Read on our website about the advantages and disadvantages of HOAs, how to leave the management company or housing and communal services and create your own HOA, how to hire a manager and enter into service agreements with the owners and management company.
Housing authorities
If you are just intending to join a partnership , or have been there for a long time, but for some reason have not delved into the essence of the actions of this organization, then the time has come to correct this situation.
First of all, you need to know that the homeowners’ association is managed by more than just one chairman.
There are several management bodies in the organization that have a certain weight in decision making .
These include a meeting of homeowners, representatives of the board and the chairman. But if everything is more or less clear with the first and last, then who the members of the board are remains a mystery. Let's try to find out more about this.
The board of the association of real estate owners in the building includes the same owners of premises in the apartment building as the members of the meeting.
True, the persons who are members of the board most actively participate in the life of the partnership and represent a certain large meeting that acts in the interests of the building.
The members of the board collectively are representatives of the elected body. It is they who have such an important function as choosing the chairman of the entire HOA from their immediate composition.
This means that the board should include people who are interested in the fate of their home and also want to participate in self-government.
Becoming a board member is not that difficult. To do this, you need to nominate your candidacy at the general meeting and collect the maximum number of votes. In this case, you become a member of the board.
You can learn from our articles how to determine which HOA serves your home, how to complain about its activities or leave it altogether, and whether it is possible to liquidate an association for not carrying out any activities. You can also find sample statements about leaks or lack of heating here.
Report structure
The document must contain the following information:
- Composition of the board, full names of members and chairman.
- Events for which funds were raised.
- Work performed and payment amounts for it.
- List of contracts concluded/extended during the year.
- Checks and their results.
The report must be signed by the chairman and members of the governing body. The document is stored for at least 5 years.
The report is verified by the audit commission. This body is formed at the first meeting of owners. Members of the commission check expenses and identify illegal/unjustified expenses.
How does the HOA operate?
Management of an apartment building is carried out under certain conditions. In order to understand how this partnership activity functions, you must first know what a real estate owners' partnership is.
Such a voluntary association is a legal entity that is engaged in organizational and financial activities, the main purpose of which is to maintain real estate , that is, the entrusted common property of the building in proper condition.
In addition, it is important to note that the main function of the partnership is understood as managing the house, which is maintaining the communication systems of the building in proper condition.
Also, the partnership carries out public relations activities, that is, with residents. This means that the association is the so-called intermediary between the residents and the people who do the work on the house.
In addition, the partnership monitors their execution, searches for suitable craftsmen and purchases material. Let's look at an example of how such an action as managing a partnership occurs.
At a general meeting of residents, which must be held at least once a quarter, a problem is raised that needs to be resolved . Let's say it's fixing a roof that is leaking and leaving marks on the ceilings of other floors.
Residents express a proposal to repair the roof using funds that are rented directly for the maintenance of the apartment building. The chairman, having received the initiative, is obliged to consider it in more detail at a meeting at the office of the partnership, with members of the board.
There, such nuances as financing of work, selection of personnel for activities, procurement of materials, and so on will be discussed in detail. It is calculated how feasible such a request is within the framework of a given partnership.
If the board members vote unanimously to carry out such repairs, then the chairman should proceed with the appropriate selection of employees to perform such activities.
However, if it is impossible to carry out repairs a new meeting is purposefully convened , the issue is put back on the agenda, where the chairman voices the reason for the refusal.
It is worth noting that the opinion of the owners of real estate in the house is still decisive, since in accordance with the law, the meeting is the most important governing body of the partnership.
Find out from our articles about ways to pay for utilities in an HOA, as well as how the HOA deals with debtors.
Excess of power by the chairman
Unfortunately, in practice there are often cases when the head of the board uses his status for personal gain. As a result of abuse of power, unfounded decisions are made that infringe on the interests of owners. How to deal with such actions?
Claims to the work of the chairman can be expressed by one owner or a group of residents. It must be said that a collective complaint will bring greater effect. As a rule, applications from a group of people are accepted and considered faster.
You can complain about the chairman at:
- Housing inspection.
- HOA Board.
- Court.
First of all, it is advisable to contact the governing body of the HOA. Board members must take action to correct violations. If the governing body is inactive, you need to send a complaint to the Housing Inspectorate. It should be accompanied by copies of the complaints submitted to the board. If after this the problem is not resolved, you will have to go to court. The claim is filed with a court of general jurisdiction. The application may be collective.
The charter must stipulate the procedure for action in the event of failure or improper performance by the chairman of his duties. In particular, the rules for terminating a contract, early dismissal from a position, deprivation of remuneration, etc. should be established.
Early termination of the chairman's powers is possible in the following cases:
- Systematic violation of the provisions of the HOA charter, legal norms.
- Misappropriation of property - theft of contributions made by owners, materials purchased for repairs, etc.
- Making unreasonable decisions without agreement with the board and residents.
The issue of early removal of a person from office is resolved at a general meeting by voting. Until another person is appointed, an interim chairman of the HOA may be selected. This could be a member of the board or another owner.
