101 - Community Association Management's Role- 2 Hour Course
Learning Objectives: The students will learn the process for defining the needs of a Community Association (HOA) for Management Services and the forms available to fulfill their need to include:

• Able to define features and documents to review for identifying duties and responsibilities of the HOA
• Able to define the available forms of management in today's market
• How to create a scope of work or job description for management services
• What a Board can expect from any management entity in care and service
• How a Board can create a team and do their part in managing of the HOA

I. Defining the Management Plan

A. Governing Document/Corporate Requirements
B. Physical Plant/Common Area
C. Members Services
E. Level of Service Demands

II. Types of Management Services

A. Employee
B. Contract/Agent
C. Mixed
D. Volunteer Managed

III. Defining the Job Description/Scope of Work

A. Expertise Required – Type & Whom
B. Required Time Commitment
C. Details and Clarity

IV. Management’s Role

A. Duty to Client
B. Carry out the Directives of the Client
C. No Self Dealings/Conflicts of Interest
D. Perform the Contracted Services

V.Board of Directors Role

A. Policy Setters – Avoiding Micro-Management
B. Run the Corporation
C. Time is Money/Noisy Boards
D. Creating a Team

Learning Objectives: The student will learn what the requirements for volunteer leadership are in a Community Association (HOA), what their duties are as a fiduciary, realm of authority and responsibility to include:

• What are the requirements of a volunteer in a leadership role
• How a Board can make decisions and avoid liability and dissension
• How a Board can operate in an effective and organized manner
• How a Board can prepare the HOA for the future.

I. Creating a Leadership Team that is Effective

A. Defining the needs of the HOA Leaders
B. Leadership Abilities –Group Dynamics
C. Board Relationships & Working with Volunteers
E. The Resident’s Role

II. Effective Board Meetings

A. Effective Procedures for enjoyable & productive meetings
B. Making the Best Decisions
C. Learning to Disagree Agreeably
D. Self Dealings and/or Conflict of Interest
E. Business Judgment Rule & Legal Considerations

III. Leading by Policy

A. Board Members & Officers Guidelines
B. Operational Policies for Effective Leadership
C. Management’s Duties
D. Avoiding Micro-Management

IV. Plan for the future of the organization

A. Taking Stock of the Community and Board’s Needs
B. Defining the Future & How to Achieve Success

Learning Objective: The students will be provided information and learn the basics of Community Association (HOA) structure and operations including:

• How the HOA was formed and where the Board’s Authority is defined
• How the financial affairs of the HOA are handled, what controls the assessment process and the reporting requirements for both Board and Owners
• Informing new Board members the history of the HOA and the base from which they will begin their term
• The organizational structure of the HOA, How it works and how the Board can be most effective as leaders of the HOA
• The Public Relations aspect of an HOA and duty of the Board
• The Board’s responsibility for managing the community and its future
  

I. The Legal Structure Association

A. Related Civil Code
B. Related Corporation Code
C. CC&Rs, Bylaws and Articles of Incorporation
D. Rules & Regulations

II. The Financial Structure

A. Operating Budget
B. Reserve Study
C. Financial Reporting
D. Financial Controls – Operating Policy

III. Historical Perspective of Association

A. Resolutions & Decisions
B. Rules & Regulations
C. Boards Vision for Level of Service

IV. The Organizational Structure of the Association

A. Residents Role & Rights
B. Nature of HOA - Volunteers

V. The Leadership of the Association

A. The Board of Directors
B. Structure of Volunteers
C. Management’s Role

VI. Resident Relations

A. Communications Programs
B. Public Relations Program

VII. Creating Continuity and Community

A. Sustainable Leadership
B. Organization Memory/History
C. Creating Community through Quality of Life Issues
D. Continuing Education Requirements

VIII. The Board’s Role in Planning

*A Six Hour Course is also available to provide a more complete orientation experience. For information contact CATS.

