FAQ – Empire South

Frequently Asked Questions

What is the role of Empire South as a management company?

The daily workload for maintaining the association is often very time consuming for a volunteer Board of Directors, particularly in its first year. A management company is an independent firm that assists the Board in the daily functions some of which include: handling financial operations and enforcing collection policies, maintenance and overseeing vendors, helping the board to stay in compliance with the governing documents and laws, handling notices and correspondence to the owners, act as homeowner liaison and providing routine inspections of the property.

The scope of services provided by a management company varies based on the needs of each Homeowners Association. At Empire South, we provide a customized management service catered to each association which includes: financial, accounting and collection services, administrative services on an as needed basis and full community management.

What is a POA?

A POA or Property Owner Association is a legal non-profit entity created to manage and maintain the common areas of a community. Typically, the common areas consist of entranceways, gates, lighting, streets or roads, landscaping, parks, etc. One of the primary functions of the POA is to enforce and ensure that the individual property owners adhere to the CC&Rs and preserve the appearance and property values of the community.

What is the difference between the POA, the Board of Directors, and the Officers?

The POA consists of all Owners within the geographic boundaries of the Community. The Board of Directors usually consists of Members who have been appointed or elected to conduct business for the POA and execute on behalf of all Owners. The Board of Directors may choose to elect Officers to conduct specific tasks for the POA, often considered the day-to-day items. Most Officer positions run concurrently with the Board of Directors.

What is the difference between a Board, Annual, Special, and Executive meeting?

Every community is governed by of Board of Directors, and the board is required to meet on a regular basis to discuss association items and business. An annual meeting is a meeting held annually for all members of the association to discuss important association matters, ask questions, receive answers to their concerns, and elect board members, when applicable. A special meeting is a meeting for an issue that may arise in between board or annual meetings, and only that topic can be discussed or voted on during the meeting. An executive meeting is held between Board Members to discuss confidential matters.

What is a Reserve Study?

To maintain and preserve market values of both the residential and common area property, an POA must develop funding plans for future repair or replacement of major common area components: such as swimming pools, decks, asphalt surfaces, concrete areas, fencing, monument signs, security gates, sidewalks, clubhouses, etc. Thus, a reserve study provides guidance on how much your POA should be putting aside each month for reserves, so it can meet the future obligations described above, without requiring special assessments.

Why do I have to pay for an account transfer?

First, if a mortgage is involved, an Account Transfer/Estoppel Letter is going to be required by 99% of mortgage providers. Different states have different nomenclature for this process, but they serve the same purpose. Management firms issue a Transfer/Estoppel "Letter" in this process, but "Letter" is a poor descriptor of the transfer process as it is much more laborious than simply signing a Letter. Account Transfer/Estoppel Letters are important for Association to keep the membership rosters current, the rules enforced, and owners informed. Most associations prefer to have the persons responsible for creating this extra work pay for this extra work rather than having increased fees spread over the entire association.

How does the residential portal benefit me?

The residential portal is a resourceful asset to the homeowners. Through the portal, a homeowner can access the community calendar, classifieds, community documents, submit for ARB review, submit violations, request, and contact the Association Manager directly, and so much more.

Why do developers work with Association Management Companies?

When developers and Association Management Companies work together, they each benefit from a partnership of each party’s knowledge, creativity, and expertise. This also creates a community that is desirable and marketable for many years to come.

What happens when a property transitions from developer control?

A homeowner board is elected at an inaugural meeting, and the homeowner Board of Directors gains control and access to the day-to-day decision making for the association. The experts at ESR have handled many transitions, and they strive to make this transition as easy as possible for all parties involved.

Who makes decisions on behalf of the POA?

Decisions concerning association operations are made by a Board of Directors, which is made up of volunteers who are initially appointed by the developer and thereafter elected by the community’s residents during the annual membership meeting. The Board appoints officers and depending on the number of units or homes in the association will usually determine how extensive a role the Board takes. The Board may appoint a President, Vice-President, Secretary, Treasurer, and member-at-large and in many cases the By-Laws allow for one person to hold more than one office. Additionally, the Board may appoint other owners to serve on committees to assist with the operations. Examples include: Landscaping, Finance and Budgeting, Maintenance, Social, and Architectural Committees.

What are the governing documents of the Association?

The Governing Documents are documents that help to govern the powers, rights, and responsibilities of the Board of Directors of the Association and the Owners. These documents will include Articles of Incorporation for incorporated associations; By-Laws; CC&R’s which stands fort Covenants, Conditions, and Restrictions, and sometimes called the Declaration or Declaration of Restrictions; and the Rules and Regulations.

What is my role as a property owner?

All property owners should assume responsibility to protect property values and secure a lifestyle that all residents can enjoy. As a member of your community association, your legal responsibilities to the community association include: complying with the governing documents, rules and regulations, architectural guidelines, policies, and procedures, and paying the assessment necessary to operate the community association. Should you wish to influence the direction of the association it is advisable that you volunteer to serve on the Board of Directors.

Do I have to pay the annual assessment if I belong to a community association?

Yes, all homeowners owning a unit or lot within a community association automatically become a member of that community association and are required to pay the annual assessment. The annual assessment covers all the costs associated with operating a community association.

What does my annual assessment pay for?

The assessment covers the operating expenses that the community association is legally responsible for. Typical expenses include: insurance, water and sewer, gas and electricity, landscaping services, road maintenance, janitorial, pest control, pool and spa, maintenance and management of any common areas and amenities. Assessments also cover the funding of reserves, which are funds accumulated to pay for future repair or replacement of major components for which the community association is responsible.

Can an HOA change rules after purchasing a home?

A Board of Directors can change the rules at any time upon following applicable procedures. The rues and regulations are usually outlined in the development's Bylaws and/or CC&Rs

Do HOA Fees ever go away?

HOA fees and assessments do not ever go away unless the association was formed for architectural guidelines only or has been dissolved.

What happens if you don’t pay your HOA fees?

If an owner does not pay their assessments, the owner will receive late notices, a pre-lien notice, and ultimately, the Board of Directors can vote to lien/foreclose on the property.

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