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HOAs often enter into contracts with contractors and vendors, but these agreements can contain hidden pitfalls that can cause trouble down the road. To ensure that your HOA is protected and avoids any unwanted surprises, it’s important to evaluate each contract carefully before signing. Here are some key factors to consider:

Termination Requirements

Before entering into a contract, it’s important to know what it takes to terminate the agreement if needed. Review the contract for any provisions that could make it difficult to end the agreement, such as lengthy termination notices or penalties for terminating the contract. An association should consider the following:

(A) Does the contract require a lengthy termination notice (such as 90 days, or is termination only allowed at the end of each year)?

(B) Does the contract violate any provisions in the association’s governing documents?

(C) Is there a penalty for terminating the contract?

Also, ensure the contract does not violate any provisions in the association’s governing documents. 

Liability for Contractor Actions

It’s essential to understand who will be responsible if someone is hurt due to the actions or negligence of the vendor or contractor. Some association contracts may require the HOA to be liable for such incidents. Be sure to review the contract language carefully to ensure that the HOA is protected.

Conflict Resolution Requirements

Many contracts have provisions requiring mandatory arbitration of any conflicts. Make sure to review these provisions and understand the requirements.

Hidden Costs

Review the contract for any hidden costs that are not explicitly outlined, such as copies, postage, or extra time spent. If such costs are not given, determine what they are before entering into the contract.

Time of Completion

If the completion date is a concern, ensure that it is specifically addressed in the contract. For example, is this the type of contract where liquidated damages may be an appropriate remedy if the contract is not completed by a specific date?

Clear Requirements

It is much easier to enforce a contract where the terms are black and white versus some oral representation. The contract should clearly set forth the requirements of both parties. Ensure that all terms of concern to the HOA are properly addressed in the contract.

Personal Liability

Review the contract for any provisions that may hold board members personally liable for payments due to the contractor. Shockingly some contracts have actually been known to contain this provision. No board member wants to be personally liable for contracts of the association. 

Contractor Performance

Ensure that the association is protected if the contractor fails to fully perform the contract requirements. Retain a certain amount of funds owed to the contractor to ensure the project is completed. Also, the contractor should only be paid for the work actually performed, and an expert should be hired to ensure sufficient funds remain to finish the project.

Recovery of Attorney’s Fees

Ensure that the association is entitled to recover its attorney’s fees and costs if it hires an attorney to enforce the terms of the contract. Protect the association from any potential legal fees and expenses.

By reviewing each contract carefully and considering these factors, HOAs can protect themselves from unwanted surprises and ensure they enter into agreements that are in their best interests.

HOA Community Managers have two primary responsibilities: to carry out policies set by the Board and to manage the Homeowners Association’s daily operations.

What is an HOA manager?

An HOA (Homeowners Association) Manager is responsible for overseeing the day-to-day operations of a community association, which typically includes managing the community’s finances, enforcing rules and regulations, and addressing resident concerns. They work with the HOA Board of Directors to create and implement policies, manage maintenance and repairs, and organize community events. Community Managers are typically employed by a professional HOA management company, but occasionally the HOA Manager is an employee of the community association.

Responsibilities of an HOA Manager

Some of the specific duties of an HOA manager may include the following:

• Preparing and managing the Association’s annual budget and delivering financial reports
• Coordinating with vendors and contractors for repairs and maintenance requests
• Communicating with residents, addressing homeowner concerns, and assisting in dispute resolution
• Enforcing the Association’s rules and regulations
• Preparing and distributing agendas and minutes for board meetings
• Act as a point of contact for the board of directors and the community
• Play a significant role in special projects

The Community Association Manager oversees a wide range of tasks. Below, we will examine each of these tasks and how they contribute to the overall management of an HOA.

HOA Managers Provide Expert Advise to the Board

A manager advises the Board by providing recommendations and information based on expertise, governing documents, and HOA management experience.

To better understand the responsibilities of HOA Board members and how they work with managers, check out our article on HOA Board Member Roles.

Act as a Liaison

The HOA Manager is a liaison between the Board and the community, ensuring the Board stays informed of resident concerns. They are available to assist residents on behalf of the Board. Since most HOA Managers are driving their communities and working on numerous tasks, they may not always be available by phone or email. However, diligent HOA management companies generally expect that their Managers respond to homeowner inquiries within one business day for phone calls and two business days for emails. While the Manager is a valuable resource for the Association and Board, they are not available or on-call 24/7.

Communicate Efficiently

The manager can answer questions and provide information about the HOA. An effective manager will communicate with the residents of the community in a variety of ways, including:

• Meetings: Managers may hold regular meetings with residents to discuss community issues and project updates and address any resident concerns or questions.

• Newsletters: Many Managers will publish regular newsletters to keep residents informed about community events, projects, and important dates or deadlines. These newsletters can be sent by mail or email or posted on the community’s website. Some community associations even print newsletters for HOA members at Board meetings. The decision of disbursement is always the Board’s decision.

• Email or phone: Managers will often have an email address or phone number that residents can use to contact them directly with any concerns or questions.

• Website: Some managers will also maintain an HOA website where residents can find important information, documents, and forms related to the community.