Learning Objective: The students will be provided information on the methods and procedures for running a Community Association (HOA) Board or membership Meeting, learn the tools for making effective decisions and gaining consensus including:

• The role and purpose of a Board meeting and membership meeting
• The use of parliamentary procedures for fairness and effective
• Controlling a meeting to assure decisions are properly made
• How to be prepared for a meeting
• How to record the actions of the meeting

I. Types of Meetings

A. Membership Meetings
B. Board Meetings
C. Petitions and Attendance Requirements

II. Purpose of Meetings

A. Carry out the Mission of the HOA
B. Direct the Community through Management
B. Perform and Oversee the Business of the Corporation
C. Define and Spend Funds of the Corporation

III. How to Hold Effective Board Meetings

A. Effective Procedures for enjoyable & productive meetings
B. Making the Best Decisions
C. Learning to Disagree Agreeably
D. Self Dealings and/or Conflict of Interest
E. Business Judgment Rule & Legal Considerations

IV. Parliamentary Procedures

A. Roberts Rules of Order
B. Working with Volunteers
C. Formal versus Casual Methods
D. Class Practice on Types of Motions

V. Preparing for a Board Meeting

A. Tools and Documents
B. Disagree Agreeably
C. Information for Decision Making

Learning Objectives: The Students will learn how to define and budget for the Community Association (HOA) expenses for the fiscal year and the basics of reading a financial statement to include:

• Understanding the concepts of required and optional expenses
• What the process is for creating a reliable and objective budget
• How to assure that the funding for the CID will be adequate
• How and where to include the owners in the budgeting process
• The difference between Cash and Accrual and why it is important
• What the financial reports and ancillary reports are and what they provide
• When a financial report may be lacking information
• How those involved in a CID read a financial and what they are looking for

I. How to Define the Financial Requirements of the Association

A. Level of Service
B. Optional Costs and Hard Costs
C. Reserve Funding 

II. Understanding the Budget Process

A. Format and Tools for Creating the Budget
B. Using the Chart of Accounts
C. Defining your Message (Long Term Plans)  

III. How to Define Adequate

A. Meeting Needs of Level of Service
B. Meeting Needs of Long Range Plans
C. Cover Emergencies and Insurance Deductible
D. Cover Other Changes Known and Unknown

IV.  The Owner’s Role in the Budget Process  

A.  Legal Requirements of Board
B.  Taxing the Owners
C.  Defining the Priorities of the Financial Demands
D.  Telling and Selling Your Message to the Owners

V. The Ground Work for a Financial Statement

A. Types of Financial Accounting ( Cash or Accrual)
B.  Benefits and Shortcomings of Both

VI. The Reports Every Board Member Must See & Know  

A.  Revenue and Expense Report
B.  Balance Sheet
C.  Accounts Receivable Report – Aged
D.  Accounts Payable Report 
E.  Other Reports and their Purpose

VII. Reading a Financial Report

A.  Defining Cash Available
B.  Where and What is the Reserve Funding Requirement?
C.  Assets and Liabilities and Fund Balance 
D.  What does a Financial Report NOT tell you?

VIII. Stories The Financial Statement Can Tell About Your Association

A.  To your Members
B.  To your Auditor
C.  To your Suppliers/Bankers/Vendors

Learning Objective: The students will be provided information on the methods and reasons for creating rules for a Community Association (HOA) and learn the tools for enforcement and harmony including:

• Why rules are necessary for community living
• How to keep the rules current for the community and how to change them
• What the legal limits and ramifications for establishing rules
• What are some of the pitfalls for Boards in enforcing rules
• How to create an enforceable set of rules
• Enforcement techniques that do not divide the community

I.  Philosophy of Rules

A. The Why and How of Creating Rules for Your Community
B.  Defining the Authority to Create Rules
C. Defining the Difference between a Rule and Covenant?

