Assessments
What is an Assessment?
  • Homeowner associations can compel homeowners to pay a share of common expenses, usually per-unit or based on square footage. These expenses generally arise from common property, which varies dramatically depending on the type of association. Some associations are, quite literally, towns, complete with private roads, services, utilities, amenities, community buildings, pools, and even schools. Many condominium associations consider the roofs and exteriors of the structures as the responsibility of the association. Other associations have no common property, but may charge for services or other matters.
Are Dues different than Assessments?
  • A predetermined set of fees usually referred to as ‘Dues’ are collected by HOAs, community associations, or divisions of property management for the upkeep of said organizations or neighborhoods in general. These fees are billed at intervals, sometimes by month, quarter, or annually.

Association Type

What is a Homeowners Association (HOA)?

  • A homeowners association (HOA) is a legal entity created by a real estate developer for the purpose of developing, managing and selling a community of homes. It is given the authority to enforce the covenants, conditions & restrictions (CCR) and to manage the common amenities of the development. It allows a developer to end their responsibility over the community, typically by transferring ownership of the association to the homeowners after selling. Generally accepted as a voluntary association of homeowners gathered together to protect their property values and to improve the neighborhood, a large percentage of U.S neighborhoods where free standing homes exist have an HOA. Most homeowners’ associations are nonprofit organizations and are subject to state statutes that govern non-profit corporations and homeowners’ associations.
What is a Community Association?
  • A community association is a nongovernmental association of participating members of a community, such as a neighborhood, village, condominium, cooperative, or group of homeowners or property owners in a delineated geographic area. Participation may be voluntary, require a specific residency, or require participation in an intentional community. Community associations may serve as social clubs, community promotional groups, service organizations, or quasi-governmental groups.
What is a Neighborhood Association?
  • A neighborhood association (NA) is a group of residents or property owners who advocate for or organize activities within a neighborhood. An association may have elected leaders and voluntary dues. Some neighborhood associations in the United States are incorporated, may be recognized by the Internal Revenue Service as 501(c)(4) nonprofit organization, and may enjoy freedom from taxation from their home state.
What is the difference between a Homeowners Association and a Neighborhood Association?
  • The term neighborhood association is sometimes incorrectly used instead of homeowners association (HOA). Some key differences include: 1. HOA membership is mandatory generally through rules tied to the ownership of property like deed restrictions. Neighborhood association membership is voluntary or informal. 2. HOAs often own and maintain common property, such as recreational facilities, parks, and roads, whereas neighborhood associations are focused on general advocacy and community events. The rules for formation of a neighborhood association in the United States are sometimes regulated at the city or state level. Neighborhood associations are more likely to be formed in older, established neighborhoods, whereas HOAs are generally established at the time a residential neighborhood is built and sold. In some cases, neighborhood associations exist simultaneously with HOAs, and each may not encompass identical boundaries.

Asociation Management Questions
What is Association Management?
  • Association management is a distinct field of management because of the unique environment of associations. Associations are unique in that the ‘owners’ are dues-paying members. Members also govern their association through an elected board or other governing body, along with association committees, commissions, task forces, councils and other units. Typically, the board selects, retains and evaluates a chief executive officer or an executive director who is responsible for the day-to-day management of the association and paid staff. Managers within the association environment are responsible for many of the same tasks that are found in other organizational contexts. These include human resource management, financial management, meeting management, IT management, and project management. Other aspects of management are unique for association managers. These include: membership recruitment and retention; tax-exempt accounting and financial management; development of non-dues revenue and fundraising. Association managers must also be familiar with laws and regulations that pertain only to associations. To attain the knowledge needed to effectively operate in association management, its practitioners may choose to pursue the certified association executive designation.
What is an Association Management Company and what do they do?
  • A property management entity contracted by a board of directors or community to provide a variety of services including but not limited to collecting assessments, sub-contractor endeavors, financial advisement and statement/reports preparation and analysis, general maintenance and problem resolution, and advisement on legal and other property related matters. Some of these companies manage hundreds of properties simultaneously, while others focus on individual properties.
Does my community have an Association Management Company, and if so, how do I contact them?
  • If your community is not self managed, the association management’s contact information can be located on the website, and most association management companies have contact information listed on their company websites or in the phone book. Generally, a management company can be contacted online or by telephone by community or Board members, or individuals whose communities are seeking a management company for representation.
What is a Managing Agent?
  • A managing agent is a person or entity hired specifically to assist the board of directors in enforcing the documents and managing the assets, funds, and interests of the association.
What is a Proxy?
  • An individual appointed to act or vote on behalf of another person by representing them at a meeting of the association. The title can also refer to the written piece of paper granting that power.
What is a Quorum?
  • A quorum is defined as the minimum number of owners required to hold an official meeting of the association. The number of owners required can vary greatly according to the corresponding association’s governing documents.
What is a Recuse?
  • The act of initiating a Recuse involves the temporary removal of an association member or board member, or the act of disallowing his or her participation in a particular vote or proceeding.


Frequently Asked Questions

Association Advisors NJ
28 East Main St.,  Freehold, NJ  07728
3312 Hudson Avenue, Union City NJ 07087

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