Condo Association Governance
This playbook outlines the necessary steps to establish and manage a condo association. It covers the preparation of governance documents, defines board responsibilities, and protects member rights.
Step 1: Document Drafting
Draft the governing documents which should include the Articles of Incorporation, Bylaws, and the Declaration (CC&Rs - Covenants, Conditions & Restrictions). These documents will define the condo association's structure, rules, and regulations.
Step 2: Legal Compliance
Ensure all documents comply with local, state, and federal laws. Consult a real estate attorney or a professional experienced in condo associations to verify the legality of the documents.
Step 3: Board Formation
Elect the initial board of directors for the association. The board will be responsible for making key decisions and managing the condo association in accordance with the governance documents.
Step 4: Member Rights
Define the rights and responsibilities of the association members within the governance documents. This includes fees, assessments, use of common areas, and the process for electing board members.
Step 5: Record Keeping
Establish a system for maintaining records, including minutes of meetings, financial statements, and official correspondences. This ensures transparency and accountability within the association.
Step 6: Meeting Schedules
Schedule regular board meetings and annual general meetings for all members. These meetings are essential for decision-making, updating members, and electing new board members.
Step 7: Financial Management
Set up financial management practices, including budgeting, accounting, and reserve funds. Transparent financial management is key to the association's long-term stability.
Step 8: Rules Enforcement
Implement a system for enforcing the rules and regulations outlined in the governance documents. This may involve establishing fines, penalties, or other corrective measures.
Step 9: Updating Documents
Regularly review and update the governance documents as necessary to adapt to new laws, member needs, or changes in the condominium community.
General Notes
Legal Advice
It is advisable to seek legal advice when drafting governance documents to ensure they are enforceable and compliant with the law.
Transparency
Maintain high levels of transparency in all aspects of governance to build trust within the condo community.
Member Involvement
Encourage active participation from all association members to foster a collaborative community environment.