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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.

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. 

HOA Preventative maintenance refers to the routine maintenance tasks performed on the Association’s physical assets and mechanical equipment components. It helps extend the life of the different assets and equipment within the community’s property, decrease repair costs, and prevent the likelihood of equipment failure and unplanned downtime. 

Why is Preventative Maintenance so Important?

Many associations offer impressive amenities and services. Examples include large recreation centers, buildings, clubhouses, fitness centers, swimming pools, rooftops, and other specialty facilities.  Maintaining the value and aesthetics of the association amenities and the facility equipment is an important part of the management company’s services. A comprehensive Preventive Maintenance Program is a key component to a successful partnership.

Reactive vs. Proactive Maintenance

Reactive Maintenance is when maintenance on equipment is not performed adequately until the equipment breaks or fails. This strategy has several adverse results:

• It reduces the life expectancy of the assets and mechanical equipment components.
• It makes it difficult to effectively budget for repairs and maintenance, resulting in unexpected repairs or costly replacement costs.
• It creates additional expenses, such as after-hour service fees.
• Unexpected amenity closures typically result from repairs, and extended closures may occur while waiting for parts.
• It could cause last-minute closure notifications to owners, disrupting their plans and triggering frustration.

Proactive maintenance routinely addresses concerns and ensures equipment upkeep to prevent major failures. This strategy includes regular inspections and performing routine maintenance tasks, which has many positive results:

• It helps to extend the life expectancy of the assets and mechanical equipment components.
• Reduces unexpected amenity closures for needed repairs.
• Allows owners to receive timely notifications for scheduled upcoming closures.

Who is responsible for HOA Preventative Maintenance?

Preventive maintenance for master-planned communities, condominiums, and high-rise buildings is handled differently.

• Large master-planned communities typically have onsite staff responsible for preventative maintenance, for the onsite maintenance staff handles some items, inspection, and maintenance. In contrast, other items are scheduled to be inspected and maintained with the appropriate vendor. The maintenance staff should follow the Association’s preventative maintenance schedule and regularly meet with the onsite manager to report findings and address areas of concern. The onsite manager ensures that preventative maintenance inspections are performed.
• Preventative maintenance for condominiums and high-rise buildings will be a little different. Owners are responsible for items inside each unit, such as filter changes, cleaning condensation lines, and replacing batteries in fire alarms. Depending on the Governing Documents, the Association is responsible for the preventive maintenance of building equipment like roofs, exteriors, and plumbing.
• Condominiums with on-site staff would be responsible for preventative maintenance in the same manner as the master-planned community. If a condo has no on-site staff, the community manager would be responsible for the inspections and scheduling of vendors.

How to Create an HOA Preventative Maintenance Program 

When creating a preventive maintenance program, include all assets and mechanical equipment components and establish inspection and maintenance schedules. Below is a step-by-step process for creating an effective preventative maintenance schedule.

• Start by making a list of all the assets and mechanical equipment. This will be your inventory list.
• Next, compare your list with the component list in the Reserve Study. This is an excellent way to ensure you have included everything. In addition, you can check the Reserve Study to confirm if any new assets or equipment need to be included when the Reserve Study is updated.
• Create frequency-based inspection schedules from the inventory list. When determining inspection frequency, both manufacturer recommendations and equipment age and condition should be considered.
• After completing the preventative maintenance schedules, the next step is to assign the tasks to the appropriate team members. This assigns responsibility and allows you to determine staff workload. 
  For inspections and services requiring a vendor, assign an onsite team member to schedule the inspection or service, confirm maintenance completion, and submit a vendor report.
• The final component of a preventative maintenance program is establishing a system for recording and maintaining the data from the inspections and services. Historical data is important for future reference. This data specifies expenditure details, issues with equipment under warranty, and new assets needing inclusion in the next Reserve Study update. Keeping accurate records will save time and headaches later.

A successful HOA preventive maintenance program requires preparation, planning, and proactive scheduling. A professional management company can assist in creating a successful program customized to your Association’s assets. 

HOA Committees can be a valuable resource to the Homeowners and Board members they serve. They help complete specific tasks that might otherwise be overwhelming for a typical Board to take on as an additional responsibility. This article will explore the roles and responsibilities of Committees, the types of Committees an HOA can benefit from, and how to solicit volunteers to serve on Committees.

Roles and Responsibilities of Committees

Homeowner volunteers in the community make up the HOA Committees, and the Board of Directors appoints them.

Your HOA’s governing documents might include guidelines for forming a Committee. However, some documents may only address one type of Committee and have parameters for creating new ones.

