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As a homeowner or Board Member living in an HOA, you may have heard the terms Resolutions and Amendments but may not fully understand the differences between the two. These terms refer to how homeowner associations document decisions made by the Board of Directors, and it is essential to understand the nuances of each to navigate the complexities of community association management with ease.

• HOA Resolutions vs. Amendments: Defining the Terms
• When to Use HOA Resolutions vs. Amendments
• Types of Resolutions
• The Process: How to Implement HOA Resolutions and Amendments
• What should be included in each?
• Examples of HOA Resolutions and Amendments
• HOA Resolutions and Amendments: FAQs

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Resolutions vs. Amendments: Defining the Term

HOA Resolutions 

HOA Resolutions memorialize decisions made by the Board of Directors to address specific issues or clarify the Governing Documents and are an essential tool for managing any community association. They provide additional guidelines, procedures, or rules and regulations to help the community’s day-to-day operations. The Board typically passes these resolutions by a majority vote to address matters such as budget approval, rule establishment for common areas, or HOA rule violations.

In summary, a Resolution is a document created for the Board of Directors to memorialize the policy decisions of the Board. It contains information on the purpose of the Resolution, what action follows, and where the Board’s authority to make that decision comes from (e.g., a specific section of the CC&Rs). Resolutions validate and support the Board’s policies.

HOA Amendments

HOA Amendments are changes made directly to the Governing Documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, or Articles of Incorporation. These changes require a more formal and rigorous process than resolutions, often involving a majority vote from the community membership or the Board of Directors.

To approve an Amendment, the HOA must follow a strict process as provided for in the applicable Governing Document that typically involves a period of notice and an opportunity for members to comment on the proposed changes. This formal process ensures that all members have a say in the changes being made to the documents, and it helps to promote transparency and fairness in the decision-making process.

When to Use HOA Resolutions vs. Amendments

Resolutions do not need to be used for every decision the Board makes. Instead, they help formalize and clarify community procedures and internal workings and provide transparency in the Board of Directors’ decisions.

At AAM, our focus is on customer-centric efficiencies. Clarity and ease of access to information are essential for effective community management. Maintaining a comprehensive and organized record of Resolutions ensures that the Board and management team can quickly locate approvals when needed rather than having to sift through extensive meeting minutes. This approach saves time and promotes transparency and accountability, reinforcing the trust our communities place in us.

Opt for Resolutions When:

• Clarifying ambiguous language in policy documents.
• Establishing new rules or procedures not explicitly mentioned in the Governing Documents but that are not in conflict with the Governing Documents.
• Addressing specific issues or concerns raised by Members.
• Memorializing approvals regarding assessment increases, annual budgets, and procedural changes as may be allowed in the Governing Documents, such as increasing the number of Board members.

Choose Amendments When:

• Making changes to the CC&Rs, Bylaws, or Articles of Incorporation.
• Updating the Governing Documents to comply with new laws or regulations.
• Outdated restrictions the Board may seek to amend covenants or change rules would be a desire to modernize existing rules and covenants.
• Altering existing rules or restrictions that impact property rights.

Types of Resolutions

• Administrative Resolutions, also referred to as Procedural Resolutions, pertain to internal processes and procedures. These encompass guidelines for Board meetings, elections, and applications for architectural changes. It is crucial for both the Board and community members to adhere to these procedures consistently.

• Policy Resolutions have a direct impact on the rights and responsibilities of property owners. Boards typically use Policy Resolutions to clarify vague provisions within the Governing Documents or to approve the creation of policies allowed by the Governing Documents, such as a Fine Policy or Collection Policy. Many times, the CC&Rs only give a limited amount of information — not enough to support or help the Board make a decision. This is where a Policy Resolution can be helpful and effective. Policy Resolutions can take various forms, including resolutions pertaining to the visual aesthetics of homes within the community, how common facilities must be used, pet restrictions, and more.

• Special Resolutions deal with an individual situation. Boards have the option to utilize this tool in order to introduce a new regulation that is not currently covered by the Association’s operating guidelines or to address a specific situation on an individual basis. For instance, a Board might adopt a special resolution related to a decision concerning a violation or behavior of individuals at meetings (e.g., Code of Conduct) or common areas. Guidance from the HOA attorney is recommended for these types of Special Resolutions.

