FAQ
- What is a Homeowners Association (HOA)?
- Do All Owners Have to Belong to the HOA?
- What Does My Assessment Pay For?
- Who Prepares the Annual Budget?
- What is a Reserve Study?
- What is a Maintenance Plan?
- What is the Role of the Management Company?
- How Do I Report a Concern or a Maintenance Item?
- How Do You Store the Association’s Records?
- How Do I Obtain a Copy of My Association’s Governing Documents, Rules, Regulations and Other Information?
- Do You Send Out Monthly Statements?
What is a Homeowners Association (HOA)?
An HOA is usually a not-for-profit common interest development (CID) established by a community which has restrictions regarding what can and cannot occur on properties and also determines the rules and money spent on shared property. In Oregon, there are essentially two types of CIDs: Condominiums (Condos) and Planned Unit Developments (PUDs). Oregon has two major legal statutes that have been specifically developed for CIDs: the Oregon Planned Community Act (also known as ORS Chapter 94) and the Oregon Condominium Act (also known as ORS Chapter 100). Oregon law also now requires that all HOAs be incorporated and as such must also follow the Oregon Nonprofit Corporations Act (ORS 65).
Do All Owners Have to Belong to the HOA?
All persons owning one or more units within a community that is an HOA automatically belong to the association and are required to pay the annual assessment. The assessments are shared by all owners (as outlined in the governing documents) and cannot be “opted” out of.
What Does My Assessment Pay For?
The assessment covers the expenses for the daily operating of the association as well as providing for future reserves (funds for replacement of the major building and common area components). Both your governing documents and the annual budget can be a good place to find exactly what items are paid for with your assessment. All owners are to receive a copy of the governing documents and current annual budget at the close of the sale of their property as required by Oregon law.
Who Prepares the Annual Budget?
Oregon law states, “Unless otherwise provided in the association’s bylaws, the board of directors at least annually shall adopt a budget.” The budget may be prepared by a budget/finance committee, the board or by the management company. However, final approval falls to the board, unless the governing documents state differently.
The reserve study is the estimated cost of maintenance, repair or replacement of each of the common elements (those items on the buildings and grounds that are the responsibility of the association to maintain, repair or replace – for example, the roof on a condominium building). As provided by Oregon law, each association is required to have a reserve account in which funds are set aside for repairs or replacement of those common elements which will normally require that work to be done from not less than one nor more than 30 years. The reserve study shows the association’s funding needs and expenses to 30 years in the future. An annual update of the reserve study is also required by Oregon law.
A maintenance plan is a separate document from a reserve study with separate requirements. The maintenance plan, as provided for in Oregon law, describes the maintenance, repair and replacement to be conducted on the common elements and include the frequency for such work. It shall address all items for which the association has responsibility and is to be reviewed and updated by the board as necessary.
What is the Role of the Management Company?
Services can vary depending on each community’s particular needs, concerns and responsibilities. The manager is to guide the association, through its board, to carry out the policies developed by the board and to manage the association’s day to day business affairs. It is important to remember that while certain responsibilities can be delegated to the management company, the ultimate control of the association remains with the board of directors.
How Do I Report a Concern or a Maintenance Item?
We request that owners complete our Concern Form or Maintenance Request Form to help streamline the request. You may obtain one by calling our office at 503-546-3400 or e-mailing us at info@capartners.net. We also intend to put these and other forms on our website in the near future: www.capartners.net.
How Do You Store the Association’s Records?
As managing agent for the association we maintain a computerized record of all association records. Those records are available for review by owners by appointment during our regular office hours. Copies will be provided at the expense of the owner making the request.
How Do I Obtain a Copy of My Association’s Governing Documents, Rules, Regulations and Other Information?
We provide this information to new owners in a community by a new owner packet. This is mailed out to the address provided by the title company shortly after we receive notice of the closing of the sale. If you did not receive your new owner packet, please send us a request via e-mail, including your name, the association name, property address, mailing address (if different) and date of closing so that we can ensure you receive this information.
Do You Send Out Monthly Statements?
If your association assesses dues monthly, you will be sent a set of monthly coupons for the year prior to the start of that year. Coupons are sent in lieu of a monthly statement. You will not receive a monthly statement unless your payment is late or you have a balance due on your account.
If your association assesses dues quarterly, semi-annually or annually, you will receive a statement in the month prior to the due date of the assessment.
Owners may elect to pay their assessments via check or money order or have the money withdrawn electronically directly from their designated bank account. Paying electronically may save your association money in addition to being safe, convenient, and eliminate the worry of payments being received late (and thus subject to late charges). For more information on setting up direct debit, please contact our office at 503-546-3400 or info@capartners.net.
Monthly assessments are due on the first day of each month and are late if not received by the 10th of that month. Quarterly assessments are due on the first day of January, April, July and October and are late if not received by the 10th day of each of those months. Semi-annual assessments are due on the first day of January and July and are late if not received by the 10th day of each of those months. Annual assessments are due on the first day of the month of the fiscal year and late if not received by the 10th day of that month.
Late fees and other fees apply to any account that has not been brought current by the 10th of the month.
