Understanding HOA board member responsibilities is important for aspiring directors, current board members, and community residents. After all, they act as stewards of the community’s funds and wield authority over the residents. All parties involved should understand what being a board member entails.
What is the HOA Board of Directors?
Nearly all planned developments have an owner association of some sort. The HOA is responsible for common area maintenance, amenity management, and rule enforcement. While all the homeowners technically own the amenities and shared spaces in common, it can be hard to manage all these responsibilities without a dedicated team.
In comes the HOA board of directors — the team precisely responsible for executing all of the HOA’s tasks. They are made up of a few homeowners and run the community. Board members are usually voted in by the members through an election process.
General HOA Board Member Responsibilities
The general HOA board responsibilities are dictated by the community’s governing documents. More specifically, homeowners should check the CC&Rs, bylaws, and articles of incorporation. The duties of HOA board members often involve the following:
- Collection of dues and assessments
- Annual budget creation
- Meeting hosting and management
- Rule enforcement
- HOA policy creation
- Common area management and maintenance
- Financial management
- Hire personnel, vendors, and management companies to carry out HOA tasks
In addition, state law might require HOA board members to do specific activities. For example, the Florida Homeowners Association Act Section 720.303(7)(a) states that the association must prepare compiled, reviewed, or audited financial statements depending on the HOA’s total revenues.
The Board’s Fiduciary Obligation
Generally speaking, HOA board members have a fiduciary responsibility toward the community. Every board member has to:
- Act in the community’s best interest
- Be well-informed before making decisions
- Act in good faith
- Take actions only within their scope of authority
- Not act negligently or willingly harm the HOA or its residents
Powers of the HOA Board
The HOA board members do wield power over certain aspects of the community. These include the following:
- Setting Assessments. Board members can usually increase HOA fees and levy special assessments at their discretion, subject to the provisions of the governing documents and state law.
- Adopting Rules and Regulations. As long as they are not against the law or governing documents, HOA board members have the power to create and adopt policies for the good of the community. They might require homeowners to maintain their lawns or prevent them from using specific exterior paint colors.
- Enforcement and Fines. HOA board members have the power to levy fines, charges, and interest for late payments and rule violations. They may also be able to suspend a homeowner’s rights and privileges or fix the issue themselves to correct a violation.
HOA Board Positions and Their Duties
Every HOA board consists of officers, including the HOA president, vice president, secretary, and treasurer. What are the responsibilities of the HOA board of directors for each of these officer positions? Let’s examine each one’s role below.
1. President
The HOA president is responsible for overseeing the association as a whole. They often have the final say when deciding on community projects and other initiatives. This means that if the board cannot reach a consensus, the president can give a red or green light to decide.
In addition, the president is responsible for overseeing the community’s activities. They must understand all the HOA’s internal processes and governing documents to help it run optimally. They’re also in charge of presiding over and conducting meetings.
2. Vice President
The role of the vice president is often neglected in many communities. After all, it might seem like a redundant position, as the vice president’s role is quite similar to the president’s. However, vice presidents are important for several reasons.
Firstly, the vice president acts as a substitute for the president when they are absent. The president could be sick, away on vacation, or they might have taken a leave of absence for personal reasons. In this case, the vice president will act on the president’s behalf and take over their responsibilities.
Furthermore, many vice presidents take over other regular community duties. For example, they might serve as the head of an important committee or spearhead a community project.
3. Secretary
The secretary handles all of the community’s documentation. This means they hold and manage the governing documents, forms, and legal paperwork. They update the records when there are changes and ensure the HOA remains compliant with legal requirements.
In most communities, the HOA secretary also acts as the board’s and residents’ liaison. They are in charge of sending out meeting notices, announcements, and minutes to the community and are responsible for recording the minutes during HOA meetings.
4. Treasurer
The treasurer has one of the heaviest HOA board member duties of all. This is because they are responsible for all the financial matters of the HOA. They handle the money, conduct internal controls, audit the records, monitor spending, and manage payments. Moreover, they may be in charge of collections and tax filings.
Treasurers usually take care of the HOA’s insurance policies, too. They must ensure the HOA has all the necessary coverage, including worker’s compensation, D&O insurance, and general liability.
Finally, the treasurer often serves as small communities’ accountant and budget manager. If a community is large enough, they might hire a dedicated bookkeeper and accountant. Nonetheless, all of these are still under the treasurer’s jurisdiction.
Frequently Asked Questions
Can Anyone be a Board Member?
No, not all homeowners can be HOA board members. The governing documents and state law may include HOA directors’ qualifications (and disqualifications). For example, those with a criminal history may be automatically disqualified from candidacy.
Can the HOA President Make Decisions Without Consulting Others?
Actually, HOA presidents generally can only make decisions if they consult the rest of the board members.
Understanding HOA Board Member Responsibilities
Directors must familiarize themselves with numerous HOA board member responsibilities. Doing so will help them understand what they need to do when elected. Moreover, a clear understanding of their duties will prevent them from acting outside their authority.
It can be challenging to manage a community, even with a dedicated board of directors. Get professional help by contacting Freedom Community Management. We provide premier HOA management services to communities in Florida. Contact us online or call us at 904-490-8191 today!
