Being on the Board 101

Being on the Board 101

Communities cannot function without a group of dedicated homeowners that are willing to become a board member and help run the association by serving on its homeowners’ association (HOA) board of directors.

It might seem scary to join the board if you don’t know what a board member actually does, or what will be expected of you. This article will help you understand what’s commonly involved with serving on an HOA board.

Watch our full webinar for details on what is commonly involved when serving on the board. This webinar reviews the primary roles of board members, including:

1. Complying with governing documents and state law – each association has governing documents that determine how the association is run. Also state law governs the management of homeowners associations.
2. Maintaining the common areas – the areas that are common to all homeowners in the association need to be managed, including landscaping, a clubhouse (if there is one), a pool (if there is one), signage, and depending on the association can also include roofs and maintenance of exterior elements like sidewalks.
3. Managing budgets and assessments:
   1. Establishing a budget – each association is required to have a budget and stick to it
   2. The importance of reserves – a fund set aside to cover larger ticket items/maintenance
   3. Assessment collection – collecting the dues from the homeowners
4. Fiduciary duty – operating in an honest way in a business capacity, navigating any potential conflicts of interest
5. Adoption and enforcement of rules – rules specific to the association in regards to uniformity, what is and what is not allowed aesthetically, etc.
6. Representing the homeowners as a whole – negotiating contracts, conflicts, and joint ventures with local governing bodies, vendors, and attorneys.
7. Keeping books and records – of all the finances, violations, changes to rules/regulations, legal documents, etc.
8. Handling emergencies – mostly of a property nature if there is a burst pipe or similar situation.