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Residents Handbook
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CONDOMINIUM GOVERNMENT AND FINANCE
The Association owns no real property. Rather, it maintains the common elements and most of the exterior of your unit on your behalf and provides you with certain services.
As an owner of a condominium unit, you have a vote in the Association in proportion to the percentage interest assigned to your unit at the time of the conversion. A large unit generally has a greater percentage interest than a small unit, and its owner has a greater vote in the Association. This voting right is exercised primarily in the annual election of the Board of Directors.
GOVERNING DOCUMENTS
The Association was established by and operates under two legal documents: the Declaration and the Bylaws, which conformed to the Virginia Condominium Act when they were drafted. Both are on file in Arlington County and Alexandria City, and both were included in your certificate of resale. Please keep these documents in a safe place, where you can refer to them if the need arises. Replacements may be purchased from management.
DECLARATION
The declaration established Fairlington Villages as a condominium, defined its property including buildings, and set the borders of each unit type and its percentage of ownership of the undivided interest.
BYLAWS
The bylaws are the condominium's essential governing document. The bylaws establish the mutual obligations of unit owners and the Association. They set the rules for the election and service of the Board of Directors, provide for the hiring of a management agent, establish the obligation to obtain directors and officers indemnity policies and condominium master insurance, require the collection of unit assessments for operating and reserve budgets, obligate the Association and unit owners to maintain their respective property, and restrict the use of Association and unit property. Changes to the bylaws may be made only at an Association owners meeting by a two-thirds majority of the interest held by all homeowners, specifically the holders of first trust.
THE BOARD OF DIRECTORS
The Board of Directors is the Association's executive body. The Board has nine members, all of whom must be unit owners. It conducts its affairs and has the authority to make decisions in all areas except those the bylaws reserve to the Association membership. For example, an amendment to the legal documents would require a membership vote.
Directors are elected at the annual meeting to staggered three-year terms. In the event of a vacancy, the Board may appoint an owner until the next annual meeting or hold a special election. The condominium is divided into six political subdivisions, or wards. Owners in each of the six wards elect one director, who must own (but need not reside in) a unit in that ward. Three at-large directors may own a unit in any ward.
The Association has four officers: president, vice president, treasurer and secretary. The president is the chief executive officer with all of the general powers of a president of a stock corporation, including the power to appoint advisory committees. The treasurer is responsible for condominium funds and financial records. The first act of the Board after each annual meeting is to elect the Association officers.
Board meetings are open to all residents. The meetings are held monthly, currently on the first Wednesday, at 7 p.m. in the community center. Special meetings are held as needed. A meeting agenda is posted on the bulletin board next to the community center, on the Website, and in the Association newsletter, North Fairlington News. Directors are volunteers and serve without compensation.
The responsibilities of directors and officers are substantial. The bylaws require the Association to indemnify them against any liability for their actions or good-faith judgment. The Association maintains directors and officers (D&O) insurance for this purpose.
POWERS AND DUTIES
The Board's primary responsibilities include: Adopting the annual budget Overseeing finances Retaining the management agent Approving contracts for services and supplies Adopting policies and rules and overseeing Enforcement
ADOPTING THE ANNUAL BUDGET
The Board adopts a budget for the fiscal year that runs October 1 through September 30. The budget, based on experience and projected needs, is developed over several months. Revenues are derived primarily from the monthly fee all unit owners pay, and from rental income and investment interest. Thus, the amount of your condominium fee flows from the Board's estimate of community needs and desires.
The budget process is a cooperative endeavor led by the treasurer and involving Board members, the general manager, committee volunteers, and unit owners. The treasurer solicits these players and presents the preliminary budget to the Board. Its approved draft is mailed to unit owners for comment and is the subject of a forum open to all owners and residents. After that, the Board adopts the final budget, along with a new condominium fee schedule. Management mails coupon books for payment of fees before the fiscal year begins.
