Category: Articles

HOA Board of Directors – Who are they, and what do they do? Generally, an HOA Board of Directors is made up of community volunteers elected by fellow residents to serve on the Board to make decisions on the residents’ behalf regarding the HOA.

Below is a brief overview of the HOA leadership roles and duties. 

What is the structure of your HOA Board of Directors? 

In general, the Board of Directors consists of five (5) officers:

President:

The HOA President role, is preformed by someone who is knowledgeable of the community’s governing documents, oversees the community association’s operations by ensuring orders and resolutions are carried out, as well as signs contracts and co-signs checks. He or she leads all meetings acting as the foreman.

Vice President:

The Vice President performs other duties as required and will take the place of the President when necessary. Equally, the Vice President should have in-depth knowledge of the community bylaws and regulations.

Secretary:

The Secretary keeps meeting minutes, records votes, and maintains compliance with essential association documents.

Treasurer:

The Treasurer keeps track of the association’s finances and reports on monthly financials at board meetings.

Member at Large:

The Member at Large acts as the fifth voting member of the Board, as well as conducts other assigned duties.

What are the primary duties of your HOA Board?

The HOA Board members must ensure that the community is maintained by enforcing the community’s CC&Rs and Bylaws. Most importantly, Board members should be fair, honest and keep the homeowner’s and the association’s best interest in mind when making decisions.

What is the relationship between the Board of Directors and your professional community management partner?

As community volunteers, the majority of HOA Board’s elect to hire a professional community management company to leverage their expertise on community governance, ongoing maintenance, and resident communication. In partnership with the Board, the professional community management company helps provide structure to a community, protect property values and ensure positive living environments.  

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Have A Question?

If you live in an association and have questions about Board Member Roles and Responsibilities, fill out our CONTACT US form, and we will happily contact you to answer them. 

Community association enforcement actions tend to be a conflicting topic for many homeowners and are often viewed as one of the most contentious issues they may face while living in a Homeowners Association (HOA). Additionally, the Board of Directors is faced with enforcing the association’s governing documents while also being mindful of the Fair Housing Act (FHA), which makes it unlawful for housing providers to discriminate based on race, color, disability, religion, sex, familial status, and national origin.

Although associations are subject to the Fair Housing Act Regulations, few Boards are familiar enough to distinguish the multitude of ways they could be exposing the association to claims of discrimination. Under FHA HOA requirements, an association may not legally refuse to make the reasonable accommodations necessary for homeowners to fully enjoy and utilize their homes. A common mistake a Board makes is failing to offer reasonable accommodations for homeowners with special needs or disabilities and basing their enforcement solely on the language of the governing documents rather than exploring the extenuating circumstances that may lead to an alternate decision. It is important to render enforcement on a case-by-case basis, making reasonable accommodations for homeowners when necessary.  

For example, if a Board denies a homeowner’s request to expand the width of their driveway to accommodate their wheelchair due merely to the fact that the governing documents state that residents’ driveways cannot exceed 10 feet wide, they would be in violation of the FHA.

Another example is service animals. If an owner requires the assistance of a service animal, an HOA would be obligated to grant a waiver from its “no pets” policy. Refusal to make such an accommodation (one that is reasonable and necessary to afford a disabled owner the full enjoyment and use of his/her home) is deemed to be discriminatory under the FHA.

Knowing how to recognize these implications, delegate reasonable enforcement, and avoid an FHA violation altogether can greatly save an association from costly lawsuits or other severe penalties. The best way for a community to avoid penalties for non-compliance with the FHA is to lean on the expertise of a professional community association management company and trusted legal professional.

Consistent and equitable HOA enforcement of a Community’s governing documents, including the CC&Rs, is critical in creating a balanced, successful Association.

The first step in achieving HOA enforcement consistency is for each homeowner, Board member, and Community Manager to read and thoroughly understand the Community’s CC&Rs and Design Guidelines. Governing documents may also include specific requirements or restrictions for each unit/lot, and members should be aware of all conditions. One of the many reasons why this step is so important is because each Community can be very different from a governing document standpoint, which includes HOA Backyard Rules. For example, you cannot assume that since the previous Community you resided in allowed a 12-foot tall playground structure in the backyard that, in turn, your new Community allows the same.

The second step to consistent HOA enforcement is scheduling regular compliance inspections per the Association’s Governing Documents. Regularly occurring inspections will help ensure that items that are not in compliance will be identified and addressed in a timely manner. It is also essential that an appropriate HOA Fine Policy be established and approved by the Board of Directors. A Board-approved Fine Policy gives the guidance needed to help ensure that all residents are following the Community’s rules, and the consequences of non-compliance are reasonable.