Each Committee should maintain a charter outlining its members’ roles and responsibilities. Below are a few tips for creating charters for new Committees:

• Create an outline that provides structure and direction. The outline can be used when the Board passes a resolution to create the Committee.
• Have a statement of purpose – What is expected of the Committee? Clarify if they have the authority to make decisions or are gathering information and providing recommendations.
• Identify how many members should make up the Committee and how they will report to the Board.
• Will there be a Budget for the Committee? If so, clearly identify what the budget will be.
• How long will the service term be for volunteers?
• Identify a Committee name. (i.e., Social Committee, Decorating Committee, Safety Committee, etc.)
• List the Committee members’ names and identify their positions. The Chair and Co-Chair will take responsibility for the Committee’s actions and report to the Board. The Secretary will keep records and documentation of the Committee’s meetings, tasks, and progress. If there is a budget, the Treasurer will ensure the Committee stays within the budget limits.
• Encourage Committee members to exchange information and meet regularly to discuss the goals of the Committee.

Types of Committees

• Executive Committee: Made up of the Community’s Board of Directors.

• Non-Executive Committee: This committee is made up of homeowner volunteers. Depending on the governing documents or state statutes, certain Committees may exclude Board Members from positions. In other cases, the bylaws may require a Committee to have at least one Board member.

• Standing Committee (Continuous tasks): Architectural, Finance, Events, Social, Landscaping, Welcome, Block Watch, Communication.

• Special Committee (Specific project tasks): An advisory committee may be tasked with researching vendors to identify possible candidates to submit RFPs to. For example, the Playground Committee can be tasked with purchasing new playground equipment.

Over the years, Boards have created various Committees—such as Community Service, Block Watch, Beautification, and Communications—to serve specific community needs.

Most Common Committees

Below are the top five most common Committees within an HOA and some duties they could be charged with through the charter.

• Architectural Review: The Architectural Review Committee can review and approve exterior changes and ensure that all changes comply with the Design Guidelines and the CC&Rs.

• Financial Advisory: The Financial Advisory Committee could review and monitor the HOA’s finances to ensure the financial position remains strong and operates responsibly. Additionally, they may also be tasked with obtaining and reviewing a reserve study prepared by a third-party vendor contracted by the association.

• Welcome Committee: This group warmly welcomes new homeowners to the neighborhood. Members may also provide information about meetings, events, or neighborhood practices to keep new homeowners informed.

• Social Committee: The purpose of the Social Committee is to assist the Board in creating social and recreational events geared toward the community’s interests and needs.

• Landscape Committee: The primary role of the Landscape Committee is to keep the board abreast of the community’s needs. This may include conducting inspections on the grounds of the community to look for ways to enhance common areas and identify potential landscape improvements and possible maintenance concerns to make recommendations to the Board.

Can a Committee meet without notice of a meeting?

A review of that state statute, governing documents, or Committee charter will assist in determining if notice of the Committee meeting must be provided to all members of the Association. 

Soliciting Volunteers for the Committee

Now that the Board has identified the need to establish a new Committee, you must find reliable and helpful volunteers. Here are a few tips that will help you attract the right volunteers and make the Committee successful.

Consistent and clear communication is Critical.

There are many ways to communicate the need for Committee volunteers. Please use multiple communication channels to ensure the community receives this message. E-blasts, newsletter announcements, Board Meeting announcements, flyers, and good old-fashioned word of mouth are all great ways to share your message with the community.

Talk to active members

As a Board member, you probably notice which HOA members regularly attend Board meetings. Building relationships with attending members of your HOA meetings is good practice. Speaking with homeowners one-on-one will make them feel more connected and possibly encourage participation.

Consider creating an application

If your HOA is fortunate to have multiple people willing to volunteer for a Committee position, the Board can create an application. That way, the selection process is fair and open.

The form can ask for name, address, email, information, and whether the candidate served on any other Committees. Additionally, you can include a candidate information section allowing homeowners to share the skills and talents they bring to the table. For instance, someone with an accounting background might be helpful in a finance or budget committee.

Download the Application Example Here

Show appreciation

Reinforce the behaviors you want to be repeated. Show volunteers how grateful the Board is for their commitment, publicly acknowledge their efforts at Board meetings and in community newsletters, or highlight them on the HOA website. This reinforces the volunteers’ loyalty and can attract new volunteers.

Committees provide the perfect environment for members to engage and contribute to the community’s success. If your Board is overwhelmed with projects and tasks, AAM is ready to help with professional management services. We have the experience and processes to help you form the Committees your association needs. 

