Are You Part of an HOA? Do You Know the Difference Between an HOA and HOA Management Company?
You start on your third cookie while admiring the plastic flower in the middle of the large conference room table. Your arm hurts from signing yet another stack of papers that you didn’t read. “Just give me the keys” you think to yourself. It’s a safe bet that the stack of papers contained HOA governing documents.
Let’s start with the question, “What is an HOA and how does it work?”
An HOA or Community Association is a legal entity in which the owners enjoy the protection, enhancement, maintenance and preservation of their homes and property. The three characteristics of a community association are:
- Membership in the community association is mandatory and automatic for all owners.
- Certain association governing documents bind the owner and the association to each other through mandated actions.
- Mandatory lien-based assessments are levied on each owner in order to operate and maintain the community association.
An HOA is a not for profit legal entity made up of the Association and a Board of Directors. The Board of Directors is a group of homeowners elected by the owners or the Association. In most cases the HOA Board of Directors contracts with a HOA Management Company to oversee the management duties of the community. Management responsibilities can vary depending on the association. For instance, many HOA Management Companies track owner payments, coordinate vendors and contractors for maintenance issues, complete inspections, assist with budget preparation, enforce rules and regulations, etc.
In the state of Colorado, HOA Management Company must hold a specific license to perform these duties. The Community Association Manager (CAM) license is became effective in 2015.
HighPoint Property Management now offers HOA Management for Denver are communities and condominiums, HighPoint focuses on smaller sized residential or commercial. We believe we will become the best HOA Management Company in Denver. For more information and resources regarding HOA Management Company licensing and duties, please visit: