Frequently Asked Questions

Homeowner Login Questions

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Please call us at 303.980.0700 or email CommunityCare@eHammersmith.com for any further assistance. We’re here to help!

Access to your HOA portal is granted at the discretion of the property owner. The property owner will need to add you as a tenant when logged into their account. For assistance with this process, please call 303.980.0700 or email CommunityCare@eHammersmith.com.

Who is Hammersmith?

Hammersmith®, A RealManage Company, was retained by your Board of Directors to oversee the daily management of your Community, to maintain the financial records, and to assist the Board in all other business affairs of the Association. The management team consists of a Community Care Department that can assist Homeowners with almost all matters, the Accounting Department that can help with any questions regarding your account, and a licensed Community Association Manager that will provide professional and quality services to each owner within your community.

Hammersmith® Management can be reached at 303.980.0700 or via our Contact Us page.

About Community Management

A community association is a non-profit corporation registered with the State and managed by a duly elected board of directors. Its purpose is to provide a communal basis for preserving, maintaining, and enhancing the community. A community association also provides governance with provision of the legal documents: CC&R’s, Bylaws, and Articles of Incorporation. The community association is financially supported by all members of the association. Membership is both automatic and mandatory.

The Covenants, Conditions and Restrictions (CC&R’s), which are also known as the Declarations, define the bundle of rights each owner in the community association must abide to. The CC&R’s are recorded by the county recorder’s office and are included in the title to your property. Failure to abide by the CC&R’s may result in a fine to the homeowner by the association.

The Bylaws are the adopted guidelines for the administration and management of a community association. The Bylaws define the duties of the various offices of the board of directors, the terms of the directors, the membership’s voting rights, required meetings and notices of meetings, and the principal office of the association, as well as other specific items that are necessary to run the association as a business.

The board of directors is elected by the homeowners, or as otherwise specified in your community association Bylaws. The board of directors’ responsibility is operating the community association on behalf of the property owners. The board of directors will implement policies, standards, procedures, programs and develop the annual budget for their community.

Many community associations have established Rules and Regulations that have been adopted by the board of directors. The Rules and Regulations are established to provide direction to the property owners in regard to parking, pets, pool use, etc. Community associations may also have specific guidelines set up for architectural improvements. Architectural improvements include, but are not limited to: patio covers, decks, landscaping, and exterior color changes. These rules are set up to maintain the aesthetic value and integrity of your community and to protect the market value of your investment. Violations of these rules may result in action by the board of directors, which can include fines assessed to the property owners. In addition, exterior improvements or changes that are completed without prior approval by the board of directors or architectural committee, may require the property owner to remove or correct the alteration and/or be fined for the violations.

Being A Part Of An Association

All violations must be submitted to Hammersmith® in writing by either:

Please note that your personal information will not be released to the Homeowner who you are reporting the violation on.

Board meetings are open to all residents of an association. Notice of the time and place of any regular board meetings will be noted in the community newsletter, or accessed online through your Homeowner Portal.

You can also call Hammersmith at 303.980.0700.

If you would like to become more involved in your community and want to volunteer on a committee, you can log onto your Homeowner Portal to find out about the different committees your community has organized. Please contact the Committee Chair to find out more information regarding volunteer opportunities. The best way to do this is attend a board meeting, but we may also be able to help with the information at 303.980.0700.

Assessments are the homeowner’s financial obligation to the community association. Assessments cover the operating expenses of the common area and provide for reserve funds for replacement of common facilities in future years. Each association is unique and due dates for assessments vary. Check your association’s specific policy for more details on due dates.

The Department of Real Estate typically requires an initial budget from the developer for each community that a developer proposes to build. This budget is set depending upon specific guidelines for utilities, landscaping, administration, etc. Reserve funds are monies set aside for future expenses due to the life expectancy of certain items: such as lighting, street resurfacing, pool equipment, etc. These amounts are then divided by the number of units built in a given phase of the development. Subsequent budgets are developed by the board of directors and adjusted periodically to meet anticipated expenses.

There is no concrete answer to whether or not your assessment will go up. Typically, your association Declarations provide for annual increases, in most cases, there is a set percentage that is not to be exceeded per year without the vote of the property owners. The board of directors may approve an increased budget, in order to cover increased costs of operating and maintaining the common area and sufficient reserve funds.

Community Associations are dependent upon timely receipt of assessments due from each property owner. Late payments will result in late charges and possibly interest to your account. In addition, the association has the right to turn over delinquent accounts to the attorney for collection of assessments.

In a single family home community all permanent exterior changes must be submitted for approval by a design review/architectural committee or your board of directors prior to any work being performed.

In a condominium or townhome community, exterior changes are prohibited, with the exception of windows, doors, satellite dishes, and some balcony or porch railings, once approved by the design review/architectural committee and/or board of directors.

Exterior changes that are completed without prior approval by the board of directors or design review/architectural committee, may require the property owner to remove or correct the alteration and/or be fined for the violations.

