Being a member of a condominium association means you are part of a community of homeowners, residents, and elected board members.
A contracted management company hired by the board is responsible for handling day-to-day operations, including:
· Financial management, such as budgeting and collecting dues
· Maintenance coordination for common areas
· Enforcing community rules and regulations
· Facilitating communication between the board and residents
· Organizing meetings and record-keeping
Members of the association have rights and obligations, including:
● Electing board members
● Voting on important matters during the Annual Meeting
● Paying regular assessments or fees for maintenance, repairs and communal expenses
● Knowing and complying with rules and regulations created to ensure a harmonious community environment
● Participating in meetings that help build community
● Using the association’s shared pool.
Membership balances these responsibilities and benefits to help maintain property value, community, and quality of life for all residents.
The affairs of the Association are governed by an elected volunteer Board of Directors whose responsibilities include:
Hire and discharge management companies, managing agents and other employees, agents and independent contractors. Such management companies are hired to assist the Board and oversee various aspects of community governance and operations.
Establish and enforce community rules and regulations to ensure a harmonious living environment.
Prepare and manage the association's budget, collect dues, and oversee financial records.
Oversee the maintenance and repair of common areas and facilities.
Facilitate communication between the board and homeowners, addressing concerns and providing updates on community matters.
Ensure the association complies with local, state, and federal laws, as well as the governing documents of the community.
Negotiate and manage contracts with vendors and service providers for community services.
The Regency Parc Condominium Association Board of Directors and its management company, follow a standard HOA operating procedure and budgeting format. The Board imposes regular and special assessments to perform their duties according to the association’s governing documents. These duties include maintaining common areas, funding the reserves for said common areas, insuring the common areas, and enforcing the governing documents.
Associations are non-profit organizations, so they operate using a budgeting system called Zero-Based Budgeting. In Zero-Based Budgeting, revenue does not exceed expenses. In other words, total income minus expenses equals zero. When determining the association’s budget, the Board and management company start with known expenses from contracts and services, and then calculate a target reserve fund. From there, your monthly dues are determined. Because of the Zero-Based Budgeting, your dues do not cover more than what is determined in that budgeting process cycle.
By paying their fair share of the association’s obligations, homeowners are paying for the association’s current and long-term maintenance obligations in an evenly-distributed way. It is essential to the health, prosperity, and value of the neighborhood that all owners pay their dues in a timely manner. The failure by owners to pay their assessments places the association in financial jeopardy.
Our current delinquencies and outstanding balances average $10,000 per month, leaving the association with little to no financial wiggle room. Operating in this manner can impact the payment of the association’s bills, services, or proposed projects. It could also force the Board to increase monthly dues to adequately cover our financial obligations.
Reserve funds are used for emergency or unplanned expenses and/or essential upgrades performed over time. Reserve funds are often between 20-40% of your monthly dues. Currently, 24% of your dues are budgeted for our reserves.
Regency Parc’s physical property and main structures are from 1996, making them almost 30 years old. As such, the Reserve Study performed in 2022, provided an analysis report identifying various projects for repair, maintenance, or replacement to be performed over time, such as concrete, asphalt, roofs, siding, sealants, mechanical, and more. The funds we put into the reserves are essential for maintaining our neighborhood and protecting the value of our homes.