Lastly, the definition of the word consistent (i.e., constantly adhering to the same principles, course, form, etc.) implies that consistent enforcement means adhering to the governing documents in each case and treating each non-compliant issue in the same manner according to the Board approved Fine Policy. A Community Manager should not subjectively ignore a clear, defined violation for one week and then choose to address it later. This same concept applies to the Community’s Board of Directors, as they need to support the consistent application of the governing documents by the Community Manager and stay objective on compliance issues even when it may involve a friend or neighbor.

By consistently enforcing the CC&Rs, Design Guidelines, and all other applicable governing documents, the Community Manager and Board of Directors will build understanding and trust with the Community’s homeowners, which then creates the foundation for a successful, well-run Association.

Annual Meetings for homeowners associations are a crucial component for keeping the business of the association moving forward. In addition to holding the annual HOA Board elections, where new members are elected to the Board of Directors by their fellow homeowners, Annual Meetings also serve to update the homeowners on what is happening in the community. This is a meeting of the members and not a typical Board meeting where the Board of Directors is making decisions for the community.

The timing of your community’s Annual Meeting depends on the requirements indicated by your Association’s Bylaws. The meeting is typically held at the same time each year. To achieve the best results, planning the Annual Meeting should begin several months before the meeting date. Some communities require that a nominating committee be formed to select candidates for the Board.  Securing a meeting location is also imperative, and it is important to book the venue early, as some of the places that do not charge for meeting space may be booked months in advance.

Below are some helpful planning tips: 

• Confirm available dates with the Board of Directors
• Schedule the location of the meeting
• Obtain Certificate of Insurance, if necessary (Most meeting venues require this, which would include the venue being named as additional insured for liability purposes)
• Prepare meeting notice signed by the Board secretary, if required by governing documents
• Send out a questionnaire to members to help prepare for questions in advance of the meeting
• Mail HOA Annual Meeting Notice within the timeframe noted in CC&Rs and/or Bylaws
• Be prepared for the meeting with the following items: sign-in sheets, delinquency reports, ledger cards, election ballots, quorum requirements for the meeting, financial statements, meeting agenda, and any handouts.

The following are items to complete after the Annual Meeting:

• Work with the Community Manager to compile the list of Board members, including the newly elected members. Make sure that the terms that the new Board Members have filled are carefully tracked in communities that provide for staggered terms. 
• Schedule the first Board of Directors meeting post-election/Annual Meeting. This is typically the meeting at which the Board Members will determine officers of the association.   
• Prepare Annual Meeting minutes.
• Update the bank accounts to remove previous Board members and add new Board Members.

Do you still have more questions about the HOA Annual Board Meetings? Contact AAM today to discuss your HOA’s needs.

Say goodbye to your static HOA website and hello to responsive designs.

What was once new and improved is now old and outdated, and because of this consistent pattern of update, adapt, revise and repeat, we have come to expect innovations for greater efficiency. Responsive website design is classified as one of those innovations but with a key differentiator being that it will last substantially longer than its predecessor, the static layout.

Responsive website design adapts fluidly to any screen size, orientation and device. And because we now have hundreds of screen sizes to choose from and conduct business through, responsive sites have become expected, if they are not already.

A study done by *Statista shows that 52% of all internet traffic in 2018 was done through a mobile device; meaning if a website isn’t mobile responsive a chunk of users are robbed of an efficient experience.

Another study revealed that *85% of adults think a website, when viewed on a mobile device, should be as good as or better than its desktop site.

So, how does this affect HOAs?

The mobile-centric bias being adopted by society has started to affect every industry, and since the internet is more popular than ever for conducting business, Homeowner Associations may want to mimic the trends that any small or large business is currently making.

Here are a few key points to consider if your HOA provides a website to homeowners:

• How would a homeowner rate usability on their mobile device?

• What impression does your current site depict to new or prospective homeowners? Is it an outdated representation of the community?

• What investment is the community willing to make to improve the homeowner experience?

With the many benefits associated with responsive design, you may conclude that it is worth the financial investment to convert your community’s website in order to elevate the online experience for current and prospective homeowners.

If your association wants to upgrade to a responsive design, please get in touch with AAM to learn how.

