Architectural alterations must abide by the community’s standards and aesthetics for a HOA to be successful. At a smaller association, board members frequently carry out this duty. The Architectural Control Committee (ACC) is a special group that conducts this responsibility in larger associations with many buildings and property owners.

Other names for it include the Architectural Review Committee, Environmental Control Committee, and Design Review Committee.

What Does ACC Mean in Real Estate?

The CC&Rs of an association often demand association approval prior to any physical improvements being made to the exterior of a person’s property or the common area. The Architectural Control Committee (ACC) or Architectural Review Committee (ARC) are the two titles most frequently used in different HOAs to refer to the committee in charge of approving changes, additions, or adjustments to lots. In this piece, we’ll answer some frequently asked questions regarding ACC committees and discuss their duties within the HOA.

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The rules outlined in the association’s governing documents will serve as the ACC’s guiding principles at all times. While each homeowners’ association may have a different range of authority, the following are typically the duties of the committee:

Identifying Violations – this includes regularly monitoring the association for violations of the community’s specified architectural guidelines.

Enforcement – the ACC is tasked with enforcing the standards set forth in the governing documents when violations are discovered or new plans are submitted.

Evaluation – the committee is responsible for making regular assessments of current regulations and giving recommendations to the board for changes as needed.

Education – homeowners should receive regular, clear, and updated information from the ACC on architectural guidelines, as well as timely application and approval status updates.

A homeowner can anticipate working with the ACC in a straightforward three-step process to make alterations or enhancements to the outside of their property:

1. Apply

Proposed changes should first be submitted to the ACC by the homeowner. This can be anything from a simple letter written to the committee and may include pictures, permits, surveys, and detailed architectural plans.

2. Review

The architectural committee will hold regular meeting to carefully review submitted proposals. The committee members’ fiduciary duty ensures that each application is reviewed fairly by following the guidelines set forth in the governing documents.

3. Decision

Once a decision is reached, the ACC submits their recommendation to the board of directors, and the final approval/disapproval is given within the time frame specified in the CC&Rs.

The ACC’s primary duty is to examine the plans and specifications for any proposed changes or upgrades to a homeowner’s property. They then decide whether to grant or reject the requests in accordance with the community’s CC&Rs. The ACC Committee assists the HOA board members by ensuring that all properties within the neighborhood adhere to the requirements for external upkeep specified in the governing documents.

The ACC Committee’s volunteers meet on a regular basis to hear homeowner requests and go through any existing structural or maintenance issues. They are obligated to record these meetings in minutes, which any HOA member may access upon request.

Who Can Be Part of the ACC Committee?

Members of the ACC committee are volunteers. Although it is advantageous for a member to have expertise or knowledge in construction, architecture, maintenance, or a related profession, there are no formal requirements for membership on the ACC Committee. The ACC Committee’s members are frequently prohibited from serving on the HOA’s board of directors. There won’t be any conflicts of interest or abuse of authority by board members because the ACC Committee is independent from the HOA board.

The ACC Committee is in existence to maintain the appearance of the community as uniform, orderly, and well-maintained as possible, despite the fact that it may be inconvenient or distressing for a homeowner to have to submit suggested alterations to the exterior of their property for consideration. This ensures that as time goes on, the community’s properties will maintain their property values and maintain their aesthetic appeal.

The ACC or ARC in a neighborhood is ultimately established to uphold the CC&Rs set forth by the HOA. They are tasked with upholding the CC&Rs’ restrictions in order to preserve the neighborhood’s attractiveness by ensuring that each property owner adheres to the requirements laid out in the legal document. For the homeowner members of the HOA, the approval or denial process through an ARC or ACC is frequently frustrating.

It is reasonable that homeowners could feel burdened or inconvenienced by the requirement to abide by the CC&Rs in this way. Yet, the ACC or ARC plays a crucial function within the HOA; these volunteer committee members are responsible for ensuring that the neighborhood maintains its allure, uniformity, and total property value, which ultimately benefits all of the residents.

What does the law say?

Applications for homeowner requests for improvements and modifications to their property must be reviewed at regular meetings of the ACC or ARC. The CC&Rs established by the HOA must be followed by the decision made by the ARC or ACC. The question of whether the ARC or ACC must also follow and uphold regional building regulations or legislation, however, is one that frequently comes up. “No” is the shortest response. Building codes and other local legislation cannot be approved or rejected by an ARC or ACC under any circumstances.

Because they are volunteers, these ARC or ACC members are not required to possess any form of specific construction, zoning, or licensing knowledge. The ARC or ACC members are just a volunteer group, frequently nominated by the HOA board of directors, with the goal of enforcing a community’s CC&Rs. They are not building inspectors. The majority of CC&Rs contain stipulations stating that in addition to following all of the guidelines outlined in the document, property owners are also required to follow all applicable local laws pertaining to their land.

The question of whether an ARC or ACC must inform a homeowner if they are aware that the homeowner is in violation of a local building or property code emerges as we go deeper into the topic of local law. The ARC and ACC members are not accountable for doing this. Although it would be polite to alert a homeowner to anything that could potentially violate local rules in the future, they are not compelled to do so. The majority of ACC or ARC approvals of requests state explicitly that the onus of ensuring compliance with any applicable local regulations is with the homeowner.

