Allstate HOA management, Allstate Property Group


Frequently Asked Questions (FAQs)


Q: What does a management company do?

A: A management company is contracted by the Board of Directors to provide all or part of the following; financial management (FM), physical management (PM) and administrative management (AM). FM includes collection of dues, vendor payments, account reconciliations, budgets, special assessment mailing, reserve funding plans, establishment of bank accounts, delinquencies. In short, anything to do with monies.

PM covers the physical health of your building or complex – dealing with vendors, making recommendations, obtaining proposals, dealing with after-hours emergencies, etc.

AM covers everything the other two management components do not: owner issues, governing document matters, elections, meetings, escrows, committees, violations, year-end disclosures and much more.


Q: What is the Board of Directors?

A: The Directors of an association are elected in prescribed elections and are tasked with the enforcement of the governing documents of the association, adopting budgets and making the ongoing business decisions of your HOA.


Q: How is the Amount of My Assessment (Dues) Determined and What Does it Pay for?

A: Monthly assessments, “dues”, are made up of two components; the operating expenses of the association and a reserve allocation. The operating expenses include utility payments, insurance premium payments, elevator maintenance, landscaping, miscellaneous repairs and upkeep. The reserve allocation is based on the needs of the HOA as they are anticipated and as outlined in the required Reserve Study.


Q: What Happens If I Don’t Pay My Assessment?

A: Non-payment of dues is a violation of the HOA’s CC&Rs and exposes the delinquent owner to sanctions ranging from late fees, interest, judgments and liens.


Q: Who is responsible for what in an association?

A: The Organizational hierarchy of an association consists of:

  • Board of Directors establishes policies and procedures.
  • Management Company executes policies and procedures as established by the Board of Directors.
  • Committees research and make recommendations to the Board of Directors who then makes the final decision, i.e. Newsletter Committee, Architectural Committee, Rules Committee and Grounds Committee.
  • Contractors are professionals hired to perform services for the association. The Management Company oversees the sub-contractors.


Q: What types of insurance does an association need to (or should) have?

A: Insurance coverage is both prescribed by the civil code, the HOA’s governing documents and needs. Insurance components include:

  • Property Damage (fire).
  • General Liability (common area injuries).
  • Directors & Officers/Errors & Omissions (questionable business judgments by your Board).
  • Workers compensation** (protects against financial liability caused by injury to employees).
  • Fidelity Bond (protects against theft of association dollars).
  • Earthquake Insurance (optional).
  • Flood Insurance (optional).


Q: What are the governing documents?

A: Governing Documents of an HOA give the Board of Directors authority and direction to govern the association and (should) include: CC&Rs, Bylaws, Rules and Regulations, Condominium Plan, Articles of Incorporation (if the HOA is incorporated), Election Rules and a Collection Policy. The Board may adopt other policies such as Architectural Guidelines.




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11030 Santa Monica Boulevard Suite 100 Los Angeles CA 90025 t: 310.444.7444 t: 818.345.6365 f: 310.773.9887 Contact
 
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