Resources for Board Members
To be an effective Association, the Board needs to understand its role and pursue it with passion. The following is a brief overview of a Board’s role and responsibilities (for more details make sure to watch the video below).
A Recap of the Board Member's Role:
The role of a HOA Board Member encompasses many things, but here are some highlights:
- Establish sound fiscal policies and maintain accurate records
- Develop a workable budget, keeping in mind the needs, requirements and expectations of the community
- Establish reserve funds
- Act on budget items and determine assessment rates
- Establish, publicize, and enforce rules and penalties
- Authorize legal action against owners who do not comply with the rules
- Review local laws before passing rules or sending bylaws to membership for approval
- Appoint committees and delegate authority to them
- Select an attorney, an auditor, insurance agent and other professionals for the association
- Provide adequate insurance coverage, as required by the bylaws and local governmental agencies.
- Inform board members of all business items that require their vote
- Inform members of important board decisions and transactions
- See that the association is protected for the acts of all parties with fiscal responsibilities
Board of Directors
The Board of Directors serve without compensation unless the bylaws of the association provide to the contrary. The Board's authority includes all of the powers and duties enumerated in general law, as long as these powers are not inconsistent with the provisions of the documents governing the association.
Officers of the Association
The Association acts through its officers and agents. The Board of Directors make the policies for the Association, but the officers and agents carry out these policies and administrative functions for the community.
Fiduciary Relationship and Responsibility
The Board of Directors and each officer of the Association have a fiduciary relationship with the members of the Association. This means that Board Members must exercise due care and diligence when acting for the community, and it requires them to act within the scope of their authority.
The fact that the association is a not-for-profit corporation, or that the members of the board are volunteers and unpaid, does not relieve them from the high standards of trust and responsibility that the fiduciary relationship requires.
THE CHAIN OF COMMAND
board of directors. Each officer of the board has specific responsibilities,
The president is the association's chief executive officer. Responsibilities include running board and general membership meetings and setting goals. Some documents give presidents the right to appoint committee members. The president may occasionally negotiate contracts, sign contracts and other documents, and oversee their fulfillment.
The vice president performs the president's duties in his or her absence and often handles special projects.
The treasurer works with the manager and finance committee to develop the budget. Responsibilities also include monitoring association financial activities, overseeing insurance policies, investing assets, maintaining reserves, and coordinating a year-end audit.
The secretary is responsible for preparing and distributing meeting agendas and minutes. The secretary also maintains the association's official records (or supervises their maintenance).
CSI IS YOUR PARTNER
When you partner with CSI, you’ll immediately experience the difference. You’re assigned a Community Manager who is dedicated to supporting you; your Community Manager will help you navigate your role as a Board Member and governing the CCRs.
From helping prepare agendas, to tracking non-compliance and reviewing your budget, CSI is here for you. Being a Board Member can be both rewarding and challenging and we are with you every step of the way to help serve, inspire, diffuse and educate.
And, with the protection of VIVE you have a secure way to vent vendors and get peace of mind that any third-party services you hire are insured, and you’re getting the best value for your community.
With more than 25 years of experience in property management, we pride ourselves on being community builders.
We love what we do and are passionate about being there for you; building understanding and better communities is at the heart of what we do – because when it comes down to it what’s better than loving where you live?