The Process: How to Implement HOA Resolutions and Amendments

The Road to Resolutions 

1. Identify the policy or change that requires a resolution.

2. Discuss the proposed policy or change during an Open Board meeting.

3. Vote on the policy or change and document it in the meeting minutes, ensuring it passes by the required majority.

4. Draft and sign the Resolution memorializing the Board action and notify the community members.

The Path to Amendments 

1. Determine if the proposed change requires an amendment to the Governing Documents.

2. Seek legal counsel to ensure compliance with laws and regulations.

3. Present the proposed Amendment to the community members for discussion.

4. Hold a vote or written consent process (check the Governing Documents for language that may allow the Association to utilize the written consent process or voting by absentee ballot or in person) and ensure the Amendment passes by the required majority, as stated in the Association’s Governing Documents.
5. Record the Amendment or file it with the appropriate governmental agency if applicable.

6. Publish the Amendment on the community’s website, app, and/or shared portal.

What should be included in each?

What should be included in Resolutions: 

An HOA Resolution is a formal decision made by the HOA Board to address specific topics or to clarify the Governing Documents. It provides additional guidelines, rules and regulations, or procedures that help in the community’s day-to-day operations.

As such, it requires a less formal process and should include the following elements:

1. A clear statement of the policy or decision that the Resolution is addressing.

2. The specific action that the Board is taking to address the issue or concern.

3. The effective date of the Resolution.

4. A record of the vote by the HOA Board of Directors (i.e., a majority of the Board during a duly called Board meeting).
5. Information on the purpose of the Resolution.

6. Where does the Board’s authority to make that decision come from?

What should be included in an Amendment:

An HOA Amendment is a formal change made directly to the Governing Documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, or Articles of Incorporation.

As such, it requires a more formal process and should include the following elements:

1. A clear statement of the proposed change.

2. The rationale for the change.

3. The specific section or sections of the documents that will be affected.

4. The specific language of the proposed Amendment.
5. A description of the voting process and the required majority for approval.

6. The effective date of the Amendment.

Examples of HOA Resolutions and Amendments

Resolutions and Amendments can cover a wide range of topics, depending on the community’s specific needs. Here are some examples of HOA Amendments and Resolutions:

Examples of HOA Resolutions: 

• Approving the annual budget and setting the monthly assessments for homeowners.
• Establishing rules for using common areas, such as swimming pools, clubhouses, or parks.
• Addressing violations of HOA rules or Bylaws.
• Designating the responsibilities of the Board members and officers of the HOA.
• Creating policies such as a Fine Policy related to compliance issues or a Collection Policy to give guidance on steps to take if an owner becomes delinquent in paying assessments.

Examples of HOA Amendments: 

• Changing the restrictions on the use of property, such as adding or removing restrictions on leasing restrictions and short-term rentals.
• Modifying the terms for Board members and Officers of the Board.
• Adding a resale reserve fund fee or working capital fee.
• Updating the CC&Rs to reflect changes in state or federal laws.
• Annexing additional property into the Association.

HOA Resolutions and Amendments: FAQs

What is the main difference between HOA Resolutions and Amendments?

Resolutions provide additional guidelines or rules, while Amendments directly change the Governing Documents.

Do both Resolutions and Amendments require a vote from the community? 

Resolutions generally require a vote from the HOA Board of Directors, while Amendments typically require a majority or some super-majority vote from the community members.

Can an HOA Resolution override an existing Amendment?

No, Resolutions cannot override Amendments since Amendments are changes to the Governing Documents themselves.

How often should an HOA update its Governing Documents? 

There is no fixed timeline or requirement for updating Governing Documents.

Conclusion

HOA Resolutions and Amendments are critical in maintaining harmony within a residential community. Understanding the differences between the two can help you quickly navigate their complexities and ensure the documents remain up-to-date and relevant to the community’s needs and concerns. Whether you’re clarifying ambiguous language or making significant changes, Resolutions and Amendments provide a framework for community management that benefits everyone involved.

Suppose you’re a homeowner who is part of an HOA. In that case, it’s important to familiarize yourself with your HOA’s Governing Documents, including the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, and Articles of Incorporation. If you need help determining which method of change, Resolution, or Amendment is appropriate for your situation, please do not hesitate to contact AAM. As an expert HOA Management company, we are here to provide guidance and address your questions or concerns. Being informed and actively participating in your community can make it sustainable and a great place to call home.