Terminology

  • Advise and provide administrative, managerial, and operational counsel to the association governing body
  • Exhibit professionalism and loyalty to the principal (the Board)
  • Exercise diligence in performing duties on the principal’s behalf
  • Account for financial activities covered by the Management Agreement
  • Perform onsite property inspections
  • Solicit and evaluate bids for association services
  • Supervise maintenance activities and contractor performance
  • Oversee and authorize payment for primary association services
  • Know and abide by the Bylaws, recognizing the State agency that supervises the community associations

President

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees

Vice President

  • Performs all of the duties of the President in his/her absence
  • Typically shares some of the burden of the President regarding appearances, liaison, public hearings, etc.
  • Usually assigned liaison responsibility to specific staff or contractors, and to specific committees

Secretary

  • Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes
  • Maintains minutes and book on all meetings
  • Maintains book of resolutions
  • Maintains all official records, including official correspondence, contracts, membership roster, etc.
  • Receives, verifies, and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents

Treasurer

  • Works with appropriate staff, contractors, and committees to develop and submit annual operating budget for approval
  • Maintains adequate records of all association financial transactions
  • Maintains roster of disbursement of funds, as authorized
  • Prepares period financial reports
  • Arranges, subject to board approval, an independent audit of financial affairs

Board of Director’s Perspective

  • Maintaining the value of the property and a good quality of life for the residential community
  • Governing smoothly
  • Enforces rules
  • Establishing and following the budget

Homeowner’s Perspective

  • Most care a great deal about residences
  • Will want service from manager and decisions from Board that will provide a good quality of life
  • Problems may arise when expectations are too high or not realistic; this can occur when interests are too specialized or unique

Manager’s Perspective

  • Working in balance with homeowners, board, and realities of management company’s business
  • Problem-solver
  • Multi-task oriented

  • All documents that regulate the community life
  • Documents may vary depending on type of Association (condo, townhome, etc.)
    • State law
    • Declaration of Covenants or Master Deed
    • Conditions and Restrictions
    • Bylaws
    • Rules and Regulations
    • Plats of Survey and Easement Agreements (may be separate, often included in the declaration)

  • State Enabling Statute – permits the creation of condominium/townhome form of ownership and prescribes the basis of determining ownership interest, rights and obligations of the owners, duties and powers of the association, and the process of dissolution of the association
  • Subdivision of Condominium/Townhome Plat – describes the location and nature of the common elements and the units
  • Condominium Declaration or Master Deed – defines the units, common and limited common elements, and is the collection of covenants imposed on the property to provide for:
    • The basis for allocation of percentage ownership interest
    • The obligation of each owner to share in funding the cost of association operations
    • The power, authority, and responsibility of the association in its operations and in making and enforcing rules
  • Individual Unit Deeds – comprises the individual unit deed
  • Articles of Incorporation – creates the association as a corporation under state corporate statute and defines its membership and sets forth the process for creating the board of directors, voting procedures, etc.
  • Bylaws – implements, in specific detail, the provisions of the Declaration and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
  • Rules and Regulations – sets forth the operational powers or provisions and the use restrictions adopted by the association

  • Subdivision Plat – describes the location and nature of the common property and the individual lots
  • Property Deeds – comprise the individual lot deeds and the deeds to common property which give a legal description of the property
  • The Declaration of Covenants, Conditions, and Restrictions (CC&R) – the declaration of CC&R’s is the collection of covenants imposed on all property within the development and provides:
    • For automatic association membership of all owners and the basis for voting rights
    • The obligation of each owner to share in funding the cost of association operations
    • Certain restrictions (architectural control and other rules) on the use of the property and the association’s enforcement powers
    • Sets forth the power and authority of the association to own and maintain the common property and to make and enforce rules
  • Articles of Incorporation – creates the association as a legal entity under state corporate statute; defines the board powers and responsibilities of the association and its membership; and, sets forth the process for creating the board of directors, voting system, etc.
  • Bylaws – implements, in specific detail, the provisions of the CC&R’s and the Articles of Incorporation regarding the association operations, including delineation of the meeting process, election procedures, powers and duties, board meetings, committees, insurance requirements, rule-making and enforcement process
  • Rules and Regulations – sets forth the operational powers or provisions and the use restrictions adopted by the association

  • Prohibition against racial discrimination as stated by the Civil Rights Act of 1866
  • Equal Credit Opportunity
  • Fair Housing Amendments Acts, 1988, applies to sale of residence
    • Does not prohibit discrimination by owners, if selling or renting as long as they own 3 or less homes
  • Board is prohibited from discrimination in exercising its 1st right of refusal
  • Association must abide by laws prohibiting discrimination against families with kids
  • Persons with disabilities (at own expense) must be allowed to make accommodations per the Americans with Disabilities Act, 1993

Cash Method of Accounting – Income and expenses are only recorded when cash changes hands. Financial reports only reflect cash transactions. This is a relatively simple system for simple situations. Because all obligations are not recorded until cash changes hands, this method does not provide an accurate portrayal of the financial condition of the association at any given time.

Accrual Method of Accounting – Keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity, time required, and technical knowledge that is needed to maintain the records, understand the reports, etc.

Modified Accrual Method – Community associations rarely use a full accrual system or a full cash method.

  • Income from Assessments are posted on an accrual basis. If assessments were posted as cash was received, there would be no way to determine delinquencies. This is why each homeowner account is billed for their monthly or quarterly assessment, and the Income line on the Income Statement reflects the total of all assessments for the association. When the owner pays, the amount due on their account is decreased, which is reflected on the Balance Sheet as a decrease in Accounts Receivable, and an increase to Cash in the Operating Account. Late fees, legal fees, interest, and fines are also all posted to income on an accrual basis.
  • Expenses are posted on a cash basis. Since bills are usually received and paid within the current month, it is neither efficient nor cost effective to accrue expenses. However, if a large expense is incurred and an agreement with the vendor allows payment over a long period of months, an accounts payable account can be set up. In any case, the annual audit corrects expense accounts posted on a cash basis to full accrual at the end of each fiscal year.
  • Cash flow can be analyzed by looking at the change in Accounts Receivable from the end of one period to the end of another period. If AR was higher at the end of the year, less cash was collected than was posted to the income accounts for Assessments, Late fees, and Legal fees. The analysis also needs to look at the change in Prepaid Assessments. If an owner pays before the assessment is posted to his account, he will have a credit balance. If prepaid assessments are higher at the end of the period, more cash was collected, and the income will not be reflected until the beginning of the period in which it is due.
  • Capital Reserves – the Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.