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Over the years, in proposing our services to hundreds of communities, we have encountered many questions related to professional management, our interaction with both the association board of directors and residents and how our function relates to the operation of the property. The following are the most commonly asked questions:
What is a community association?
A community association, also called a homeowners association (HOA) or a condominium association, is a legal entity created by the builder or developer for the purpose of building and selling a community of homes. It gives them the authority to enact covenants, conditions and restrictions (also known as CC&Rs) and to manage the common amenities of the community. After a predetermined number of lots are sold to homeowners, the ownership of the association is transferred to homeowners who elect a board of directors.
What are the benefits of a community association?
An association helps foster a harmonious community lifestyle for residents in many ways, from ensuring preservation of community standards to providing well maintained community property and landscaping. In addition, the association provides access to amenities and services, oversight of covenants, conditions and restrictions (CC&Rs) and ongoing communication to residents. The restrictions are designed to preserve the value of the community while ensuring a high quality of life for all residents. When you purchase a home or lot in a community association, you are automatically granted membership in that association.
What is the maintenance fee used for?
Maintenance fees are paid monthly, quarterly or annually, depending upon the association. The fees collected are used for maintenance of common areas, landscaping, street lighting, operation of amenities including fitness centers, pools, security personnel, insurance, etc.
What is the role of the association Board of Directors?
The Board of Director's role is to fulfill its fiduciary duties in the best interests of the community. Your community’s board is an oversight body composed of volunteers who are elected by association homeowners.
What is a developer Board of Directors?
During initial sales and construction phases, the board often includes builder or developer representatives. The board's fiduciary responsibility to make decisions in the best interest of the community includes ensuring that CC&Rs and other governing documents are upheld, the integrity of common areas is maintained, and community issues are addressed on behalf of the association.
What are my responsibilities as a homeowner in an association?
When you purchase a home in an association, you are responsible for understanding and abiding by the rules and regulations of the association. This includes adhering to the aesthetic standards set forth in the governing documents, paying maintenance fees on time, etc. Attendance at community board meetings is not required but is a good way for homeowners to stay involved in their community. Some homeowners choose to become involved in various committees governed by the association.
How does Continental work with the Board of directors?
In its leadership capacity, the Board of Directors is responsible for overseeing the business and administration of the community association The board utilizes Continental’s services to facilitate management of those responsibilities. We provide support by implementing the board's policies, operational decisions and directives to help keep your community functioning smoothly.
What is Continental’s role as a professional management company?
A professional management company takes its direction from the board of directors and provides support for the board, community association and homeowners in several crucial areas: budgeting and finances, legal issues, maintenance, communication and the facilitation of insurance coverage. Continental’s professional management provides continuity in operations, single source and accountability, multiple levels of expertise in condominium management, price stability, and additional levels of liability insurance, better buying and negotiating power, detailed operating procedures such as job descriptions, operating manuals, bid specifications, etc.
What is the composition and role of Continental’s management team?Although Continental is a large company, we take great pride in delivering boutique-firm service to the communities we support. We are able to do this by assigning teams to support each community. Each community is led by a licensed community manager who is supported by specialized staff such as customer service and administrative personnel, CPA's and senior management. Each community manager receives guidance and support from their district manager and business unit leader. To best serve the needs of our clients throughout the state, we have assigned a regional president to oversee the business units within their region. As part of Continental’s commitment to excellence, community managers must be certified by the Florida Association of Community Managers prior to being hired or achieve certification within the first year of employment with the company.
Will the board lose control if we hire a management company?
This is the most commonly asked question in self-managed properties. In actuality, the board has a greater level of control and leverage. The board continues to function in the capacity of setting association policy and direction. The board continues to sign all checks and contracts. All professionals such as the association’s attorney and CPA continue providing their services. The board also continues to have control over the on-site staff. Continental’s function is to carry out board directives, provide experienced recommendations, set up documented operating systems and procedures and establish a level of continuity through senior management support.
Will the Board have to put in as much time?
No. Although the board ultimately has final authority and responsibility for the operation of the association, Continental provides many useful tools in assisting the board in their decision making such as comprehensive monthly management reports, identifying qualified contractors, development of certain non-technical bid specifications, detailed spreadsheets to accurately compare bids from competing vendors, etc. All of these functions help alleviate the amount of time required by the board in the operation of the association.
How will costs be reduced over a period of time?
Continental has significant buying and negotiating power with most major vendors providing goods and services to associations in Florida. Initially, all service contracts are reviewed and service levels and costs are compared to similar sized properties within the Continental portfolio. Additionally, cost of items such as janitorial supplies, paper products, light bulbs, paint and other “expendable” items are reviewed and, in many cases, reduced. Utility audits are recommended in many instances to confirm whether or not the association is paying the correct and most economical billing rates and taxes.
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