HOA Managers must establish clear, consistent communication with residents to build trust and ensure they feel informed and engaged. It can also help answer a lot of routine questions homeowners have, allowing the HOA Manager to focus on the strategic management of the HOA.

Monitor Vendor Management and Performance

Community Managers are responsible for monitoring the performance of HOA vendors and contractors, not supervising them. Residents should contact the Manager with any issues regarding vendors and contractors, who will forward the concerns to the Board for further action under the terms of the contract.

The Manager will also provide the Board with information on the condition of the community’s common areas and buildings and recommend any necessary repairs or maintenance. They will also coordinate with vendors and contractors to ensure that these tasks are completed promptly and cost-effectively.

Offer Guidance on Community Issues

The Manager will inform the Board of any issues or concerns within the HOA and guide how to address them. They may also offer suggestions for policies or procedures to prevent similar problems from arising. However, please note that the Manager does not set Association policies or rules. If anyone disagrees with a particular policy or rule, it is recommended to send a letter or email to the Community Manager, who will forward it to the Board to review.

Performs Community Inspections

The Manager performs site inspections to ensure that the community property and common areas are properly maintained and that all residents follow the community’s rules. The inspections may include checking the condition of buildings, landscaping, and amenities and ensuring proper maintenance. The Manager may also check for compliance with parking, noise, and pet regulations, among others. These inspections aim to ensure that the Association is well-maintained and that all residents follow the regulations to maintain the property values and appeal of the HOA. However, inspections alone cannot ensure everything is in top condition. The assistance and cooperation of the Association as a whole are greatly appreciated as well. If you encounter any potential maintenance issues, please do not hesitate to inform the Manager.

Provide Financial Management

The HOA Manager reviews the Association’s financials, including income, expenses, and reserves, and provides regular reports to the Board. They will also make recommendations for budgeting and financial planning. When selecting an HOA management company, ensure they have tenured employees with accounting experience as a resource for the Manager to answer any questions about HOA finances.

Will Source Expert Opinions

Managers have a broad range of expertise and skills but are not engineers, architects, insurance agents, attorneys, or accountants. The community association manager may offer opinions on various topics, but they should source expert opinions in a variety of situations, including:

• Legal matters: If a legal issue arises that affects the Association, such as a dispute with a resident or a violation of state or local laws, the manager should seek the advice of an attorney who specializes in HOA law.

• Financial matters: If the manager is unsure how to handle a financial issue, such as creating a budget or investing reserve funds, they should consult a financial advisor or accountant. Typically, the HOA management company will have staff accountants who can quickly help with any of the above. Still, it is common practice for a management company to source financial experts for HOA audits, reviews, and compilations.

• Maintenance and repair issues: When dealing with complex maintenance or repair issues, such as issues with the community’s infrastructure or the destruction of common areas or building systems, the manager should seek the advice of a qualified contractor or engineer.

• Insurance matters: If the HOA is facing a claim or needs to renew or negotiate an insurance policy, the manager should seek the advice of an insurance broker or agent.

• Compliance with state and local laws: If the manager is unsure how the board of directors should comply with state or local laws, such as those related to zoning or building codes, they should seek the advice of a lawyer or other legal expert.

How Managers Work with the Board of Directors

Managers work closely with the Board members and residents to ensure the seamless operation and management of the Association. The Board of Directors is responsible for making decisions related to association policies, budgets, and long-term planning and enforcing the community’s rules and regulations.

The specific ways in which Managers work with the board and residents may vary depending on the HOA and its specific needs, but some key aspects of this relationship include:

• Communication: HOA managers should maintain clear and consistent communication with the board and Association members. This includes regular updates on HOA issues, responding to resident concerns and questions, and keeping the board informed of important developments.
• Decision-making process: HOA managers typically work with the board to make decisions that are in the community’s best interest. This may involve providing information and recommendations to the board and helping to facilitate board meetings and voting processes.
• Planning and budgeting: HOA managers work with the board to create and implement budgets and plan for long-term maintenance and improvements in the Association. This includes providing accounting reports, making budget recommendations, and keeping track of the community’s financials.
• Rules enforcement: HOA managers work with the board to enforce the community’s CC&Rs, including issuing warnings, fines, or legal action when necessary. They also work with the board to create and update policies and procedures.
• Maintenance and repair: HOA managers work with the board to plan and coordinate maintenance and repair projects, including hiring vendors and contractors and overseeing the work.
• HOA events: HOA managers may work with the board and residents to organize Association events, such as neighborhood parties, social gatherings, or educational workshops.

Overall, the HOA manager’s role is to support the board members and residents by providing the information and resources they need to make informed decisions and maintain a well-functioning community association.

The Skills and Qualifications of an Association Manager

The qualifications and skills of an HOA manager can vary depending on the size and complexity of the community association. However, here are some common qualifications and skills that a management company desires for this role:

Education

Some Managers have a college degree in a related field, such as business administration, property management, or real estate. Some may also only have professional certifications, such as the Certified Manager of Community Associations (CMCA), Association Management Specialist (AMS), or local certifications like Arizona’s Certified Arizona Association Manager (CAAM).

Experience

Some managers come with experience in community association management or related fields, including property management, real estate, or construction.

