How to Increase HOA Homeowner Participation

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.

Warmwelcome

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 members.

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.

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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.

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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 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 a 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.

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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 in 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.

HOA Reserve Funds

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.

When to Hire a Professional HOA Management Company

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 significantly increase the efficiency of vital HOA needs. 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 also need to 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

What is HOA Preventative Maintenance

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, decreases repair costs, and prevents the likelihood of equipment failure and unplanned downtime. 

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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-hours 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 have 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, and the onsite maintenance staff handles some items, inspections, 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, 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 on-site 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 essential 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. 

Building HOA Committees

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.

Committee Working Together

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. 

6 Steps to Effectively Handle HOA Complaints

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: 

  • 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 

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.

What is a Member at Large

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?

Member at Large standing at a meeting

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 rolesThe 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.

HOA Transition from Developer

We are often asked, “When should we start preparing for our HOA to transition from a developer-controlled board to a homeowner-controlled board?” Our answer is always the same, “starting on day one from when the developer first hires a professional management company.”

Setting up a community for a successful transition begins with ensuring the community will be financially stable once the Developer is no longer involved. The AAM Developer Services department begins work with our developers months, if not years, before construction commences. This process starts with preparing the initial budget to determine the reserve requirements and set the assessment rate. At the request of the Developer, AAM will also conduct a thorough review of the governing documents to ensure they align with state and federal laws. Thus, we anticipate any concerns that may arise for a community down the road. Setting an appropriate assessment rate and having the proper documentation in place sets the foundation for the association. However, remaining vigilant by taking additional steps beginning on the first day of management will contribute to a successful transition.

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HOA Transition Best Practices

Below is an outline of best practices to follow leading up to an HOA transition from Developer to homeowner control.

COMMON AREAS

After installing the common areas, the Developer should document their condition before transitioning maintenance to the association. An inspection must confirm that everything is installed according to plan and the common areas are in good condition. Once the association accepts maintenance, regular inspections should be conducted to monitor the common areas and address any concerns promptly. Auditing the community for maintenance issues a year before the transition is a good practice. This allows time for any maintenance concerns to be addressed while the Developer still controls the board. Failure to properly maintain the common elements throughout development can lead to problems during transition.

The Developer should confirm that ownership of common area parcels has been conveyed to the association. Some counties offer special tax valuations for common area parcels, so ensure all parcels are submitted for this valuation. Failure to do so may result in substantial future tax bills for the association. This process is simple for smaller communities but may require an HOA attorney for more complex communities. Developers should consider having an HOA attorney audit these communities before the transition to ensure proper deed and valuation.

FINANCIALS

The developer board should constantly evaluate the financial condition of the community to ensure that the association is financially stable, has a balanced budget, and has an appropriately funded operating account and reserve account. By the time of transition to homeowner control, the association should be self-sufficient. If there are deficiencies being funded by the Developer leading up to the transition, that is an indication that the assessment is set too low. By monitoring the financials through development, the developer board can ensure that appropriate assessments are taken to provide sufficient income at the time of transition to cover anticipated expenses.

Every community should have a reserve study in place that lays out a plan for the repairs and replacements of common areas. It is prudent to thoroughly review the reserve study to make sure that all common area improvements that should be funded are included. Studies should be updated at least every three years, unless the CC&Rs require more frequent updates, to make certain that the association’s reserve account is sufficiently funded at the time of transition. Failing to fund reserves adequately is a common area of contention with homeowner boards following the transition. 

Good Faith

There is no legal requirement to complete a reserve study or ensure the association is adequately funded. However, the Non-profit Corporation Act requires directors to act in good faith and with the care of an ordinarily prudent person. Directors must also act in a manner they reasonably believe is in the best interest of the corporation.

Common law, established through the Restatement Property (Servitudes), is court-made law based on previous court opinions. Sub-Section 6.20 outlines the Developer’s Duty to the community during the period of control. The Developer must establish a sound financial basis and maintain accurate records for the association. They must also account for the association’s financial affairs and disclose all material facts affecting its financial condition. These duties remain until the Developer relinquishes control of the association to its members.

Document & Organize

As the transition approaches, it’s prudent to ensure the association is well-organized. Association records should include all pertinent documents, such as CC&Rs, recorded amendments, plat maps, and common area tract deeds. Include signed Bylaws, filed Articles of Incorporation, and any working documents adopted by the developer board. Files should contain current contracts, insurance policies, financial records, development plans, and meeting minutes. Confirm that the association is in good standing with the Secretary of State or Corporation Commission.

Transition Meeting

TRAINING 

Four months to one year prior to transition, depending on the size and complexity of the community, a Transition Committee consisting of homeowners should be organized. This Committee will go through a series of training sessions regarding the association’s inner workings and the board members’ responsibilities. This is a good time for the management company to educate and build relationships with homeowners who will hopefully go on to run for the Board of Directors. Additional training for board members following the transition will further contribute to a successful transfer of control.

Our ultimate goal with any transition is for the homeowners to take control of the association and move forward with a good relationship with the Developer. Homeowner concerns with the Developer may arise within a few months following the transition. However, sometimes situations arise years later. As such, the management company must diligently follow up on any concerns and initiate discussions with the Developer to resolve issues amicably. Following best practices and having the right team from day one ensures a smooth, successful management transition.

10 Habits of Successful Community Associations

Community associations are unique entities, and the Boards that lead community associations fill unique roles. In our experience, the most successful board members have strong integrity, reasonable judgment, a willingness to serve, and commitment to the best interests of the community. Couple this with a Community Manager who has an approachable attitude, excellent communication skills, unwavering integrity, and takes a genuine interest in the community, and you have a formula for success! But what else does it take to lead a successful community association?

