M-100 THE ESSENTIALS OF COMMUNITY ASSOCIATION MANAGEMENT WITH COMPLETE SOLUTIONS 100%

M-100 THE ESSENTIALS OF COMMUNITY ASSOCIATION MANAGEMENT WITH COMPLETE SOLUTIONS 100% community association legal entity in which the owners enjoy the protection, enhancement, maintenance & preservation of their homes & property community association has 3 defining characteristics Membership in the community is mandatory & automatic for all owners; certain association docs bind the owner & the association to each other through mandated actions; mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate & maintain the community assocation lien legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation. What does the lien do? Placing a lien on an owner's property protects the community association's interests. It encourages payment of the debt. Consequence of lien is the owner cant sell or transfer the unit without settling the debt. Purpose of a community assocation to provide for the community, business, & governance aspects of the association. This is achieved by administering, maintaining, & enhancing a residential real estate development, and through the establishment of a system of property rights, binding covenants & restrictions, & rules & regulations. 3 basic types of residential community associations (1) Planned community; owner owns his unit ; community owns any common areas such as tennis courts, for the use & benefit of the lot owners second type Condominium; owner owns his living unit & an undivided interest in the common elements of the community. Each owner owns a % of the common elements, which consist of everything except the living units. third type Cooperative; person owns stock or membership; holds a proprietary lease or occupancy agreement for his living unit Proprietary lease or occupancy agreement defines the member or stockholders' rights & obligations in relation to the living unit. The community association owns all of the real estate as a not-for-profit corporation. 3 types of residential community associations can exist by themselves or can be group in clusters called: Master or umbrella associations: consists of more than 1 residential community association. Second type Mixed-use development-consists of a mixture of residential & commercial &/or industrial uses grouped together. Third type 55 & older communities; must have 1 person who is 55 of age or older living in at least 80% of occupied units. Sources of legal obligations for a community association Federal, state & local statues, regulations, & case law second source legal documents unique to the community association that bind the association & its owners third source lender requirements; requirements set by secondary institutions (ex; FHA, Fannie Mae) fourth source standards set by professional bodies; ex: auditing standards set the American Institute of CPAs Types of Federal Laws applying to community associations Equal employment opportunity commission (EEOC); federal govt prohibits discrimination against otherwise qualified people in hiring, promotion, dismissal, based on specific characteristics like race & ethnicity, age, color, gender, religion second federal law Fair Debt Collection Practices act: protect debtors from unscrupulous debt collects & to impose a consistent & fair method to collect debts. third federal law Fair Labor & standards act (FSLA); dictates standards for the basic minimum wage & overtime pay fourth federal law Family & Medical Leave Act (FMLA); requires employers of 50 or more employees to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for birth or adoption of a child or serious illness of the employee or spouse, child or parent. fifth federal law Federal Insurance contributions act (FICA) sixth federal law Occupational Safety & Health Act (OSHA) 7th federal law US Bankruptcy code 8th federal law Fair housing Act Highlights of fair housing act Reasonable accommodations/modifications; they created a new class of protected individuals - those w/ disabilities Maintenance: a person with a disability can sue the association for failing to maintain physical components of the community needed by the resident. Pets/Service Animals; No difference between having a pet to help with physical disability or mental disability State Statues Statutes are laws written & adopted by legislatures or administrative agencies: 3 types of state statutes that apply to community associations: General State Statutes One that applies to community associations, as well as to other types of organizations Specific state statutes One that applies only to 1 or more types of community associations Uniform state statutes National conference of commissioners on uniform state laws draft generic, content-specific wording for topical issues to encourage uniformity among the states Governing Documents of community associations purpose: to provide legal structure & operation of the community the documents do 4 things: define the rights & obligations of both the community association & its owners create a binding relationship between each owner & the community association establish the mechanisms for governing & funding the community association's operations including the establishment of automatic lien set forth rules & restrictions for the: protection of both owners & the community; enhancement of property values; promotion of harmonious living