As a Board member of an HOA, you have an important responsibility to ensure that the association is running smoothly and effectively. Your fiduciary duty is to make decisions that reflect the best interests of the community and its membership. In this article, we will provide 10 tips for successful HOA Board members that will help you fulfill this duty and ensure the success of your community.

Tip #1: Be Consistent

Consistency is key to the success of any community association. By consistently enforcing rules, maintaining Board meeting expectations, and communicating regularly with residents, you can establish a fair and level playing field for all. This consistency will build trust among residents, who will feel confident that the Board is making impartial and consistent decisions. Remember that consistency is key to maintaining a successful community and ensuring that your HOA operates smoothly.

Tip #2: Be Open Minded

An open-minded approach is crucial for HOA Board members. They must be willing to adapt, change, and consider alternative perspectives rather than rely solely on past practices. By listening to the residents and working collaboratively with them, the Board can find agreeable solutions that promote positive changes for the association. This approach demonstrates their commitment to enhancing the HOA and building trust with residents.

Tip #3: Be Prepared

Preparation is essential for successful HOA Board meetings. As a Board member, reviewing meeting agendas and related materials beforehand and communicating any questions or concerns to your HOA management company is crucial. This allows you to fully understand the topics to be discussed and make informed decisions during the meeting. While your presence is important, being prepared is critical to the effective operation of a community association. By demonstrating a commitment to preparation, you can help ensure that Board meetings run smoothly and effectively, building residents’ confidence and trust.

Tip #4: Be Knowledgeable

As a member of the HOA Board, rely on your management company as a resource to stay informed on association issues. At AAM, we emphasize the importance of staying informed about legislative changes and legal matters that could affect your community. Additionally, you can attend Board training seminars, access resources provided by the Community Associations Institute (CAI), and subscribe to Google alerts for industry articles to stay informed. By leveraging these resources, you stay informed and make well-informed decisions that best serve your community’s interests.

Tip #5: Be Able to Ask for Help

Savvy members of the HOA Board comprehend when it is prudent to seek external support. Collaborating with a seasoned HOA management company helps protect the community and Board from potential legal risks and liabilities. A reputable HOA management company can furnish invaluable assets, such as accounting, budgeting, and vendor management, to assure the association’s prosperity. Furthermore, they can offer counsel in strategic planning, regulatory compliance, and crisis management. By partnering with a dependable management firm, Board members can concentrate on their obligations as fiduciaries while ensuring the community functions efficiently and effectively.

Tip #6: Communicate Effectively

Efficient communication is pivotal to the success of an HOA. As a Board member, it is imperative to communicate with clarity and expedience to residents, vendors, and fellow Board members. Ensure that you are responsive to emails and phone calls and provide residents with regular updates. Valuable communication methods include regular updates, maintaining a community website, frequent meetings, and promptly addressing inquiries and concerns. By emphasizing effective communication, you can nurture trust among residents and guarantee that the community operates with proficiency. Collaborating with an HOA management company and a community manager can simplify communication with homeowners.

Tip #7: Understand Your Governing Documents

As a Board member, understanding the association’s governing documents, including the CC&Rs, bylaws, and rules and regulations, is essential. This knowledge empowers you to make well-informed decisions that align with and support the best interests of your community. By familiarizing yourself with governing documents, you ensure you operate within set parameters and adhere to community association regulations. By demonstrating a commitment to understanding and following the governing documents, you can build trust and confidence among residents and support the success of the HOA.

Tip #8: Develop a Strategic Plan

A well-crafted strategic plan can help you prioritize resources and allocate funds efficiently, while also addressing the community’s long-term needs. By committing to strategic planning, you build resident confidence and support the ongoing success of your HOA.

Tip #9: Build Relationships with Vendors

As a member of the HOA Board, one recognizes the indispensability of vendors towards the association’s progress. The significance of building positive relationships with vendors, including landscapers, maintenance crews, and other service providers, cannot be overemphasized. Establish a rapport with the vendors makes it easier to work collaboratively and resolve any issues that may arise.

Tip #10: Foster a sense of Community

Building a strong sense of community is crucial to the success of an HOA. As a Board member, you can play a pivotal role in fostering this sense of community by organizing social events, creating community spaces, and encouraging resident involvement in association activities. This may entail hosting festive occasions and inspiring residents to participate in association undertakings such as committees or charitable work. By prioritizing community-building initiatives, you can assist in cementing a feeling of inclusion among the residents, which can cultivate a constructive and helpful atmosphere within the HOA. This can, in turn, lead to a more fruitful and cohesive community.

