The HOA board plays a critical role in shaping how a community functions. This group of leaders manages daily operations, ensures adherence to the rules, and protects property values. Current and aspiring volunteers should understand the responsibilities of the board.
What is the HOA Board?
The HOA board, also known as the HOA BOD, is the elected group of homeowners who govern a community association. Its members make decisions on behalf of the association. They oversee areas such as finances, maintenance, and compliance with governing documents.
The board’s main duty is to act in the best interests of the community as a whole. It must not prioritize decisions that are in favor of individual homeowners.
Board members are typically volunteers. For this reason, they don’t receive compensation or special treatment. Just like everyone else, board members must pay dues and follow the rules.
What is the Condo Board?
The condo board is similar to the HOA board but leads a different type of association. Condo boards manage condominium associations, which tend to have more complex setups.
That said, condo boards are also elected by their fellow unit owners. They also work as volunteers and, thus, don’t receive compensation or special favors in exchange for their service. The duties of the condo board are more or less the same as those of an HOA board.
What are the Responsibilities of HOA Board Members?
HOA board member responsibilities cover a wide range of tasks. These responsibilities define what the board must handle directly and what falls outside its role. Below is a breakdown of the main areas of responsibility.
1. Dues Collection
Homeowners associations rely on regular dues to fund daily activities and long-term expenses. It is the board’s responsibility to collect these dues and minimize delinquencies.
What they do:
- Set and approve annual fees.
- Collect dues from homeowners.
- Pursue delinquencies through notices, payment plans, or legal action.
What they don’t do:
- Collect payments in cash directly from residents’ homes.
- Waive dues for specific individuals without proper approval.
2. Maintenance Oversight
The HOA is responsible for maintaining common areas and elements. This includes preparing budgets for maintenance and hiring the appropriate vendors.
What they do:
- Ensure the maintenance of common areas and shared elements.
- Approve budgets for repairs and improvements.
- Respond to urgent maintenance needs such as safety hazards.
What they don’t do:
- Handle personal property repairs inside homeowners’ units.
- Take on maintenance tasks typically handled by hired vendors.
3. Financial Management
The board is in charge of managing the association’s finances. This covers a wide range of tasks, such as reserve planning, financial reporting, and budget preparation in accordance with Section 11B-112.2.
What they do:
- Prepare and approve annual budgets.
- Generate and review financial statements.
- Maintain reserve funds for long-term projects.
- Review and obtain insurance.
- Facilitate audits and reserve studies.
What they don’t do:
- Use association funds for personal expenses.
- Make financial decisions outside approved budgets.
4. Rule Enforcement
Community rules seek to protect property values, promote harmony, and maintain a high standard of living. Board members have a duty to ensure these rules are followed.
What they do:
- Conduct regular inspections for violations.
- Enforce governing documents consistently.
- Address violations through warnings and fines.
- Resolve issues fairly with due process.
What they don’t do:
- Create rules without proper procedures.
- Enforce rules selectively or with bias.
5. Communication
Board members must constantly communicate with homeowners to keep them informed. Open and consistent communication builds trust within the community.
What they do:
- Keep homeowners informed about meetings, budgets, and policies.
- Encourage homeowner participation in meetings.
- Provide updates through newsletters, portals, or emails.
What they don’t do:
- Disclose confidential information about residents.
- Keep decisions hidden from the community.
6. Vendor Coordination
Board members must select, negotiate, and oversee vendors. Selection relies on a consistently applied and fair process.
What they do:
- Hire and oversee vendors for various services.
- Review and approve vendor contracts.
- Monitor vendor performance and compliance.
What they don’t do:
- Personally perform vendor duties.
- Sign contracts without board approval.
7. Conflict Resolution
Disputes are bound to happen in an HOA community. It is the board’s job to limit these disputes and practice internal resolution strategies to maintain harmony.
What they do:
- Address disputes between neighbors.
- Provide internal resolution when possible.
- Follow governing documents and state laws to resolve conflicts.
