Incoming and existing board members should understand their roles and responsibilities in an association. HOA board duties encompass several tasks, with some varying depending on the position you hold.
What Are HOA Board Duties?
An HOA board governs every homeowners association. This board consists of homeowner volunteers from the association elected into office by the members.
The HOA board is responsible for managing the association, which includes a variety of specific tasks and functions. It is important to understand these responsibilities to carry them out and bring success to the association properly.
Here are the duties of the HOA board of directors.
Board Meetings
Board members must conduct regular meetings as stipulated in the association’s governing documents, specifically its bylaws. The bylaws lay down how often the board should hold meetings and how they must be held.
In California, board meetings must be open to all association members. The only exception to this rule is if the meeting is an executive session. There are also certain notice requirements that California’s homeowners associations must follow. According to the Davis-Stirling Act, boards should give at least four (4) days’ notice of board meetings unless the bylaws provide a longer notice period.
Dues Collection and Financial Management
Dues collection and financial management are among the most important HOA board duties. An HOA runs on homeowners’ dues, using these funds to pay for the community’s expenses. An HOA would have no way to sustain itself without proper dues collection. Of course, the board must perform collection actions in accordance with both state laws and the HOA’s governing documents.
Additionally, HOA boards are in charge of managing the association’s funds. This includes planning the annual budget, maintaining books and records, preparing financial reports, and filing taxes on behalf of the association. The board must also plan for and maintain a reserve fund if required.
Rule Enforcement
An HOA always has CC&Rs and operating rules to uphold. It is the job of the HOA board to enforce these covenants and rules and hold homeowners accountable for any violations. Proper rule enforcement is paramount to maintaining the standard of living within the community.
Of course, the HOA board can’t simply enforce the rules without care. The board must always act within its scope of authority. If a rule does not exist or is improperly enacted, the board cannot enforce it. Furthermore, board members must consistently and fairly enforce the rules. Selective or arbitrary enforcement can render a rule void and expose the association to liability.
Regarding HOA board responsibilities, proper and consistent rule enforcement can be tough. It requires a thorough understanding of state laws as well as the governing documents of the association.
Common Area Maintenance
Common area maintenance is one of the primary HOA board of directors responsibilities. After all, an HOA’s objective is to enhance curb appeal and preserve property values. Those are impossible to accomplish if an HOA lets its common spaces fall into disrepair.
The HOA board should still clean areas and repair fixtures themselves. The board should rely on a licensed and insured vendor to carry out these tasks.
Insurance
Homeowners associations should have proper insurance policies in place. It is the board’s responsibility to procure and update these policies regularly. Specific requirements, though, such as the amount of coverage necessary, will depend on state laws and the association’s governing documents.
HOA Board Roles and Responsibilities
Within an HOA board, certain officer roles must be filled. These are the roles of the president, the vice president, the treasurer, and the secretary. What exactly does each position entail, though?
Here are the individual HOA board member duties you should know.
1. President
The president is in charge of running the show and overseeing the decision-making process. They preside over meetings and lead the rest of the board. Since the president is the head, they must have excellent leadership, communication, and delegation skills.
2. Vice President
The vice president takes over the role of the president should the latter become unavailable. As such, the VP must understand the responsibilities of the president. When the president is around, though, the VP acts as support, assisting the president.
3. Secretary
The secretary is in charge of all documentation and records. They are responsible for taking the meeting minutes, providing notice to members, and distributing pertinent information. The secretary and the president also handle all legal compliance requirements related to official documents.
4. Treasurer
The treasurer primarily manages the association’s funds. They are in charge of invoicing, billing, and collections. They also disburse funds, which often requires the signature of the treasurer and the president. Other duties of the treasurer include budget preparation, reserve planning, and financial reporting.
Lead With Purpose
Understanding HOA board duties is the first step in proper governance. If you don’t know what you’re supposed to do, it is impossible to fulfill your obligations well. Of course, not all HOA boards are equipped to handle everything that comes their way. In that case, hiring an HOA management company is the best solution.
Navigating the ins and outs of HOA documents can come as a challenge. Let First Equity be your guide. Call us today at 650.349.7233 or contact us online to learn more!