As a Board member, your role is vital to the success of your community association. By practicing consistency, being open-minded, prepared, knowledgeable, and seeking assistance, you can fulfill your fiduciary duty and ensure community success. Remember, the success of an HOA depends on the efforts and collaboration of all Board members, management, and residents. By following these tips, you can contribute to your community’s success and positively impact the lives of your fellow residents.

Homeowners Association (HOA) management companies handle a community’s day-to-day operations. Their services generally include maintaining common areas, managing financials, and enforcing rules and regulations. However, the level of service provided is not always equal and may not satisfy the needs of the community, residents, or Board. Sometimes, the Board is faced with the task of switching HOA management companies, whether due to poor communication, lack of transparency, or simply a change in the homeowner’s association’s priorities or needs.

In this article, we’ll discuss why it may be time to change HOA management companies and provide a step-by-step guide on making the transition as smooth as possible.

Evaluate Your Current HOA Management Company

Before changing your HOA management company, evaluating your current one is essential by assessing their performance and identifying any areas of concern. This evaluation will help you determine if a change in management companies may be warranted and what qualities to look for in a new professional hoa management company.

Signs You Need a New HOA Management Company

Below are some typical reasons why boards may start to conduct a new management search.

Lack of Communication

A lack of communication is among the most significant indicator of poor HOA management. If the management company is not responding to emails, phone calls, or other requests for information, it can be very frustrating for homeowners and for you as Board member. Is your current company responsive to your inquiries and concerns? Do they keep you informed of important updates and changes?

Limited Technology

Technology is essential to streamline processes and improve efficiency. Your HOA management company should offer a user-friendly and comprehensive online portal, such as a mobile app, to make it easy for Board members and residents to access important HOA information and pay dues. It may be time to switch if your current management contract or company isn’t invested in advancing technology.

Poor Record-Keeping

Another indicator of poor HOA management is poor record-keeping. If the management company is not keeping accurate financial records or failing to document important information related to the HOA, it can not only be difficult for the Board or homeowners to make informed decisions but also create distrust in the management company or harm the association financially.

Failure to Enforce Rules

If the management company is not enforcing the rules and regulations of the HOA, it can lead to disruption and dissatisfaction among homeowners. A lack of enforcement can also lead to legal implications for the HOA.

Inadequate Maintenance

If the management company is not adequately overseeing the maintenance of the common areas of the HOA or responding promptly to repair requests, it may lead to safety hazards and lower property values.

Lack of Transparency

If the management company is not transparent about its fees, services, or other vital information, it can build distrust and a lack of accountability. Are they open and honest about their processes and fees, or do they have hidden costs? Do they provide detailed and accurate financial reports?

Quality of Service

If the management company is not delivering quality services to your community association, it is likely time to start looking at other options. Are you satisfied with the quality of service your community association receives?

Know What Your HOA Needs

Before you begin your search for a new HOA management company, you must clearly understand your association’s unique needs. Some of the things you should consider include the following:

• Community Size: The size of your community will impact the services you need from a management company. A larger community may require more frequent maintenance, implementation of community staff, and a higher level of financial management, while a smaller community may need less support.

• Priorities: What are your community’s top priorities? Is it maintaining common areas, enforcing rules and regulations, or ensuring financial stability?

• Budget: Your community’s budget will also impact the services you need from a management company. Consider how much you can afford to spend on management fees and ensure the service provider can deliver the necessary services within your budget.

• Expertise: Finally, consider the specific knowledge your community needs from a management company and HOA manager. For example, if your community has a lot of landscaping and outdoor maintenance needs, you should find a management company with expertise in those areas.

Research and Find Potential HOA Management Companies

Once you’ve identified the reasons for changing your HOA management company, it’s time to research and find potential companies. A thorough online search and referrals from other HOA members can help you find the right company.

Qualities to Look for When Switching HOA Management Companies

Experience and Expertise

One of the most critical factors to consider when choosing a new management company is their experience and expertise. You want to choose a company with a proven track record of successfully managing similar properties. At AAM, we have decades of experience managing various properties, including single-family homes, master-planned, lifestyle, and condominiums. Questions to ask, how long have they been in business? Do they have experience managing communities similar to yours?

