Therefore, when choosing a management organization, residents and legal owners of premises want to trust a person who can in every possible way maintain the house and common area in proper condition , as well as improve the situation.
But often this becomes impossible due to the wrong choice of the top management.
Each organization is headed by people who, in one way or another, monitor the condition of the building, give orders and primarily decide what is best to spend budget funds on, what kind of work to carry out, and so on.
Unfortunately, there are not always people at the head of management organizations who are ready to fulfill their duties conscientiously .
Often, many people come to work in the housing sector with one banal goal - to profit from gullible owners and try to penetrate the structure of their budget.
In order to prevent such incidents and unpleasant situations from happening to you, you need to know what functions should fall on the shoulders of the board of the homeowners association, how they should perform their functions, and also what is within their scope of competence.
The rights and obligations of HOAs according to the housing code - we will deal with these important and pressing issues in this article.
Read our article about the pros and cons of HOAs.
On what basis does the board act?
Let's look at conceptual questions. What is an HOA and why, within the framework of this article, we are talking about such a management organization. Let's clarify this issue.
A homeowners' association is a non-profit organization that was created from the residents themselves; in addition, the organization is registered as a legal entity, it is a full-fledged taxpayer and carries out the functions of improvement, maintenance and management of an apartment building.
The partnership is the most popular when initially choosing a management organization and there are a number of reasons for this. One of the most popular reasons for choosing and forming this organization is the opportunity for residents to independently form its composition.
At the meeting of owners, candidates in whom residents have the highest confidence are selected. In addition, given the fact that the residents of the house will be part of the board of the partnership, it means that none other than the residents of the management will be interested in performing their functions as efficiently as possible, waiting for the house to be ennobled and in proper condition. condition.
But who are the board members?
The legislation establishes that the partnership is formed from members of the legal owners of the premises.
But you must admit, if every issue related to improvement and expenditure of budgetary funds is brought to the attention of residents’ meetings, then it will have to be held very often, which is practically impossible, because each resident has his own job, and therefore will not be able to properly attend each meeting.
Therefore, the most proactive and trustworthy citizens are selected from among the owners, who can represent the general interests of the house and can independently make decisions in the interests of the residents.
When the management is created, the meeting of residents will meet much less frequently and only for very serious reasons.
In addition, such an important person as the chairman of the partnership is elected from among the board members, who is called upon to regulate all the activities of the organization and resolve the most important issues.
Find out on our website how to write an application to join the HOA.
Types of service
In fact, the partnership provides services not only in everyday matters, but also in other areas that are no less important for the owners and residents of the house. The everyday side of the HOA’s activities comes forward, “closing” other areas of competence.
Technical
The broadest and primary purpose of the HOA is services in the field of operation of a multi-storey building, its maintenance, which affects all residents, even those who refused to join the partnership.
What is included in the operational support:
- monitoring the proper functioning of all technical systems of the building;
- organizing conscious, high-quality use of these systems by residents;
- ensuring the working condition of building foundations, structures, instruments and devices of the house;
- carrying out major and current repairs;
- installation of dispatch equipment and communications;
- support of all utilities and systems, preventing interruption of their supply;
- keeping the common areas of the house and yard clean;
- organizing repairs or improving the appearance of entrances, stairs, elevators, areas in front of the house, etc.;
- installation of new, more comfortable technical devices and apparatus.
The list is not closed.
If the residents agree to carry out the corresponding expenses, then the technical side of maintaining the house can be added - installation of an intercom, a video surveillance system, opening a security point.
Of course, such work is not one-sided. Residents themselves are interested in helping the HOA provide them with comfort and safety, therefore they must take an active part in the implementation of the listed functions.
Legal
Having a legal basis, the HOA represents the interests of each individual and the general population of residents. When establishing and developing relationships with suppliers and contractors, regulatory authorities, and courts.
