DEFINING THE ROLES: Governance:


• Board: As elected representatives of the community, board members are responsible for guiding the strategic direction of the association. They enforce the governing documents, including the Declaration, Bylaws and Rules and must ensure those documents remain up to date.


• Management Company: While the board governs, management supports. Community managers interpret the governing documents with the support of an association’s attorney when necessary, recommend updates, and help ensure policies remain relevant and enforceable.


Budget & Financial Oversight:


• Board: The board reviews and approves the annual budget, sets assessments, and oversees financial planning to ensure fiscal health.


• Management Company: Management prepares the draft budget with the treasurer of the board if he/she would like to participate in the draft budget. Management generates financial reports, collects assessments, pays association bills, and presents the information for board approval.


Rule Enforcement:


• Board: The board is the final authority on the enforcement decisions, ensuring fairness and consistency across the community.


• Management Company: Management acts on behalf of the board by issuing courtesy notices and tracking violations according to board-approved procedures.


Contracting & Vendor Management:


• Board: The board selects contractors and service providers, guided by proposals and recommendations.


• Management Company: Management solicits competitive bids based on a clear scope of work, coordinates contract execution, collects vendor documentation, and ensures vendors meet expectations.


Maintenance & Repairs:


• Board: The board evaluates work quality and provides feedback to management.


• Management Company: Management schedules routine and emergency repairs, oversees project timelines, and ensures vendors honor contractual obligations.


Administrative & Operational Support:


• Board: Board members respond to management’s requests for review, guidance, or approvals to keep operations moving.


• Management Company: Management handles daily administrative tasks such as maintaining records, preparing for meetings, and communicating with residents.


46 | COMMON INTEREST® • Fall 2025 • A Publication of CAI-Illinois Chapter Guidance & Compliance:


• Board: The board reviews recommendations and makes decisions aligned with the association’s governing documents and applicable laws.


• Management Company: Management offers guidance, facilitates compliance with laws and regulations, and suggests involving legal or accounting professionals when needed.


Working Together: A Shared Mission:


Even with distinct roles, successful community management depends on cooperation and communication.


• Transparent Communication: Open lines of communication with homeowners build trust and reduce misunderstandings. To be effective, communication between the board, homeowners and management needs to be streamlined through designated points of contact. Typically, the board president or another appointed liaison on the board will communicate directly with management to provide direction or ask questions. Homeowners should be directed to reach out to their community management team with concerns so the management team can collect, sort and address issues or bring the issues to the board’s attention for direction. When too many individuals communicate directly with management and/ or homeowners without strategic coordination, it creates a strainer effect: too many conversations happening at once with multiple individuals causing important details to slip through the holes. A single, clear funnel for communication helps prioritize and manage tasks more efficiently ensuring timely and effective responses.


• Strategic Planning: Both parties collaborate on long- term planning, reserve fundings, and community improvements.


• Problem-Solving: Boards and managers jointly address homeowner concerns and tackle challenges with efficiency and empathy.


• Execution of Decisions: The board makes the decisions; the management company ensures those decisions are carried out effectively.


CONCLUSION: RESPECTING THE LINES, STRENGTHENING THE PARTNERSHIP


When board members and property managers stay “in bounds” the result is a more harmonious, responsive, and efficient community. Each role plays a crucial part, and together, they form a balanced team that upholds the values and standards of the association. Then, nobody is out of bounds!


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