Below, we have provided successful tips for both Board Members and Community Managers:

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5 Habits for Board Members

 
1. Look at the Long-Term Financial View

Take the time to look at the Association’s overall financial position in a 5, 10, 20, and 30-year span. Understand the assets of the Association. Obtain a Reserve Study and update it every 2-3 years. The assets of an Association typically age and require maintenance and/or replacement. Don’t skip routine maintenance to save a few dollars. Don’t be fearful of raising assessments if needed. 


2. Make Educated Decisions

Education should be a high priority. Part of learning how to be a good Board member will come from trial and error; but, reduce the errors and the time it takes to get up to speed by attending Board training (often offered by your management company, Association attorneys, and certain municipalities), read the governing documents, rely on the guidance of experts and ask questions.

3. Be Reasonable

Although Boards have a big responsibility, they don’t need to be overzealous or inflexible to fulfill it. Avoid snap decisions, act rather than react, and deal with real problems, not nuisance situations.


4. Be Transparent

Transparency in an association is a good thing and goes a long way toward giving members the feeling that the Board is doing the right thing. It can be tempting to keep certain decisions under wraps, especially if there is friction among Board members or if the Board believes their decision may be unpopular with the members. However, secrecy leads to distrust once the secret is unveiled. While there are times when confidentiality is necessary, most often, the HOA Board’s business is public information, and it is required to be easily accessible to homeowners.

5. Communicate, Communicate, Communicate

Effective communication helps to establish “unity” in the community. Use your available tools to get the information to your members and create a process in which members can communicate with you! In this era of interactive technology, use your website, eblasts, text messaging, social media platforms, and Association or management apps. Additional tools may include bulletin Board postings, A-frame signs, door-to-door flyers, information sent out via US mail, and face-to-face Board meetings.

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5 Habits for Community Managers

(The following is part of AAMs core fundamentals) 

 1. Be Proactive

Plan your work. Solve problems before they happen by anticipating future needs or opportunities and addressing them in advance. Looking ahead allows us to better capitalize on opportunities and to prevent issues instead of fixing them.

2. Share Information

Learn to ask yourself, “Who else needs to know this?” When in doubt, share more rather than less. No team ever failed because they shared too much information.


3. Be a Fanatic About Response Time

People expect us to respond to their questions and concerns quickly, whether in person, on the phone, or by e-mail. This includes simply acknowledging that we got the question and we’re “on it,” as well as continuously updating those involved on the status of outstanding issues. Rapid response is one of the easiest and best ways to stand out from the crowd.


4. Pay Attention to the Details

Whether it’s getting the contract terms right, getting the correct address, or doing the proper research, details matter. Double-check your work for accuracy and precision. Accuracy is a reflection of excellence.


5. Take Ownership

Take personal responsibility for making this happen somehow. Respond to every situation by looking for how we can do it rather than explaining why it can’t be done. Be resourceful and show initiative. Don’t make excuses. Take the extra step to solve the problem.  See issues through to their completion.

In addition, having an engaged community is of equal importance for a successful Community Association. Below are ways to encourage Community involvement.

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Encouraging Community Involvement

Running an effective homeowners’ association takes the work of many. While Boards can hold meetings and make decisions, what really makes an Association a “community” is the involvement of its members. But how do we encourage participation? 

  • Provide opportunities for members to interact through social events.
  • Encourage volunteers to share their positive experiences with other members.
  • Recognize and thank your volunteers often.
  • Form committees.
  • Host Town Hall Meetings.
  • Hold regular Board meetings.
  • Communicate, communicate, communicate. 

A successful community association is a collaborative effort. It’s a committed group of community volunteers (Board Members) leading the charge and making sound decisions for the community, partnered with a management company that can move decisions forward, both with the same shared vision of success.

HOA Transfer Fees: What are they & Who pays them

Each association is different, and its governing documents drive the HOA transfer fees collected at the close of escrow. 

Whopaysthe Transferfee

Examples of fees that could be charged at the closing are: 

Working Capital/Initial Capital Contribution/Community Enhancement Fee

  • The association collects this part of the transfer fee and deposits it into its operating account for the board’s use. If the governing documents do not require a reserve fund fee, the board often designates the working capital fee to fund reserves. The CC&Rs or a board-adopted resolution specifies the amount collected. The buyer typically pays this fee at closing

Reserve Fund Fee

  • The association collects this fee to fund the reserve account. It supports the maintenance and replacement of capital improvements outlined in the CC&Rs. The association deposits the fee into the reserve account for future use. The Board of Directors hires third-party vendors to identify assets and develop funding strategies to maintain them. The buyer typically pays this fee.

HOA Transfer Fees

  • The association collects this fee, and the board of directors decides how to use it. Governing documents grant the board this authority. The board may allocate the fee to reserves or the operating account. In some states, the fee offsets the cost of updating owner records. The buyer typically pays this HOA transfer fee.

Resale Disclosure Fee/Statement of Account Fee/Certificate of Assessment

  • The managing agent typically collects this fee, with the amount determined by the management contract negotiated by the board. State statutes often set the fee amounts. The seller usually pays this fee.
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The fees listed above do not count as advance payment of assessments and are not refundable for future property sales.

While HOA transfer fees may initially seem complex, understanding their purpose and how they are allocated can simplify the process and reduce surprises during closing. Whether negotiated between buyer and seller or dictated by the HOA’s governing documents, these fees ensure the smooth transition of ownership and the continued financial health of the community—an investment that benefits all residents.