Knowledge of State Laws and Regulations

A solid understanding of state and local laws, including zoning, building codes, and homeowner association regulations, is essential.

Communication and interpersonal skills

They need strong communication and interpersonal skills to effectively engage with the board, community members, vendors, and contractors.

Leadership and management skills

They should have strong leadership and management skills to manage the community association’s day-to-day operations effectively.

Organizational and time-management skills

They should have strong organizational and time-management skills to manage multiple tasks and meet deadlines successfully.

Financial skills

They should understand financial management well, including budgeting, accounting, and financial reporting.

Problem-solving skills

They absolutely should be able to identify and solve problems promptly and competently.

Any manager should have a combination of education, experience, knowledge, and skills suitable for managing an HOA. If you know someone with most of these skills, management companies always look for new managers; visit our CAREERS page to learn more.

In summary, an HOA Manager plays a crucial role in an HOA’s smooth operation and management. They oversee various tasks, including managing the community’s finances, enforcing CC&Rs, and addressing resident concerns. They are a point of contact for the Board of Directors and the homeowners. Ultimately, they implement policies established by the Board and oversee the daily operations of the Homeowners Association.

We hope this article clarifies the Community Manager’s role in your HOA.

When selecting vendors to perform work or other services for an HOA, all Board Members must be involved throughout the bidding process. Before obtaining bids, the Board should thoroughly review the Association’s governing documents to ensure that the bid selection process complies with the rules and regulations. Once that is established, it is recommended that the Board request and review at least three bids for each project or scope of work. As a best practice, bid proposals should be evaluated based on the overall value of the association and not solely on cost. Also, when interviewing vendors, it is advised to consider their overall demeanor, professionalism, and accountability. Lastly, all service and contract agreements should be put in writing.

What is an RFP

An RFP stands for Request for Proposal. It is a document created by an organization, such as a Homeowners Association (HOA), to solicit vendor bids for particular services or products. The RFP outlines the bid specifications the HOA is looking for in a vendor and provides details about the project and the expectations for the vendor. The proposals that the HOA receives back from the RFP are used to help the HOA compare contractors and make an informed decision when selecting a vendor that best meets the needs of the Association.

Understanding the HOA Vendor Selection Process

The HOA vendor selection process can be challenging. Many associations utilize their professional management company to manage vendor recruitment and oversee the process, entrusting the Community Manager to handle the project professionally. Experienced professional Community Managers will consider Board expectations and make recommendations regarding the qualification process. In our experience, Board members and/or Committee members are becoming more involved and want to participate in the qualification and vetting processes.

All maintenance and service contract bids require certain specifications and requirements to uphold the communities’ standards. This is particularly true in large-scale projects or services such as landscaping, painting, roofing, and asphalt (to name a few). However, it is not uncommon to receive proposals from contending vendors that do not compare “apples to apples.” Therefore, identifying bid specifications is the key to executing a successful Request for Proposal (RFP).

Defining Bid Specifications for Successful RFPs

The term “specification” refers to describing the definitive requirements to be provided. This information may include requirements for inspecting, testing, preparing materials, equipment, supplies, service delivery, and insurance. If the job is extensive, hiring a project manager to prepare the bid so that nothing is missed can prove beneficial. Clearly communicating community needs to vendors is crucial, as their priorities in proposals often differ from the Board’s. The goal is to get comparable bids and ensure all parties are on the same page, making the decision process much easier for everyone involved.

When creating proposals for an HOA Board of Directors, it is critical to ensure that bid specifications are adequately defined. Doing so has a two-fold benefit: it helps ensure that all stakeholders are involved in the process and that the selection process complies with the Association’s rules and regulations. Additionally, it allows Board members to select the best vendor possible by evaluating proposals based on value rather than cost. This can help the Association get the best value for their investment and ensure that the vendors meet the Association’s standards and expectations.

For HOAs, in particular, a detailed and specific Request for Proposal (RFP) is essential to ensure that the organization can get the services it needs efficiently and cost-effectively. With a clear understanding of the bid requirements, vendors can provide more accurate quotes and services that enable the HOA to compare submissions more effectively and make an informed decision.

Below are some examples of HOA services that the Board may want to submit formal RFPs for:

Legal
Accounting
New Management Company
Landscaping
Pool maintenance
Pest control
Security
Construction
Waste management
IT
Janitorial
Parking lot maintenance
Electrical
Asphalt
Painting
Tree trimming
Roofing
Fencing

Steps for Creating RFP Specifications

1. Establish the Need: Before creating an HOA RFP, you should assess the project’s need, scope of work, and desired outcomes. Then, determine the timeline, budget, contact person, and other relevant information.
2. Define the Objective: Clearly define the project’s objectives. This should include the desired outcomes, the project’s goals, and the timeline for completion. Leverage the HOA management company’s industry expertise by asking them for advice on which services to include in the RFP.
3. Identify Potential Vendors: Research potential vendors that can meet the project’s objectives. Ask for referrals from other HOAs or organizations that have done similar projects. Utilize your HOA management company’s resources and contacts to identify qualified vendors to participate in the RFP process.
4. Create an RFP: Create an RFP that includes all relevant project information, the timeline, the budget, the desired outcomes, and other necessary details. Have your professional management company review the RFP drafts to ensure they meet the project’s clear and concise requirements.
5. Communicate the RFP: Once the RFP is created, communicate it to potential vendors. A community Manager can also assist here. Allow sufficient time for vendors to respond to the RFP.
6. Review Responses: Carefully review vendor bids. Evaluate each response based on the project’s objectives, timeline, budget, and other factors. Community Managers are trained to determine the criteria to use in the selection process. Some HOAs create a scoring system to help rate each vendor.
7. Select the Best Vendor: The HOA’s Board members make the final decision during an RFP process to select the vendor that best meets the project’s objectives.
8. Get a Written Contract: Once the Board has selected, they should request a written contract outlining the project’s details, including services provided, payment terms, timeline, and other expectations. This will help to ensure that both parties are on the same page. 

