Which management issues is the Owners Association responsible for?
The Owners Association must manage the following matters:
- Maintaining essential records: Jointly Owned Property Declaration, community rules, a minute book for recording all Board meetings, a minute book for recording all minutes of general assembly meetings, a file for official government correspondences, insurance policies, the last annual report of the Board, the last report of the Association manager, the last financial statement, a file for copies of documents relating to the Board meetings and Annual General Assembly meetings other than documents to be kept elsewhere, a file for communication (inward/outward), a register of owners, a register of occupiers, a register of contracts and agreements, a register of assets, books of financial accounts, and other records specified by the Land Department.
- Service charges: Establishing and maintaining a General Fund and the Reserve Fund in the name of the Owners Association, and maintaining accurate accountability of all income and expenditure for both funds in accordance with the Owners Association constitution.
Budgets must be set annually for the General Fund and a study must be prepared for the Reserve Fund budget calculated on the basis of a minimum of ten years ensuring replacement or renewal of assets of the Owners Association. Once owners have approved the budgets, the service charges shall be set in accordance with the principles and rules of the constitution. The Owners Association is responsible for collection of owners’ annual service charges and the expenditure thereof.
- Insurance: The Owners Association shall ensure the building and common areas are adequately insured.
- Regulation: Ensuring that the community rules are followed and not violated by owners, Board members, occupiers, residents and visitors, thus maintaining peace, harmony and quiet enjoyment for all within the building or community.
- Maintenance: supervising the performance contractors and suppliers of the common areas.