We often get questions regarding the role of Sharper Management (and management companies in general) in running an HOA. If you live in an HOA community, but have not served of its Board of Directors, you may also have questions. We hope the following information helps clarify some of the most common questions we receive.
Common interest communities (HOAs or CICs) are governed by an elected Board of Directors. This Board is comprised of owners in the community who has volunteered to serve. Board positions are not paid positions.
Your Association, through the governing Board of Directors and the powers outlined in the Governing Documents, is responsible for many duties.
To name just a few:
- Understanding, enforcing and amending the Governing Documents
- All financial management, including the collection of dues, setting operating and reserve budgets, establishing and maintaining a reserve fund for capital projects, paying contractors, and meeting statutory requirements for financial reporting
- Engaging in all necessary contracts required to service the community, such as grounds care and insurance
- Maintaining all common areas and amenities
As you can see, that is asking a lot of your volunteer Board members. One of the options your Board has is to engage a professional property management company to facilitate some of these tasks. While the ultimate responsibilities always remain with the Board of Directors, the property management company acts as an advisory group to the Board, an administrative arm to carry out the decisions made by the Board, and it performs the day-to-day financial transactions of the Association.
Some important distinctions to remember between the Board and a management company are;
- The management company carries out the directives decided upon by the Board
- Management is NOT a policy or decision making body
Sharper Management’s goal is to be Your Minnesota Neighbor in HOA and common interest community management. Ultimately, our job is to work with the Board to help maintain property value and enhance your experience of living in a common interest community.