How A Board Works

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

RESPONSIBILTIES

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

A community manager carries out association policies established by the
board of directors. Each officer of the board has specific responsibilities,
including:

President

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.

Vice President

The vice president performs the president's duties in his or her absence and often handles special projects.

Treasurer

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.

Secretary

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).