ByLaws

(2) 1

Formally adopte governing regulations for the adminstration adn mangement of a community assoication

CC & R

Covenants Conditions

&

Restrictions

The govierning documents that dictate how the homeowners association operates and what rules the owners and their tenants and guests must obey.  These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal state or local laws

Community Association

A group of owners who wish to provide a communal basis for preserving maintaining and enhancing their homes and property

Codominium

A living unit fully owned by an individual with an undivided interest in the common elements of the community. The community association itself owns no real estate as an association

Cooperative

Wherein an individual owns stock or membership in the cooperative, and holds a proprietary lease or occupance agreement for his or her living unit

Declaration

Is used terchangeable with CC& R

Governing documents

Which provide for the legal structure and operation of the community.

Indemnification

To indemnify and hold harmless means to exempt an individual or entity from responsibility for claims made against the organization and to reimburse the individual or entity for damages or expenses incurred as a result of such claims

Master Association

An organization of homeowners in a large condominium or planned unit development (PUD)which includes representatives from other, smaller homeowner organizations

Mix use development

A development which is designed to mix two or more "uses" of land together ( i.e.) shopping center which offers office space for  dentist

Planned Community

Most common type of community association, where an owner owns his or her lot and / or living unit and the community owns any common areas, such as tennis courts and roads for the use and benefit of the lot owners

Proprietary Lease

A rental agreement between a cooperative housing corporation and a share holder allowing use of a certain unit in the premises

Public Offering Statement

A desclosure statement prepared by a developer that contains all material facts about a property offered for sale and that must be provided to a prospective purchaser in accordance with applicable state or federal law.

Rosolution

is a motion that follows a set format and is formally adopted by the nboard of directors

Statute

A formal written enactment of a legislative authority that governs a county state city or county

Umbrella Association

A cluster of community assocation types that can include aspects of homeowners associations condominiums and cooperatives

Ad hoc committee

Used when an objective needs consideration and no standing committee within the organization can absorb that issue into its scope.  Usually these committees are used on a short term basis, such as temporary oversight of an issue or review of the standing rules of that community

Board liaison system

Directors are assigned to certain committees to guide the committee on board policy and procedures and to report back to the board.

Directors serving as a liaison must distinguish their role from the role of the committee chairperson.

Business Judgement Rule

If a board has exercised reasonable business judgement in making a decision, the court will generally not consider the board negligent in its fuducary duty, nor will the court substitute its judgement for that of the board. However, the board mujst demonstrate how it has taken care in reaching a decision.  It is up to the coourt to decide if the board has exercised reasonable business judgment

Fiduciary duty

Requires directors to act in the best interests and for the benefit of the corporation thus the community as a whole.  This fiduciary duty has two components: one, the members are required to avoid conflicts of interest and acting out of self interest and two the members are also required to act as a reasonable people fin managing the association's affairs

Management Ethics

The term Ethics refers to the specific choices to be made by an individual in his or her relationships with others.  Professional ethics are the rules or standards that govern the conduct of members of a profession.  The assumption is that the special expertise held by members of the profession holds them to a high standard of trust by others.

Management Audit

Consists of a review of governing documents and existing policies and procedures, current condition of the property, owner/resident satisfaction, and fiscal operations.  This review can be done by the board and manager together, or third party management consultant can be hired.

Management Plan

A statement of goals and objectives approved by the board it includes the yearly cycle of tasks that management should perform on the community association's behalf

Standing committee

Continued existence and are not relate3d to the accomplishment of a specific once only task.  Budget and nomination committees are examples of standing committees.

Key Terms

Rule Development and Enforcement

Alternative dispute resolution

Mediation, arbitration and other ways of resolving conflicts with the help of a specially trained neutral third party without the need for a formal trial or hearing.

Appeal

A request for a review of a case by a higher authority

if permitted by the governing documents of statute.

Default hearing

Hearing held when the alleged violator fails to appear

Due Process Procedure

formal process designed to protect the rights of all parties involved

Hearing Notice

This a written notice to an alleged violator that a hearing will be held to consider his or her alleged violation

Hierarchy of authority

Rule

A specific statement of required behavior whose violation carries a penaltyy (sometimes called sanction)