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Master-Planned Communities vs. Sub-Master Associations
Master-planned communities are large housing developments that typically feature various neighborhoods, sub-divisions, recreational facilities, amenities, and possibly multiple builders. They also usually represent a blend of lifestyle, convenience, and quality living, offering residents a variety of housing options. Master-planned developments offer tailored amenities for every life stage, whether in a townhouse, single-family home, condo, or apartment.
Below, you will find detailed descriptions of the components that make up Master and Subassociations in master-planned communities.
Understanding Master Associations and Sub-Associations:
If you reside within a master-planned community, then you are a member of its Master Association.
The Master Association, or HOA, governs shared facilities like roads, entrances, and recreation, ensuring uniform community aesthetics. Membership means enjoying communal amenities, following bylaws, articles, and CC&Rs, and paying associated dues.
These expansive communities often offer a diverse range of housing, from single-family homes to townhouses to condominiums and even commercial zones. To address the unique needs and concerns of these different housing types, sub-associations or “subs” are formed. It is best to think of them as specialized governing bodies: for instance, a condominium segment might have its own Submaster, also known as a Sub-Association or sub-HOA, to address issues inherent to shared living spaces.
There is an intricate interplay between the Master HOA and its Sub-HOA. While the Master HOA ensures a cohesive look and feel across the entire community, the Sub-HOA focuses on the nuances of specific sections or neighborhoods.
Homeowners in a Sub-HOA follow both Master and Sub-Association regulations and may pay dues to both for maintenance.
The Master Association Fees:
A fundamental aspect of this financial commitment is the Master Association Fee. This fee is a well-recognized obligation for members within the community’s purview. Collected periodically, it’s instrumental in covering the costs of preserving common areas, amenities such as swimming pools or tennis courts, and other community-wide benefits. You can think of it as a collective account where every resident chips in to support the upkeep of shared resources.
Additionally, Subassociation members may be obligated to take on additional financial responsibility. In addition to their segment-specific dues, which cater to their neighborhoods’ unique needs and amenities, they are typically obligated to contribute to the Master Association Fee. This dual contribution system ensures that while individualized concerns are addressed, the broader community also thrives, supported by the combined efforts of all its members.
Navigating CC&Rs and Bylaws:
Living in a Sub Association within a Master Association adds another layer of complexity when determining the precedence of HOA Covenants, Conditions & Restrictions (CC&Rs), and HOA Bylaws.
Master Association’s CC&Rs:
The Master Association’s CC&Rs set the foundation for the entire community, including any sub-communities or sub-associations. These typically address the broader framework for property rights, obligations concerning common areas, and overarching community standards. They’re established to ensure a unified appearance and character throughout the larger community.
Sub-Association’s CC&Rs:
The Subassociation’s CC&Rs, on the other hand, tend to be more specific, addressing the unique needs and characteristics of that segment or neighborhood. For example, a Subassociation for a condominium segment might have specific guidelines about shared amenities or architectural nuances relevant only to condos and not to single-family homes.
Precedence:
When conflicts arise between Master and Sub Association CC&Rs, the Master Association’s CC&Rs typically take precedence. The Master Association governs overall, ensuring consistency and harmony across the development with its rules.
The Master Association’s CC&Rs allow Sub Associations to set additional rules if they don’t conflict with broader regulations. Homeowners in Sub Associations must follow both sets of rules, but the Master Association’s rules generally supersede discrepancies.
Bylaws:
HOA Bylaws, both for the Master Association and the Sub Association, pertain to organizational governance. A similar hierarchy often exists here, too. If there’s a conflict between the bylaws of a Master Association and a Sub Association, the Master’s bylaws take precedence.
However, it’s critical to review both sets of documents closely. Occasionally, Master Associations may defer certain governance aspects to Sub Associations, particularly if those aspects are highly specific to the sub-community.
The exact hierarchy and relationship between the standard governing documents, such as the CC&Rs and Bylaws of a Master Association and its Sub Associations, can vary depending on the specific community, its legal documents, and local and state law. When ambiguities arise, residents or Board members should seek clarification from the respective associations or consult legal counsel specializing in HOA law.
The role of HOA Board Members in the context of Master and Sub Associations.
In the intricate framework of Master and Subassociations, Board governance remains a cornerstone of effective community management. Typically, the Master Association and each Subassociation have their own distinct Board of Directors. Each Board is responsible for its jurisdiction’s governance, management, and decision-making.
Master Planned Communities Association Boards
The Board focuses on community-wide matters, maintaining policies, aesthetic standards, and shared amenities for the entire development. Their purview might include large-scale infrastructure projects, communal facilities, and setting standards that impact the community.
Sub Association Boards
Conversely, they tackle issues more specific to their individual segments. For instance, a Sub-Association Board within a condominium community might address concerns related to shared living spaces, communal amenities exclusive to that segment, or even unique architectural standards relevant only to that segment’s particular type of housing.
While each Board operates independently, maintaining its own meetings, budgets, and agendas, there can be instances where collaboration is necessary. Joint meetings or consultations between the Master and Sub Association Boards might occur when decisions made by one Board have implications for the other or when larger community projects require buy-in and coordination across multiple segments. Nevertheless, Boards tend to function within their specified domains for most day-to-day operations and standard decision-making.
For those serving on these Boards, whether at the Master or Sub Association level, understanding the delineation of roles, responsibilities, and the interplay between the various Boards is crucial to ensuring harmonious and effective community governance.
Homeowners’ Role in Master and Sub-Association Governance
Homeowners within the interconnected system of Master and Sub Associations are more than just residents; they’re active participants in shaping the community’s governance. Their investment in the well-being and evolution of their community signifies their position as essential stakeholders. The main focus of this involvement is their right to attend open Board meetings, both overarching Master Association and their specific Sub Association. This participatory right helps ensure homeowners remain informed, are able to voice their concerns, and can actively contribute to the community’s trajectory.
Many homeowners also have opportunities for leadership roles. Those in Sub Associations may seek positions on the Master Association’s Board of Directors. Eligibility, while recognizing each homeowner’s role in the community, is still governed by specific guidelines. The bylaws or foundational documents of the Master Association outline the eligibility criteria, nomination processes, and election procedures. Homeowners from diverse sub-associations on the Master Board bring varied perspectives, leading to well-rounded community decisions.
However, there might be restrictions, like a cap on representatives from a specific Sub Association or requirements related to tenure or prior Board experience. Potential conflict-of-interest evaluations are also not uncommon to factor into the equation. Motivated homeowners should consult governing documents or seek advice from HOA management or legal experts before serving on the Board. Through such active roles, homeowners collectively foster a community that thrives on transparency, shared responsibility, and mutual growth.
Conclusion:
Navigating the intricacies of HOA governance requires both comprehension and diligence, and we are here to help in all facets. At AAM, a professional Community Association Management company, we pride ourselves on being industry leaders. With extensive experience in Master and Sub Master associations, we provide customized solutions that ensure cohesiveness and rule adherence.
If you want more information about managing Master and Sub-associations and how AAM can provide full-service support to your Board, contact us today.