When selecting a vendor, it is important to consider the following:

• Expertise in the Field – Look for companies that specialize in the needed services and have a proven track record for delivering quality work.
• Cost – Review at least three bids for each project and consider value over cost.
• Licensed & Insured – Ensure the vendor has a valid business license and carries the necessary insurance coverage required by the Association.
• Quality – Ask for references from previous clients and review their past work.
• Communication – Look for easily reachable vendors who can quickly respond to questions and concerns.
• Reliability—Look for companies that have been in business for a long time and have a good reputation for dependable and timely services.
• Flexibility – Choose vendors to work around the Association’s specific needs and requirements.

Create an Evaluation System for Reviewing Bids

In most cases, a bid evaluation system will help ensure that the vendors meet the Association’s standards and expectations. The bid evaluation should include a review of the work that will be performed, the perceived quality of the work, the timeliness, the overall value, and the cost.

Create a Vendor Evaluation Form

The form should include questions that assess the vendor’s qualifications, experience, customer service excellence, and overall value for the HOA.

Develop a Scoring System

Utilize a scoring system to rate each vendor based on the criteria from the evaluation form. This system should consider the HOA’s needs, goals, and budget.

Establish a Selection Committee

A selection committee of HOA representatives will review each evaluation form and determine which vendor is best suited for the HOA.

Finalize the Selection Process

After all bids and vendors have been evaluated and scored, the selection committee will decide which one best meets the HOA’s needs. The HOA should contact the chosen vendor to discuss obtaining a contract and other details.

Monitor the Vendor’s Performance

Once the project has started, monitoring the vendor’s performance over time is important to ensure they meet the HOA’s expectations. This should include feedback surveys, customer service reviews, and other performance evaluation methods.

Example of a Bid Scoring System

• Price: 0-2 points for low pricing, 0 points for mid-range pricing, and -2 points for high pricing
• Quality: 2 points for high quality, 1 point for mid-range quality, and 0 points for low-quality
• Experience: 2 points for extensive expertise, 1 point for some experience, and 0 points for no experience
• Reputation: 2 points for a strong reputation, 1 point for some reputation, and 0 points for no reputation
• References: 2 points for multiple references, 1 point for some references, and 0 points for no references
• Delivery 2 points for on-time delivery, 1 point for some on-time delivery, and 0 points for late delivery

In addition to vendor selection, the Association should have safety protocols to protect both the vendors and the residents. This includes having a safety plan to address hazardous conditions, properly labeling hazardous materials, and having safety equipment on hand.

The last step in the selection process is establishing a complaint-resolution policy to ensure that disputes between the Association and its vendors are handled promptly and efficiently. This policy should include a timeline for resolving the dispute and how the parties will communicate.

In conclusion

Following the steps mentioned above will help to ensure that the vendor bid selection process is fair and transparent and that the Association is getting the best value for its investment.

Bid specifications should be comprehensive and detailed, as it is the only way to ensure that all potential service contractors can provide the HOA-required services. By creating a thorough and accurate RFP, the HOA Board can make an informed decision and select the best provider for the job.

Professionalism, accountability, and experience should be paramount when selecting any vendor. AAM has over 33 years of professional community management experience with seasoned and trained management professionals, which can help facilitate bidding. If your HOA is looking for new management services from a reliable and tenured management company, consider AAM.

An effective way to increase homeowner participation in homeowner associations (HOAs) is to encourage homeowners to get involved in events and to volunteer for the HOA Board of Directors or recognized committees. As obvious as this may sound, HOA boards and Committee members must find creative ways to increase community participation. In this article, we will provide tips on how you can take steps toward getting homeowners involved.

Attracting Community Volunteers

Volunteers are integral to the success and vitality of a homeowners association. However, it is becoming increasingly evident that many communities are struggling to retain committed helpers due to the demands of modern society. If your community is struggling to attract and retain volunteers, here are some tips to consider:

Effectively publicize volunteer opportunities.

Consider using the community’s HOA website, newsletters, and announcements to promote the need for volunteers within the community. By presenting a positive image of unity within the HOA, you may be able to inspire individuals to get involved and contribute to the cause. Remember, people are often more likely to volunteer for causes that align with their beliefs and values. By highlighting the benefits of volunteering and the impact it can have on the community, you may be able to encourage more people to get involved. Note that annual meetings are a perfect opportunity to make call-to-action announcements.

Proactively approach prospective volunteers.