II. Drafting New Rules and Amending the Old Rules

A. Defining the Requirement of Rules for Your HOA
B. Rules to Avoid and Why
C. Compilation of Rules
D. Creating a Policy for Updating and Review

III. Defining Characteristics of Rules

A. Steps and Methods for Positive Rules
B. Defining Limitations of Rules

IV.  Enforcement Techniques That Work 

A. Creating an Enforcement Policy
B. Due Process and ADR/IDR Methods
C. Legal Rights and Responsibilities of the Board
D. Gaining Compliance
E. Assuring Fair, Uniform and Consistent Enforcement

V.  Methods of Communicating the Rules & Enforcement  

A. Defining the Minimum Requirements
B. Reviewing the Communities Special Issues
C. Creating a Policy for “Reminders”  

VI. Pitfalls to Avoid in Drafting and Enforcing Rules

A. Class Project in Drafting a rule
B. Class Project in Defining an Enforcement Policy

Learning Objectives: The students will gain expanded knowledge of a HOA directors' duty to fund Replacement Reserves including:

• Statutory & governing document requirements.
• Statutory standard of conduct for directors.
• Identifying reserve components.
• Determining the necessary funding.
• Policies for unambiguous reserve planning
  

I. MCIOA Mandate

A. The Law and Legal Requirements
B. Defining “adequate” Reserves
C. Practical Applications of the Law
D. Pending Law that will Impact the HOA

II. Decoding the Declaration

A. Identifying Reserve Components of the HOA
B. How to define Limited Common Elements

III. The Reserve Study

A. Objective Analysis of Needs                             
A. Physical and Financial Procedures Involved
B.  Defining Funding Goals

IV.  Reserve Policies

A. How to Define and Create a Policy for your HOA
B.  Board Resolution or Bylaw amendment?
C. How to Define the Board's duty for Adequate Funding

V. Investments Policies

A. Investment Guidelines for Reserve Funds
B. Co-mingling with Operating funds
B. Defining the Authorized uses of Reserve Funds
C. Establish Study Update Intervals.

Learning Objective: The students will be provided information on the requirements of a common interest development (HOA) in formation and management. Legal information   for Board members to assure they are meeting the requirements of the law and their governing documents to include:

• Review the purpose of each Governing Document
• How the Governing Documents Impact the Board’s Authority
• The Laws and Court Cases that Regulate a Board
• The Legal Duty of a Board and their Liabilities
• Session on Developers role and duties if appropriate to the class

I. Forms of Common Interest Communities (HOAs)

A. Defining the Form and Its Impact on Operations
B. The Legal Implications of the “form” of the HOA

II. Review of the Governing Documents-Their Role and Authority 

B. Bylaws
C. Declaration
D. Rules and Regulations

III. Interrelationship with State Law

A. The Law and its Role in Board’s Decision Making
B. The Layers of Law and its Hierarchy

IV.  Creation of a CIC/HOA

A. The Decision Making at the Beginning & How it Relates to the Board’s Role
B. Options for Changes and Amendments to Governing Documents

V. The Governance of the CIC/HOA

A. The Beginning of Operations
B. The Structure and its Relationship to the Board
C. The Governing Documents Requirements                                                                              
VI. Fiduciary vs. Business Judgment Rule         
A. Understanding the Terms
B. Understanding the Legal Base and Ramifications
C. Court Cases that Support the Requirements

VII. Legal Duty of the Board

A.  Defining the Legal Duty of Board of Directors
B. Personal Legal Liabilities of Board Members
C. Volunteer and Non Profit Liabilities Defined

VIII. Transfer from the Developer - (If Requested to be included in Course)

A.  Legal Duty of Board of Directors Appointed by Declarant
B.  Documents provided by Developer
C. Developer’s Financial Responsibilities
D. Construction Defects

Learning Objective: The students will be provided information on the requirements for insurance protections of an HOA and the methods to create and put into place a Risk     Management Plan. The information will include:

• Identify the mandated insurance coverage by the Minnesota Common Interest Ownership Act.
• Identify situations where higher limits of general liability may be needed by the association.
• Differentiate between "claims made" and "occurrence" forms for Directors and Officers liability policy.
• Identify Risk Management tools that can be used to reduce insurance premiums.

I. Property Insurance                                                                          

A. Define the responsibility for insurance coverage - Who covers what?
B. Define the Property Values for Insurance purposes
C. How to determine an “Appropriate” Deductibles for the HOA
D. Defining other “Property “ and How to Protect the Assets.

