Residential Estate Industry Journal 4 - Page 26

GOVERNANCE ATLANTIC BEACH & RULES REGULATIONS WHY WE HAVE RULES AS A BASIS FOR ENSURING A HARMONIOUS LIFESTYLE FOR RESIDENTS IN A RESIDENTIAL COMMUNITY Introduction Management rules All institutions in the world have rules and regulations It is important for all members and residents to know that govern the operation, use and participation in that how the company, in this case the HOA, is managed. institution. Residents living outside a residential estate The HOA is reliant on all levies being paid by all are governed by municipal laws relating to noise, the members on time in order for the HOA to meet its keeping of animals, the use of estate agent boards, financial obligations to its creditors. Rules relating to the driving of vehicles in the suburb, etc. Hospitals, who can vote and how to vote for resolutions to be libraries, universities, golf courses, sports clubs, airports adopted ensure that all members understand how their and shopping centres have rules and regulations too, rights are exercised. The processes adopted for board and residential estates are no different. decisions to be made must be clearly stated to give Rules and regulations approved by the members of a Homeowners’ Association (HOA) are also designed to govern the use and enjoyment of the residential community and are always intended to serve the best interests of the community rather than individuals or groups of individuals in the community. It is not the board or management that approves good corporate governance. Members also need to be fully informed of how directors/trustees are elected and how they can participate in the election of the directors/trustees and, of course, how they themselves can be nominated to serve. Security and safety rules the rules, but rather the members themselves. It is While the ultimate responsibility for security rests with the responsibility of the board and management to each homeowner, most people who choose to live in implement and enforce the rules as well as the penalties a secure estate do so because of the added security. for breaches. Controlling access and egress ensures accountability. Management rules, rules for the security and safety of the community, aesthetic guidelines, rules pertaining to the use of facilities and common areas, environmental rules and, of course, conduct rules are important to all members of a residential community. If these rules are communicated, properly stated and lawful, there is no reason why most if not all members of the HOA will buy into these as an integral component of community living. PAGE 24 all members of the HOA peace of mind relating to While access to individuals who have a rightful purpose to enter cannot be denied, it is important to have information relating to the reasons why people are entering the community. Rules pertaining to the use of roads, speeding and dangerous driving are there to protect residents and their families, and in some cases the wildlife. Other safety rules, like the storage of hazardous goods, the lighting of fires and setting off fireworks, for example, are designed to protect the community and property.