While it can be intimidating to approach your neighbors about volunteering for the HOA, it is important to remember that many people may hesitate to take the first step. However, this does not mean they are not interested in getting involved. In fact, some of your neighbors may have previously approached the board members with concerns, which makes them particularly well-suited to serve as volunteers for the HOA. So don’t be afraid to reach out and ask your neighbors if they would be interested in getting involved; maybe attend an annual meeting together. You may be pleasantly surprised by the response.

Keep overall time commitment to a minimum.

Most community and annual meetings are held in the evening after a long workday. To avoid discouraging potential volunteers, keep meetings concise and well-prepared. This could also have a secondary benefit by increasing homeowner participation at association meetings and the annual meetings. Remember that most people see time as their most valuable resource, so make it easier to join meetings by maintaining good time management.

Emphasize the importance of Homeowners volunteering.

Community engagement plays a crucial role in overall community success. Increase awareness by conveying the significance of community volunteers, which will help residents feel more comfortable getting involved. Gather testimonials from current association members who can share their experience volunteering with their entire community. Highlight the benefits of participation and the cheerful impact volunteers can have on the community. HOAs can encourage more homeowners to get involved and contribute to the best interest of their community association.

Build long-term relationships with short-term projects.

If a resident is hesitant to commit to long-term volunteering, you could suggest they get involved in short-term activities or events. For example, they could help out with a one-time committee activity or serve as an extra set of hands at a community event. Encouraging homeowners to take small steps toward getting involved can help them gradually become more engaged in their community.

Warmly welcome new volunteers.

Homeowner associations must provide a warm and friendly atmosphere to make the new member of a board or committee feel welcome and connected. By fully assimilating new helpers among experienced ones, HOAs can help new members feel comfortable and connected. One tip could be soliciting the help of your HOA management company to provide orientation or training sessions. Assign experienced volunteers to mentor new ones and encourage social interaction among all volunteers. By creating a welcoming environment and supporting new committed volunteers as they learn the ropes, HOAs can quickly build a stronger sense of community and increase participation among all community members.

Support a sense of belonging.

One way to support a sense of belonging among the board and committees is to create a positive and inclusive environment. This can be done by avoiding conflicts and interactions perceived as stressful, as these can create tension and undermine a sense of unity within the group. Instead, HOA leaders should focus on building positive relationships and open communication among all members. This can help to build togetherness and encourage everyone to work together towards a common goal: build a strong and cohesive association that is better able to serve the needs of its members.

Publicly recognize and thank your Board & Committee Member.

These positions can often be thankless, so you must let your board members know how much you appreciate them. Some ideas include an appreciation dinner or gestures that offer your contributors much-deserved gratitude. Remember: a little thanks goes a long way! Your community managers are a perfect resource to solicit ideas on how to show special recognition. For example, your community manager or HOA management company can order plaques or trophies to present at an annual meeting. Recognizing an hoa board member or committee member for their service to the community association can again easily influence many homeowners and increase homeowner participation.

Increasing HOA Homeowner Participation

Strong community engagement is a crucial component of community success, starting with the people who live there. There are numerous ways, big and small, that residents can get involved to increase engagement within their community and make it the best living experience possible. The tips below help spark interest in residents considering becoming active in your HOA.

Communicate to the association effectively.

Regular and effective communication with homeowners is key to engaging them in the HOA and its activities. This can involve using a variety of communication channels, such as email, newsletters, and social media, to keep homeowners informed about upcoming events, meetings, and other important information. Communication can make an HOA successful and lead to improvements that benefit the entire membership. If you notice a lack of communication within your HOA, create a communications committee whose primary responsibilities would be prioritizing communication strategies.

Involve homeowners in decision-making.

Involving homeowners in the decision-making process can help increase their participation in the HOA. This can include soliciting their input at the next meeting on important issues within the association, such as budgeting, property maintenance, and community events, and incorporating their feedback into the decision-making process.

Make it easy to participate.

Making it easy for HOA homeowners to participate in the HOA can help increase their engagement. This can involve providing clear, straightforward instructions for signing up for committees or events and offering flexible participation options. One tool that has been effective for many associations is sign-up sheets. If you need help with a specific event, you can easily print out and display these at your next meeting.

Encourage Volunteering for a committee.

Many HOAs have committees focusing on specific areas, such as communications, events, or community improvements. Homeowners can volunteer to serve on a committee and contribute their time and expertise to help the HOA. It’s recommended that the governing documents for committee member guidelines be reviewed.

Allow Members to Attend meetings remotely.

Many HOAs hold meetings that homeowners can attend in person, but they can also offer options for attending meetings remotely, such as by phone or video conference. This allows homeowners who cannot attend in person to participate still and provide input.

Online forums or discussions.

Many HOAs have online forums or discussion groups where homeowners can share ideas, ask questions, and provide feedback. This can be a convenient and flexible way for homeowners to participate in the HOA board meetings.

Create short-term projects.

Some HOAs may have short-term projects or activities that homeowners can volunteer for, such as helping to organize a community event or clean-up day. This can be a flexible way for homeowners to contribute to the HOA without committing to a long-term volunteer role.

Ask for feedback or suggestions.

