Before purchasing a unit in a condominium association, it is essential to understand what living in such a community entails. What is COA? What are the responsibilities of this association? And do unit owners have responsibilities, too?
What is a Condo Association?
A condo association is an organization of unit owners responsible for maintaining common areas, enforcing rules, and collecting dues. This condo owner association is also responsible for managing the association’s finances, coordinating with vendors, and communicating with residents.
Every condo association adheres to a set of governing documents. These documents include the CC&Rs, the bylaws, and the operating rules. Condo associations must also abide by federal and state laws.
In Washington, DC, the Condominium Act applies to all COAs. Associations that are structured as nonprofit corporations must also follow the Nonprofit Corporation Act.
Condo Association vs HOA
While condo associations and homeowners associations fall under the same umbrella, they are distinct from each other. Here are the differences between HOAs and COAs.
1. Ownership Structure
An HOA typically governs a planned development consisting of single-family homes, townhouses, or detached homes. Homeowners usually own their lot and the structure on it.
In contrast, a COA governs a condominium building or complex. Unit owners hold ownership over the interior of their unit, but they share ownership of common elements such as roofs, hallways, and amenities.
2. Maintenance Responsibilities
In an HOA, homeowners are generally responsible for maintaining their own homes and yards. The HOA maintains common areas, including parks, clubhouses, swimming pools, and private roads.
In a condominium association (COA), the association maintains the exterior of the building, roofs, landscaping, and all shared spaces. Owners are only responsible for maintaining the interior of their units.
3. Assessments and Fees
Both HOAs and COAs collect fees from members. That said, HOA fees are usually lower since homeowners maintain more of their property themselves. In comparison, condo fees tend to be higher because they cover more extensive maintenance and expenses.
Who is the Condo Board?
Condo associations rely on a board of directors to manage the day-to-day operations and long-term success of the community. Board members are volunteer unit owners who are elected by their fellow unit owners.
The condo board holds many duties, including but not limited to:
- Enforcing the rules
- Collecting fees
- Maintaining common elements
- Managing finances
- Hiring vendors
- Obtaining insurance
- Planning the reserves
- Resolving disputes
- Communicating with residents
- Ensuring legal compliance
State laws and the association’s bylaws dictate the minimum and maximum number of board members and their term limits. The condo board also meets regularly to discuss and vote on association business.
It is worth noting that condo board members are volunteers. That means they don’t get paid for their service. To avoid conflicts of interest, the board must also refrain from accepting gifts or other forms of compensation.
Professional Condo Association Management
Although the condo board is responsible for managing the community, board members often lack the time and necessary skill set to ensure seamless operations. For this reason, many boards turn to a condo management company.
A condo management company can assume the day-to-day administrative duties of the board. Managers can also provide board members with recommendations and insights. That said, the board ultimately retains control over the association and holds final decision-making authority.
What are Condo Fees?
Unit owners have specific financial responsibilities, including the obligation to pay condominium fees. The association uses these fees to cover expenses related to operations and maintenance.
Condo fees typically cover the following:
- Landscaping
- Utilities
- Maintenance and repairs
- Insurance
- Reserve fund contributions
- Administrative costs
- Management fees
- Employee salaries
- Security
There are two types of funds in a condo association: the operating fund and the reserve fund. The operating fund covers all day-to-day expenses. These are expenses that routinely come up in the management of the condominium.
On the other hand, the reserve fund is essentially a savings account. The association sets aside this money to cover the cost of future major repairs and replacements.
Can Condos Charge Special Assessments?
In general, condo associations can charge special assessments to unit owners. Special assessments are one-time fees that the association collects in the event of an unexpected or additional cost.
It is important to note that not all condo associations have the inherent authority to collect special assessments. Board members and unit owners should check both state laws and their association’s governing documents for guidance.
Understanding Condominium Association Rules
Condo associations have rules just like any other community association. These rules establish what unit owners can and can’t do. Some are obligations that unit owners are required to fulfill.
The goal of these rules is to maintain order, harmony, and appeal. Consequently, these rules help protect property values.
Specific rules can vary from one condo community to another. That said, condo rules commonly tackle the following:
- Pets. A condo association may prohibit pets altogether. If the association does allow pets, there may be certain limitations when it comes to the type, number, and breed of pets owners can keep.
- Rentals. Many condominiums restrict rentals, especially short-term rentals. Rentals can have a negative impact on quiet enjoyment, property maintenance, and appeal. Some insurance providers even charge higher premiums for condos that have a high number of rentals.
- Noise. Given that residents live in such close proximity, most condo associations have rules regarding noise. Unit owners are typically required to observe quiet hours.
- Interior Modifications. Even if the changes are interior, an owner may need to get approval from their association before starting renovations.
- Amenity Usage. Most COAs have rules governing amenity use, including operating hours, permitted behavior, and other similar regulations.
When a unit owner violates a condo rule, the association will start enforcement procedures. Penalties typically include fines, a temporary suspension of privileges, and, in some cases, legal action.
That said, COAs must provide written notice of the violation and allow the owner to be heard. Most state laws require this, including Section 42–1903.08 of the District of Columbia Condominium Act.
The Bottom Line
There are several things to consider before buying a unit in a condo association. Owners must pay condo fees and abide by the condominium rules. If these options are not appealing, buyers should reconsider before committing to a membership.
TNWLC offers management services to homeowners associations, condominiums, and cooperatives in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
