As another December comes to an end, community associations should review the following items as part of their transition into the New Year:
Board Training
Since many associations elected new board members at their annual meeting, this is the perfect time of year to brief the new board members on outstanding business items and the association’s future goals. In addition, incumbent or outgoing members can also play a part in revising or creating new checklists that need to be carried out into the New Year. The newly elected board members should also be trained for their leadership roles. They need to understand their legal duties of care and loyalty to the association, and they need to evaluate and explore the authority granted to the board in the association’s governing documents. Each director and/or officer should understand his or her position, the legal requirements of that position and the practical and realistic requirements for the community.
Governing Documents
Associations should also review their governing documents to ensure that they are still in accordance with the applicable laws and with general community association practices and procedures. If the rules and regulations and/or the design standards for the community need to be revised, now is also a good time to schedule the review process so that the updated documents will be ready in time for spring—a time when many homeowners are looking to make improvements and the recreational facilities begin to reopen.
Collection Practices and Procedures
Another area boards should consider reviewing is the association’s collection policy. If the association has not established a policy for dealing with delinquent owners, now is the time to create such practices and procedures so that the association can act quickly and efficiently when handling collection matters. By creating, reviewing and/or revising the collection policy, boards can help ensure the continued financial success of their association.
Vendor Contracts
Boards should always do an annual review of all their association’s contracts. To make this review as efficient as possible, consider creating an Excel spreadsheet for all of the association’s contracts. The spreadsheet should identify the companies with whom the association does business, the date the contract started, the date the contract expires, the date the contract renews (and for how long) and the payment requirements of the contract. The spreadsheet will provide a quick and easy reference guide for the board and the property manager. A review of the spreadsheet can help determine when contracts need to be negotiated and what provisions may need to be renegotiated by the parties.
Registration with the Georgia Secretary of State
Lastly, boards should review their association’s registration with the Georgia Secretary of State. They may need to update the registered agent and/or the officers on file if they are no longer accurate.