Services Offered

Another essential factor to consider when selecting an HOA management company is its range of services. A good HOA management company should offer a wide range of services to cover all aspects of your community. Some services to look for include financial management, administrative support, and vendor management. Additionally, the company should clearly outline its service offerings so you can determine if they meet your community’s unique needs. Questions to ask: do they offer the specific services your community needs? How do their fees compare to those of your current management company? Are there any hidden fees or charges you should be aware of?

Customer Service

Another essential factor to consider when choosing an HOA management company is its customer service. Your management company will be working closely with your homeowners, so you want to make sure that they have a reputation for excellent customer service. At AAM, we pride ourselves on providing exceptional customer service to our clients. We understand that every association has different needs, and we work closely with our clients to meet their needs.

Professionalism and Communication

Selecting an HOA management company with high professionalism and strong communication skills is crucial. You want to choose a management company that is responsive and proactive when it comes to communication. At AAM, we have an open-door policy, and we encourage our clients to reach out to us with any questions or concerns they may have. Our Client Relations division and regional leadership teams respond to HOA Board member concerns to resolve them quickly and diplomatically. We also provide regular communication through newsletters, email updates, and meetings.

Financial Management

Managing finances is one of the most critical aspects of HOA management. You want to choose a management company with a reputation for excellent financial management. At AAM, we have a team of experienced accountants dedicated to managing your association’s finances. We provide regular and accurate financial reports and work closely with clients to create budgets and financial plans.

Technology

With the ever-evolving technological landscape, selecting an HOA management company that is up to date with the latest technology is essential. At AAM, we use state-of-the-art software to manage all aspects of HOA management, from accounting to communication. Our online portal and mobile app allow homeowners to access important information and make payments online, making the process more convenient for everyone.

Considering the above factors, you can make an informed decision to ensure that your community is well-managed, efficiently run, and highly functional.

Contact Potential HOA Management Companies and Request Proposals

Once you have a list of potential companies, it’s time to contact them and request proposals. Ask for a detailed proposal outlining their services, fees, and additional costs. Ensure the proposal clearly describes the company’s experience, credentials, and references. We have an article, HOA RFP Specifications, that can aid HOA Board Members in preparing an RFP.

Once you’ve identified a management company you want to work with, you must communicate your needs and expectations. This is the time to ask questions about their services, fees, and processes. You should also be clear about your community’s priorities and any specific needs you have. Some of the things you should discuss with the potential management companies include the following:

Scope of services

What services will they provide? Will they handle financial management, maintenance, association records, and rule enforcement?

Fees

What are their fees, and how do they compare to your current management provider? This can be tricky. Be aware of low management fees; unfortunately, it’s a common practice for HOA management companies to pad other costs such as envelopes, printing, and mailing to make up the difference. Make sure you are thorough when reviewing fees.

AAM has a significant cost comparison resource we can provide to Board members to make this task easier. Contact cchandler@AssociatedAsset.com for your free copy.

Communication

How will they communicate with the Board and homeowners? Will they provide regular updates and reports?

Expectations

What are their expectations for the Board and homeowners? What are your expectations of them? It is always a good idea to conduct a walk-through of the community with potential service providers.

Accreditations

It is also essential to check if the management company is licensed, insured, and accredited by industry associations. This accreditation ensures that the management company adheres to industry best practices and maintains high levels of professionalism.

Communicating with the new HOA management company ensures everyone is on the same page and the transition is as smooth as possible.

Notify Your Current HOA Management Company

You must notify your current company after selecting your new HOA management company. Please provide them with written notice of your decision to terminate their services. Ensure that you follow the termination procedures outlined in your current management contract.

Prepare for the Transition

Preparing for the transition is essential once you’ve chosen a new HOA management company. This will help ensure the switch is as smooth as possible, and your community’s needs are met. Some of the things you should consider include the following:

Communicate the Change

Be sure to communicate the change to all homeowners in your community. Provide information on the new management provider, its services, and what homeowners can expect during the transition.

Organize Important Documents

Organize and transfer all important documents and information to the new HOA management company. This may include financial statements, contracts, governing documents, and other relevant information.

Coordinate with the Current HOA Management Company

Work with your current HOA management company to ensure a smooth transition. Please provide them with any necessary information and ensure no outstanding issues need to be resolved before the transition.

Establish a Transition Timeline

Work with the new company to establish a transition timeline. This should include key dates for the transfer of documents, the start date for the new company’s services, and any other important milestones.