Even if homeowners cannot attend meetings or volunteer for committees, they can still provide feedback or suggestions to the HOA. Many HOAs have online suggestion boxes or feedback forms where homeowners can submit suggestions, which can help the HOA gather input to improve and better serve the community.

Create a sense of community.

Building a sense of community within the HOA can help engage homeowners and increase their participation. This can include organizing social events like potlucks, picnics, and sports teams to foster belonging and connection.

Start a community garden.

Creating a community garden can allow homeowners to collaborate and work on a joint project. It can also provide a source of fresh produce and improve the community’s aesthetic.

Host educational workshops or seminars.

Workshops or seminars on home maintenance or financial management offer homeowners opportunities to learn and grow together.

Start a community book club.

It enables homeowners to gather, discuss books, and foster community through engaging thoughtful conversations.

Create a community directory.

Creating a community directory can help homeowners get to know their neighbors and connect. The directory can include contact information, interests, and additional relevant information about each homeowner. This is an item that your HOA can ask for professional help with to build, maintain, and provide a current member directory. AAM mobile app AAM All Access has this feature built-in and provides an opt-in and opt-out option.

Begin weekly gathers

Driveway gatherings like “Wine Down Wednesday,” where members bring their favorite bottle of wine to enjoy with neighbors, are excellent community-building ideas. “Front Yard Fridays are another popular idea that typically requires homeowners to sign up as hosts.

Other ideas and suggestions can be

• Pick a different local restaurant weekly to meet up at
• Start a hiking or biking group that meets weekly
• Pocket Park parties or barbeques in the common areas
• Party for One for the singles or not-so-singles that need an outlet they can shop together or catch a movie together

Offer incentives or rewards

Offering incentives or rewards for homeowners participating in the HOA can increase their engagement. This can involve offering gift cards or other rewards for homeowners who attend board meetings, volunteer for committees, or participate in community occasions.

Community service hours

Many schools and organizations require individuals to complete a certain number of community service hours to graduate or fulfill a requirement. HOA Board members can offer opportunities for homeowners to earn community service hours by participating in HOA activities, such as volunteering for a committee or organizing a community event.

Raffles or contests

HOA Board members can organize raffles or contests to encourage homeowners to participate in the HOA. For example, homeowners who attend a certain number of meetings or volunteer for a certain number of hours can be entered into a raffle to win a prize, such as a gift card. This has been an effective tool for increasing homeowner participation in many HOAs.

Recognition or awards

HOA Board members can recognize and award homeowners or fellow board members who have made significant contributions to the HOA. This can include public recognition at meetings or events or presenting an award or certificate of appreciation.

Education or training opportunities

Many HOAs offer educational or training opportunities that cover landscaping, board roles and responsibilities, maintenance, how to build community, or financial management. HOA management companies can offer these opportunities as incentives for new board members and new homeowners to participate in the HOA.

In conclusion

Imagine a vibrant community where residents collaborate to enhance properties, connect, and keep the neighborhood thriving. This is the power of homeowner participation in their HOA. HOA boards and committees can boost homeowner involvement by following the tips in this article. Homeowner participation through events, incentives, and addressing needs can significantly improve your HOA community for all residents.

What is Selective Enforcement

Selective enforcement involves enforcing some rules more strictly than others or targeting specific homeowners while ignoring others’ violations. This can lead to a sense of unfairness or inequity and ultimately undermine homeowners’ trust and confidence in their HOA.

Enforcement Overview

Owners purchase properties within homeowners’ associations under the expectation that the governing document provisions are being fairly and consistently enforced with all members alike. One of the Board’s primary responsibilities is enforcing the association’s governing documents. Keep in mind that if an HOA is inconsistent in its enforcement of specific rules, in the eyes of the law, it may have waived its right to enforce the rule in the future.

Community governing documents should include procedures for enforcing rules and restrictions that apply equally to all members. Governing documents granting authority to discipline members are crucial for the Board to effectively fulfill its enforcement responsibilities. It is recommended that the Board of Directors establishes and adopts rules/guidelines for all members to abide by and an ‘enforcement policy’ outlining what actions the Board may take to gain compliance.

Enforcement Procedures

There are several ways HOA Boards can choose to manage the enforcement process:

1) The association will investigate, verify, and act on a rules violation only upon receiving a formal written complaint from a member.

2) A designated Board or Committee member(s) performs their own periodic reviews of the community and provide written reports of violations to management, and letters are sent out requesting compliance.

3) The Board instructs the Community Manager or other designated representative to perform routine inspections of the community and record the violations, then send letters requesting compliance. It is recommended that photo documentation be included in the compliance letter.

All methods described are acceptable if the process is administered fairly and all actions taken strictly adhere to the association’s adopted enforcement policy.

The Role of the Board

Another important consideration when it comes to selective enforcement is the role of the board of directors. The HOA board is responsible for ensuring that rules and regulations are enforced fairly and consistently across the community. To do this effectively, board members must be knowledgeable about the rules and regulations, as well as the processes and procedures for identifying and addressing violations.

The Board actions should not be viewed as “arbitrary and capricious” in nature when administering the association’s policies. Failing to enforce rules consistently could lead to a lawsuit for ‘selective enforcement’ against the association and management.

