Amend a motion is used to modify another motion. The motion to amend takes three basic forms:

• Inserting or adding words or paragraphs
• Striking out words or paragraphs
• Striking out words and inserting or adding others, or substituting an entire aragraph or complete resolution for another

When a board has a discussion or makes decisions of sensitive nature.

Typical topics:

• Personnel issues
• Contract negotiations & discussions
• lawsuits
• legal matters
• doverning document violations

Report on the community's financial condition and activities includes:

• General ledger
• Variance
• A/P
• Income statement
• Balance sheet

Over 50% of votes needed to win an election.

Majority vote can come from owners attending in person or by proxy to decide all matters - except special issues

Document decisions made during the meeting.

Provides a permanent public record of positions and actions taken by the board.

Official announcement meeting will take place

sent in writin to board memebers at least a week before meeting

Body of rules, ethics, and customs governing meetings and other operations.

Advantages:

- staying on the agenda

-Discussing one subject at a time

- Giving each participant a chance to speak

-Speaking only on the issue being discussed

- Speaking only when recognized by the chair

-Addressing questions and comments to the chair

-Deciding issues through motions, seconds and votes

# of residents required to be present to transact business legally.

# is established in By-laws

-Participant does not go to vote or does not cast a ballot.

-Can be used to indicate voters ambivilance about the measure or mild disapproval that does not rise to the level of active oppositions.

-Do not count in tallying votes

-Only attent meeting for quorum purposes

Documented event, task, activity or action that needs to take place.

Usually documented in meeting minutes and recorded in task list of group.

Reviewed at the next meeting and meeting facilitator will check status of these items

List of meeting activities in the order in which they are to be taken up.

Begin with call to order

End with adjournment

Specific agenda that limits the amount of time focused on specific areas

Used to move meeting along in a mor thorough and prompt pace

- Most common type of community association

- owner owns his or her lot and/or living unit

- community owns common areas such as tennis courts and roads for the use and benefit of the lot owners

- Bring the corporation into existance

- define its basic purposes and powers

- indicate whether stock will be issued

- indicate whether there will be a board of directors

COVENANTS - CONDITIONS - RESTRICTIONS

- governing docs regulating how association operates and what rules & regs owners, tenants and guest must obey

- may also be called Bylaws, Master Deed, the houses rules or another name

- legally enforceable by the homeowners association (unless a specific provision conflicts with federal, state or local laws)

-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.

-Individual owns stock or membership in the cooperative

-also holds a proprietary lease or occupancy agreement for his or her living unit.

-provide for legal structure and operation of community

-Give boards authority to govern by providing for the operation and regulation of association

-Give guidence and protect boards

-Protect association members by spelling out their rights and responsibilities

-supported by local ordinances, state statues, and federal regulations

Typically Include:

- Declaration or master deed, Covenants, Conditions & Restrictions (CC&Rs) -condos & planned communities

-Proprietry lease, master lease, or occupancy agreement -cooperatives

-Articles of incorporation

-Bylaws

-Rules & Regs

-hold harmless

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

An organization of homeowners in a large condo or planned unit development (PUD)

-includes reps from other smaller homeowner organizations

A development which is designed to mix two or more "uses" of land together

-like shopping center with room for a dentists office

Disclosure statement prepared by the developer that contains all material facts about a property offered for sale

-must be provided to a prospective purchaser in accordance with applicable state or federal law

-Short-term basis

-temporary oversight of issue or review of standing rules of that community

-when issue cannot be absorbed into scope by other standing committees present in association

-Task-oriented

-Disband when task is completed

-directors assigned to certain committees

-guide committee on Board policy and procedures

- report back to Board

-must distinguish role from committee chairperson

- court will not consider board negligent if board has exercised reasonable business judgement making a decision

-court will not subsitute own judgement for the Boards

-board must demonstrate how it reached decsions

- up to the court to decide whether board exercised reasonable business judgement

-requires directors to act in the best interests and for the benefit of the corporation (community as whole)

-members must avoid conflicts of interest and acting out of self-interest

-members required to act as reasoble people in managing the association's affairs

Ethics - specific choices to be made by an indicidual in his or her relationship with others

Professional ethics - rules or standards that govern the conduct of member 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.

Review of:

-governing documents and existing policies and procedures

- current conditions of property

- owner/resident satisfaction

-fiscal operations

Can be done by board and manager together or by a third-party management consultant

Statement of goals and objectives appoced by the board

-includes yearly cycle of tasks that management should perform on the community association's behalf

-Committees which have a continued existence - remain in force indefinitely

-are not related to accomplishment of a specific, once-only task

-budget and nomination committees are examples

-Function oriented

Mediation, arbitration and other ways of resolving conflics with the help of a specially trained neutral third party

- no need for formal trial or hearing

request for a review of a case by higher authority

-only if permitted by governing documents or statute

Hierarchy of authority

- rules and architectural guidelines may nt contradict or be in conflict with the legal sources that take precedence over them.

