Terminology

Officers of the Association

Officers are sometimes confused with board members, but there are distinct differences.

The Officers of the Association...

• are elected by the Board of Directors annually.

• serve at the pleasure of the Board of Directors for one year with no term limits.

• must consist of a President, a Secretary, and a Treasurer.

• cannot vote on association actions.

• carry out broad policy decisions.

• can include additional officers as the Board of Directors see fit (e.g., Vice President).

• can occupy two or more offices with the exception of President and Secretary.

• can also be on the the Board of Directors at the same time.

Typical officer positions include President, Vice-President, Treasurer, and Secretary.

President

• • Chief executive officer and leader of the association.

  • Presides at all meetings of the board and membership.

  • Executes legal documents on behalf of the association.

  • Sets meeting agendas and controls all meetings.

  • Represents the board before the residents.

  • May have nominating, if not appointment, responsibility for all committees.

Vice President

• • Performs all of the duties of the president in their absence.

  • Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.

  • Usually assigned liaison responsibility to specific staff or contractors, and to specific committees.

Secretary

• • Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes.

  • Maintains minutes and book on all meetings.

  • Maintains book of resolutions.

  • Maintains all official records, including official correspondence, contracts, membership roster, etc.

  • Receives, verifies, and maintains all proxies.

  • Attests, by signature, to the legitimacy of certain documents.

Treasurer

• • Works with appropriate staff, contractors, and committees to develop and submit annual operating budget for approval.

  • Maintains adequate records of all association financial transactions.

  • Maintains roster of disbursement of funds, as authorized.

  • Prepares period financial reports.

  • Arranges, subject to board approval, an independent audit of financial affairs.

Legal Documents for Homeowner Associations and their Hierarchy

1. Subdivision Plat: Describes the location and nature of the common property and the individual lots.

2. Property Deeds: Comprise the individual lot deeds and the deeds to common property which give a legal description of the property.

3. The Declaration of Covenants, Conditions, and Restrictions: The declaration of CC&R's is the collection of covenants imposed on all property within the development and provides:

   • • For automatic association membership of all owners and the basis for voting rights.

     • The obligation of each owner to share in funding the cost of association operations.

     • Certain restrictions (architectural control and other rules) on the use of the property and the association's enforcement powers.

     • Sets forth the power and authority of the association to own and maintain the common property and to make and enforce rules.

4. Articles of Incorporation: Creates the association as a legal entity under state corporate statute, defines the board powers and responsibilities of the association and its membership, and sets forth the process for creating the board of directors, voting system, etc.

5. By-Laws: Implements, in specific detail, the provisions of the CC&R's and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process.

6. Rules and Regulations: Sets forth the operational powers or provisions and the use restrictions adopted by the association.

Accounting Basics

Cash Method of Account

Income and expenses are only recorded when cash changes hands. Financial reports only reflect cash transactions. This is a relatively simple system for simple situations. Because all obligations are not recorded until cash changes hands, this method does not provide an accurate portrayal of the financial condition of the association at any given time.

Accrual Method of Accounting

Keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity and technical knowledge that is needed to maintain the records, understand the reports, etc.

Capital Reserves

The Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.

Public Land Survey System (PLSS) Coordinates

The PLSS is a surveying method developed and used in the United States to plat, or divide, real property for sale and settling.

Myrtle Hill's coordinates are Township 4 South, Range 1 West, Section 82 (often abbreviated as T4S R1W Sect 82) in the Greensburg Land District.

See also USGS topoView.