Agent of the Association. Boards may delegate the day-to-day operations of their associations. A managing agent is one who represents another, called the principal, in dealings with third persons. (Civ. Code §2295.) A manager is "a person or entity who, for compensation or in expectation of compensation, exercises control over the assets of a common interest development." (Civ. Code §4158(a); Berryman v. Merit Management.)
Common Interest Development Manager. A CID manager does not include a common interest development management firm. (Bus & Prof. §11503.) It means an individual who for compensation, or in expectation of compensation, provides or contracts to provide management or financial services, or represents himself or herself to act in the capacity of providing management or financial services to a community association. It includes:
1. A person in a partnership, a corporation, or any other business entity who advises, supervises, and directs the activity of an association.
2. A person operating under a fictitious business name who provides the services of a manager. (Bus. & Prof. §11501.)
Management Services. While there are different types of management structures, management services means an act performed or offered in an advisory capacity that includes the following:
1. Administering or supervising the financial or common area assets of a community association at the direction of the board. (Civ. Code §5380.)
2. Implementing resolutions and directives of the board.
3. Implementing provisions of governing documents, which govern the operation of the association.
4. Administering contracts, including insurance contracts, vendors, contractors, and other third-party providers of goods and services. (Bus. & Prof. §11500(d).)
CPAs Exempted. CPAs may provide financial services to a community association within the scope of his or her license in addition to the preparation of reviewed and audited financial statements and the preparation of the community association's tax returns. (Bus. & Prof. §11501(b).)
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