FREQUENTLY ASKED QUESTIONS
What is an Owner’s Association?
What is the Board of Directors?
What is a “Management Company” and what do they do?
What is an assessment?
How is the amount of my assessment determined?
What are CC&R’s ?
What are the Bylaws?
Are there any other rules?
Q: What is an Owner’s Association?
A: It is a non-profit corporation registered with the State of Idaho and managed by a duly elected Board of Directors. Its purpose is to maintain all common areas and to govern the community in accordance with the provision of the legal documents: Covenants, Conditions and Restrictions (CC&R’s), Bylaws and Articles of Incorporation.
Q: What is the Board of Directors?
A: The Owners Association is a legal corporation, therefore a governing body is required to oversee its business. The Board of Directors is elected by the homeowners, property owners, marina owners, etc. The limitation and restrictions of the powers of the Board of Directors are outlined in the Association governing documents.
Q: What is a “Management Company” and what do they do?
A: A management company is contracted by the Board of Directors to provide such services as: Collection of assessments, supervision of subcontractors, obtaining bids for subcontracted services, providing financial statements and collection reports, assist with annual board meetings, election of new officers, etc. The management company reports directly to the Board of Directors and all decisions are made by the majority vote of the Board.
Q: What is an assessment?
A: The assessment is the annual amount due from each homeowner to cover the operating expenses of the common area and provide reserve funds for replacement of common facilities in future years. Assessments are due either monthly, quarterly or annually, depending on the Bylaws set up for your Association.
Q: How is the amount of my assessment determined?
A: The Board of Directors annually develops the budget for the community. This budget is developed with specific guidelines and projections for utilities, landscaping, administration, etc. Reserve funds are monies set aside for future expenses due to the life expectancy of certain items; lighting, roads resurfacing, fence replacement, etc. These amounts are then divided by the number of units in a given development.
Q: What are CC&R’s ?
A: The CC&R’s (also referred to as “deed restrictions”) are the governing legal documents that controls the use, requirements and restrictions for a planned community. These documents were recorded by the County record’s office of the County in which the property is located and are included in the title to your property. Failure to abide by the CC&R’s may result in a fine to a homeowner by the Board of Directors.
Q: What are the Bylaws?
A: The Bylaws are the guidelines for the operations of the non-profit corporation. The Bylaws define the duties of the various officers of the Board of Directors, the terms of the Directors, the membership ‘s voting rights, required meetings and notices of meetings, and the principal office of the association, as well as other specific items that are necessary to run the association as a business.
Q: Are there any other rules?
A: The association has developed Rules and Regulations as provided for in the CC&R’s and adopted by the Board of Directors. Rules are designed to provide direction to the homeowners for common courtesies with regard to parking, vehicles, pets, noise, etc. In addition, your Association may adopt Architectural Guidelines with procedures for submitting request to make exterior changes to your home. Such changes may include decks, patio covers, landscaping, exterior color changes or extensive interior changes and additions. These rules and guidelines are set up to maintain the aesthetic value and integrity of the community on behalf of all the owners, and to help protect the market value of your investment as well. Violations of these rules may result in action by the Board of Directors, including fines. In addition, if you proceed with an exterior improvement or change without written approval of the Board of Directors, you will be required to remove or correct the alteration and/or be fined for the violation.
