hrca delegates and directors duties

HRCA DelegatesHRCA Delegates’’ and and DirectorsDirectors’’ Duties, Duties,

Responsibilities, and Responsibilities, and ExpectationsExpectations

BasisBasis

Community Declaration (Community Declaration (CC&RCC&R’’ss))

Covenants, Conditions, and RestrictionsCovenants, Conditions, and Restrictions

Recorded against every Privately Owned Recorded against every Privately Owned SiteSite

Contract between Owner and the HRCAContract between Owner and the HRCA

Supplemental DeclarationSupplemental Declaration

Articles of IncorporationArticles of Incorporation

BylawsBylaws

TermsTerms

Duty: binding legal obligationDuty: binding legal obligation

Power: ability to accomplish objectivePower: ability to accomplish objective

Liability: corporate and/or personalLiability: corporate and/or personal

Delegate ResponsibilitiesDelegate Responsibilities Community DeclarationCommunity Declaration

Delegates elect DirectorsDelegates elect Directors

One vote for each privately owned siteOne vote for each privately owned site

Serve as Recreation Advisory CommitteeServe as Recreation Advisory Committee

Authorize the Board of Directors to convey Authorize the Board of Directors to convey property with 2/3 voting approvalproperty with 2/3 voting approval

Authority to approve increase in the Authority to approve increase in the assessments greater than 120% from assessments greater than 120% from preceding year with 2/3 voting approvalpreceding year with 2/3 voting approval

Delegate ResponsibilitiesDelegate Responsibilities Community Declaration Community Declaration

Authority to approve increase in Maximum Authority to approve increase in Maximum Common Assessment (cumulative CPI Common Assessment (cumulative CPI based) (2/3 voting approval)based) (2/3 voting approval)

Authority to approve Special Assessments Authority to approve Special Assessments for capital expenditures (2/3 voting for capital expenditures (2/3 voting approval)approval)

May amend the Articles of IncorporationMay amend the Articles of Incorporation

May Amend the BylawsMay Amend the Bylaws

Delegate ExpectationsDelegate Expectations

Attend Annual and Special Meeting of Attend Annual and Special Meeting of DelegatesDelegates

Attend monthly Recreation Advisory Attend monthly Recreation Advisory Committee MeetingCommittee Meeting

Read updates and HRCA NewslettersRead updates and HRCA Newsletters

Represent their DistrictRepresent their District

Director Duties and Powers Director Duties and Powers

Acting through the Board, HRCA shall have Acting through the Board, HRCA shall have these duties and powers:these duties and powers:

Duties:Duties:–– Accept property and facilities from DeclarantAccept property and facilities from Declarant–– Pay taxesPay taxes–– Maintain casualty insurance Maintain casualty insurance –– Maintain liability insuranceMaintain liability insurance–– Obtain fidelity coverage for persons handling Obtain fidelity coverage for persons handling

cashcash

DirectorsDirectors’’ DutiesDuties

Other insurance (e.g. workersOther insurance (e.g. workers’’ compensation)compensation)

Prepare budgetsPrepare budgets

Levy and collect assessmentsLevy and collect assessments

Provide auditProvide audit

Assist Architectural Committee as outlined in Assist Architectural Committee as outlined in Article X.Article X.

Follow all applicable local, State and Federal Follow all applicable local, State and Federal LawsLaws

Director PowerDirector Power

Acquire property and construct improvementsAcquire property and construct improvements

Adopt rules and regulationsAdopt rules and regulations

Enforce the Declaration and rules and regsEnforce the Declaration and rules and regs

Provide Public FunctionsProvide Public Functions

Provide services to subProvide services to sub--associationsassociations

Provide special services for membersProvide special services for members

Charge for facilities and servicesCharge for facilities and services

Grant easementsGrant easements


Convey and dedicate property (with Convey and dedicate property (with approval of 2/3 Delegate voting power)approval of 2/3 Delegate voting power)

Borrow money and mortgage property Borrow money and mortgage property (with approval of 2/3 of Delegate voting (with approval of 2/3 of Delegate voting power)power)

Employ managersEmploy managers

Engage employees, agents, and Engage employees, agents, and consultantsconsultants


General corporate powersGeneral corporate powers

Trash collectionTrash collection

Regulate use of HRCA facilitiesRegulate use of HRCA facilities

Manage the affairs of the AssociationManage the affairs of the Association

Delegate authority but not responsibilityDelegate authority but not responsibility

Director Responsibilities (Finance)Director Responsibilities (Finance)

Maintenance fundsMaintenance funds

Other fundsOther funds

DepositsDeposits

DisbursementsDisbursements

Common Assessments Common Assessments

Funding reserve fundsFunding reserve funds

Supplemental common assessments Supplemental common assessments


Limitations of assessments (thresholds to Limitations of assessments (thresholds to exceed requires 2/3 voting power of exceed requires 2/3 voting power of Delegates)Delegates)

Annual BudgetsAnnual Budgets

Special assessments for capital Special assessments for capital expenditures (requires 2/3 voting power expenditures (requires 2/3 voting power of Delegates)of Delegates)

Reimbursement assessmentsReimbursement assessments

Late charges and interestLate charges and interest


Notice of default and acceleration of Notice of default and acceleration of assessmentsassessments

Lawsuit to enforce assessments Lawsuit to enforce assessments

Lien to enforce assessmentsLien to enforce assessments

Estoppel certificatesEstoppel certificates

Director Responsibilities Director Responsibilities (Architectural)(Architectural)

Appoint Architectural Committee MembersAppoint Architectural Committee Members

Approve Rules and GuidelinesApprove Rules and Guidelines

Appoint Tribunals for appealsAppoint Tribunals for appeals–– Hear and make determinations on Tribunal Hear and make determinations on Tribunal

recommendations (improvements to property recommendations (improvements to property and nonand non--compliance)compliance)

–– Lawsuits to enforce architectural mattersLawsuits to enforce architectural matters–– Estoppel CertificatesEstoppel Certificates

Director ExpectationsDirector Expectations

Attend monthly Board Working SessionAttend monthly Board Working Session

Attend Recreation Advisory Committee Attend Recreation Advisory Committee MeetingsMeetings

Attend Board Meetings Attend Board Meetings

Attend other meetings (Metro District, Attend other meetings (Metro District, Team Highlands Ranch, etc.)Team Highlands Ranch, etc.)

Understand Director RolesUnderstand Director Roles

Directors Have LiabilitiesDirectors Have Liabilities

Fiduciary Duty Fiduciary Duty

Duty of undivided loyaltyDuty of undivided loyalty

Conflict of interestConflict of interest

Uniform and consistent enforcement of rulesUniform and consistent enforcement of rules

Uniform and consistent enforcement of Uniform and consistent enforcement of collectionscollections

Corporate liabilityCorporate liability

Personal liabilityPersonal liability

hrca delegates and directors duties

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