The chairman can independently resign if he realizes that he cannot cope with his assigned duties. At the same time, he has the right to propose another candidate for the post. If the head of the board is replaced, appropriate adjustments must be made to the charter. An agreement is concluded with the new chairman.
Composition of governing bodies
What is an HOA board? Let's talk about who is on the board of this management organization.
Housing legislation, namely the housing code in Article 147, tells us how this association functions, and most importantly, who is part of it.
The governing bodies of the homeowners' association are the property owners of the apartment building themselves.
In addition, it is worth noting that board members must be owners of residential premises. From among their members, the board members elect a chairman, that is, a person who has maximum power, but also has and bears maximum responsibility.
You can download samples of such important documents as the HOA Charter, estimates of income and expenses, as well as forms for absentee voting from us for free.
Reporting Features
The duties of the chairman of the HOA board include annual notification of apartment building residents about expenses incurred.
Apartment owners make periodic payments to the association's account or transfer money to the managing body. All expenses must be confirmed by payment documents.
Reporting is necessary not only for owners, but also for the tax service.
Accounting for expenses is especially important in cases where there are not enough funds for repairs or other needs. In such situations, the report justifies the need to increase contributions. This eliminates owner dissatisfaction.
Rights, duties and responsibilities
Members of the board of a partnership bear certain responsibilities, but also have rights that they would like to see fulfilled.
Thus, board members are required to make decisions about certain works. Supervise the work of hired workers, stop crime, observe all precautions, and control work.
However, there are duties that residents owe to board members . Given the fact that board members act in the interests of residents, residents must listen to their opinions, as well as pay monthly maintenance fees to their association.
This could mean that board members can carry out any necessary work around the house.
In addition, residents should listen to board members, justifying this by the fact that they are acting for the benefit of the maintenance of the house.
Also, residents can demand from the board a report on the work done, as well as details of the expenses that the HOA made as part of the maintenance of the apartment building for the quarter.
You may be held liable for fraudulent actions, negligence in your duties, as well as other misconduct by members of the board.
In most cases, administrative, however, if fraudulent actions or misappropriation of funds are detected, these persons may also incur criminal liability .
Hiring a manager
There is not always a person among the residents who is ready to become the acting chairman of the HOA. In such cases, it is advisable to involve a competent person from outside, i.e., someone who is not a resident of the apartment building. An agreement is also concluded with him, which specifies all the essential conditions of the activity.
The entity appointed as the manager is vested with almost the same powers as the chairman. He also resolves issues related to the repair and maintenance of apartment buildings, and develops a plan of measures to improve living conditions. The manager selects organizations and citizens to carry out repairs. Within the scope of his powers, the manager can collect from the owners arrears of contributions and payments for utility services. Like the chairman, he also prepares reports and communicates expenses to the board and owners.
Does the partnership need a license?
Do you need a HOA license to manage an apartment building?
A homeowners' association can operate without a license. This is due to the fact that homeowners can organize such a management company without having any experience.
Therefore, a license to carry out such activities can be obtained much later , when the HOA learns to function competently and maintain the houses in proper condition.
The tax authority allows the chairman of a homeowners' association to carry out his activities in a newly created association without licensing for three years. After this period, it would be nice to receive this document.
Prosecutor supervision
It is very important to pay attention to prosecutorial supervision in relation to the HOA board.
The fact is that the prosecutor's office is a law enforcement agency that is called upon to protect and protect the rights of citizens .
Therefore, if homeowners in an apartment building believe that their rights may have been grossly violated, they have every reason to ask the prosecutor’s office to conduct an inspection .
This means that employees of the above-mentioned law enforcement agency are free to check documentation, expenses from the account, and also check how accurately and effectively any work carried out was carried out.
If the prosecutor's office finds inconsistencies in the report on the actions taken , then it is likely that the homeowners' association will have problems. Therefore, it is necessary to carry out activities to manage an apartment building in accordance with the law.
Everything is by agreement
To date, it has not been legally determined whether it is possible or not to conclude an employment contract with the chairman of the HOA (sample). Before the amendments to Art. 147 of the Housing Code, such an agreement has always been concluded, but with the introduction of amendments, the points of view of lawyers on this issue were divided. Some believe that an agreement cannot be concluded, others believe that it is possible, but only an agreement for the performance of duties.
In this regard, each partnership has the right to independently decide whether it is worth concluding such an agreement with its chairman of the board or not . If the decision is positive, such an agreement must include the following points:
- object of the agreement;
- the period for which the contract is signed, the probationary period;
- rights and obligations of the employer and employee;
- wage;
- organization of work and rest;
- employee social guarantees;
- employee compensation;
- employer and employee liability;
- general provisions;
- signatures of the parties.
Protocols
Minutes of the HOA board - sample.
draw up a specific protocol upon conducting and performing any work . This regulatory legal act sums up the work done, consolidates the main stages, and also records the progress of the board meeting.
This protocol is usually kept by a secretary. He clearly outlines all the main points at the meeting, after the work has been completed, and signs and dates it.
These documents are classified as local regulatory legal acts of the partnership. Any homeowner can get acquainted with them.
