An important role of a homeowners association is to maintain and enhance property values by enforcing neighborhood covenants and maintenance of common areas. For this to happen the Association must have a strong Board of Directors and each person who sits on the Board must perform their job. This will also help homeowners find value being a part of the Association community.
The HOA Board Has a Purpose
While the actual duties of the Governing Board can and will vary from development to development there are certain aspects of each Board that are common. They are responsible for the financial well-being of the Association. The Board will also be in charge of the homeowners association's operation. Both of these are guided by standards established by state and national laws, local ordinances and codes, and the rules of the Association itself.
The Duties of Board Members Help Benefit Everyone
To some extent the homeowners association asks individuals to conform to certain rules and regulations for the good of the whole. The Board of Directors of the Association then polices these codes. The intent of the rules is to help preserve, and hopefully enhance, property values, as well as help member’s value living in the Association. Some duties of the Board members (working as a whole are) are:
- Attend and take part in meetings
- Oversee fiscal responsibilities so the Association is protected
- Keep members apprised of Board actions and transactions
- Inform Board members of all items that requires their vote
- Make sure insurance coverage is maintained according to all laws
- Enforce all documents relating to the Association
- Help establish sound monetary policy and insure accurate financial records are maintained
- Develop budgets that meets the needs and requirements of the homeowners association
- Insure reserve funds are kept at acceptable levels
- Determine rates of assessment
- Collect those assessments
- Make sure all rules are established, posted and publicized
- Help enforce all community rules and regulations
- Authorize legal action for homeowners association members who don't comply with the rules
- Review local ordinances, rules, regulations and laws before sending these to the Association to be voted on or passing any of these in a vote by the board
- Appoint committees and confer authority to these groups
- Select professionals, such as attorneys, insurance agents and others, to do business with and for the Association
The duties of a Board member for a homeowners association are many and varied as you see from the list above. To preserve value in the community, among both members and property, it is essential for a Board member to uphold his or her part in the equation. It also shows members that they are living in a community that cares about them. When members feel cared for they value where they live.
Failure to create value in a homeowners association, whether it’s among property or members, puts the Association at risk in various ways, such as legal actions, higher assessments, rule violators, and other unforeseen actions. Serving on the Board is a way to give back to your community while making sure assets are protected, and even enhanced. While this can be a fun and rewarding experience it is a serious undertaking that safeguards the investments of the community as a whole.