Every planned community has HOA board members responsible for governance, management, and operations. These board members have wide-ranging duties that help the association run smoothly. Both homeowners and board members must understand what the work entails.
What are HOA Board Members?
Board members are volunteer homeowners who are elected or appointed to govern an HOA. Collectively known as the HOA board of directors, this group manages the community’s finances, enforces the rules, and maintains common areas.
How Does an HOA Board Member Differ from a Condo Board Member?
An HOA board member governs HOAs, while a condo board member governs condominiums. They have similar responsibilities.
Both HOAs and condominiums are residential associations. An HOA typically covers single-family neighborhoods, while a condo association covers condo buildings, complexes, or townhomes. Both associations have board members who run the community.
HOA Board Members vs HOA Officers
An HOA board member does not automatically carry an officer title. Homeowners elect board members, whereas the board elects or appoints HOA officers. Once an owner becomes a board member, they can be chosen to fill an officer role, which can include:
- HOA President. The president leads meetings and guides decision-making.
- HOA Vice President. The vice president steps in when the president isn’t available and fulfills assigned tasks.
- HOA Secretary. The secretary maintains the association’s records and handles communication.
- HOA Treasurer. The treasurer manages the association’s finances.
Other board members are simply known as directors or members-at-large. They help set general policies by participating in discussions and votes. They may also complete tasks they are specifically assigned.
What are the Responsibilities of HOA Board Members?
HOA board member responsibilities fall into five general categories: financial management, common area maintenance, rule enforcement, communication, and legal compliance. Let’s break these down below.
1. Financial Management
Financial management is one of the most critical HOA board of directors responsibilities. Board members must plan the annual budget, collect dues, manage reserves, oversee financial records, and prepare financial reports. They must also pay vendor invoices, file tax returns, and oversee audits.
2. Common Area Maintenance
Board members must maintain the association’s common areas and elements. This includes scheduling routine maintenance, managing repairs, and ensuring a healthy reserve fund for long-term capital repairs and replacements. The HOA board must also hire qualified vendors for these projects, which involves obtaining competitive bids, screening candidates, and monitoring performance.
3. Rule Enforcement
The association board of directors must enforce the community’s rules and regulations. This helps maintain order, curb appeal, and a high quality of living—all of which can directly impact property values.
Board members must apply the rules fairly and consistently across all residents. This means following due process under state law and the governing documents, including providing written notice and an opportunity to be heard.
4. Communication
Board members must communicate with residents, vendors, and the HOA management company. They can use various methods, such as written notice, email, and newsletters. One of the HOA’s primary responsibilities to homeowners is to keep them informed about all decisions and actions.
5. Legal Compliance
Associations are governed by federal, state, and local laws, as well as the CC&Rs and bylaws. Board members must ensure compliance with all of these, avoid legal liability, and consult an attorney when necessary.
What are the Fiduciary Duties of HOA Board Members?
The fiduciary duties of HOA board members include the duty of care, the duty of loyalty, the duty of obedience, and the duty of full disclosure.
- Duty of Care. Board members must make informed decisions. They must attend meetings, review financial reports, do proper research, and consult professionals such as CPAs and attorneys.
- Duty of Loyalty. Board members must always put the association’s best interests first. Their actions and decisions must not be influenced by personal agendas or bias. They must disclose and avoid conflicts of interest immediately and maintain confidentiality.
- Duty of Obedience. Also known as the duty to act within the scope of their authority, board members must follow federal, state, and local laws. They must also adhere to their governing documents.
- Duty of Full Disclosure. Board members must promote transparency by keeping owners informed and sharing critical information.
What are the Qualifications of HOA Board Members?
Exact qualifications vary by state law and the governing documents, but most associations require board members to be homeowners of legal age, in good standing, and without conflicts of interest or a criminal record.
- Be a Homeowner. Board members must own a home or unit within the association.
- In Good Standing. To serve as a board member, an owner must have no unpaid dues or pending rule violations.
- No Conflicts of Interest. Candidates generally can’t have active legal disputes with the HOA. Many associations also prohibit relatives or spouses from serving on the board at the same time.
- Clear Criminal Record. Many bylaws disallow candidates with felony convictions, as they can impede the association’s ability to secure a fidelity bond.
- Age Requirement. Board members must generally be of legal age (18 or older) to serve.
Keep in mind that some states have strict rules about which qualifications are allowed. For example, in California, associations can’t disqualify a candidate simply because they are not in good standing or are in litigation with the association.
The Role of the HOA Management Company
Board members are volunteer homeowners, so they don’t always have the skills, background, or education needed for the job. Many also struggle with the significant time commitment. For these reasons, associations typically opt to hire professional help.
An HOA management company can oversee the association’s day-to-day operations. A qualified manager can handle administrative work, including sending notices, fielding owner inquiries, securing vendor bids, monitoring projects, scheduling maintenance, collecting dues, and following due process for violations.
HOA Board FAQs
How many board members should an HOA have?
Board size depends on state laws and the governing documents, but most fall within a range of three to seven members. Many also require at least three board members: a president, a secretary, and a treasurer. Most prefer an odd number of directors because it helps prevent tie votes.
How are HOA board members chosen?
Homeowners either elect board members or their fellow directors appoint them. The exact process and requirements will depend on state laws and the association’s governing documents.
Do HOA board members get a salary?
Generally, HOA board members do not get paid. Board members are volunteers, which means they don’t receive any compensation (including the waiving of dues) in exchange for their service. Compensation can undermine their volunteer status and invalidate certain legal protections.
Does an association need an HOA board of directors code of conduct?
Generally, state laws don’t require a code of conduct for the HOA board, but many association bylaws do. Most experts also recommend establishing and adhering to a code of conduct to maintain ethical standards and ensure professional behavior.
Can HOA board members resign?
Yes, most state laws and governing documents allow board members to resign at any time, provided they submit written notice. Common reasons for resigning include relocation, health issues, increased professional or personal responsibilities, and burnout.
Can homeowners remove an HOA board member?
Yes, most state laws and governing documents allow the removal of board members with or without cause. Removal typically requires a membership vote, but some bylaws also permit the board itself to vote out a director.
Do individual HOA board members have independent power?
No, the HOA board holds authority as a unit. Board members must vote on decisions at properly noticed open meetings. No single board member has unilateral power.
The First Step
Every community needs HOA board members to run the operation, but many don’t realize the job comes with responsibilities. Board members have specific duties and limitations, and anyone who wants to run for a position must understand them clearly.
Are you looking for a trusted partner in HOA or condo management? Westward360 serves communities across the United States. Get started on more effective management by contacting us online or requesting a proposal!
RELATED ARTICLES:
- When Is A HOA Board Resolution Needed? How To Pass One?
- Who Can Run For The Board? Understanding HOA Board Nominations
- HOA Voting Rules: Who Can Vote And How To Vote?
