Successful homeowner associations need a strong Board of Directors. Members understand their role and responsibilities. They have a roadmap. They work individually and as a team to manage association business as set forth in the governing documents. Does your HOA Board’s structure accelerate or hamper your progress?
HOA Boards follow two types of governing documents: Association Bylaws and the CC&Rs (covenants, conditions and restrictions). Board structure, meetings, financial and maintenance responsibilities are included in these documents. Every Board member needs to be familiar with the rules set forth in these documents. These documents make up the “constitution” that guides the Board’s actions.
HOA Board of Directors
While individual responsibilities overlap, each Board member should be the point person for their assigned area. For example, your treasurer may oversee the budget, but other members have input in developing the budget. It’s important for your structure to include area point persons. Five-member HOA Boards are the most common, but smaller associations may operate with fewer positions. Here’s a summary of individual responsibilities.
- President: This person acts as the CEO of the HOA and has authority to execute contracts and other documents for the association. The President chairs meetings, prepares meeting agenda items and facilitates other Board members in fulfilling responsibilities. The president is the “voice” of the HOA Board.
- Vice-President: This office takes responsibility for community issues and/or leads special task committees. The Vice-President also has the power to perform all association duties in the absence of the president.
- Secretary: This position handles recording, approval and distribution of meeting minutes. As the custodian of the minutes and physical records of the association, the secretary ensures that the records are accessible.
- Treasurer: This Board member manages and/or oversees the funds and financial affairs for the association. Financial responsibilities typically include reconciling statements, paying invoices, drafting an annual budget and preparing financial reports for the association.
- Member-At-Large: This HOA Board member handles special projects or may step up to assume responsibilities in another member’s absence.
Each HOA Board officer has a legal duty to act and make decisions in the best interest of the association. Each member is charged with using due diligence when making community decisions.
Running a homeowner association is a lot of work. Extra hands help keep everything running smoothly. HOA Boards recruit others in the community to serve on committees. You need a good reporting structure in place to keep abreast of volunteer actions. While others act at your direction, Board members retain legal responsibilities.
Structuring your HOA Board to accelerate community progress isn’t difficult. It is simply a matter of solid organization. It’s following your governing documents and clarifying roles. It’s implementing processes to facilitate your fiduciary duties. It’s knowing how to involve others. If you’re still struggling to properly execute all responsibilities of your HOA Board, allowing professional management to step in and help will alleviate some of the confusion and issues. Achieving the right structure is serious business—and so rewarding when you see your community thrive.