There are several HOA board duties a community’s board of directors must fulfill. When done well, the association can survive, thrive, and grow as a community. What are the duties of the HOA board of directors? Let’s find out.
Each officer must perform several HOA board roles within the board of directors. However, it’s important to discuss the big picture before we get into these specific roles. What are the HOA board’s duties overall? Here are the three main fiduciary duties of HOA board members.
Homeowners associations pride themselves on their well-maintained common areas and special privileges. It’s part of the reason why homeowners associations are so popular. The impact of community maintenance and convenient services truly increases property values.
Hence, one of the most important HOA board duties involves maintaining the common elements. The board of directors must ensure that their private streets, landscaping, entrances, signages, and lighting fixtures are well maintained.
Moreover, they must regularly maintain shared spaces like gyms, clubhouses, and community pools. They must closely examine and follow their scope of responsibility within the governing documents. Otherwise, it may breach their fiduciary duty to the community.
Apart from maintenance, one of the primary HOA board responsibilities involves enforcing the governing documents. The board must ensure everyone complies with the community’s rules and architectural standards — including the board members.
Therefore, the board must conduct regular inspections to ensure that nobody violates the community’s rules. This may annoy many residents and even fellow board members. Nonetheless, enforcing the rules is part of how HOAs can maintain peace and order within the neighborhood.
One of the most complex HOA board member duties includes financial management. They must create the community budget, keep track of expenditures, collect assessments, and create financial reports. Moreover, they must ensure that the community is financially healthy by conducting reserve studies and maintaining a reserve fund.
However, most board members will not know accounting or financial management. Most board members outsource this task to HOA management companies or external accountants.
It’s important to get this done right. Otherwise, the community may be unable to maintain their common areas properly. They may need to pay special assessments or face steep increases in their monthly assessments.
Many communities outsource much of the HOA board duties to HOA managers. These managers will handle most of the community’s operations in exchange for money. They can coordinate with vendors, manage insurance, enforce rules, and even guide the HOA in financial management.
However, the board should not leave the HOA manager to run wild in the community. They must coordinate with the HOA manager to ensure the community runs properly and according to their specifications. Moreover, they must carefully monitor the HOA manager and assess whether they’re the right person for the job.
The homeowners association will typically have four core officers with specific roles. Each officer will have different responsibilities to fulfill. They all work together to ensure the HOA is operational and financially stable. What are these officers? Here is a rundown of each officer and their roles on the board.
The prescient shoulders a heavy load. They are often in charge of overseeing the association as a whole and making big decisions. The president often has the final say regarding community projects and initiatives. The president may have to decide if the board cannot decide on something unanimously.
That said, the HOA president must thoroughly understand the community’s governing documents and operations. They must make well-informed decisions that do not go against the community’s rules or state law. Apart from these, the president is also in charge of co-signing checks and presiding meetings.
When it comes to discussing HOA board duties, the vice president’s role is often the most unclear. That’s because the HOA vice president is often versatile and can play many roles in the community.
Firstly, the HOA vice president takes over the president’s duties when the latter is not present or unable. That means they can make big decisions, oversee meetings, and direct community projects. However, the vice president’s role may extend beyond being the president’s substitute.
They also often oversee many areas of the community’s operations. After all, the president can’t manage everything — especially in larger communities. For example, the vice president may conduct regular community events or oversee new developments.
Likewise, the vice president must have extensive knowledge of the community’s CC&Rs and bylaws. They must understand the association’s operations and work closely with the president.
The homeowners association secretary has a simple role. They handle the community’s documentation and keep the governing documents, meeting minutes, membership lists, legal forms, and other paperwork.
Furthermore, the HOA secretary is in charge of taking meeting minutes at every annual, board, or special meeting. They’re also responsible for sending out meeting notices or even violation notices to the community.
Regarding finances, the HOA treasurer is responsible for nearly everything. They handle the money, monitor fund usage, create the annual budget, file taxes, and conduct internal audits. The treasurer also prepares financial reports and statements to be given to the homeowners.
In addition, one of the treasurer’s HOA board duties may include overseeing insurance. They will be in charge of making sure the homeowners association is adequately covered. The treasurer may also recommend the purchase of additional coverage should the association need it.
HOA board duties involve keeping property values high and serving the community. The board officers’ various roles all work together to achieve this goal. Each board member carries a heavy burden to keep the community prosperous.
Vanguard Management Group offers industry-leading HOA management services to homeowners associations of all sizes. Call us today at 813-930-8036 or contact us online to learn more!