How to Start a Property Owners Association
A property owners association is a group of like-minded homeowners that collectively work to better their neighborhoods and community, making sure children are safe, properties are kept up and crime is kept out of the areas. Associations commonly raise funds to maintain lawns, replace street lamps, remove snow and help members with improvement projects. Forming a property owners association is fairly simple. The following article will help you form a steering committee, incorporate your organization and market your group.
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Instructions
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Form a steering committee. Your steering committee will be the initial group of property owners that will plan your organization and get it off the ground. A small- to-mid-sized group should suffice. Make sure you select members who all share the same goal or vision.
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Construct a set of bylaws. Part of your steering committee's duties should be to write your association's bylaws. Bylaws should include the vision of the association, function of the group and a list of membership requirements. For example, you may, depending on your vision and goals, wish to only allow individuals who own homes in your subdivision to join. Or you may choose to recruit homeowners from throughout your city or town. Your bylaws should also detail your process to elect officers.
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Elect officers. From your steering committee, elect a president, vice president and treasurer. These officers will be the governing body of your organization. To elect officers, ask members of your steering committee to nominate and vote for those they feel have the best leadership skills, or simply ask for volunteers. According to your bylaws, require each officer to hold office for a specific period of time. Contact an attorney to help you write your bylaws.
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Form an official nonprofit organization. Your property owners association will be most successful if it can operate as an official business entity. Most neighborhood and property owners associations file for 501 (c) (3) status, making them a nonprofit organization (see Resources). This will allow you to open financial accounts in the name of the association, file income taxes and access government grants and assistance programs. Government funds can be used to remodel and purchase real estate or to provide real estate-related programs for your members. Contact your secretary of state and the IRS to obtain the documents needed to form your nonprofit. You may be asked to furnish the government a copy of your bylaws.
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Recruit members. Start by obtaining a list of homeowners in your area from your county clerk or Register of Deeds office. This will be your intial market of recruits. Send each contact a letter introducing your group and explaining the benefits of joining. Ask the homeowners to attend a community meeting to meet officers and listen to speakers talk about the organization. Door-to-door solicitations are also good ways to get to know other property owners in your area and introduce them to your association.
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Schedule regular meetings. Each week, month or quarter--whatever works for your group--hold a informational meeting. Discuss issues relating to property ownership. Invite guest speakers. For example, you may ask a local contractor to talk about how building an addition to a home may increase its value or a police officer to speak about how to prevent graffiti and report crimes in your area.
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Tips & Warnings
Be fair with your dues. If you are forming your group to benefit only your immediate neighborhood, come up with a fair monthly amount. Otherwise $50 to $100 a year is common. Hold fundraisers. Fundraisers such as garage sales, pot lucks and picnics are great ways to raise money for a property owners association. Distribute a monthly newsletter. Newsletters are wonderful ways to communicate with your membership. Build a website. Your website should include each officer's contact information, a map your area and a membership roster.
