What are the Three Primary Functions of a Community Association Board of Directors?

What are the Three Primary Functions of a Community Association Board of Directors?

Understanding the purpose of HOA Board is vital for all homeowners, whether you’re a new homeowner or have been living in your community for years. After all, how else can you ensure that the board is working on behalf of your best interests?

Most HOAs are led by an elected board of directors who are responsible for making decisions regarding the day-to-day operations and long-term goals of the community. As a homeowner, it’s important to understand the primary functions of a community association board of directors to ensure that your HOA is running smoothly.

 

 

The Three Primary Functions of a Community Association Board of Directors

The three primary functions of a community association board of directors form the backbone of any homeowners association. They set the standards, make key decisions, and ultimately shape the character of your community. These functions include:

  1. Establishing and enforcing community policies
  2. Managing association finances and assets
  3. Addressing homeowner’s concerns and complaints

By properly implementing these functions, the board helps foster a harmonious and well-maintained community. And when they aren’t properly carried out, the association can quickly become a stressful and chaotic place.

Duties and Responsibilities of Homeowners Association Officers

With a clearer understanding of the primary functions, let’s delve into the duties and responsibilities of homeowners association officers. These officers include:

  1. President
  2. Vice-President
  3. Secretary
  4. Treasurer

Each officer has their own specific set of duties and responsibilities, ranging from taking meeting minutes to dealing with financial matters. The president is usually the most visible board member as they act as the face of the association and are responsible for setting the meeting agenda. 

The vice president typically serves in an advisory capacity, offering their own counsel and expertise to the other board members. The secretary is responsible for taking and keeping accurate records of meetings while also ensuring that all documents are properly filed. 

One of the most important duties of the treasurer is to manage and oversee all of the association’s finances, such as budgeting, creating financial statements, and keeping track of receipts.

Each officer works together to ensure that the organization runs smoothly and efficiently while also working towards achieving its goals. The board members are ultimately responsible for making decisions that will benefit the association as a whole.

Fiduciary Duty of HOA Board Members

At the core of these roles is the fiduciary duty of HOA board members. This refers to the legal obligation of the board members to act in the best interests of the association and its members. This duty encompasses a range of responsibilities, from managing finances responsibly to making decisions that benefit the residents.

The significance of the fiduciary duty becomes apparent when there’s a breach. A breach of fiduciary duty HOA Texas example sheds light on the potential consequences. 

In Texas, for instance, homeowners can file a lawsuit against board members if they feel there’s a breach of fiduciary duty, leading to legal battles and potential changes in the board’s composition. This underscores the necessity of upholding fiduciary duties and making sure that board members are aware of their legal obligations. An HOA website can help bring about the necessary accountability needed for an association of any size.

HOA Board of Directors Code of Conduct

To prevent breaches and ensure the smooth operation of the board, many associations establish an HOA Board of Directors Code of Conduct. 

This code serves as a guideline for board members, outlining expected behaviors, decision-making processes, and conflict-resolution procedures. If the board follows these protocols, it’s less likely that mistakes or misunderstandings will occur, and legal issues can be avoided.

Many HOAs will opt for a professional management company to aid in the enforcement of these agreements.

In addition to providing oversight and guidance, an HOA Code of Conduct can ensure that board members are held accountable for their decisions. This includes holding each other accountable if conflicts arise or decisions are made without proper deliberation. The code should also emphasize the transparency of decision-making processes and prompt reporting to homeowners when issues arise. 

Why Knowing HOA Board Member Titles and Responsibilities Matters

Beyond simply understanding roles, it’s also essential to familiarize yourself with HOA board member titles. These titles help clarify who holds each role within the board and can be useful when addressing specific concerns or suggestions to the appropriate officer.

As you can imagine, there is a wide range of positions available for members of the Board. Common titles include President, Vice President, Treasurer, and Secretary, but some communities may have other roles such as Community Manager or Architectural Reviewer.

By understanding what each person’s responsibilities are within the association, homeowners can expect their opinions and perspectives to be taken into account when decisions are made on behalf of the entire community. This can create a sense of comfort and trust that their voices are being heard, even if they aren’t on the Board.

Take the time to learn more about who is on the Board of your homeowners association, and don’t be afraid to reach out to them with questions or suggestions. Having an open line of communication between community members and decision-makers is key to creating a successful and collaborative environment.

Register for our August 1st webinar on The Importance of an HOA Website.

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