In order to optimize this function of the partnership, it is necessary to carefully and efficiently formulate the rules in the agreement between residents and the HOA.
An agreement with limited rights of the HOA or unprofessionally stated wording may contribute to the inability to defend the rights of owners in a legal dispute. For example, with a utility service provider, or significantly narrow the field for protecting the interests of residents, and entail material losses.
Main areas of legal services:
- tax accounting;
- personnel records management;
- preparation and modification of documentation;
- regulation of disputes and debt issues;
- generation of public information;
- support during reorganization and liquidation;
- document analysis.
It is best to enter into an agreement with highly qualified legal support.
Accounting
It is clear that working with utility services requires constant and timely accrual of payments and their payment. Who is responsible for accounting services, supporting these transactions and requesting them from the bank? The HOA assumes the functions of an accountant and intermediary between residents and utility offices, which most homeowners do not even think about.
Without such a function, they would have to independently request payment orders and transfer funds using the details. At the same time, deadlines would be constantly violated, mistakes and misunderstandings would be made, which would lead to disruptions in the delivery of services and other troubles.
Also, HOA employees are responsible for notifying residents about tax charges and debts, the deadline for their payment, insurance payments, generating annual and quarterly reports, etc.
Other types
The partnership, or rather its ordinary members, are interested in an economical approach to solving everyday issues, since the capital of the HOA consists of their contributions, and the HOA has no right to engage in profit-making.
To effectively use a limited budget, serious analytical work is required:
- Planning and forecasting activities, consideration of alternative development paths.
- Calculation of economic indicators.
- Establishing correlations between various management and operational decisions.
- Optimization of taxes, staffing, household technologies.
- Selection of tools, inventory, new spare parts and materials or entire equipment under more favorable conditions than the general market ones.
All these tasks are carried out by the HOA, thus providing economic services to the residents.
Another type is organizational services, which consists of initiating and maintaining production processes, office work, communicating information, planning activities, monitoring, and providing residents with resources.
Housing maintenance - integration of sanitary and hygienic institutions into the life of the house. Guarantee of cleanliness and order, timely removal of waste, garbage, removal of parasites - insects, rodents, installation of ventilation cleaning systems, epidemiological measures, development of cultural and aesthetic elements of the territory - children's and sports areas, design solutions in the house and surrounding areas, care of plantings.
What laws govern it?
Let's consider the legal regulation of homeowners' associations. Of course, the activities of management were not invented by the members of the partnership themselves; the board has long been established by law and is an integral part of the management organization .
That is why, when it comes to leadership, it should be remembered that there are many regulations that enshrine their activities at the legislative level.
Of course, the primary regulatory act that regulates the activities of the board and the HOA as a whole is the Housing Code.
It is this normative act that is capable, one way or another, of regulating the relationship between management and residents, with employees in this organization.
In addition, it regulates all the assigned duties and responsibilities of the owners on the board, and they have enough such responsibilities.
Also, many aspects that are important for the activities of the board are contained in such a local regulatory act as the charter of the association of legal homeowners.
This act regulates issues related to the activities of this organization, the election of citizens to leadership positions and other important aspects, including the issue of remuneration for their activities.
If you want to get as much information as possible about what the board is and how it is formed , we strongly recommend that you refer to these regulations.
Who are the governing bodies of the homeowners association?
In accordance with Article 144 of the Housing Code of the Russian Federation, the governing bodies of the HOA are:
- meeting of members of the partnership;
- board of the organization.
The election of the chairman of the board and other candidates to the management apparatus is carried out by members of the meeting by voting.
The composition of the board depends on the general meeting. Members of the partnership may decide on its re-election or abolition.
Organizational and legal form
A partnership, as follows from the definition given in the legislation, has the form of a legal entity . But why exactly this? This organization is undermining the tax authorities.
In addition, the HOA has its own budget and has the opportunity to hire workers to perform any work, both on an ongoing and one-time basis.
