Residing within planned community developments offers myriad advantages, from access to superb amenities like communal pools and tennis courts to the convenience of shared maintenance. Nevertheless, these developments rely on devoted individuals to serve on the homeowners’ association (HOA) board of directors. If you’re uncertain about the responsibilities of board membership, this guide is tailored for you.
Comprehending the Role of HOA Board Members
HOA boards are tasked with managing the community and upholding common areas owned collectively by homeowners. Typically structured as nonprofit corporations, HOAs are governed by legal documents like articles of incorporation, bylaws, and CC&Rs. These documents outline the board’s powers and duties, including budgeting, rule enforcement, and engaging personnel or management companies.
Fiduciary Obligations
Board members bear fiduciary duties to act in the best interests of the HOA and its members. This encompasses acting in good faith, circumventing conflicts of interest, staying well-informed, and operating within their authority.
Specific Duties
HOA board members have diverse responsibilities, including attending meetings, formulating budgets, enforcing regulations, and supervising finances. Each board typically comprises a president, vice president, secretary, and treasurer, each with distinct roles and responsibilities.
President: Directs decision-making and supervises HOA activities.
Vice President: Acts on behalf of the president when necessary and aids with projects.
Secretary: Manages documentation, records meeting minutes, and communicates with members.
Treasurer: Manages financial matters, prepares budgets, and ensures compliance with financial regulations.
No Monetary Compensation
Board membership is voluntary, and members do not receive remuneration. Nonetheless, they may be reimbursed for expenses related to their duties.
Community Manager’s Role
While not board members, community managers collaborate closely with boards to oversee day-to-day operations, enforce regulations, and maintain the community. They serve as a liaison between the board and management company, ensuring effective decision-making and implementation.
HOA Board Elections
Board members are elected by community members during annual elections. Community participation in these elections is essential for ensuring effective governance and representation.
The Significance of Informed Communities
An informed community plays a pivotal role in HOA operations. By grasping their association’s structure and operations, residents can contribute to a well-functioning community and support new leadership through annual elections.
In summary, serving on an HOA board necessitates dedication, comprehension of fiduciary duties, and collaboration with fellow board members and community managers. While it can be demanding at times, board membership offers the opportunity to contribute to a dynamic and well-managed community.