-rules and architectural guidelines are lower in the hierarchy of authority for community associations, they may clarify and expand a community's governing documents- but may not conflict with other governing docs

owner's financial obligation to the community association during a given period of time - usually 1 year

-covers owners share of common expense

-aka common expense liabilities

Baseline funding

organized list of titles, descriptions and assigned numbers of all accounts in organization's general ledger

-assigned number helps locate account

-title describes purpose of account

-Based on owner, board and committee desires

-items people would like to have - given their values, lifestyle and preferred level of service

-like social rec expenses and picnic areas

FHA

Federal Housing Administration

Regulates and influences items like:

-Insurance an association must carry

-procedures for financial operations

-requirements for the upkeep of property

FHLMC

Federal Home Loan Mortgage Corporation

FNMA

Federal National Mortgage Association

-Federally established

-secondary mortgage institution

-may set reqs that association will have to meet if owners wish to participate in their financial programs

-assumes that existing line items are needed

-amount of funds alloted to each during the current year is adjusted for expected changes in the coming year

-items that are not necessarily required, but are added to improve the overall welfare, safety or life of residents

- or to enhance the value of the community association as reflected in the resale value of units

section of budget devoted to operating activities including operating expenses and major improvement expenses

-does not include replacement fund

items that occur on regular basis

day to day

week to week

month to month

year to year

After operating and replacement fund budgets are drafted for coming year

must reconcile your estimated expenses with your community's anticipated revenue

reconcile - bring together after a difference

funds put aside

in reserve

for replacement of major components in common property

-budget planning tool

-considers the current status of replacement fund

-determines stable and equitable funding plan to offset the anticipated future major common area expenditures

- Based on baseline-funding concept

-Minimum reserve cash balance in threshold funding is set at a predetermined dollar amount

-Collection of all assessments due through end of fiscal year

-If annual assessments are due monthly and become delinquent at the end of March, all monthly payments through December of that year are due immediately.

Bad debt write-off

Consists of recording an uncollectible debt as an expense that the association must absorb.

-usually requires resolution of the board

-straight bankrupcy or liquidation

-prompt conversion of all the individual's or corp's non-exempt property to cash and payment of creditors to the extend possible

-aka reorganization

-designed to allow for an orderly payment to creditors that enable a corporation to continue

Chapter 13 Bankrupcy

-reorganize personal or non-corporate debt

-plan submitted to judge for paying off all or nearly all of debt over specified period of time

Legal proceedings filed in court whereby a party with a claim against an owner can claim ownership of the unit involved in order to recover the money it is owed.

-Unit is usually auctioned by the court and sold to the highest bidder.

Legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation.

-Placing lien protects the association's interests

-Anything owned that has value

-Unlike businesses - actual land and buildings of the association are not generally shown as an asset

Certified Public Accountant

-passed certain examinations and met statutory and licensing requirements of a US state

CPA will send engagement letter when hired

-describes nature of the work to be done

-type of report to be prepared

-fee for services

-time frame for assignement

FDIC

Federal Deposit Insurance Corporation

GAAP

Generally Acceptable Accounting Principles

Fund balance under the fund method of reporting

-Equals the difference between the association's assets and liabilities

Income and expenses on cash basis

-selected items on accrual basis

-varies in format depending on number of items accrued

-Accompany the CPA-prepared financial statements

-footnotes provide additional information to help the reader understand the association's financial situation

Summary of the flow of funds into and out of community association

-summaries are prepared for normal operations

-investment activities

-any borrowing activities

Report records association's financial transactions during a given period of time - usually form month and fiscal year to date

-A way to keep track of association's financial activity

-Short term instruments that mature in 13, 26 or 52 week periods.

-minimum denominations of 10K

-anything larger in 5k increments

-Buyer receives promised earnings as soon as bill is purchased

-when bill matures, buyer receives face value (value indicated on the wording of bill)

treasury notes - mature in 1 - 10 yrs

treasury bonds - mature more than 10 yrs

-both issued in denominations from 1k - 100K

-interest bearing with interest paid every 6 months

- when note or bond matures - buyer receives full face value

Allows owner to bring a claim against his or her association.

-Coverage is in the owner's interest

-Standard for owners to be insured in liability insurance for condos and cooperatives

-planned communities must see to it that this concept is prsent in their liability coverage

Electronic data processing

EDP

1,2,3 & 5 - policies for owner occupied units

4 - tenant policy

6 - condo or cooperative ins.

PI

Personal injury

Injury arising from:

libel, slander, false arrest invasion of privacy, wrongful entry, malicious prosecution

Define the type of ins. coverage provided.

ex - property, liability and boiler and machinery

-also defines how comprehensive coverage is, what is included and excluded

Ability to respond to unpredictable problems

-sewer backups, slope failures, roof leaks and frozen pipes

-key to successful response is to ainticipate different possibilities and develope a plan to respond to each one

aka punch list

compilation of all maintenance needs identified during an inspection

Means to track, record, remind or command attention

-usually forms or docs

Requested by owner, tenant or the board

-or identified during routine inspection

Consists of replcing physical assets as they wear out or break

-considered a part of maint. b.c it addresses the useful life of asset

aka RFP - req. for proposal

-announcement that org. is interested in receiving proposals for a particular project

detailed instructions about products or services requested through bid req.

All contract terms should be included in bid req.

-Agreement between two or more parties

-enforceable by law

-each party promises to do or not do something

states that law of a particular state will be applied if there are any disputes about the contract after it is signed.

-Useful when association and contractor are out of different states

-Comes in package w/ performance bond

-Guarantees that contracto's suppliers and any subcontractors will be paid if the contractor does not pay them

Guarantee by surety (third party) to protect association of contractor failt to perform or finish the work.

-cost to association involved

-typically used with certain large projects

aka qualification sheet

-Asks for certain types of info to determine if the bidder is technically and financially qualified to handle job of this scope

Request for proposal

RFP

aka bid request

Announcement that org is interested in receiving proposals for a particular project

aka personnel manual

-summarizes company behavior reqs

-outlines benefits offered

-gives tools that can be used to enforce disciplinary action of needed

-employer designs to answer employees questions before asked

-to advise on company policy that employee might not consider

FICA

Federal Insurance Contributions Act

Requires employers and employees to make matching contributions to social security

-employer must withold employee's share of tax directly from wages or salary

FLSA

Fair Labor Standards Act

OSHA

Occupational Safety and Health Administration