All these signs rightfully belong to the characteristics of a legal entity, which means that a partnership is rightfully such.
You can learn about the concept of a reserve fund, as well as membership and other fees to the HOA, from our article.
Elections
The management staff is elected at a general meeting of HOA members . The decision is made by a majority vote. Each candidate is considered separately. If more than half of those present voted for a particular person, then he is appointed to the board.
The adopted decision is documented in the minutes of the general meeting. It is signed by all those who voted in favor, as well as those elected members. The Board is elected for a period determined by the HOA Charter. It cannot exceed two years.
Membership on the board is voluntary. You cannot force a person. That is, any candidate can refuse.
Responsibilities to residents
Members of the board of the partnership, as well as the founders and other employees of this organization, have a list of duties established by law, namely the labor code, that they are obliged to fulfill to residents . Let us remind you that failure to fulfill duties can cost members of management not only re-election, but also penalties and other, not the most nice things.
Let's consider the main responsibilities of board members and other employees of the homeowners association :
- First of all, members of management must tirelessly comply with the requirements of the law, listen to it and not act beyond its limits.
- Board members must exercise control over the expenditure of budget funds.
- Members of management undertake to honestly prepare estimates of income and expenses not only for all board members, but also for other employees.
- Members of management are required to monitor the management of MKD.
- It is the responsibility of the organization’s board to hire workers to service the house, and, if there are reasons, to fire them.
- Board members are required to enter into agreements for the maintenance of an apartment building, as well as its operation and repair.
- Board members maintain so-called documentary registers, in which they report on everything related to expenses.
- They are obligated to bring controversial and important issues to the attention of the meeting of homeowners.
- If the charter establishes other duties, then fulfill them unquestioningly.
Read about the responsibilities of the HOA manager in our article.
Why us?
The Borodin and Partners Bar Association employs housing lawyers who regularly resolve even the most complex disputes between homeowners associations, residents of apartment buildings, and housing and communal services. What arguments will convince you to contact us:
- More than 20 years of experience in resolving housing disputes in court and out of court;
- Dozens of won cases involving HOAs;
- The ability to contact a lawyer at any time of the day by phone, email or via chat in your Personal Account on the website;
- Providing a full range of legal services - consulting, support of judicial and pre-trial proceedings, monitoring the execution of court decisions;
- Maintaining confidentiality and high professionalism of the participants, which is confirmed by the membership of specialists in the Moscow Bar Association;
- Steady reputation in the market and numerous positive customer reviews.
How are controversial issues resolved?
controversial issues arise among members of associations and their employees , then these issues should be brought to a meeting of residents, or as it is called, a meeting and resolved by voting.
This rule is not established by law, but is certainly reflected in the charter of the partnership.
You can learn how to write a statement to the HOA about leaks, flooding, or the need for repairs and recalculation in our article.
Rules governing residence issues
All rules that relate to living in the house are prescribed and approved at a general meeting.
And not only the owners of real estate who are part of the institution are obliged to adhere to them, but absolutely all residents of the house.
The basis for the creation of rules and their subsequent adoption are legislative norms that are relevant at a certain point in time.
Also the basis will be the charter of the institution, requirements for the maintenance of the house and local area .
What rights and powers do they have?
Board and founders
The board of the partnership and its founders are officials who, in addition to a wide range of responsibilities, have the same range of rights.
Let's look at the rights that these subjects have :
- They have the right to decide on the expenditure of budget funds for the needs of the house and its maintenance.
- Conclude agreements for the maintenance and management of an apartment building.
- Determine estimates of income and expenses based on the budget.
- Take advantage of credit offers within the organization provided by banks.
- Transfer money to employees for work performed.
- Receive rewards for work done.
- Conclude deals for activities necessary to maintain the home.
- Use common property.
- Modify common property as part of the management of an apartment building.
Find out on our website how to complain about the work of your HOA and whether you can leave it.
