BEST PRACTICE: GOVERNANCE FOR
COMMUNITY ASSOCIATIONS
ACCURATE BALANCE
EQUITABLE COMPLIANT
Information
Process
Funds
Legal
Estate managers, HOAs, bodies corporate and other community
associations are responsible for managing huge swathes of land and
property worth millions of rands, and are responsible for ensuring that the homes of
hundreds, perhaps thousands, of people remain a safe and uplifting place to stay.
This requires high levels of integrity and unimpeachable governance.
Governance and resident involvement
• • There exists a mechanism a nd procedure for assuring
residents’ obligations to adhere to the governing documents,
Minimally, a quality community association should comply with
all of the following statements:
• • There is a functioning board that meets regularly and that is
carrying out its duties and responsibilities.
• • The board has disclosed to the owners all association
and a confidential and safe forum for the resolution of
disputes.
• • Management is licensed, certified or holds appropriate
credentials evidencing its competence to manage the
community.
information that is required by law and the governing • • Appropriate insurance is maintained by the association.
documents, including the articles of association. • • A system is in place to administer property damage and
• • The association’s legal documents, resolutions, books of
accounts and records are open to inspection by owners on
reasonable notice during regular business hours.
personal injury claims.
• • The board budgets for ongoing education of members of the
board, particularly for newly elected or appointed members.
• • Owners may attend board meetings, except when the board
meets in an executive session.
• • The board provides for due process for owners in
A policy governance model
association-related matters, and encourages the use of
alternative dispute resolution.
Boards should delegate the day-to-day operations to staff so
• • The board conducts, and produces minutes of, all meetings. that they can focus on the bigger picture – the longer-term
• • Election procedures conform to the governing documents needs of the organisation. The book of governance establishes
and applicable law, with information regarding the process the board as a legislative body, and the manager as the
available to all owners. executive. The function of the board of directors is to set policy.
• • A system is in place to respond to owners’ requests for
association-related matters.
• • A system is in place for property inspections and monitoring
to ensure proper maintenance and appearance, both
current and preventive.
• • The board communicates with the owners periodically to
The function of the manager is to carry it out, thereby creating a
more efficient community association. The book of governance
should contain a vision statement, mission statement and all
policies.
Transition from developer control
provide information concerning the association and to get The first opportunity that owners will have to become involved
feedback. in their community association is during the process in which the
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