1. HRCA Delegates’ and
Directors’ Duties,
Responsibilities, and
Expectations

2. Basis
 Community Declaration (CC&R’s)
 Covenants, Conditions, and Restrictions
 Recorded against every Privately Owned
Site
 Contract between Owner and the HRCA
 Supplemental Declaration
 Articles of Incorporation
 Bylaws

3. Terms
 Duty: binding legal obligation
 Power: ability to accomplish objective
 Liability: corporate and/or personal

4. Delegate Responsibilities
Community Declaration
 Delegates elect Directors
 One vote for each privately owned site
 Serve as Recreation Advisory Committee
 Authorize the Board of Directors to convey
property with 2/3 voting approval
 Authority to approve increase in the
assessments greater than 120% from
preceding year with 2/3 voting approval

5. Delegate Responsibilities
Community Declaration
 Authority to approve increase in Maximum
Common Assessment (cumulative CPI
based) (2/3 voting approval)
 Authority to approve Special Assessments
for capital expenditures (2/3 voting
approval)
 May amend the Articles of Incorporation
 May Amend the Bylaws

6. Delegate Expectations
 Attend Annual and Special Meeting of
Delegates
 Attend monthly Recreation Advisory
Committee Meeting
 Read updates and HRCA Newsletters
 Represent their District

7. Director Duties and Powers
Acting through the Board, HRCA shall have
these duties and powers:
 Duties:
– Accept property and facilities from Declarant
– Pay taxes
– Maintain casualty insurance
– Maintain liability insurance
– Obtain fidelity coverage for persons handling
cash

8. Directors’ Duties
 Other insurance (e.g. workers’ compensation)
 Prepare budgets
 Levy and collect assessments
 Provide audit
 Assist Architectural Committee as outlined in
Article X.
 Follow all applicable local, State and Federal
Laws

9. Director Power
 Acquire property and construct improvements
 Adopt rules and regulations
 Enforce the Declaration and rules and regs
 Provide Public Functions
 Provide services to sub-associations
 Provide special services for members
 Charge for facilities and services
 Grant easements

10. Director Power
 Convey and dedicate property (with
approval of 2/3 Delegate voting power)
 Borrow money and mortgage property
(with approval of 2/3 of Delegate voting
power)
 Employ managers
 Engage employees, agents, and
consultants

11. Director Power
 General corporate powers
 Trash collection
 Regulate use of HRCA facilities
 Manage the affairs of the Association
 Delegate authority but not responsibility

12. Director Responsibilities (Finance)
 Maintenance funds
 Other funds
 Deposits
 Disbursements
 Common Assessments
 Funding reserve funds
 Supplemental common assessments

13. Director Responsibilities (Finance)
 Limitations of assessments (thresholds to
exceed requires 2/3 voting power of
Delegates)
 Annual Budgets
 Special assessments for capital
expenditures (requires 2/3 voting power
of Delegates)
 Reimbursement assessments
 Late charges and interest

14. Director Responsibilities (Finance)
 Notice of default and acceleration of
assessments
 Lawsuit to enforce assessments
 Lien to enforce assessments
 Estoppel certificates

15. Director Responsibilities
(Architectural)
 Appoint Architectural Committee Members
 Approve Rules and Guidelines
 Appoint Tribunals for appeals
– Hear and make determinations on Tribunal
recommendations (improvements to property
and non-compliance)
– Lawsuits to enforce architectural matters
– Estoppel Certificates

16. Director Expectations
 Attend monthly Board Working Session
 Attend Recreation Advisory Committee Meetings
 Attend Board Meetings
 Attend other meetings (Metro District, Team Highlands
Ranch, etc.)
 Understand Director Roles
 Represent HRCA at community events and activities
 Understand Director Roles, Duties, Powers, and
Responsibilities
 Lead Special Projects in support of the HRCA Strategic
Objectives

17. Directors Have Liabilities
 Fiduciary Duty
 Duty of undivided loyalty
 Conflict of interest
 Uniform and consistent enforcement of rules
 Uniform and consistent enforcement of
collections
 Corporate liability
 Personal liability