Members
Let's consider the legal status of the members of the partnership, which is determined by the labor code:
- These persons have the right to receive timely and comprehensive information about the activities of the partnership and the expenditure of budget funds.
- They have the right to make demands on the partnership regarding the quality or other aspects of the services provided.
- They have the right to get acquainted with documents, including accounting.
- They have the right to independently organize general meetings of homeowners to discuss issues of concern.
- They have the right to demand changes to the organization’s charter.
Read our articles about reorganization, liquidation or bankruptcy of HOAs.
HOA requirements
Multi-storey buildings are subject to high technology, engineering and safety requirements even at the construction stage due to the great responsibility.
Also, the maintenance and support of such a structure has strict standards and regulations, so the legislation surrounded the HOA with limits and conditions for carrying out activities.
Towards labor protection
To guarantee the safety of the engineering and technical work performed in the house, HOA employees - staff and invited - are required to go through and become familiar with the HOA operating instructions and sign in safety logs. Such actions are necessary for the following work:
- roof repair;
- elevator maintenance;
- installation and dismantling of windows;
- installation of air conditioning systems;
- other repair and household operations.
The requirements relate to labor protection, since they care about the safety of not only residents, but also the workers themselves. It is important to maintain the line between official duties and personal protection of life and health.
Towards fire safety
Since school years, everyone has been familiar with the rules of the fire safety system and evacuation. For a multi-storey building, these rules are especially relevant, since only residents of the lower tiers will be able to quickly leave the house.
Primary requirements:
- fire escapes are accessible for use, not cluttered, and are regularly checked for suitability;
- a ban on burning garbage and especially flammable waste;
- lighting a fire inside the house and in the surrounding area;
- prohibition on holding flammable objects and things;
- smoking only in designated areas;
- Availability of evacuation plans, fire extinguishers and cranes.
Most people neglect safety precautions. However, practice demonstrates a large number of emergency situations with victims and casualties. Among whom are often children. Therefore, the HOA is obliged to convey to all residents the importance of complying with the rules and periodically conduct repeated instructions.
Where and should this be written down?
Of course, despite the fact that the legislation contains information about rights and obligations, still crawling through codes in order to find this or that norm is a thankless task.
That is why rights and obligations are prescribed not only in codes and other normative legal acts, but also in the charter of the partnership .
a special chapter for this topic , where all possible rights are described in detail with references to legislation. The same goes for responsibilities.
Also, do not forget that the owners of housing in an apartment building enter into an agreement with the partnership for the management and maintenance of a multi-story building and the adjacent territory.
So, based on the available data, we can conclude that this agreement can also contain information about the rights and obligations of the parties so that all owners of premises in an apartment building can become familiar with these issues during the meeting.
Find out on our website also how to register an HOA on the GIS Housing and Communal Services.
Protocol
A protocol is a document that is drawn up according to an accepted standard . There are three parts here. The first part is introductory, and it contains information that concerns the institution, the number of its participants who attended the meeting.
Also in the introductory part there is information about setting the date for the meeting or about its cancellation if the number of people required to make a decision does not appear.
The second, or main, part sets the agenda.
These are the issues that are being brought up for consideration, and data about the discussions on these issues .
The third part includes summing up the voting results.
The minutes must be accompanied by copies of notices convening the meeting, as well as voting forms.
It is necessary to attach a list of those who participated in the discussion .
Reward
Payment for the activities of the board is established by a decision of the general meeting of the HOA. This rule is specified in paragraph 11 of part 2 of article 145 of the RF Housing Code. Payment of remuneration is made on the basis of a concluded agreement, in compliance with the rules of the HOA Charter. The amount is determined at the general meeting.
The HOA will have to pay personal income tax on the remuneration. For example, the monthly remuneration is set at 5,000 rubles. The total amount will be calculated as follows: 5,000 – 13% (personal income tax) = 4,350 (remuneration amount).
