What is a Reserve Study?
In order to maintain and preserve market values of both the residential and common area property, an HOA must develop funding plans for future repair or replacement of major common-area components, such as swimming pools, decks, asphalt surfaces, concrete areas, fencing, monument signs, and much more. Thus, a Reserve Study provides guidance on how much your HOA should be putting aside each month for reserves so it can meet the future obligations described above without requiring special assessments.
CC&Rs and Bylaws
What is an HOA?
An HOA or Homeowner Association is a legal entity created to manage and maintain the common areas of a community. Typically these "common areas" consist of things like pools, clubhouses, landscaping, parks, streets and roads. HOAs can consist of single family homes, condominiums, or town homes and are typically setup by the original developer of the community with a set of rules called "Declaration of Covenants, Conditions, and Restrictions" otherwise known as "CC&Rs". One of the primary functions of the HOA is to enforce and ensure that these "CC&Rs" are adhered to by the individual homeowners. The guiding principals of these regulations are normally to help maintain property values and the quality of life within the community.
If I buy a home within an HOA, do I have to belong to the HOA?
Yes, the only way an HOA can work correctly is if everyone who lives within its boundaries belongs to the HOA and pays dues.
What is the difference between the HOA and the board of directors?
The HOA consists of all owners within the geographic boundaries of the HOA. Each and every owner is a member of the HOA. Membership is not optional. The Board of Directors consists of those owners who have been elected to conduct the day-to-day business of the HOA and make the decisions that affect all owners.
What are the CC&R'S?
The Covenants, Conditions and Restrictions (CC&R's) are the governing legal documents that set up the guidelines for the operation of the planned community as a non-profit corporation. The CC&R's were recorded by the county recorder's office of the county in which the property is located and are included in the title to your property. Failure to abide by the CC&R's may result in legal action against a homeowner by the Association.
What are the Bylaws?
The Bylaws are the guidelines for the operation of the non-profit corporation. The Bylaws define the duties of the various offices of the Board of Directors, the terms of the Directors, the membership's voting rights, required meetings and notices of meetings, and the principal office of the Association, as well as other specific items that are necessary to run the Association as a business.
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