OVERSEEING FINANCES
The budget includes reserves to finance replacement of common elements and make other capital improvements. The bylaws require the Association to contribute at least 5 percent of condominium fees to reserve accounts for replacement of roofs, balconies, fences, apartment building stairwell carpeting and wallpaper; resurfacing of parking lots and tennis courts; and major repair of the pools. The Board invests reserves in certificates of deposit or other government-insured instruments according to a schedule of projected need for the funds. The Association retains a certified public accountant to audit its books. Interested owners may review the audit in the management office.
RETAINING THE MANAGEMENT AGENT
The Board retains a management firm, which in turn employs a general manager, who exercises authority delegated by the Board. The general manager hires and fires a management staff of administrative and maintenance personnel. These individuals are employees of the Association. Like the general manager, they work out of the management office. They answer residents' questions, field maintenance requests, collect assessments, pay condo bills and manage financial and other records, and oversee the execution of service contracts.
APPROVING CONTRACTS
The Board has delegated to the general manager the job of soliciting and evaluating service contracts. The Board approves them, though the general manager has some discretionary contracting authority.
ADOPTING POLICIES AND OVERSEEING ENFORCEMENT
The bylaws provide for the enforcement of the covenants of the declarations, bylaws and other Association rules. The Board is empowered to enforce rules and seek relief on behalf of the owners for violations. For the rules concerning complaints, see Grievance and Mediation Process in the Appendix.
ANNUAL MEETING AND ELECTION
The Association's annual meeting of unit owners is held in March. A purpose is to elect directors to three-year terms to succeed those whose terms are due to expire. The other meeting business is a recap of the past year, a review of the audit and the condition of the property, and a projection of needs and plans.
RUNNING FOR THE BOARD
Candidates for election must meet certain requirements:
- Ward candidates must be unit owners in the ward they would represent.
- At-large candidates may own a unit in any ward.
- Potential candidates must file a petition in the management office by the close of business on the last Friday in January.
- The petition must include the name, address, mailing address if different, unit number, position sought, and the signatures of at least 25 unit owners from any ward.
- Unit owners may sign petitions for more than one candidate.
- Candidates may file a candidate statement and the names and addresses of not more than two resident unit owners (not serving as directors) whom the candidate recommends to serve on the Election Panel.
- The candidate statement should be placed in a sealed envelope marked "Candidate Statement" and include the candidate's name, address and unit number. The statement, no more than one page, should include the candidate's name, address, unit number and office sought.
- Candidates seeking election must be current with their condominium fees.
The secretary (if not a candidate) reviews and certifies candidacy petitions on behalf of the Board before the Board appoints the Election Panel, whose purpose is to certify results.
YOUR CONDO FEE
A unit owner's annual contribution to the expenses of the condominium (your condominium fee) is in proportion to his/her undivided interest in the common elements. The condominium declaration (see Declaration, this chapter) establishes your unit's par value, which is generally proportionate to its size. Your fee is the total condominium assessment multiplied by your proportionate interest.
In addition to annual assessments, special assessments may be levied by the Board as necessary. Special assessments generally are imposed on all unit owners according to their proportionate interest in the condominium. Unit owners must be notified in writing of the amount and reason for special assessments. The Board has never levied a special assessment.
COLLECTION
Regular monthly assessments are due on or before the first day of the month. You may pay your monthly fee via automatic debit from your bank account or mail your payment and coupon to the designated post office box. To be credited, the coupon must be coded with your name. Please do not use coupons with a previous owner's name. A coupon book is mailed annually after the Board adopts the budget. If you do not have payment coupons, or would like to arrange for automatic debit from your bank account, please contact management.
LATE FEES
A late charge is assessed if the fee is received after the 15th of the month. Owners in arrears will neither be issued parking permits nor have their condominium identification cards revalidated. Owners in arrears also lose their right to vote and seek election to the Board of Directors.
If your fee is not paid by the 15th of the month, you will receive a notice requesting payment within 10 days. Beyond that, your account will be referred to our attorney. The Board may authorize the attorney to request that you pay all monthly installments for the remainder of the fiscal year. If you owe condominium fees or any other charge for at least 30 days, the Association is entitled to place a lien on your unit.
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