Board members should avoid hasty decisions on violations and enforcement, first reviewing the situation and evaluating the facts collectively. The Community Manager can assist the Board with the investigation and gathering information for the Board to review (photos, witness statements, etc.).

The Board members can prevent an accusation of selective enforcement resulting in a potential lawsuit by following these steps:

• Set an example and follow the rules as a member of the association and Board representative.
• Exercise due diligence by gathering facts and evidence of alleged violations and reviewing all details before deciding on enforcement actions.
• Treat all members with the same respect and dignity when corresponding and interacting with members regarding violations.
• Appoint a few Board members to meet with the violating member(s) in good faith, aiming to resolve the situation amicably.

The Board of Directors must determine if a violation exists and decide the appropriate action to ensure compliance. If all enforcement efforts fail, the association’s attorney may need to advise the Board on the next steps.

Finally, it is important to remember that selective enforcement is not just a legal issue but also a moral one. Homeowners who feel unfairly targeted may resist complying with HOA rules, potentially leading to more significant issues later on. Prioritizing fairness and consistency in HOA enforcement fosters trust and cooperation among homeowners, ultimately creating a stronger, more vibrant community.

With the cooler temps, what better time to get together for community activities? There is much to do during the fall months, no matter where you live. Let us talk about some fun events HOA Boards could offer in your community this fall and, most importantly, how to execute them effectively!

Getting outdoors is ideal for the fall months, so what are some activity ideas?

1. Outdoor concert or movie
2. Chili Cook-off
3. Fall Festival or Oktoberfest
4. Farmers Market
5. Outdoor fitness, organized community run/walk, goat yoga, obstacle course, etc.

Successful HOA events all come down to planning. The more you plan, the better the execution of your events will be. Below is a checklist or guide of items you can do before the day of your event to ensure success.

 

1. Choosing a date/time 

When choosing an event date/time, avoiding scheduling multiple events on the same day or time is essential. Also, be sure to check your local happenings, such as city, state, and neighboring communities. It may not always be possible to avoid planning events on the same day as others, but try your best not to schedule “like” events on the same day. For example, if your city has a Fun Run, don’t schedule a community Fun Run around the same time.

2. Know your Association

Know your Association. What exactly do we mean by that? If you plan an event in a multi-generational community, there are better options than weekdays or weeknights during the school year. Family communities offer events on Friday evenings or the weekends to maximize attendance. If your community is Active Adults (55+), do most of your residents still work? If so, then weekday or weeknight events may also not be ideal. However, if your association comprises a majority of retired residents, you may have more flexibility when offering events. Knowing your community can ensure the most attendance at your events.

3. Know your budget

Defining and sticking to your budget is crucial for planning successful events by reducing the stress of going over budget and having to cut corners to make the event happen. Knowing your budget for each event will ensure a successful year of events!

4. Booking your vendors for HOA events

Be sure to do your due diligence when choosing your vendors, whether a band, a caterer, or a performer. Please do your homework, get referrals, check YouTube videos, or call a colleague who may have used them. Knowing what you are getting upfront will help you have a successful event.

5. Building your team 

Build your team! Putting on a successful HOA event is not a one-person job and requires a team, and every team needs a leader and support behind them. So, whether your team is supporting staff or volunteers, be sure to equip them with the tools they need. Timelines and job assignments with detailed information will allow your team to help you be effective. Plan accordingly with team meetings leading up to your event, and always have a post-event meeting. There is always room for improvement, so post-event discussions are a great tool for continuing to plan successful events. 

6. Promoting your event

Utilize your team to promote your events. It is important to ensure that event details are adequately promoted. Create flyers, announce them in community newsletters, send emails, add them to your website, and mention them at Board meetings. The more ways you can inform the members of your HOA, the more successful your event will be.

HOA events are a lot of work but can certainly help build a stronger sense of community and increase overall resident satisfaction. Events are also a good time to activate homeowner participation by creating a Social Committee to help the Board plan and execute community events. Learn more about Building HOA Committees. Use this information provided to get inspired, organized, and ready to execute successful events for years to come.

When it comes to helping Boards and residents get the most out of their HOA, AAM is here to help. Communities under our care benefit from the direct support of a lifestyle team that serves as AAM’s global resource for community events and lifestyle programming. The team is also responsible for ensuring that all programs, services, and events are conducted and fulfilled in a manner consistent with the community’s goals and objectives and remain compliant with local, state, and federal regulations.

Understanding the significance of HOA reserve funds is crucial for effective homeowners’ association management. These funds, unlike daily operating funds, are set aside for essential repairs and replacements within the community. This guide covers the importance of HOA reserve funds, smart investment strategies, and ensuring financial preparedness for the future.

HOA Reserve Funds: Why They Matter and Smart Investment Strategies

Managing an HOA requires understanding and effectively handling reserve funds. These funds cover major repairs and replacements of common areas, distinct from daily operating expenses.

Why Are Reserve Funds Essential?

Reserve funds ensure long-term financial stability, maintaining common areas like roofs, elevators, pools, and parking lots without sudden financial burdens. They also help preserve or enhance property values, keeping the community attractive and functional.

How Much Reserve Should an HOA Have?

Determining the right reserve fund amount can be challenging. A comprehensive Reserve Study estimates major repair and replacement costs. The Study assumes a conservative interest yield of 1-3% on reserve balances.