• Community Services: Why Homeowners Should Volunteer for the Board
• Why HOA Boards Benefit from Working with an HOA Management Company
• How to Increase HOA Homeowner Participation

HOA Board Members often handle complaints from fellow homeowners. Dealing with these issues can feel daunting, especially when the homeowner seems unreasonable or irate Below are 6 Steps to Effectively Handle HOA Complaints to guide you through achieving a successful resolution.

1. Listen Generously & Pay Attention to the Details:

• Whether you communicate verbally or in writing, acknowledge the homeowner’s concerns and thank them for reaching out.

• Have the homeowner submit their concerns in writing for documentation purposes.

• Ask clarifying questions to ensure you have all the information you need to research and resolve the matter effectively.

• Don’t be dismissive; remember, you do not have to promise anything.

• Keep the homeowner advised when they may expect a decision regarding their complaint/concern.

2. Be Proactive: 

• Review federal and state laws relative to the complaint and your association’s governing documents (Declaration of Covenants, Conditions, and Restrictions; Bylaws, Rules and Regulations, Policies, etc.) to see if any of these address the complaint. 

• Don’t be afraid to check with the association’s attorney.

3. Share the Information & Collaborate:

• You are one of several individuals who comprise the Board of Directors, which acts as a whole. Add the complaint to the next meeting agenda and share it with the rest of the board.

• The Board should discuss and examine the matter to find the best solution.

• In some cases, further investigation is needed to work towards a resolution.

4. Deliver Results: 

• After the board has discussed and decided, it’s time to inform the homeowner. 

• Share the why, speak straight, let the homeowner know how the decision was reached, and remind them that the Board acts in the community’s best interest. 

5. Be Process Oriented: 

• Having a clear protocol for members to submit complaints.

• Outline a specific process in how the Board will investigate and respond. Defining a strategy from start to finish will help you consistently address homeowner grievances.

6. Use Your Community’s Management Company to Your Benefit 

• Professional management companies—like AAM, LLC—provide full-service management, which includes proficiency in addressing and resolving homeowner concerns. 

Successfully handling HOA complaints is a critical part of fostering a positive and harmonious community. By following these six steps—listening generously, being proactive, collaborating as a board, delivering results, establishing clear processes, and leveraging professional management resources—you can confidently navigate even the most challenging homeowner concerns. Remember, every complaint is an opportunity to demonstrate your leadership, reinforce trust, and strengthen the community you serve.

If you read our article “HOA Board of Directors Roles and Responsibilities,” you already know about the typical roles. These roles are crucial to your HOA’s Board of Directors. However, the role and duties of “Members at Large” might not be as self-explanatory. In this article, we will answer the question: What is a Member at Large? How are they selected, and by whom? What are some of their duties? And, is there a difference between Member at Large and Director at Large?

Director at large meaning:

Members at Large are HOA homeowners who serve on the Board, with voting rights similar to those of other directors. They do not hold officer roles on the Board and aren’t assigned the same duties. The number of Members at Large in an HOA will vary from association to association. Each association’s governing documents dictate the required number of Board representatives. Some may have one or two Members at Large, while others might not have this position at all.

How do Homeowners become Members at Large?

• The Board elects them through elections. Members elect directors, who then decide which will serve as officers, usually including a President, Vice President, Secretary, and Treasurer. Those who do not become officers among the elected become Members at Large. To learn more about the specific roles of Board officers and their responsibilities, check out our article on the Roles of HOA Board Members. Elected terms can vary from HOA to HOA. Always check your governing documents. 

• The Board directly appoints them. It is common for the Board to invite a homeowner to join as a Member at Large, not an officer. This person serves the association under guidelines provided by the Board and according to the bylaws. This often happens when a homeowner’s expertise benefits the Board or the entire association. For instance, an architect homeowner might be appointed to support the Board during a community remodeling project.

• The Board demotes them from their officer roles. The Board can remove the President or any officer from their role through a vote from other directors. However, this doesn’t remove them entirely from the Board. They would instead become Members at Large. Since the entire membership elected them, only a majority vote from the membership can fully remove them.

What are the duties of a Member at Large?

The primary role of a Member at Large is to support the Board and act as a liaison with homeowners. The association’s current needs likely determine their varying duties and responsibilities. They are expected to attend all Board meetings to stay informed and understand the community’s goals and plans. They are encouraged to participate and share knowledge to inform and educate other Board representatives. Additional duties, like special projects, overseeing committees, or mentoring membership, will be assigned as needed by the Board.

What does “at large” mean? “At Large” means the position has no specific assignment, and duties can vary. 

Is there a difference between Member at Large and Director at Large?

“Member” and “Director” are interchangeable terms. Therefore, there is no difference between a Member at large and a Director at large.