Using Software

Your property managers need to make sure that homeowners are aware of the ACC standards in order to decrease CC&R violations and ARR misconceptions. Homeowner portals are features of association management software where your managers can post ARR forms for review.

The homeowner is advised in writing of the ACC’s decision upon evaluation of the application. Normally, this process takes up to 30 days. Your property managers may benefit from features included with association management software to even out the process. These qualities consist of:

• Centralized tracking — Association call logs and organizational software make ACC-related documents easy to locate. Retrieve ACC correspondence from one handy place along with collection letters, late fees, violation reports.
• Homeowner visibility — A dedicated homeowner portal and ACC screen allow residents to access ACC-related documents, submit ARR forms, and monitor the status of pending reviews.
• Community calendar — Keep ACC volunteers informed of meetings and updates through the portal’s web-based community calendar.
• Automated workflows — With association management software, ACC response letters can be automatically generated and sent to residents.

ARR issue resolutions and ACC responses are accelerated by cloud-based association management software. Provide your managers the resources they need to enhance homeowner/board communication, minimize misunderstandings, and keep your associations operating effectively.

What is the Difference Between Asset Management Agreement and Property Management Agreement?

In the real estate market, there are two crucial tasks that you should be aware of: asset management and property management. Both are significant, yet despite their similarities, they also have vital variances and roles to fulfill.

Anything that may be owned is considered property, including a home and claims to resources (which includes land).

An asset, however, is anything that is valuable. Assets do not need to be actual, movable items that you physically possess, in contrast to property. Stocks and bonds, for instance, are examples of assets.

Types of assets include:

• Equities
• Bonds/stocks
• Trademarks
• Licenses
• Rights
• Patents

You should know: Property, by definition, is an asset, because it’s usually worth a monetary value.

Asset management entails gradually raising the value of a person or business by purchasing, selling, and enhancing investments. Contrarily, property management include taking care of a property’s everyday operations, including maintenance.

A property manager frequently falls under the category of an asset manager, much because real estate is an asset. Property managers work to keep or raise a property’s value. Any such value increases are then communicated to the asset management. Last but not least, they can use such information to tell the property owner(s) about the performance of the asset.

Property asset management encompasses buying, selling, and managing assets in the real estate market in order to raise a company’s or an individual’s overall portfolio worth.

A portfolio manager is a manager of assets. But, they also oversee all other financial matters, such as the management of cash, assets, and investments. A portfolio manager, in contrast, only manages a client’s financial assets.

In real estate, property management refers to the activity of overseeing the ongoing operations of a particular property. Property managers carry out the routine duties necessary to keep the facility operational and ensure that it is making money. In order to raise the building’s value and optimize its NOI, a property manager works within a budget’s constraints.

The duties of asset management and property management differ significantly, as we have already discussed. The elements of each job are compared and contrasted below.

Asset management responsibilities	Property management responsibilities
Asset managers manage the value of a portfolio by deciding whether to purchase or sell properties or whether to invest further money in a property.	Property managers increase the value of a property by updating amenities, installing new technology, and fostering a community of residents.
They try to strategically maximize the value of each property, keeping an eye on the ROI (return on investment) and NOI (net operating income).	Property managers are typically given a budget they can work with. A property management plan determines how they will use their budget.
Asset managers often hire the personnel on an investor’s team which includes real estate agents, property managers, and leasing agents.	Property managers often hire building staff, which can include maintenance workers, front desk personnel, and various contractors.
They can be affiliated with a property asset management company.	They can be affiliated with a property management company.
Asset managers directly deal with the owners and real estate agents.	Property managers deal directly with residents and owners.

There aren’t many variations between asset management and property management in commercial real estate compared to multifamily real estate. Commercial asset managers are still in charge of raising the value of real estate and the portfolios of their clients.

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Yet building operations are still handled on a daily basis by commercial property managers. Yet property managers are in charge of the tenants, not the people. Although their renters’ facilities and wants differ from those of apartment dwellers, it is ultimately their responsibility to provide their demands as effectively as possible.

Asset management is a highly strategic role with significant financial and investment responsibilities. Clients in the real estate sector put a lot of pressure on asset managers when it comes to purchasing and disposing of expensive assets.

Successful asset managers employ the following tactics:

• Balancing out the risks. Real estate investing has inherent risks. So when managing a client’s real estate portfolio, it’s important to always balance out the risks with a safe investment.
• Not being afraid to invest. There are risks, and then there’s investing money in the present to get more value in the future. A good asset manager knows the difference.
• Focusing on consistent revenue. Properties that promise continuous returns are the golden goose in a portfolio.
• Transparency. Asset managers must communicate clearly and constantly with their clients, real estate agents, and anybody else on their team.
• Continuous improvement. An asset manager should never be content with the value of a client’s portfolio. Instead, they should always be actively trying to increase its value. Sometimes that means selling a successful property because its value has stagnated.
• Listening to property managers. Nobody knows a property better than a property manager who’s there every day. So there’s a chance they have good insight into what can increase the property’s value.