manage the community.
- Appropriate insurance – such as commercial general liability, property damage, directors’ and officers’ liability, workers’ compensation, and fidelity insurance – is maintained by the association as required by the governing documents and applicable law.
- A system is in place to administer property damage and personal injury claims.
- The board budgets for the ongoing education of members of the board, particularly for newly elected or appointed members.
- Develop a Policy Governance Model. A Policy Governance Model will define the role of the board as this: the board, on behalf of the owners, must see to it that the organisation achieves the desirable while avoiding the unacceptable. A model of governance allows boards to feel comfortable about delegating the day-to-day operations to the staff so that they can focus on the bigger picture – the longer-term needs of the organisation.
- A book of governance establishes the board as a legislative body (the policy maker) and the manager as the executive. The function of the board of directors is to set policy. The function of the manager is to carry it out, thereby creating a more efficient community association. The book of governance could contain the following: a vision statement, the association’s mission, and all policies. The vision statement should capture the meaning, direction, and values of the community association. An example of a vision of a community is: ‘To protect, maintain and enhance the value of the property’. The mission and vision are further defined by the association’s policies, which make up the bulk of the book of governance. Many communities divide their policies into the following categories: general board policies, procedures, and board and management relationships.
