Also, board members should properly communicate the reasons for an increase. They can provide documents to support these reasons, and reassure homeowners that this is for the benefit of the community. Homeowners can take formal action, but they are still advised to continue paying their assessments. Keep in mind that the HOA board also has a right to place a lien on a delinquent homeowner’s property or even file for a foreclosure to collect unpaid assessments. The HOA board vice president should support the president and must be able to act in their place if needed. They should familiarize themselves with the same documents as the president and be able to perform the same duties.
The Role of the HOA Board
Apple Inc. pays each non-employee director approximately $250,000 in terms of shares per year. The board chair—an executive director—gets an extra $200,000, while the audit committee chair receives an additional $35,000. The HOA President has wide-ranging responsibilities, including directing other Board members, presiding over the annual meeting, and providing a sense of vision for the HOA.
Rules Enforcement
As an HOA board member, you have a crucial role in managing and governing the community. There’s a lot that goes into HOA management and homeowners expect you to cover all the bases and represent their collective interest in decision-making. Some HOA bylaws require yearly audits, while others only require one every three or so years. Audits can be expensive, usually costing between $4,000 to $6,000, which is why many HOAs prefer to conduct yearly financial reviews instead.
- In doing so, they will know how to properly manage community funds and ensure the continued success of their community.
- In some states, the information on this website may be considered a lawyer referral service.
- An HOA reserve study gives a detailed analysis of the condition of the association’s capital components, such as swimming pools, foundations and siding, air-conditioning, elevators, and roofs.
- Your governing documents will thoroughly outline all HOA board member eligibility requirements.
- And, although state laws and your governing documents might offer you some protection, court rulings may still find you personally liable for poor HOA accounting and financial management.
- It lists down all your revenues as well as your expenses, deducting the latter from the former to arrive at your net income or loss.
- Some states have their own Fair Housing laws, which extend to other protected classes as well.
HOA vs City Maintenance And Repair Responsibilities
To ensure accuracy and transparency, board members must record these transactions and prepare financial statements showing the association’s fiscal condition. The HOA board structure hoa accounting typically consists of key roles such as the President, Secretary, and Treasurer. Specifically, the Articles of Incorporation and the Bylaws usually spell this out.
The number of directors can vary widely, from just a handful to a larger group. HOA board members serve on a voluntary basis without compensation for their services. However, it is legal in Illinois for the community’s governing documents to define a compensation for board members.
- As such, the management company is considered an agent of the board, and is answerable to the board.
- The HOA board vice president should support the president and must be able to act in their place if needed.
- The townhomes at the Villas aren’t condos — and they’re just two stories tall.
- Serving on the Board can be a great way to help preserve property values, build community, get to know your neighbors, or gain experience working with a property management company.
- Jesse has been a licensed Realtor® in the state of Minnesota since 1999 and has been happily employed by Associa Minnesota since 2008.
Every board member is just one part of the primary decision-making body for the association. However, the board can appoint officers as a distribution of duties among the members. Your governing documents will outline the specific officer positions available on your community’s board, but your board can also choose to appoint officers as needed. Some of the more common positions include the President, the Vice President, the Secretary and the Treasurer.
In some cases, members of the community might take legal action against your board for mismanagement. And, although state laws and your governing documents might offer you some protection, court rulings may still find you personally liable for poor HOA accounting and financial management. Understanding the breakdown of the board structure is vital for smooth operations. Typically, an HOA board consists of officers, including a president, vice president, secretary, and treasurer. Each role carries specific responsibilities, such as presiding over meetings, managing financials, overseeing community projects, and facilitating communication. By clearly defining the roles and distributing responsibilities among board members, you can streamline decision-making and ensure effective governance.