Every HOA has unique needs, so reserve fund requirements vary. A reserve study every 3 to 5 years helps the board allocate appropriate funds and anticipate potential cost spikes.

The Risks of Underfunded HOA Reserve Funds

An underfunded reserve fund poses significant risks to an HOA. Unexpected costs may force sudden dues increases or less efficient funding solutions. This could cause financial stress for community members and potential discord within the community.

Investing HOA Reserve Funds: Key Considerations

Choosing the right reserve fund investment requires considering return reliability, risk level, investment duration flexibility, and competitive interest rates. CDs offer guaranteed returns, low risk, and FDIC insurance up to $250,000 per depositor per insured bank. Their flexible investment durations and generally higher interest rates are additional benefits.

A Well-Designed HOA Investment Policy

For HOAs with substantial reserves, developing an investment policy is beneficial. This policy should outline financial goals, risk tolerance, and cash management procedures, including guidelines for permissible investments and approved financial institutions.

An effective investment policy should focus on Safety, Liquidity, and Yield (SLY). Before formulating the policy, review your association’s documents for any specific requirements.

Need Assistance with Reserve Funds? We’re Here to Help

If you want to learn more about managing your community association’s finances and making smart investment decisions, contact us. Our experienced team can help you navigate the complex world of HOA finances and ensure the long-term financial health of your community.

To create your HOA’s annual budget, review and follow the timeline for Board completion and approval. This ensures you meet the distribution requirements outlined in the HOA’s governing documents. For example, some CC&Rs require mailing or delivering the approved budget to homeowners 30 days before the effective date or year-end.

While keeping these critical deadlines in mind, consider the following items to help make the budget preparation process successful:

Review the governing documents

• Look for specific requirements for preparing and distributing the HOA’s budget.
• Be aware of any recent changes to State Statutes.

Be sure to prepare both

• An operating budget and a reserve budget.
• Include the final budgets as agenda items for approval during an open Board of Directors meeting.

Review the reserve study.

• Review governing documents to confirm if they require an annual reserve fund analysis.
• Determine how much money the association should have raised for replacement costs and other contingencies.
• Determine the percentage funded in reserve.
• Make sure you have planned for adequate cash flow for upcoming expenditures.

Analyze expenditures

• Pinpoint assets that may need replacement or upgrades for the current year.

Review existing contracts and anticipate fluctuating costs

• Contact utility companies to confirm their price rates for the following year.
• Reach out to active vendors and ask about service costs for the following year.
• Consider requesting RFPs from potential vendors.

Examine each category

• Projected Revenue – Assessments
• Operating Costs – Maintenance, supplies and utilities
• Fixed Costs – Taxes, insurance, status filing
• Administrative Costs – Bank fees, management, legal, website, office expenses
• Review each line item to account for increased costs. 

Necessary assessment increase

• Divide the total projected costs among the number of homeowners to determine whether an assessment increase will be necessary to cover expenses.
• Compare the recommended funding in the reserve fund to the current actual funding level to determine whether an assessment increase is needed.

Include a narrative

• Always include an explanation of how each income and expense item was determined.
• Financial prudence is one of your top responsibilities as a board member. This is why investing time and starting early on creating an annual budget will set your HOA up for financial success.

If you want more HOA budgeting tips, check out our Guide on 7 Tips to Prepare Your Community’s Association Budget. 

OA demands can easily rope Board members into a full-time job. On the flip side, HOAs must find the right balance of value and cost when they turn to an outside provider. So, how do you know when it is time to hire a professional management company? Consider these major benefits:

Minimizing Stress and Reducing Demands on Board Members.  

Consider turning over responsibilities like handling owner calls, complaints, unpaid assessments, website updates, communications, compliance, and financials to a community management company if your Board members are maxed out. Hire an HOA management team to help alleviate the tedious day-to-day operations of an association.

Accessing Technology Efficiencies and Easier Processes.  

Suppose your Board members do not have time to stay on top of communications, reporting, or task management. In that case, it might be time to find a management partner that can provide secure and innovative technology to increase the efficiency of vital HOA needs significantly. HOA Management companies invest heavily in tools, software, and security protocols to ensure the ultimate homeowner experience. Reliable management companies offer Board portals, mobile apps, community websites, electronic voting, and messaging services.

Acquiring and Maintaining the Required Level of Industry Expertise. 

Hire a professional HOA Management company to create a symbiotic relationship with the Board of Directors still at the helm. A professional management company will know the ins and outs of collecting unpaid assessments, legal matters, maintenance issues, etc. Additionally, a reputable management company invests in SSAE-18 audits to confirm its internal controls mitigate client risks.

These three benefits alone create an attractive scenario and help decide on whether or not to hire an HOA management company somewhat easier. However, HOA Board members need to also know that it will not be a hands-off relationship. Hiring a professional HOA Management company is meant to be a symbiotic relationship but with the Board of Directors still at the helm. However, your management partner will help streamline operations and improve productivity.

Homeowner Association Boards interested in partnering with a professional HOA management company should consider AAM. Feel free to contact us for a free quote, call us at 833.745.6446, or fill out a quick request HERE.