NEW HOMEOWNERS ASSOCIATION START-UP

1. Stay on top of overall process of forming each HOA while keeping the deadlines for each document and/or action in compliance with the anticipated community opening for Sales timeline.

2. Provide comments/recommendations for revisions prior to recording/adopting of attorney-drafted governing documents (Articles of Incorporation/Bylaws/ Declaration of Covenants/etc.);

3. Preparation of Architectural Control Guidelines;

4. Obtaining Tax ID;

5. Preparation of Budgets (Buildout and current year); and

6. Recommend, assist, and advise Client in bidding Association service contracts (property management, landscaping, pool, stormwater, and insurance contracts).

BOARD OF DIRECTORS

1. Role and Responsibility

a. Serve as the Declarant-appointed President of the Association for the duration of the Contract;

b. Review of all recorded/adopted governing documents (Articles of Incorporation/Bylaws/Declaration of Covenants/Architectural Control Guidelines/etc.) and provide comments/recommendations for revisions; and

c. Operate the homeowners association business under the direction of the Client while in compliance with the Association’s governing documents and North Carolina law.

2. Property Management Company Oversight

a. Communicate regularly with property management company to review Member issues, budgets, monthly financial statements, vendor performance, and other matters related to the overall condition of the communities and Association operations;

b. Finalize all correspondence formatting and language sent from property management company to Members and homebuyers;

c. Conduct quarterly reviews to improve property management company performance;

d. Conduct reviews of record-keeping items (resolutions, votes, meeting minutes,

decisions);

e. Review subsidy requests submitted by property management company;

f. Work with property management company to identify issues that may arise in the due diligence processes;

g. Direct property management company to collect RFPs from potential Association vendors (landscaping/pool/stormwater/etc.)

3. Attend Meetings

a. Actively participate and lead all official Quarterly Board Meetings for the Association, without attendance of Members;

b. Actively participate and lead the official Annual Board Meeting for the Association, with attendance of Members.  Attendance of no less than one other Board member required;

c. Actively participate and lead the official annual Townhall Meeting for an open forum for all Association Members;

d. Take notes of actions taken in official Association meetings and provide Board with minutes for acceptance into the Association’s book of records.

e. Actively participate and lead one annual meeting per calendar year;

f. Actively participate and lead all Due Diligence hearings for covenant violations; and

g. Actively participate in Architectural Request Application appeal meetings.

4. Community Inspections and Common Areas

a. Conduct quarterly community inspections to review vendor performance relative to contracted scope of work;

b. Periodically meet with property management company to identify issues; and

c. Periodically meet with Client’s Land Development staff to inspect common areas, amenities, community feature, and stormwater devices prior to transferring ownership to the Association.

5. Accounting and Finance

a. Review financial reports monthly;

b. Review Year-End financial reports;

c. Review data/proposals/contracts provided by the property management company for the

creation and/or revision of the Association annual budget;

d. Provide Client yearly deficit funding projections based on projected Association expenses and current and projected home Closings;

d. Review annual tax returns as prepared by a third-party accounting firm;

e. Review and propose capital reserve account actions including transfers and options

(CD’s/investment options/etc.);

f. Track collections actions as presented by the property management company and identified by the Association’s enforcement policies; and

g. Work with property management company to identify issues that may arise in due diligence and delinquent account processes.

6. Issue Resolution

a. Identify and problem-solve vendor-related issues (landscaping/pool/management

company/stormwater/etc.) and to provide clear objectives for opportunity for improvement.

b. Identify and problem-solve Member-related issues (architectural/neighbor-to-

neighbor/accounting/etc.) and to provide clear direction for resolution.

c. Internal problem-solving responsibilities in areas involving the Association’s and inter-

departmental concerns (rules/exceptions/variances).

ARCHITECTURAL CONTROL COMMITTEE, AKA ARCHITECTURAL REVIEW COMMITTEE

1. Collect, organize, and act as lead reviewer and committee Chair in all architectural requests as submitted by Members to the property management company; 

2. Provide guidance to property management company and Client staff (Sales/Construction/Warranty/Land Development) on inquiries submitted by potential homebuyers;

3. Draft/revise all documents related to Architectural Rules and Regulations and the Architectural Request Application process; and

4. Work with property management company to provide guidance to Members and oversight of decisions during the architectural review process.

TRANSITION PROCESS

1. Conduct thorough review of all Association record-keeping items (resolutions, votes, meeting minutes, decisions) in preparation of Transition of Association from Declarant to Members;

2. Retain professional third-party firms to perform Reserve/Transition Study and Financial Audit;

3. Conduct pre-Transition onsite inspection with Client’s Land Development staff to identify common areas, amenities, community feature, and stormwater devices issues;

4. Work closely with Client to assess the resolution of Transition Punchlist items and/or Association subsidy;

5. Distribute communication with Membership detailing the Transition process;

6. Actively participate and lead the official Transition Meeting for the Association; and

7. Actively participate and lead the second official Transition Meeting for the Association, if necessary.