QUESTION: What is a Management Company and What Do They Do?

ANSWER: Administration: Depending on the contract with the association, the management company will Inspect the project for building and landscape maintenance and monitor violations. Receive owner calls and correspondence. Attend scheduled board meetings and the annual election. Solicit bids and supervise Association contractors, as needed. Provide a 24 hour answering service. Type letters and provide information on the industry to the board of directors and owners. Management's goal is to assist the Association in maintaining property values within the community by providing professional expertise and years of experience and knowledge.

Accounting: Submit monthly assessment billings to the owners, track and maintain the associations receivables, maintain current lists of owner addresses as received, processing of the Association payables and pay the association bills, process escrow requests and produce the monthly financial reports to the Board.

QUESTION: What is the Board of Directors?

ANSWER: The Association is most often a corporation by law, and therefor a governing body is needed to oversee the business of the Corporation. The Board of Directors is the elected governing body of the Corporation or a non incorporated association. These Directors (the number is determined by your Articles of Incorporation and your Bylaws), create the rules and regulations for enforcement within the community, oversee that funds are being properly budgeted and have the duty to enhance, maintain, and protect the property values of the Association. The Board of Directors usually organizes several committees to aid in the decision making. Examples would be Architectural and Election Committees.

QUESTION: How is the Amount of My Assessment Determined?

ANSWER: In California the Department of Real Estate (DRE) requires a budget from the developer for each tract that the developer proposes to build. This budget is required to be submitted to the DRE for approval prior to actual sales. The DRE has budget guidelines figures for all areas owned in common and which are the responsibility of the Association to maintain and or replace. There are two areas of the budget; the Operating accounts such as utilities, landscaping, etc. and the Reserve accounts for future replacements such as re-roofing, re-paving, etc. The individual assessment amount is then determined by the number of units built within a given Association. After the DRE approves the FIRST budget, the total monthly assessment is then passed on to the owners. Thereafter, the Board of Directors of the Association determine the needs of the Association and the ensuing budgets.

QUESTION: What Happens If I Don't Pay My Assessment?

ANSWER: The Declaration states that not paying the monthly assessment causes the owner to be subject to a lien notice at 30 days past due, as well as interest and possible late charges. A notice of lien and late charge is usually assessed at 30 days past due and is the first action taken. If there is no response from the owner a lien is then filed which could eventually result in foreclosure of the unit.




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