Conduct a Walk-Through

Schedule another walk-through of the community with the new Community Manager. This will allow them to become familiar with the community and any maintenance needs.

By preparing for the transition, you can ensure that your community’s needs are met and that the new management provider can hit the ground running once its services begin.

Monitor the Transition

Monitoring the new HOA management company’s performance is essential during the transition. Ensure that they’re following the contract and providing quality services. Regular communication with the new company will help identify issues and help with a smooth transition.

Board members often need help with decisions that require implementing changes in a way that doesn’t disrupt the association. Switching to a new HOA management company is one of those decisions. It can be incredibly challenging if the Board has no experience with transitioning or has had a negative experience in the past. However, by choosing a management company with a dedicated team focused on streamlining the onboarding process, you can be confident that the transition will be smooth, professional, and respectful to your community and its residents.

At AAM, we understand the importance of a seamless transition when switching HOA management companies. That’s why we have a dedicated Transition Team to ensure the process runs smoothly from day one. Our team follows a well-defined transition plan, which sets clear benchmarks for task completion at 30, 60, 90, and 120-day intervals, tailored to the size and needs of the community. With the help of advanced technology and effective communication, our experienced team can assume the association’s management without causing disruptions to the community’s daily operations. We are committed to providing excellent customer service and financial management to the residents right from the start.

Some of the things a Board should consider during the transition process:

Regular Communication

Establish regular communication with the new Manager throughout the transition. This will help you stay informed of any issues or challenges and ensure the transition is on track.

Monitor Financials

Keep a close eye on the community’s financials during the transition. Make sure that all financial information has been transferred to the new management company and that there are no discrepancies or issues with billing.

Review Maintenance Reports

Review maintenance reports to ensure your community management company properly maintains the community. This includes things like landscaping, building maintenance, and repairs.

Address Any Issues Promptly

If you identify any issues during the transition, address them promptly. This will help ensure that the transition stays on track and that your community’s needs are being met.

By monitoring the transition to the new community management company, you can ensure that the process is successful and that your community’s needs are met. This will help ensure a stress-free transition and a successful long-term relationship with the new management company.

Conclusion:

Changing your HOA management company can be daunting, but with proper preparation, it can be a smooth and successful transition. By communicating the change, organizing important documents, coordinating with the current management company, establishing a transition timeline, and conducting a walk-through, you can ensure that the new management company is prepared to meet your community’s needs from day one.

If you’re an HOA Board Member considering changing your community’s management company, consider AAM HOA Management. With decades of experience managing communities of all sizes, AAM has the expertise and resources to provide your community with the highest level of service. We understand that each community is unique and work closely with our clients to provide customized services that meet their needs. With a focus on communication, transparency, and quality service, AAM is committed to delivering our clients the highest level of satisfaction. Contact us today to learn more about how we can help your community thrive with our top-tier HOA management services.

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.

The role of an HOA Community Manager encompasses 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. A professional HOA management company typically employs Community Managers, 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 drive their communities and work 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 unavailable 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 reports regularly 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 about 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 particular needs, but some key aspects of this relationship include:

• Communication: HOA managers should communicate clearly and consistently with the board and Association members. This includes regular updates on HOA issues, responding to resident concerns and questions, and informing the board of significant developments.
• Decision-making process: HOA managers typically work with the board to make decisions 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. 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: Work with the board to plan maintenance and repair projects, including hiring vendors and overseeing the work.
• HOA events: HOA managers may work with the board and residents to organize Association events.

Overall, the HOA manager’s role is to support the board members and residents. They provide 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 standard 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 have 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 effectively manage the community association’s day-to-day operations.

Organizational and time-management skills

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

Financial skills

They should understand financial management, 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 these skills, management companies always look for new managers; visit our CAREERS page.

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.

• HOA Board Member Roles

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

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

HOA Selective Enforcement Overview

Owners purchase properties within homeowners’ associations under the expectation that the governing document provisions are 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. The Board of Directors should establish and adopt clear rules and guidelines for all members to follow. Additionally, an enforcement policy should be created to outline the actions the Board may take to ensure 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 rule violation only upon receiving a formal written complaint from a member.

2) A designated Board or Committee member(s) performs their periodic reviews of the community and provides 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 community inspections 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’s actions should not be viewed as “arbitrary and capricious” 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, 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 HOA 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 respectfully and with 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 essential 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. 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.