Five FAQS about a master association

Living in a community governed by a homeowner association (HOA) often means adhering to a set of rules and regulations that help maintain the overall quality of life. However, in some cases, multiple associations may exist within a larger community. This scenario leads to the emergence of a master homeowners association.

1. What is a master association?

   A master association is an entity that governs a community comprised of multiple sub-associations, such as condominiums, townhomes, or gated communities. It acts as an umbrella organization responsible for managing common areas, enforcing rules and regulations, and providing various services to the sub-associations.
   
   Master homeowners associations are crucial in maintaining harmony and consistency across the entire community. They typically have a board of directors who are elected by the members of the sub-associations. The board oversees the financial management, maintenance, and governance of shared amenities, such as swimming pools, parks, landscaping, and security.



2. What makes a good master association?

   1. Communication

   Effective communication is a critical element of any successful community. Clear communication channels inform residents about important updates, changes, and events within their community. Additionally, it fosters a sense of community and encourages residents to engage with one another and take an active role in community governance.
   
   

   2. Financial Management

   Associations often have more significant financial resources than sub-associations, and effective financial management is crucial to ensure the community's long-term sustainability. This includes budgeting, accounting, and reporting. At FirstService Residential, our communities have access to a team of financial experts via FirstService Financial who can provide effective lending, cash management, and other banking solutions.
   
   

   3. Vendor Selection

   A master association is responsible for managing shared amenities and common areas within the community. This includes everything from landscaping and pool maintenance to security services and waste management. Selecting the right vendors can significantly impact the community's quality of life, and it's essential to work with reputable and reliable vendors. At FirstService Residential, we have an extensive network of vetted vendors, ensuring that your community receives top-quality services.
   
   

   4. Compliance

   Finally, compliance with local, state, and federal regulations must be maintained. This includes everything from safety standards to environmental regulations to fair housing laws. Failure to comply with these regulations can result in penalties, fines, and legal issues. At FirstService Residential, we stay up to date on these regulations and ensure that communities remain compliant.



3. Master or sub: which rules do I follow?

   One common question within communities governed by master and sub-associations is which set of rules and regulations residents should follow. The answer to this question depends on your community's specific governing documents and bylaws.
   
   In most cases, the association rules are designed to address matters that affect the entire community, such as architectural guidelines, exterior maintenance, and community-wide amenities. Sub-associations, on the other hand, may have their own specific rules that pertain to individual properties or sub-neighborhoods.
   
   To determine which rules take precedence, it is essential to consult your governing documents and communicate with both the master and sub-associations. The governing documents outline the hierarchy of rules, making it clear which regulations apply to different aspects of community life. It is crucial to respect and abide by these rules to foster a harmonious living environment.



4. What is the relationship between the master and sub-association?

   Both master and sub-associations possess their own governing documents, which define the interactions between the associations and residents and between the associations themselves.
    
   1. Dues – Like other community associations, dues are collected periodically. Typically, dues are gathered from their sub-associations rather than directly from individual unit owners. However, there are situations where dues may be collected directly from unit owners if its governing documents mandate it.
    
   2. Maintenance responsibilities – Common areas that are accessible to all members of the association are typically encompassed. It is the duty of the association to maintain these areas. Additionally, some sub-associations may have their own distinct common elements that only members of those sub-associations can utilize. It is crucial to clearly comprehend how both your association and the master association's governing documents allocate maintenance responsibilities for different areas of the community.
    
   3. Enforcement of covenants – In most cases, master associations have their own set of covenants and restrictions that apply to the entire community. In contrast, sub-associations have their own specific covenants and restrictions that only affect owners within those sub-associations. Once again, these restrictions are tailored to each unique community.
    
   4. Representation – Both master and sub-associations typically have separate boards of directors and meetings. In some cases, board membership is determined through general elections, while others require each sub-association to appoint a resident to serve on the board. In certain instances, the president of a sub- association’s board automatically becomes the representative.
    
   5. Conflicting rules – Sub-associations cannot establish rules that contradict the restrictions outlined in the Declaration and Bylaws. Any regulations set by a sub-association must align with the rules stated in the governing documents.



5. What if my community is managed by more than one property management company?

   You may often see a community with different management companies for each association. This can result from the boards of directors who didn’t align with the company selection.
   
   Sometimes, having separate community association management companies is better for the community. For example, certain management companies have specific expertise or experience that serves an association’s particular needs. But often, having multiple management companies within one community creates conflict. Homeowners may be confused about which association or management company to contact for maintenance issues or noise complaints or whom to speak to pay dues or get architectural approval.
   
   For more information on the pros and cons of different management companies and how to bring your community under one management company, read our article Master association management – one company or several?

FirstService Residential: Supporting your community

Navigating the complexities of community governance can be overwhelming. This is where FirstService Residential can lend a helping hand. As a leading residential property management company, we have extensive experience managing master associations and providing professional support to communities of all sizes.

With a focus on proactive communication, transparency, and efficient operations, FirstService Residential is dedicated to enhancing the quality of life for residents in our communities. Our team of experienced professionals can provide guidance on governance, financial management, maintenance, and community engagement, ensuring that your community thrives and evolves.

For more information about master community association management and how FirstService Residential can provide full-service support to your community, click here.