II. General Liability

A  Defining the Risks for Liability Insurance
B. Defining the Limits of Insurance for Risks
C. Tools and Ideas for Preventing Claims

III. Directors and Officers                                                                            

A. Who and what is covered?
B. Most common claims on D&O and How to avoid
C. What to Look for in a policy
D. Reviewing Policies for Coverage Gaps

IV.  Miscellaneous  Risks and Forms of Insurance                                                                    

A. Owned auto.
B. Pools, ponds and other amenities
C. Other Property and Risks

V. How to Create a Request for Proposal for Insurance

A. Making your Shopping List
B. Understanding Insurance Market Cycles
C. Understanding the Various Forms of Carriers & their Differences
D. How to Compare Proposals

V. Contracting for Insurance Coverage

A.   The Use of Insurance Experts
B.   Premium Payment Options
C.  The Insurance Contract

VI. Managing Insurance Claims

A. Handling the Deductible Before the Claim
B. Insurance Claims Handling Policy
C. Informing the Owners – Legal & Operational Demands

V.   What is Risk Management?

A.  What should be in a Risk Management Plan
B. What can the Manager do to Lower Risk?

Learning Objective: The students will be provided information on and learn the most desirable method for handling member disputes in a Community Association (HAO) to include:

• What communication forms are the most effective
• What kind of disputes involve the Board and Manager
• Defining the authority and duty to enforce behavior of members/owners
• Enforcement tools and options

I.  Defining the Reason for None Compliance

A. Listening to Owners
B.  Using an Owner Comment Period at Meetings
C. Determining Why the “Reasons” Matter

II. Communication

A. Establishing a Two Way Communication Program
B.  Options Available When Communications Break Down
C. When to Look for Outside Help

III. Types of Disputes

A. Owner to Owner Disputes and the Role of the HOA
B.  Owner to Association Disputes
C.  Association to Owner Disputes

IV.  When Must the HOA Become Involved?

A.  Legal Requirements of Board’s Involvement
B.  Defining When the HOA has a Duty and Why
C. Defining when the HOA may “Want” to Get Involved
D. Defining the Proper use of the HOA assets

V.  Governing Documents Guidelines

A. Declaration
B. Bylaws
C. Rules and Regulations

VI.  Enforcement of Governing Documents

A. Fines, Penalties and Other Lost of Rights
B. Due Process Action
C. Compromise, Settling and Win-Win

VII.  Legal Methods

A. Restraining orders
B. Injunctive relief
C. Litigation
D. Alternative Dispute Resolution
    1. Mediation
    2. Arbitration
    3. Internal Dispute Resolution

VIII. Use of Governmental Resources 

An invaluable course for Board Members with all forms of Management Plans. Whether employees or Management Agent, the Board is the Employer of the Management Team. This course is designed to provide assistant and tips to the Board in how to be effective leaders and employers for their Management Team. The following outline defines the areas to be covered.

I. Managing the Manager Basics

• Establishing the Expectations
• Defining the Tasks/Duties
• Job Descriptions
• Scope of Work
• Methods for Follow Up
• Methods for Evaluation

II. Management's Written and Unwritten Rules

• Governing Document Directions
• Legal Boundaries
• Morals, Ethics and Conflict of Interest

III. Board Relationships & Working with Volunteers

• Officers Duty and Authority                     
• Governance Policy – Working In Agreement
• Committees-Task Force’s Role with Management

IV. Being a Leader and not a Micro-Manager

• Organizational Chart
• Defining Clarity in the Staffing Demands
• Delegating Authority and Responsibility

V. Learning to be a "Good Employer"

• Defining Employment Agreements
• Checking the Competition
• Understanding "How" The Employee Works
• Providing Encouragement and Building Morale                                                     

VI. Management Theories and Concepts

• Carter's Governance Model
• Searching and Finding the "Right" Person
• Internal and External Evaluation                  

VII. Using the Strategic Plan as the Roadmap for Management

• Annual Calendar                
• Long Range Planning