How to create a homeowners association

Differences HOA and UK


Management companies are commercial organizations working for profit. A written contract is signed between the management company and the owners of the residential premises with the list of works and services prescribed therein, which the Management Company is obliged to perform throughout the entire term of the agreement and the prices for these services. After signing the contract, homeowners pay for services, and the management company performs them, but not always in good faith and with high quality. It is often very difficult to track the quality and amount of work for which money is paid.
Homeowners' partnerships are non-profit organizations and are created by uniting apartment owners in a house for the sake of managing their own and common property. The members of the partnership independently decide how and where to spend the money, which contractors to hire for cleaning the entrances and the surrounding areas and how often it is done.If, for example, the basement is in good condition, the general meeting will decide on the use of this room. It is possible to rent out, in this case you can make repairs with the money received or reduce the amount of payment for utilities. And this is only a small part of the possibilities.

How to create a HOA


At the very beginning, you will need information about all the owners of your home, it will be provided to you in the BTI. Create an initiative group of tenants who will take on all the main work to convince the owners of the premises in the house, to create and register the partnership. Then you need to think carefully about the plan for long-term management of the house. Before a meeting of the owners of all the premises of the house must be notified in writing or in person on receipt of the upcoming meeting, no later than 10 days before the appointed date.
The decision to create is taken by a majority vote. At the first general meeting, a vote is taken to create a HOA, approval of the charter and the appointment of members of the partnership management. Next, an assessment of resources is carried out, that is, it is necessary to understand which assets are in the possession of the partnership, and for which in future the partnership will be able to maintain an independent farm.All general home accounting systems that will help save in the future will also be assessed. It is also necessary to find out how much has been accumulated for the overhaul of your house, which consists of the monthly tenants ’fees and is on the account of the management company.
After registration of the partnership, the management company is obliged to transfer all these funds to the balance of the organization. Next, work is carried out to identify the income and opportunities of the owners of the premises in the house, how much money and what they are willing to spend. Also defaulters should be identified and discussed with them in advance ways out of the situation, since now it will fall on the shoulders of the partnership, and all other community members will pay for the debts of some tenants.
After the meeting and the tabulation of votes, the minutes of the general meeting are made By law, it is necessary to notify all participants of the voting results no later than 10 days after the vote. In this case, the results are placed on information boards and distributed to apartments.
Further, the HOA is registered with the tax authority, while paying a state fee.After registration of all documents it is necessary to open an account in a bank and begin managing residential property. It should be noted that the creation of a partnership must be guided by the procedure for the formation of the HOA, established by law of the Russian Federation.