What they don’t do:
- Take sides based on personal preference.
- Resolve issues outside the board’s legal authority.
Individual HOA Board of Directors Responsibilities
When discussing homeowners association board member responsibilities, it is essential to understand each officer’s role. While all directors share collective authority, each officer has specific tasks that keep the association running smoothly.
1. President
The president serves as the leader of the board and the face of the association. This role includes guiding meetings, ensuring the implementation of decisions, and representing the HOA in official matters.
A strong president keeps the board organized and ensures tasks are completed promptly. While they hold an important leadership role, the president does not have more authority than the rest of the board combined. Their actions must still reflect collective decisions.
What they do:
- Lead meetings.
- Represent the board.
- Ensure the timely delivery of tasks.
What they don’t do:
- Act alone without approval.
- Overrule the board’s collective authority.
2. Vice President
The vice president acts as a support system for the president and fills in when the president is unavailable. They often take on specific projects or committees and help with the administrative workload.
Their role ensures there are no gaps in leadership so that the board functions without interruption. While the vice president provides backup leadership, they can’t override the president’s decisions or act outside the authority granted by the board.
What they do:
- Assist the president.
- Step in when the president is absent.
- Manage special assignments.
What they don’t do:
- Override the president’s authority.
- Make unilateral decisions outside assigned duties.
3. Secretary
The secretary handles the official records of the association. This includes keeping accurate minutes of meetings, maintaining documents, and ensuring homeowners receive legal notices. Due to the nature of the role, a secretary should have attention to detail and organizational skills.
While the secretary’s role is primarily administrative, it is also essential for compliance with state laws and governing documents. They can’t edit the minutes to reflect personal opinions. Moreover, they can’t withhold documents that members have a legal right to view.
What they do:
- Record meeting minutes.
- Manage association records.
- Distribute notices.
What they don’t do:
- Change records based on personal preference.
- Keep documents from members who have rights to them.
4. Treasurer
The treasurer oversees the financial health of the association. This includes monitoring bank accounts, reviewing budgets, and ensuring the responsible management of reserve funds. The treasurer often works closely with accountants, bookkeepers, or management companies to produce accurate financial reports.
Additionally, the role of the treasurer is vital for protecting the community’s assets and ensuring financial transparency. They can’t spend money without board approval or mix association funds with personal accounts.
What they do:
- Oversee financial reporting.
- Manage accounts.
- Present budgets.
What they don’t do:
- Make financial decisions alone.
- Use HOA funds for personal use.
5. Non-Officer Board Members
Non-officer directors may not hold specific titles, but their role is just as important. They participate in board discussions, vote on major decisions, and may serve on committees.
Their presence ensures that there are different viewpoints in the discussion and that decisions reflect the community as a whole. These members cannot remain inactive or exploit their position for personal gain. Instead, they must actively contribute to the board.
What they do:
- Vote on board matters.
- Participate in committees.
- Represent the community.
What they don’t do:
- Remain inactive.
- Prioritize personal interests over community needs.
Is the HOA Manager Part of the Board?
The HOA manager is not part of the board. Instead, the manager acts as a professional whom the board hires to assist with operations. Their primary role is to carry out the policies and decisions set by the board.
An HOA manager’s duties often include handling day-to-day administrative tasks, managing vendors, collecting dues, and coordinating maintenance requests. They also serve as a point of contact for homeowners.
The key difference between the HOA board and the HOA manager is authority. The manager doesn’t have the power to make policy decisions, approve budgets, or enforce rules without the board’s direction. They work under the board’s guidance and within the limits of the management contract.
Knowledge is Power
The HOA board serves as the backbone of community governance. Understanding the responsibilities of the board allows homeowners to keep their leaders in check. At the same time, board members can ensure they fulfill their roles to the best of their abilities.
Majerle Management, Inc. provides enforcement assistance to HOAs and condo associations in Maryland. Call us today at (301) 220-1850 or contact us online to get started!
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