Some of the benefits an HOA management company provides include:

• Clarity – Management companies help ensure the HOA rules, regulations, and policies are clearly defined and communicated to members. They also make sure these rules make sense and are easy to follow.
• Consistency – A good management company enforces homeowner associations rules and policies with consistency. The management company makes sure there’s no perception of unfair treatment or favoritism among members. They will also deal with problems as soon as they surface.
• Legal Knowledge – A management company is often very knowledgeable regarding legislation affecting homeowner associations. The company will understand how the HOA’s policies and enforcement of the policies best conform to the law.
• Varied Expertise – An HOA management company will have diverse professionals on staff, including experts trained in community management, finance, accounting, information technology, human resources, marketing, and more.
• Vendor Management – Management companies are experienced in building solid vendor relationships.  They know how to keep issues from escalating. Vendors may be more inclined to work with professionally managed HOAs because they know the chances are high that the community will be well-run.
• Neighborhood Commitment – Homeowners need to feel the management company is maintaining a safe, well-managed neighborhood that is meeting their expectations. It’s in the management company’s best interest to make all the members of the community satisfied with their services.
• Effective Communication – An HOA management company can open the lines of communication among members. Everyone within the community must feel comfortable voicing their concerns and ideas. A professional management company with multiple communication tools can bring more to the table than just enforcing HOA rules.

What Type of Community Should Hire an HOA Management Company?

Often, size dictates whether an HOA hires a management company. A smaller community may opt to be self-managed, whereas a larger HOA may find it impossible to conduct business without the help of a trained professional.

Although size is one criterion, it’s not the only deciding factor. A better way to decide whether to hire a professional HOA management company is to consider the following:

• Does the HOA manage many buildings, amenities, and properties?
• Does the HOA lack volunteers to manage the association?
• Do the volunteers lack the skills and expertise to do the necessary HOA management work?

Some HOAs may find they need to supplement their volunteer work with an outside professional management company.  For example, maybe the HOA management company will handle some of the accounting functions and Board member volunteers manage homeowner association rules and communications.

However responsibilities are delegated between the Board and management company, the focus should always be on keeping current members happy and involved.

When it comes to HOA management, the primary qualification for any community association is trust. You absolutely must trust the company you hire to manage your homeowner’s association. But first, you need to develop a short list of qualified candidates.

Running an HOA involves managing a lot of projects and tasks. So, experience and expertise should represent the initial qualifications. After you separate the best-qualified HOA management companies from the less capable ones, you can delve deeper into finding the best match for your community association.

Your selection committee should expect to spend ample time during the evaluation process. Given what’s at stake, you don’t want to rush this important decision. Making sure you cover all your bases takes time, discipline, and effort.

Look Within Before You Look Outside

If you don’t already have a search committee in place, put one together before the evaluation process begins. The search committee can have any number of members, depending on your Association.

Before you begin your search for an HOA management company, make sure you understand exactly what your community association needs. Your committee members should each make a list of what they think are critical requirements. Then, you should compile one master requirements list based on everyone’s input.

Search for Industry Certified Management Company

It is a best practice to consider management companies that promote staff being certified by local and national industry associations such as the Arizona Association of Community Managers (AACM) and the Community Associations Institute (CAI). These organizations were established to improve the professionalism of community management through on-going education and proactive support.

AACM’s Certified Arizona Association Manager (CAAM®) education program provides the only Arizona-specific professional certification for Community Managers. An AACM-certified management company can instill a greater level of confidence in the management company’s qualifications. In addition, CAI offers various certifications for community management industry professionals, including the Certified Manager of Community Associations (CMCA), the Association Management Specialist (AMS) certification, and the Professional Community Association Manager (PCAM).

Finally, you’ll want to consider the company’s bonding and insurance, including liability and workers’ compensation. State laws will outline the minimum standards. Make sure to ask for a copy of all insurance certificates to confirm proper coverage.

Internal Processes for HOA Management Company

Once you establish a list of management companies meeting the minimum qualifications, you can begin looking inside each candidate to determine the best match. For example, any HOA management company you select must demonstrate stringent internal hiring practices.

Your evaluation should start with checking references. A good track record with other community associations is a good indication of how they will perform for you. You’ll also want to visit the company’s offices and the facilities they manage in person. These visits will give you a good idea of the type of services they provide to other clients and how they perform them.

Read the Fine Print

When you make your selection for a management firm, don’t skip reading all the terms of the contract.  Don’t rely on standardized contract forms. Instead, have your Association attorney review all legal documents and make changes accordingly.

It may also be a good idea to enter into an agreement for a shorter period of time. Rather than commit your community association to a multiple-year agreement, try a one-year arrangement instead. You can then fully evaluate the management company to ensure it’s a good fit for your Association. If it’s not, you won’t be locked into keeping them for a long period of time.

In addition, make sure you understand termination clauses. Your community association attorney can help finalize an agreement that’s in your best interest. A typical termination clause involves a 30-day notice.

Finally, know all the costs associated with your HOA management company’s services. Are all the fees clearly outlined in your proposal and agreement? You don’t want to find you’re paying a bunch of extra fees you didn’t know about. When you’re evaluating competitive management companies, make sure you compare apples to apples with costs.